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The State Council Releases the "Comprehensive Work Plan for Energy Conservation and Emission Reduction During the 12th Five-Year Plan Period": 50 Policy Measures to Ensure the Attainment of Compulsory Energy-Conservation and Emission-Reduction Targets - Official at the National Development and Reform Commission Answers Journalists' Questions Regarding the "Comprehensive Work Plan for Energy Conservation and Emission Reduction During the 12th Five-Year Plan Period"
The State Council recently issued the "Comprehensive Work Plan for Energy Conservation and Emission Reduction During the 12th Five-Year Plan Period" (No. 12 [2011] of the State Council, hereinafter referred to as "the Plan") which puts forward 12 major areas and 50 policy measures. Journalists interviewed the relevant official at the National Development and Reform Commission to find out more about the Plan.
Q: Please tell us about the background to the formulation of the Plan.
A: During the 11th Five-Year Plan period, for the first time the state adopted significantly reducing energy consumption and cutting the total discharge of major pollutants as compulsory targets for national economic and social development. Over the past five years, all localities and departments have conscientiously implemented the decisions and plans of the Central Committee and State Council and have achieved remarkable results in making energy conservation and emission reduction an important starting point and a breakthrough for restructuring the country's economy, transforming its pattern of economic development and promoting scientific development. National energy consumption per unit of GDP is down 19.1% and sulfur dioxide and chemical oxygen demand (COD) emissions are down 14.29% and 12.45% respectively; the compulsory targets laid down in the Outline of the 11th Five-Year Plan have been achieved and the significant upward trends in energy consumption per unit of GDP and emissions of major pollutants during the later period of the 10th Five-Year Plan have been reversed, providing strong support for maintaining stable and rapid economic development and making an important contribution to addressing global climate change.
During the 12th Five-Year Plan period, China is still in a period of important strategic opportunities for its development. With the accelerated progress of industrialization and urbanization and the continued upgrading of consumption patterns, China's energy demand is showing rigid growth. This growth is affected by the country's ability to safeguard domestic resources and its limited environmental capacity, as well as by global energy security and the fight against climate change. Constraints on resources and the environment are increasing day by day and the situation regarding energy conservation and emission reduction remains extremely serious. Particularly in China, energy conservation and emission reduction work still faces problems such as lack of enforcement of responsibility, increased difficulty of advancement, insufficiently-robust incentive and restraint mechanisms, inadequate work at basic level, sluggish capability-building and ineffective supervision. To ensure the attainment of the compulsory energy conservation and emission reduction targets laid down in the Outline of the 12th Five-Year Plan, the State Council very recently issued the Comprehensive Work Plan for Energy Conservation and Emission Reduction During the 12th Five-Year Plan Period.
The Plan is a programmatic document promoting the energy conservation and emission reduction tasks of the 12th Five-Year Plan. It clearly sets forth the overall emission reduction requirements, main targets, key tasks and policy measures of the 12th Five-Year Plan, and comprises a total of 50 articles divided into 12 sections. The twelve sections are respectively: Overall emission reduction requirements and main targets Enhance energy conservation and emission reduction target responsibilities Industrial restructuring and optimization Implement key energy conservation and emission reduction projects Strengthen energy conservation and emission reduction management Vigorously develop a circular economy Accelerate the development of energy saving technology and popularize its use Perfect economic policies for energy conservation and emission reduction Enhance supervision and control of energy conservation and emission reduction Promote energy conservation and emission reduction marketization mechanisms Strengthen basic work and capability-building in energy conservation and emission reduction Mobilize the whole of society to participate in energy conservation and emission reduction.
Q: What are the overall energy conservation and emission reduction requirements of the 12th Five-Year Plan?
