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The inflection point of energy saving and emission reduction will expand the current high pollution industry to curb
In the first half of this year, China made notable progress toward its energy consumption and pollution reduction targets, with both goals showing significant improvement in terms of implementation. The turning point is becoming visible, and the momentum for energy conservation and emission reduction remains strong. However, Qi Jianguo, deputy director of the Institute of Quantitative and Technical Economics at the Chinese Academy of Social Sciences, emphasized on October 28 that although progress has been made in terms of time, measures, and results, the situation is still not optimistic. Completing these two targets during the "Eleventh Five-Year" period will continue to face considerable challenges.
The task of meeting the energy efficiency and pollution control goals is becoming increasingly difficult. According to statistics, from 2000 to 2005, China's energy consumption per unit of GDP rose every year. Given the difficulty of adjusting the industrial structure, reversing the upward trend in energy intensity has proven to be a major challenge. While the positive trend observed since the second half of last year is encouraging, achieving the goals set by the "Eleventh Five-Year Plan" remains a tough task.
Qi Jianguo pointed out that high-energy-consuming industries are still growing rapidly. The recent decline in energy consumption per unit of GDP was mainly due to improved power generation efficiency by utilities. However, as high-polluting and high-energy sectors continue to expand, and the potential for shutting down small thermal power plants is limited, achieving further energy savings is becoming more challenging.
On the other hand, sulfur dioxide emissions have started to decrease in the first half of the year, and chemical oxygen demand emissions have dropped nearly 3.5 percentage points compared to the same period last year. This suggests that a turning point in the overall reduction of major pollutants is approaching. However, there is still an imbalance in the distribution of pollutants across regions and industries, indicating that there is still significant room for further reductions. It also reflects that the expansion of high-energy and high-pollution industries has not yet been fully controlled.
According to reports, the six major industries—electricity, steel, non-ferrous metals, building materials, petrochemicals, and chemicals—accounted for nearly 70% of the country’s industrial energy consumption and sulfur dioxide emissions. These sectors, which are highly energy-intensive and polluting, saw growth rates exceeding 15% in the first half of 2007.
Looking ahead, environmental access standards are expected to become stricter. Wang Tongsan, director of the Institute of Quantitative Economics and Technology Economics at the Chinese Academy of Social Sciences, believes the current situation is not optimistic because the effectiveness of China’s energy-saving and emission-reduction efforts is still largely driven by administrative measures rather than corporate self-awareness.
He warns that without a sound legal framework and proper resolution of related issues, the progress made so far could be reversed. To ensure long-term success, a sustainable mechanism for energy conservation and emission reduction must be established, with a focus on institutional frameworks and long-term planning.
To achieve the "Eleventh Five-Year" targets, Wang suggested implementing even stricter environmental access standards, strengthening incentives for energy efficiency and pollution control, increasing environmental protection fees, improving tax policies for green initiatives, and enhancing financial support for energy conservation and environmental protection projects. Additionally, he emphasized the need to use legal means to ensure that the energy-saving and emission reduction goals are met on schedule.