China Stressing Energy Conservation

“We should make energy conservation a top economic strategy,” said Hu Jintao, Chinese prime minister, who presided over the 27th session of the Chinese Communist Party central politics meeting on December 25.

He appealed, “To build a resource-conservative, environmental-friendly society is the most significant and urgent issue.” Two keynote speakers, Feng Fei, Director of industrial economic institute for development research under state affairs institution, and Han Wen-ke, head of energy institution for macroeconomic adjustment institution under national development reform committee, stressed the importance of energy conservation. Hu said, “Balanced development among economic development, population growth, resources, and environment is a path toward sustainable development and new era of industrialization. The focus of economic policy over the next year should be on resource conservation and environmental preservation.”

The South China Morning Post reported on that day that President Hu delivered a strong warning to lackluster local government officials, saying, “The issue of energy and environmental conservation is directly linked to national and social security.”

Thanks to tremendous energy consumption, China is increasingly voicing the need for energy conservation. China’s energy consumption soared from 965.10 million TOE in 1996 to 1 billion 554 million TOE last year, up 61%. China’s GDP accounts for a fifth of that of America’s but as to energy usages, it is up to 66.5 % of that of America (2 B326.6 M TOE).

China’s oil imports rose 2.4 times over the last 4 years form 2.08 million barrel in 2001 to 7.06 million barrel last year. Energy consumption for each $1 million rise in GDP is 231 TOE, 1.5-1.6 times that of Japan and the U.K.

The Chinese government has decided to cut energy consumption per production unit by 20% until 2010 and allocated energy reduction targets, from 30 to 12 %, to every province. Emission reduction of 10% by 2010 is another goal. President Hu emphasized, “The 11th period of the five-year plan (2006-2010) will be significant for building a resource-conservative society.”

orionha@donga.com