A: The overall energy conservation and emission reduction requirements put forward in the 12th Five-Year Plan are: taking Deng Xiaoping Theory and the essential thinking of Three Represents as a guide, to thoroughly apply a scientific outlook on development, persist in lowering the intensity of energy consumption, reduce total emissions of major pollutants, and rationally control total energy consumption, creating a driving mechanism to accelerate the transformation of the country's pattern of economic development; To persist in strengthening responsibility, bolstering the legal system, perfecting policies, and reinforcing supervision, while establishing and improving incentive and restraint mechanisms; To persist in optimizing industrial structure, promoting technological progress, enhancing project measures, and strengthening management and guidance, substantially improving efficiency of energy use and significantly cutting discharge of pollutants; To further create a government-led, effectively market-driven setup for pushing forward energy conservation and emission reduction work which hands enterprises a leading role and involves the participation of the whole society, to ensure the fulfillment of the 12th Five-Year Plan compulsory emission reduction targets and accelerate the building of a resource-saving and environmentally-friendly society.
Q: What are the main targets for energy conservation and emission reduction set forth in the 12th Five-Year Plan?
A: The Plan refines the energy conservation and emission reduction targets set forth in the Outline of the 12th Five-Year Plan. With regard to energy efficiency, the target for 2015 is a reduction in the national energy consumption per 10,000 yuan of GDP to 0.869 tons of standard coal (calculated at 2005 prices), which represents a reduction of 16% compared with the 1.034 tons of standard coal in 2010 and 32% compared with the 1.276 tons of standard coal in 2005; During the 12th Five-Year Plan period we must achieve energy savings of 670 million tons of standard coal. As regards the reduction of emissions, the targets for 2015 are to control chemical oxygen demand and sulfur dioxide emissions at 23.476 million tons and 20.864 million tons respectively, representing a reduction of 8% on the 25.517 million tons and 22.678 million tons respectively recorded in 2010;National ammonia and nitrogen oxide emissions must be controlled at 2.38 million tons and 20.462 million tons respectively, a reduction of 10% on the 2.644 million tons and 22.736 million tons respectively recorded in 2010.
In attachment format, the Plan also defines the 12th Five-Year Plan energy conservation targets, COD control programs, ammonia emission control plans, sulfur dioxide emission control plans and NOx emission control plans for all regions.
Q: How does the Plan envisage strengthening responsibility for fulfilling energy conservation and emission reduction targets?
A: The Plan proposes to strengthen responsibility for fulfilling energy conservation and emission reduction targets in three ways. First, through the rational allocation of energy conservation and emission reduction targets. National emission reduction targets will be rationally allocated to the regions, considering as a whole the level of economic development, industrial structure, energy-saving potential, environmental capacity, national deployment of industries and other factors. Take for example the allocation of energy conservation targets:18% reduction in Tianjin, Shanghai, Jiangsu, Zhejiang, Guangdong;17% reduction in Beijing, Hebei, Liaoning, Shandong;16% reduction in Shanxi, Jilin, Heilongjiang, Anhui, Fujian, Jiangxi, Henan, Hubei, Hunan, Chonqging, Sichuan, Shaanxi;15% reduction in Inner Mongolia, Guangxi, Guizhou, Yunnan, Gansu, Ningxia;10% reduction in Hainan, Tibet, Qinghai, Xinjiang. Second, by improving energy conservation statistical, monitoring and evaluation systems. We will enhance statistics on energy production, distribution and consumption; establish and perfect the statistical systems for construction, transportation and public organization energy consumption; perfect statistical, accounting and monitoring methods and assessment measures for energy conservation; continue to publish bulletins on national and regional energy consumption per unit of GDP and major pollutant emission targets. Third, by enhancing evaluation and assessment of target responsibilities. We will combine the assessment of regional targets with the evaluation of industry targets, combine the enforcement of five-year targets with the completion of annual target assessments, and combine the assessment of annual targets with progress tracking in order to solve problems such as year-round adherence to energy conservation and emission reduction schedules. Every year the State Council will carry out an assessment and evaluation of the provincial people's government target responsibilities for energy conservation and emission reduction. The assessment results will form an important component in the comprehensive appraisal and evaluation of leading bodies and leading cadres, and will be incorporated into governmental and state-owned enterprise performance management. The State Council will also implement an accountability system, and commend and award areas, organizations and individuals that have achieved outstanding success.
