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Pressure to lift air quality fuels energy efficiency efforts

By Richard Fu   (Shanghai Daily)

10:04, March 06, 2013

FACING intense pressure to improve the nation's air quality China aims to enhance efforts to improve energy efficiency this year compared to last year as the government continues to seek a more environmental-friendly growth model.

Energy consumption per unit of gross domestic product, or energy intensity, will be cut by at least 3.7 percent in 2013, the National Development and Reform Commission, China's top planning agency, said in a report yesterday.

Energy intensity fell 3.6 percent in 2012, beating the government's target of 3.5 percent.

Carbon dioxide emission per unit of GDP will also fall 3.7 percent this year, the NDRC said.

China will allocate 2.37 trillion yuan (US$380.6 billion) on energy saving and emission reduction in the 12th Five-Year Plan period between 2011 and 2015, the State Council said in August.

The government is also reforming its pricing mechanism and tax regime on energy products to reflect the scarcity of resources and encourage conservation.

This year, China will improve its pricing mechanism on fuel products to better reflect changes in the global crude oil markets, the NDRC said. The new mechanism may be unveiled after the NPC, according to analysts at Sanford C. Bernstein.

The government will also extend a trial program on natural gas pricing this year, which was unveiled in Guangdong Province and Guangxi region in December 2011, the NDRC said.


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