(China Daily)
Updated: 2007-12-03 07:44

In comparison with the lack of progress on energy conservation last year, China has made remarkable achievement in cutting its energy intensity so far this year.

Latest statistics show that the country's energy use per unit of GDP dropped 3 percent in the first nine months, compared to 2.78 percent in the first half of this year.

The reduction of energy intensity is clear evidence that many of the energy-saving efforts the government has made are finally starting to take effect.

However, while this year might mark a turning point in the nation's campaign to raise energy efficiency and strengthen environmental protection, a sense of urgency remains since the country is yet to progress fast enough to meet its five-year energy and environmental goals.

To lower its energy consumption per unit of GDP by 20 percent between 2006 and 2010, China needs to cut its energy intensity by 4 percent each year during this period. But last year, to our disappointment, it could only manage to lower the index by 1.33 percent.

Inefficiency in energy use, in theory, should make early improvement relatively easy. The failure to meet the 4 percent goal last year indicates that many local officials had not got tough enough with the energy-guzzlers. After many years of extensive economic growth, it will of course take time for local governments to sharpen their energy-saving and environmental protection awareness to aggressively implement the regulations.

The country's quickened pace on raising energy efficiency can be attributed to enhanced efforts the central authorities have made in this regard. In particular, after the central government recently made clear that energy efficiency is a political priority, and that officials will be judged in large part on conservation and pollution results, it is hoped that governments at all levels will attach unprecedented importance to cutting energy intensity.

Earnest implementation of energy-saving and environmental protection policies by local governments is certainly vital to the country's success to meet its five-year energy and environmental goals. But a fundamental structure change of the national economy is of no less significance.

The government has been more and more resolute in shutting down small industrial polluters with low energy efficiency. But to cut the energy intensity of the overall economy, the country has to rein in energy-consuming industrial growth while boosting development of the service sector.

(China Daily 12/03/2007 page4)