Q: As regards the promotion of industrial restructuring and optimization, what policy measures does the Plan put forward?
A: The Plan proposes: first, that we must limit the excessively rapid expansion of energy-intensive and highly-polluting industries. We must strictly control energy-intensive, highly-polluting industries and industries with excess production capacity, further raise the industry entry threshold, and strengthen energy conservation, environmental protection, land, security and other target restrictions. We must control the export of energy-intensive, highly-polluting products. In encouraging industries to relocate to central and western regions we must adhere to high standards, strictly prohibiting polluting industries and backward production capabilities. Second, we must eliminate backward production capabilities. On an annual basis we will allocate tasks for implementation in all regions, perfect the withdrawal mechanism, provide guidance, press for the closure of backward manufacturing enterprises and create jobs for laid-off workers, with the central government supporting regional efforts to eliminate backward production facilities. Third, we must promote the reforming and upgrading of traditional industries. We will accelerate the transformation and upgrading of traditional industries through new and high technology and advanced applied technologies, promote the in-depth integration of information technology with industrialization, and focus on supporting key projects and the relocation and transformation of heavily-polluting enterprises, both of which play an important role in industrial upgrading. Fourth, we need to adjust the country's energy consumption pattern. We will develop hydropower on the basis of ecological protection and resettlement, develop nuclear power on the basis of ensuring safety, accelerate the development of natural gas, and develop renewable wind, solar, biomass and geothermal energy in accordance with local conditions. By 2015, the proportion of consumption of non-fossil energy to the consumption of primary energy will be increased to 11.4 percent. Fifth, we will increase the proportions of the national economy accounted for by the service industry and by strategic and newly-emerging industries. By 2015, the proportion of GDP accounted for by the added value of the service industry and of strategic and newly-emerging industries will be increased to around 47% and 8% respectively.
Q: What do the key energy conservation and emission reduction projects put forward in the Plan involve? As regards the strengthening of energy conservation management, in what aspects does the Plan put forward requirements?
A: There are eight main aspects: First, the rational control of energy consumption. We will establish a mechanism for sharing out tasks and responsibilities with regard to total consumption control targets, and formulate implementation schemes. We will make energy conservation evaluation and review of fixed asset investment projects an important measure for controlling total regional energy consumption and increases in regional energy consumption. We will establish a forecasting and early warning mechanism in respect of total energy consumption, and ensure early warning and timely regulation of regions with excessive growth in energy consumption. We will strengthen all aspects of energy utilization management in industry, buildings, transportation, and public organizations, as well as in the fields of urban and rural construction and consumption. Second, we will enhance the energy conservation management of key energy-consuming units. In accordance with the law we will strengthen the energy conservation management of units whose annual energy consumption totals 10,000 tons of standard coal or more, carry out a far-reaching campaign to promote energy conservation and the low-carbon economy to enterprises, and achieve energy savings of 250 million tons of standard coal. Third, we will strengthen industrial energy conservation and emission reduction. We will focus on promoting energy conservation and emission reduction in the electricity, coal, steel, nonferrous metal, petroleum and petrochemical, chemical, building material, paper production, textile, printing and dyeing, food processing and other industries, define objectives and tasks, strengthen industry guidelines, promote technological progress, and enhance supervision and management. Fourth, we will promote building energy conservation. We will develop and implement a Green Buildings Action Plan, and comprehensively promote building energy conservation from the point of view of planning, regulation, technology, standards, design and other aspects. Fifth, we will promote energy conservation and emission reduction in transportation. We will actively develop urban public transport, carry out low-carbon transportation initiatives, and speed up the elimination of old means of transport. Sixth, we will promote agricultural and rural energy conservation and emission reduction. We will speed up the elimination of old farm machinery, and promote energy-saving agricultural machinery, equipment and fishing vessels. We will control agricultural nonpoint source pollution, comprehensively improve the rural environment, and implement rural clean-up projects. Seven, we will promote commercial and residential energy conservation. We will carry out energy conservation actions in the retail sector, trade and business service sector and the tourism industry, popularize the use of energy-efficient appliances and lighting products among residents, and encourage them to purchase energy-saving vehicles. We will reduce the use of disposable articles and limit excessive packaging. Eight, we will strengthen energy conservation and emission reduction in public organizations. We will impose stricter energy conservation standards on new buildings, and accelerate the energy conservation transformation of offices. We will impose the charging of heat supply by actual consumption on state bodies. We will push forward the reform of the government service car system. We will establish and improve the system for public sector energy auditing, energy efficiency public notification and energy consumption quota management.
