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Home >> Business
UPDATED: 13:14, December 29, 2004
Turning GDP "light" and "green"
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A group of figures are quite gratifying when one reviews Shanghai's economic development at the yearend. As the city, which has the largest resource consumption in China, Shanghai has the smallest energy consumption per 10,000 yuan of GDP. For now the figure stays at about 1.07 tons of coal equivalent, which is far below the national average level of 2.6 tons.

According to statistics since the 1990s while the aggregate GDP of Shanghai keeps growing as the economy develops at a two-digit speed the per unit energy consumption is decreasing by about 4 percent every year. Compared with the beginning of the 1990s comprehensive consumption of energy per 10,000 yuan of GDP has dropped 75 percent. Energy consumption per 10,000 yuan of industrial added value has also dropped by 70 percent. Since GDP growth-related material consumption, per capita material consumption and per unit GDP material intensity are shrinking Shanghai's GDP is becoming "lighter".

Adhering unswervingly to promotion of industrial structure upgrade and consumption reduction is a fundamental policy adopted by Shanghai to achieve the "lightening" of economic structure. Therefore Shanghai has made the strategic decision to prioritize development of modern service industries that consume less resource and have less impact on the environment and advanced manufacturing industries. Meanwhile it strictly limits the extensional development of heavy and chemical industries that consume resources heavily and reduce their aggregate scale. For disadvantaged enterprises with high energy consumption, heavy pollution and little returns such as small smelting and cement factories elimination process is accelerated. Advanced technologies are applied to rebuild traditional industries so that in about ten years five key factors including population, industry, infrastructure, resources and environment can be coordinated and balanced and a "lightening" development path appropriate for ultra-large cities can be forged.

This year Shanghai has also made gratifying progress in reducing consumption systematically. It not only released the first Industrial Energy Efficiency Guidelines in China but also is compiling a new set of industrial assessment index system and conducting research on differentiated industrial policies. This system will no longer use economic indices such as production value, profits and revenue as the only industrial assessment criteria. Instead, it combines 14 indices including various aspects such as land use, resources, environmental protection, employment, returns and technological innovation etc, making comprehensive analysis and assessment according to various weights. Adjusting and optimizing energy structure, reducing the pressure of energy consumption on environment are the importance measures with which Shanghai turn GDP "green". In recent years Shanghai reduces the proportion of coal consumption in the total energy consumption from more than 70 percent in the 1990s to now less than 60 percent. To do so they adopt such measures as limiting the total consumption of coal, reforming urban coal-fired boilers and replacing it with clean energy sources.

By People's Daily Online

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