Progress of building a resource-conserving and environment-friendly society in 2005 and the priorities of work in 2006 - National Development and Reform Commission (NDRC) People's Republic of China

Progress of building a resource-conserving and environment-friendly society in 2005and the priorities of work in 2006
Reference material for the Fourth Session of the Tenth National People's Congress
2006-03-13
NDRC NEWS
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In 2005, government agencies across the country earnestly implemented the spirit of the Sixteenth National Congress of the Communist Party of China (CPC) and the Third, Forth and Fifth Plenary Sessions of the Sixteenth CPC Central Committee. Guided by the Scientific Concept of Development and centering on the implementation of strategic decisions made by the CPC Central Committee, we accelerated the building of a resource-conserving and environment-friendly society and achieved remarkable results.

I. Progress of Work in 2005

1. Strengthening macro guidance. The State Council issued two documents, Priorities of Near-Term Work in Building a Conservation-Oriented Society and Suggestions on Accelerating the Development of Cyclic Economy, and has intensified macro guidance. The State Council convened a videophone conference, and Premier Wen Jiabao attended it and delivered an important speech, which mapped out the work of building a conservation-oriented society.

2. Advancing structural adjustment. The State Council released the Interim Regulation on Promoting the Adjustment of Industrial Structure. The National Development and Reform Commission (NDRC) issued the Guiding Catalogue for the Adjustment of Industrial Structure, formulated development plans and industrial policies for key industries such as iron and steel, aluminum, cement, and oil refinery, and specified entry criteria on energy consumption, water consumption and environmental protection, which aim to curb the irrational development of energy-guzzling and heavily polluting industries. Batches of projects were implemented to achieve homemade substitution for key technologies and equipment, and certain amount of obsolete production capacity was eliminated.

3. Carrying out priorities of work. The State Council released its suggestions on further encouraging renovation in wall materials and promoting energy-conserving buildings, on speeding up wood saving and substitution, and on encouraging the development of energy-saving and environment-friendly low-emission automobiles. The NDRC, in cooperation with other relative departments, drafted the Implementation Plan for Ten Key Energy Conservation Projects, some of which have been kicked off. The NDRC also issued the Special Plan for Seawater Utilization and the Framework of China's Water Saving Technologies and Policies.

4. Improving supplementary policies. Price reform for resource commodities was advanced. Suggestions were made on the price linkage between coal and electricity and between coal and heating. Differentiated power tariffs were applied to some of the energy-guzzling industries. The comprehensive and supplementary reform of the petroleum pricing mechanism was advanced, and the producer price of natural gas was raised by an appropriate margin. Policy measures were formulated on controlling the export of resource commodities and goods produced with heavy energy consumption and heavy pollution.

5. Organizing demonstration and pilot projects. With the approval by the State Council, we identified the first batch of piloting agencies to participate in the national cyclic economy program, and convened on-the-spot meetings for the iron and steel industry and the non-ferrous industry to exchange experiences on cyclic economy. The Evaluation Index System for Clean Production in Key Industries was introduced. Initial achievements were made in ethanol gasoline projects in nine pilot provinces.

6. Increasing investment. Treasury bond funds were used to support a batch of projects, including projects of resource conservation and cyclic economy, structural adjustment projects focusing on saving energy and reducing energy consumption, demonstration projects of water-saving upgrading and water-efficient irrigation in irrigation areas across the country, and projects of biogas development in rural areas.

7. Extensive publicity campaigns. The NDRC, the Civilization Office of the CPC Central Committee and China Central Television Station jointly carried out a large-scale publicity campaign with the theme of Nationwide Conservation and Joint Action. The NDRC and other 12 government agencies jointly held the 2005 Exhibition on Building a Conservation-Oriented Society. Mr. Hu Jintao, CPC General Secretary and other party and state leaders visited the exhibition and made important instructions.

8. Formulating environmental protection plans. We have formulated the general plan for ecological conservation in the Three River Headwaters Natural Reserve, the 2005-2006 project plan for rural drinking water safety and emergency preparedness, the 2005-2007 project plan for industrial wastewater treatment in the Huai River Basin, the plan for integrated treatment of chromium slag, and the plan for water pollution control and soil and water conservation in the Danjiangkou Reservoir and its upstream area.