Q: What requirements does the Plan put forward for the vigorous development of the circular economy?
A: The Plan proposes that we must strengthen macro-guidance on the circular economy, compile a national circular economic development program and special programs for key areas, intensify demonstration pilot projects, and promote the typical model of the circular economy. At the same time, the Plan proposes specific tasks as regards the following five aspects: implement clean production in all industries, promote the comprehensive use of resources, speed up the industrialization of resource recycling, promote waste resource utilization, and promote the building of a water-saving society.
Q: What provisions does the Plan put forward to accelerate the development of energy-saving technology and popularize its use?
A: The Plan proposes: first, that we must accelerate research and development of generic and key energy-saving technologies. We must organize efforts to tackle problems with generic, key and leading-edge technology in respect of energy conservation and environmental protection. Second, we must increase demonstration projects in the industrialization of energy-saving and emission-reduction technologies. We must focus on supporting the industrialization of key energy-saving and emission-reduction technologies and equipment, and accelerate the building of industrialization bases. Third, we must accelerate the popularization of energy-saving and emission-reduction technologies, and establish a technology selection, evaluation and promotion mechanism. We must focus on promoting a number of appropriate advanced technologies. Fourth, we must strengthen exchange and cooperation with the relevant international organizations and governments in the fields of energy conservation and environmental protection, actively introducing, assimilating and absorbing advanced foreign technology and increasing efforts to promote it.
Q: Please explain in detail what economic policies the Plan defines to promote energy conservation and emission reduction.
A: The Plan proposes four economic policies conducive to energy conservation and emission reduction, in the areas of pricing, finance, taxation and banking.
Pricing and charging policy. First, we will intensify the reform of resource product pricing, and balance the price relations between coal, electricity, oil, gas, water and mineral resource products. We will introduce tiered pricing for household consumption of electricity and water. We will improve time-of-use electricity pricing measures. We will intensify the reform of the heating system, and fully implement the metered charging of heat supply to reflect the actual consumption of each household. Second, we will impose punitive electricity tariffs on enterprises and products that exceed state and regional per-unit product energy consumption (electricity consumption) quota standards. All regions may, on the basis of state regulations and in accordance with procedures, intensify the implementation of differential and punitive electricity tariffs. Third, we will strictly implement desulfurization electricity tariffs, and formulate electricity tariff policies for flue gas denitrification in coal-fired power plants. Fourth, we will further improve the sewage treatment fee policy, and study the problem of sludge treatment charges being gradually incorporated into sewage treatment costs. Fifth, we will reform the waste disposal charging method, increase charge collection efforts and reduce related costs.
Fiscal policy. First, central budgetary funding will be increased and special funds allocated by the central government to accelerate the implementation of key projects and capability-building in respect of energy conservation and emission reduction. Local governments also need to increase spending on energy conservation and emission reduction. We will strengthen support mechanisms including the substitution of rewards for subsidies, the promotion of governance through rewards, and the use of government subsidies to promote energy-efficient products, enhancing the guiding role of public funds. Second, the budget for use of state capital must continue to support enterprises implementing energy-conservation and emission-reduction projects. Third, we will implement government green procurement, improve the mandatory procurement and priority procurement systems, gradually raise the proportion of energy-saving and environmental-protection products, and study and implement government procurement of energy-conservation and environmental-protection services.
