The government has mandated a reduction in energy use this year, 　　but many wonder whether and how that goal can be achieved
　　Pressure is mounting for China to reduce its energy consumption, but many say the government’s target of cutting energy use per unit of gross domestic product (GDP) by 4 percent this year will be a major hurdle.
　　Nearly half of the provinces and autonomous regions in the country are facing this pressure, and officials are trying to find ways to achieve this goal.
　　“It will be difficult for our province to fulfill this requirement,” said Yu Youjun, Governor of Shanxi Province, which boasts the largest coal reserves in China. “Nevertheless, we’ll manage to fulfill the target. It’s a trend to follow the path of
　　scientific development, which should be energy-saving.”
　　Even officials from the National Development and Reform Commission, China’s top economic planner that set the target, acknowledge that it will be very difficult to realize. “However, we must achieve this. We should stop wasting resources and destroying the environment in pursuit of economic development,” said Jiang Weixin, Vice Minister of the commission.
　　At this year’s session of the National People’s Congress in March, Premier Wen Jiabao proposed that, over the next five years, energy consumption per unit of GDP should be reduced by 20 percent, with this year’s target set at 4 percent.
　　China’s GDP accounted for 4.4 percent of the world’s output in 2004. But the crude oil, coal, iron ore, iron and steel, aluminum oxide and cement consumed by China accounted for 7.4 percent, 31 percent, 30 percent, 27 percent, 25 percent and 40 percent of the world total, respectively.
　　Experts explained that China’s energy consumption per dollar of GDP is 11.5 times that of Japan, 7.7 times that of France and Germany and four times more than that of the United States.
　　In 2005, China’s total energy consumption totaled 2.22 billion tons of standard coal equivalent. Energy consumed per 10,000 yuan of GDP was 1.43 tons of coal equivalent, the same level as in 2004. For a number of years, China’s surging economy has been highly energy intensive.
　　
　　Goal achievable?
　　
　　The Chinese Government has set energy consumption as a measure in assessing officials’ achievements. Beginning this year, China is including energy conservation and exhaust reduction in its assessment of economic and social development. Each year, energy consumption data for each region and main industrial sectors will be publicized.
　　In 2001, China developed a plan to reduce energy consumption per unit of GDP in 2005 by 15-17 percent compared with 2000. According to this timetable, total energy consumption should be 1.53 billion tons of coal equivalent, with 1.22 tons of coal equivalent consumed per unit of GDP. In fact, as of the end of 2005, national energy consumption was actually 2.22 billion tons of coal equivalent, with 1.43 tons of coal equivalent consumed per unit of GDP, or 16.4 percent more than the planned amount.
　　Therefore, many people wonder whether the government can realize its goal of reducing energy consumption per unit of GDP by 4 percent in 2006, and by 20 percent in 2010.
　　“In my opinion, it’s very difficult, as it involves the most crucial problem of changing the economic growth mode,” said Yu Guosheng, Deputy Director of the Shanghai Municipal Development and Reform Commission.
　　Chen Zhenggao, a leading official in Shenyang, Liaoning Province, agreed with Yu’s assessment, noting that most enterprises still use outdated equipment and technology that guzzle energy.
　　The biggest obstacle may come from enterprises. “In order to reduce energy consumption, enterprises should upgrade their equipment and technology. But who will pay for this?” said Bian Mingtao, a member of the National Committee of the China People’ Political Consultative Conference. Bian suggested that the government should promulgate encouraging policies and subsidize enterprises for the cost of reducing energy consumption.
　　Yet others take a more optimistic view. “To some regions, the pressure of reducing energy consumption is great. But in my opinion, on average, the aim is realizable,” said Huang Xiaoyong, a professor with the Chinese Academy of Social Sciences.
　　
　　A dichotomy
　　
　　According to Huang, the energy efficiency of the coastal developed regions has been increasing and is greater than in inland areas. In 2004, Shanghai’s energy consumption per unit of GDP was 1.02 tons of coal equivalent, 65 percent of the national level, while that of Shandong Province was 1.03 tons of coal equivalent, Jiangsu Province, 0.94 tons and Zhejiang Province, 0.81 tons.
