November 20, 2008

China to improve on energy saving and pollution reduction mechanisms

Mr Xie Zhenhua deputy commissioner of the China’s State Development and Restructuring Commission, while speaking at the recent China Energy Saving and Pollution Reduction Forum, said that China will gradually improve its policies and procedures related to energy conservation and pollution.

Mr Xie said the Chinese government plans to revise directives for readjusting industrial structure and it will coordinate its industrial policies with those on credit, land, finance, taxes, prices, and quality control.

He said stricter rules will be adopted for companies seeking to enter some key areas and industries, to prevent the development of energy intensive, high pollution, low technology projects. He added that the country still faces severe problems with energy conservation and pollution, since the industrial structure has yet to be improved.

According to Mr Xie the central government will provide local governments with financial assistance, in the form of transfer payments, to help them reduce the capacity of energy intensive, high pollution industries. He criticized some localities for sticking to old style GDP centered targets while neglecting the issues of energy conservation and pollution reduction.

Mr Xie disclosed that the government plans to regulate prices of fuel and power, taxes on mineral resources like coal, non ferrous metals and iron ore as well as high emission cars and wooden flooring.