Taxation policies. First, national income tax, value added tax and other preferential policies for energy conservation and emission reduction will be implemented with state support. Second, we will actively push forward the reform of resource taxes, change the method of calculating and levying taxes on crude oil, natural gas and coal resources from collection by volume to collection by price and appropriately raise the tax burden, and sort out charging and fund items related to mineral resources and cancel unreasonable items in accordance with the law. Third, we will actively push forward the reform of environmental taxes and start collecting environment protection tax by selecting tax items with heavy prevention tasks and with established technical standards. Fourth, we will improve and implement preferential taxation policies to promote the comprehensive utilization of resources and the development of renewable energy. Fifth, we will adjust import and export tax policies, and curb the export of energy-intensive, high-emission products.
Financial policies. First, it is necessary to increase credit support from all types of financial institutions for energy-conservation and emission-reduction projects, and encourage financial institutions to create a credit management model that is appropriate for the characteristics of energy-conservation and emission-reduction projects. Second, we will guide all types of venture capital investment enterprises, equity investment enterprises, public donations funds and international aid funds to invest in energy conservation and emission reduction. Third, we will increase the loan threshold for energy-intensive and highly-polluting industries, incorporate information on corporate infringement of environmental law into the PBOC corporate credit information system and the CBRC information disclosure system, linking it to corporate credit rating, loans and securities financing. Fourth, we will introduce environmental pollution liability insurance. We will establishment a green rating system for banks.
Q: How will supervision and control of energy conservation and emission reduction be strengthened?
A: The Plan's proposals are as follows: first, it is necessary to perfect energy conservation and environmental protection laws and regulations. We must accelerate the formulation of urban drainage and wastewater treatment regulations, pollution discharge permit regulations, and regulations on the prevention and control of pollution from livestock and poultry breeding. Second, we must strictly enforce the energy conservation evaluation and review system and the environmental impact evaluation system. We must make the targets for total amount of pollutants discharged a precondition for the examination and approval of environmental impact assessments (EIA), and implement limited approval of interim EIA on areas and enterprises that fail to fulfill annual emission reduction targets and that fail to implement key emission reduction projects in accordance with target responsibility documents. Third, we must strengthen supervision of key pollution sources and treatment facility operations. Enterprises in the electricity, steel, paper-making, printing and dyeing, and other industries included in national key environmental monitoring schemes must install an operational management and monitoring platform and an automatic pollutant discharge monitoring system, regularly reporting operational and emissions information, and promoting the sharing of pollution source automatic monitoring data networks. Fourth, we need to strengthen the overseeing of energy conservation law enforcement. We will carry out special inspections relating to energy conservation and emission reduction, as well as law enforcement inspections on key energy-consuming units and key pollution sources. We will implement a responsibility system for enforcement of energy conservation and emission reduction laws.
Q: Which energy-conservation and emission-reduction marketization mechanisms does the Plan focus on promoting, in order to bring such systems into play?
A: The Plan's proposal to fully deploy the role of marketization mechanisms mainly includes intensifying the implementation of energy efficiency labeling and certification for energy-conservation and environmental-protection products, establishing a "pace-setter" standard system, strengthening energy generation dispatch and power demand side management, accelerating the implementation of contract energy management, promoting the pilot scheme for pollution rights and carbon emission rights trading, and introducing franchise operations for pollution treatment facilities.
Q: What aspects are involved in the strengthening of basic energy conservation and emission reduction work and capacity-building?
A: One, we must speed up construction of the energy conservation and environmental protection standards system. We will formulate (revise) mandatory national standards on energy consumption quotas, product energy efficiency and pollution discharge for key industries, units and products, as well as building energy efficiency standards and design specifications to raise the entry threshold. We will establish emission standards that meet ammonia and nitrogen oxide control target requirements. We will encourage localities to establish more stringent local energy conservation and environmental protection standards in accordance with the law. Second, we must strengthen capability-building in the management of energy conservation and emission reduction. We will establish and perfect energy conservation management and supervision to serve a "three-in-one" energy management system. We will continue to promote energy statistical capability-building. We will push key energy-consuming units to equip themselves with metering instruments in accordance with requirements, and introduce online acquisition and real-time monitoring of energy metering data.