　　Qingdao, a coastal city with booming export-oriented businesses in Shandong, has achieved rapid economic development but is efficient in energy consumption. In 2004, the index was 0.94 tons of coal equivalent.
　　The local government set the goal of reducing energy consumption per unit of GDP to 0.85 tons of coal equivalent in 2006 and to 0.72 tons in 2010, a reduction of nearly 30 percent, or 10 percentage points higher than the country’s planned goal. “We’re sure to realize this goal,” said Xia Geng, Mayor of Qingdao.
　　However, economically backward inland provinces and autonomous regions will find it hard to meet the goal, Huang conceded.
　　Shanxi teems with coal mines and iron and steel plants. But it also consumes a lot of energy. In 2005, energy consumption per unit of GDP in the province was 1.6 times the national level.
　　Shanxi has decided to maintain its current level of coal mining, help energy-consuming enterprises to carry out technological renovation, and eliminate small steel works with backward technology over the next five years.
　　Governor Yu said Shanxi will examine and evaluate the energy impact of investment projects annually consuming 3,000 tons of coal equivalent or more, and will not permit investment in those that do not meet the energy-saving target. Existing plants that do not meet energy consumption requirements must be renovated within the prescribed time.
　　Meanwhile, the province will accelerate the development of equipment manufacturing, new material and pharmaceutical industries to replace coal mining as the pillar of the local economy.
　　“Shanxi is abundant in energy. I hope it can also be efficient in using it,” Yu said.
　　
　　New measures
　　
　　According to the National Development and Reform Commission, four methods will be used to reduce energy consumption.
　　-- Industrial restructuring. Efforts should be made to accelerate the development of its hi-tech industry, restrict the growth of sectors or enterprises with high energy consumption, heavy pollution and low technological intensity, and eliminate them as soon as possible.
　　-- Technological renovation. China has already begun transforming energy-consuming sectors and enterprises with high and advanced technology.
　　-- Making use of price, finance and tax leverages. An environmental tax will be imposed on sectors and enterprises with high energy and water consumption and those that cause heavy pollution, in addition to a resource tax levied on the use of scarce resources. Preferential treatment in loan bid and taxation should be applied to projects and products in accordance with a cyclic economy.
　　-- Social mobilization. An energy conservation campaign will be initiated to cover all enterprises, government departments and households.
　　“We will focus on three sectors--industry, construction and transportation,” said Jiang Weixin, Vice Minister of the National Development and Reform Commission. The three sectors make up the bulk of the country’s energy consumption.
　　China is implementing 10 key energy-saving projects, tracking, monitoring and inspecting 1,000 enterprises with high energy consumption, including the Shougang Group and Beijing Yanshan Petrochemical Co. Ltd.
　　Jiang pointed out that industrial enterprises account for 60 percent of the energy consumed by the whole country and the listed 1,000 enterprises take 60 percent of the entire sector’ total. To start the energy conservation program with those enterprises is essential, he said. The government is requiring the enterprises to report their energy consumption and will guide them in adopting energy-saving technologies so that they can reduce their energy consumption by a substantial percentage each year.
　　According to Qiu Baoxing, Vice Minister of Construction, the renovation of office buildings of about 10 ministries, including the Ministry of Construction, has begun, as a test of large-scale energy-saving reconstruction of existing buildings.
　　“In 2010, China’s urban buildings are expected to reduce energy consumption by 50 percent and in metropolises and some large cities by 65 percent,” said Qiu. “Large cities should complete the renovation of 25 percent of existing residential and public buildings; medium-sized cities, 15 percent, and small cities, 10 percent. In 2020, most of the buildings should be renovated.”
　　Regarding an expanding fleet of private cars that guzzle fuel every day, the Chinese Government have released a series of policies encouraging autos with small and medium-sized engines, and further tax those with large engines.

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