China Arranges Additional $1.32 Billion for Energy Conservation and Pollutant Discharge Reduction

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Researched by Industrial Info Resources (Sugar Land, Texas). The Chinese government decided recently to add $1.32 billion of additional investment from central financing to promote energy conservation and pollutant discharge reduction in China this year, which was announced by the National Development and Reform Commission (NDRC) on July 27, 2007. This represents the Chinese government’s commitment to energy conservation and pollutant discharge reduction at an unprecedented strategic height.

In the beginning of the year, the Chinese government arranged $829 million from national debt and budget of the central government and $750 million from budget of the central financing for investments in energy conservation and pollutant discharge reduction. Together with the $1.32 billion of additional investment from the central financing, the total investment for energy conservation and pollutant discharge reduction in China will reach $2.8 billion this year. Among them, the investment for ten important energy conservation projects and the construction of management capability on energy conservation reached $1.18 billion, which is thirteen times the amount spent in the previous year.

The Chinese government set the objective to reduce specific energy consumption of the GDP by 20% during the “Eleventh Five-Year Plan” (2006-2010). However, the expected target was not achieved in the first year of the “plan”. The specific energy consumption was reduced 1.33% last year, which is far less than the annual target of 4%.

In the first five months of this year, the specific energy consumption of the GDP reduced over 2% compared with the same period of the previous year, and the emission of SO2 reduced 0.6%, which is much better than last year.

However, considering the fast industry growth in heavy energy consumption and pollutant discharge sectors in the first half this year, energy conservation and pollutant discharge reduction is still not an easy job in China.

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