9. Enhancing the control of major pollution sources. Treasury bond funds were used with a priority to support the following projects: rural drinking water safety; water pollution control in key drainage areas including Three Rivers and Three Lakes which refer to Huai River, Hai River and Liao River and(&)Tai lake, Chao Lake and Dian Lake. Three Gorges reservoir plus its affected area, areas along the South-North Water Diversion Project; facility construction related to urban sewage treatment, smoke desulphurization in coal-fired power plants, integrated treatment of chromium slag, and treatment of medical waste and hazardous waste.

10. Stepping up projects of ecological conservation. A number of key ecological conservation projects were implemented, such as Beijing-Tianjin Sandstorm Source Control, Natural Forest Protection, Converting Grazing Land Back to Natural Grassland, Capital City Water Resource Protection, and Ecological Conservation in the Three-River Headwaters Natural Reserve.

11. Complying with international environmental treaties. We formulated the management procedures of CDM projects to promote the implementation of these projects. We carried out climate change studies and organized international negotiations on climate change.

II. Priorities of Work in 2006

Under the guidance of the Scientific Concept of Development, we will implement the basic national policy of resource conservation and environmental protection, and build a conservation-oriented society with focus on energy conservation and consumption reduction, so as to meet the goal of reducing energy consumption per unit GDP by around 20% during the 11th Five-Year Plan period. We will also build an environment-friendly society with priority given to solving salient environmental problems.
1. Strengthening the administration of energy conservation. We will work with the Finance and Economic Committee of the National People's Congress to revise the Energy Conservation Law; implement the public release system of energy conservation per unit GDP, set up the responsibility system of energy conservation targets, consider establishing an evaluation and examination system; involve 1000 major energy-consuming enterprises in energy-conserving actions; conduct energy conservation auditing and strengthen monitoring and inspection of energy conservation; urge government agencies to take a lead in energy conservation.

2. Speeding up structural adjustment. We will continue strengthening macro-control, curb irrational investment and low-level duplicate construction, and restrict the irrational development of industries that feature heavy energy and water consumption and heavy pollution. Taking the opportunity of promoting structural adjustment in industries with surplus production capacity this year, we will step up the efforts to eliminate out-dated processes, technologies and facilities, and support the upgrading of traditional industries with high-tech and advanced applicable technologies.

3. Promoting technological advancement. Treasury bond funds will be channeled to support a batch of key pilot projects of energy conservation and cyclic economy as well as rural biogas development, giving priority to the Ten Key Energy Conservation Projects. We will revise the Outline of China Energy Conservation Technologies and Policies; step up the marketing and application of new technologies and products of energy conservation; nurture the professional service system of energy conservation technologies.

4. Promoting the development of cyclic economy. Following the requirement of the Environment and Resources Committee of the National People's Congress, we will draft the Cyclic Economy Law, formulate the development plan of cyclic economy, organize the implementation of the first batch of national pilot projects of cyclic economy, and promote the development of cyclic economy in key industries, key areas, industrial parks and cities.

5. Organizing the formulation of plans. The following plans will be formulated: the 11th Five-Year Plan for Building a Water-Saving Society, Plan for Utilizing Mine Water, Plan for Urban and Rural Drinking Water Security Nationwide, the 11th Five-Year Plan for Water Pollution Control in Key Drainage Areas, and Plan for Urban Sewage Treatment.

6. Research and policy making. We will formulate fiscal and taxation policies that support resources conservation and environmental protection, and consider establishing special funds for energy conservation to create a stable financing channel that supports energy conservation. We will improve the system of compensated resource utilization, and continue the reform of market-oriented pricing for resource commodities.

7. Increasing investment in environmental protection. We will give priority to the following projects and programs: Rural Drinking Water Safety and Emergence Preparedness, Water Pollution Control in Key Drainage Areas, Integrated Treatment of Chromium Slag, Converting Grazing Land Back to Natural Grassland, Converting Cultivated Land Back to Forestry, Beijing-Tianjin Sandstorm Source Control, Natural Forest Protection and etc.

8. Strengthening publicity work and international cooperation. We will coordinate relevant media to further strengthen publicity campaigns, organize the 2006 National Energy Conservation Publicity Week, and promote the dissemination of scientific knowledge. We will also actively participate in international environmental affairs and make great efforts to implement CDM international cooperation projects.