The key energy conservation and emission reduction projects are: First, key energy conservation projects. These include energy-saving upgrade projects, projects for the industrialization and standardization of energy-saving technology, an energy-saving product discount program, and a contract energy management promotion project, forming an energy conservation capacity of 300 million tons of standard coal. Second, key emission reduction projects. These include urban sewage treatment facility and associated pipeline network construction projects, as well as desulfurization and denitrification projects, forming a reduction capacity of 4.2 million tons of COD, 400,000 tons of ammonia, 2.77 million tons of sulfur dioxide, and 3.58 million tons of nitrogen oxide. Third, key circular economy projects. These include projects for comprehensive utilization of resources, an obsolete product recycling system, a "city mine" demonstration base, the industrialization of remanufacturing, and industrial park circularization. The Plan also puts forward clear requirements for the raising of energy-conservation and emission-reduction funds through multiple channels; key energy-conservation and emission-reduction projects will be financed primarily by the project-implementing body through its own funds, loans from financial institutions and non-government funds, while the people's governments at various levels should allocate certain funds for the provision of support and guidance.
Q: What work and tasks does the plan put forward regarding the mobilization of the whole of society to participate in energy conservation and emission reduction?
A: The Plan puts forward three tasks. First, we must strengthen publicity and education on energy conservation and emission reduction. We will organize National Energy Conservation Week, World Environment Day and other themed awareness-raising activities to strengthen publicity and education on everyday energy conservation and emission reduction. Second, we will expand public campaigns on energy conservation and emission reduction. We will give high priority to ten special publicity and educational campaigns on energy conservation and emission reduction, focusing on: family communities, children and teenagers, businesses, schools, barracks, rural areas, government bodies, science and technology, popularization of science, and the media. Third, government bodies must take the lead in energy conservation.
Q: Please tell us about the State Council's requirements on the strict enforcement of energy-conservation and emission-reduction target responsibilities, and on strengthening the organization and leadership of energy conservation and emission reduction.
A: In its Circular on the Comprehensive Work Plan for Energy Conservation and Emission Reduction During the 12th Five-Year Plan Period, the State Council clearly sets out to: Strictly enforce energy-conservation and emission-reduction target responsibilities, and further create a government-led, effectively market-driven setup for pushing forward energy conservation and emission reduction work which hands enterprises a leading role and involves the participation of the whole society. We must effectively bring into play the guiding role of the government, further enforcing the working requirements that local governments take overall responsibility for energy conservation and emission reduction within their own administrative areas and that principal government leaders be the first persons responsible; We need to further clarify the primary responsibility of enterprises for energy conservation and emission reduction, strictly enforce energy-conservation and environmental-protection laws, regulations and standards, and refine and improve management measures and the implementation of objectives and tasks; We must further bring into play the role of market mechanisms and increase efforts to promote energy-conservation and emission-reduction marketization mechanisms, in order to genuinely transform energy conservation and emission reduction into inherent requirements of enterprises and of the various mainstays of society; We will further raise public awareness of resource conservation and environmental protection, and step up public campaigns to promote energy conservation and emission reduction to create a good environment in which the whole of society participates to jointly promote energy saving and emission reduction.
We will comprehensively improve the organization and leadership of energy conservation and emission reduction, pay close attention to supervision and inspection, and carry out strict accountability evaluation. The National Development and Reform Commission has been assigned by the State Council's Leading Group for Energy Conservation and Reduction of Pollutant Discharge to carry out specific work on enhancing the comprehensive coordination of energy-conservation and emission-reduction work, and organizing work to promote the conservation of energy and resources; The Department of Resource Conservation and Environmental Protection assumes primary responsibility for work relating to pollution and emission reduction; The National Bureau of Statistics is responsible for strengthening energy conservation statistics and monitoring work; Other departments must effectively perform their duties in close coordination with each other. The provincial people's governments must make immediate plans for the energy-conservation and emission-reduction work under the 12th Five-Year Plan within their areas, and further define the responsibilities, division of work and schedule requirements of the relevant departments.
(National Development and Reform Commission website)
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