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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, significant progress has been made in achieving the two key targets—reducing energy consumption per unit of GDP and lowering the total discharge of major pollutants. According to Qi Jianguo, deputy director of the Institute of Quantitative and Technical Economics at the Chinese Academy of Social Sciences, the inflection point is becoming visible, and the momentum behind energy conservation and emission reduction remains strong. However, he also pointed out that despite the positive developments in terms of time, measures, and results, the situation is not as optimistic as it seems. Completing these goals under the "Eleventh Five-Year Plan" still presents considerable challenges.
The task of meeting these targets is becoming increasingly difficult. Statistics show that from 2000 to 2005, China’s energy consumption per unit of GDP rose every year. With the industrial structure adjustment proving challenging, reversing this upward trend in energy intensity remains a tough task. Although the second half of last year saw a continued improvement, achieving the targets set for the "Eleventh Five-Year Plan" remains a formidable challenge.
Qi Jianguo noted that high-energy-consuming industries are still expanding rapidly. The recent decline in energy consumption per unit of GDP was mainly due to improved efficiency in power generation, driven by slight reductions in power output. However, with these industries continuing to grow and the potential for shutting down small thermal power plants being limited, the path to achieving energy-saving goals is becoming more complicated.
Meanwhile, sulfur dioxide emissions have started to decline, and chemical oxygen demand (COD) emissions have dropped by nearly 3.5 percentage points compared to the same period last year. This suggests that the turning point for reducing overall pollutant discharges is approaching. However, there remains an imbalance in the distribution of major pollutants across regions and industries, indicating significant potential for further reductions. It also highlights that the expansion of high-energy and high-pollution industries has not yet been fully curbed.
According to reports, the six major industries responsible for nearly 70% of industrial energy consumption and sulfur dioxide emissions—such as electricity, steel, non-ferrous metals, building materials, petroleum refining, and chemicals—still saw growth rates exceeding 15% in the first half of 2007.
Wang Tongsan, director of the Institute of Quantitative Economics and Technology Economics at the Chinese Academy of Social Sciences, expressed concerns about the effectiveness of current energy-saving and emission-reduction efforts. He emphasized that these efforts are still largely based on administrative measures rather than corporate initiative. If the legal framework related to energy saving and emissions reduction is not strengthened and other issues remain unresolved, past achievements could be reversed.
To ensure long-term success, Wang suggested that the establishment of a sustainable mechanism for energy conservation and emission reduction should start with institutional reform and a long-term vision. He recommended implementing stricter environmental access standards, enhancing incentives for energy efficiency, increasing environmental protection fees, improving tax policies for energy conservation, and strengthening financial services in the environmental sector. Additionally, legal means should be used to ensure that the "Eleventh Five-Year Plan" targets for energy saving and emission reduction are met on schedule.