First, enterprises for energy-saving transformation of boilers. The Guodu research report estimates the total investment in energy-saving transformation of boilers will reach 400 billion yuan ($63.09 billion). Besides, during the 12th Five-Year Plan period, the newly increased power generation capacity with surplus heat from high energy-consuming industries such as iron and steel, non-ferrous metals, building materials and chemical will be 20 million kw, saving energy of 57 million tons of coal equivalent. By 2015, the total output value of China's energy-saving service industry will reach 300 billion yuan ($47.32 billion).

Second, leading enterprises for sewage reclamation and sludge decontamination treatment. By 2015, about 85 percent of China's urban domestic sewage will be disposed of and 160,000 km of supporting pipelines will be built with a daily disposal capacity of 42 million tons. Besides, 26 million tons of daily sewage disposal capacity will be transformed, and 27 million tons of daily water reclamation capacity will be newly added.

China's construction of supporting pipelines for sewage disposal is unable to meet current needs, and the sewage reclamation level is low. To reach the goal set by the plan, the country needs an investment of 430 billion yuan ($67.82 billion) in sewage disposal and reclamation facilities construction.

"Enterprises with technologies of deep disposal of sewage are likely to benefit the most," said the Guodu report.

Third, resource-recycling enterprises with "recycling channels," "technologies and equipment" and "processing scale." In the 12th Five-Year Plan period, China will carry out projects of comprehensive resource utilization, demonstration of waste materials and reclamation of kitchen waste. By 2015, there will be a resource-reclamation capacity of 25 million tons. According to the Guodu report, leading resource-recycling enterprises with "complete recycling networks, advanced technologies and equipment, standard management and large disposal scale" will attract more investment and benefit from the policy.

Strict supervision

According to NDRC figures, in 2011 China set the target of reducing energy consumption per 10,000 yuan of GDP by 3.5 percent from 2010, but in fact, the energy consumption was reduced by only 2.01 percent and the total emissions of ammoniacal nitrogen even rose by 5.73 percent.

In 2011, the first year for the plan, the achievements in energy conservation and emission reduction were unsatisfactory, increasing the pressure on the following four years. "If the target in 2012 cannot be accomplished, the target of energy conservation and emission reduction in the 12th Five-Year Plan period is likely to fail. Therefore China faces a severe situation and heavy tasks in saving energy and reducing emissions," Xie said.

The Central Government is fully aware of the problems in achieving energy conservation and emission reduction. The 12th Five-Year Plan on Energy Saving and Emission Reduction says some local governments, not fully aware of the urgency and arduousness of energy conservation and emission reduction, go after economic growth alone and put inadequate stress on economic restructuring and transformation of the economic growth pattern. They cannot properly balance the relationship between economic development and energy conservation and emission reduction, fail in implementing energy conservation and emission reduction policies and exercise ineffective supervision and inspection.

The policy mechanism is not perfect, particularly the price, taxation and finance policies that are conducive to saving energy and reducing emissions. The market-oriented incentive mechanism is not sound and there is inadequate impetus for innovation. Without complete energy-conservation and emission-reduction standards, calculation of energy consumption and emissions of pollutants still lags behind in the country.

Xie said to ensure accomplishment of the target set by the 12th Five-Year Plan on Energy Saving and Emission Reduction, the Central Government requires various ministries and local governments to add energy-conservation and emission-reduction requirements when they formulate development strategies, special plans, and industrial, taxation, financial, price and land policies. Related departments should improve laws, regulations and standards on energy conservation and environment protection, and various local governments should use a market-oriented mechanism on energy conservation and emission reduction.

According to Xie, the NDRC has formulated detailed targets of energy conservation and emission reduction for different local governments. The NDRC and the Ministry of Environment Protection will strengthen support, guidance and assessment on the implementation of the plan, and the assessment results will be announced to the public and subject to social supervision.

Xie said the assessment results will be an important part for the Central Government's comprehensive assessment of provincial-level officials. For regions that are rated as a "fail," no high-energy consumption projects will be approved, and for regions that reach the standard, new high-energy consumption projects will be approved conditionally to ensure the energy conservation target will be met.

Targets in the 12th Five-Year Plan Period

- By 2015, the country's energy consumption per 10,000 yuan of the GDP will be reduced to 0.869 tons of coal equivalent (based on prices in 2005), which is 16 percent lower than the 1.034 tons of coal equivalent in 2010 and 32 percent lower than the 1.276 tons of coal equivalent in 2005. In the 12th Five-Year Plan period, 670 million tons of coal equivalent of energy will be saved.

- In 2015, the country's chemical oxygen demand and emissions of carbon dioxide will be controlled at 23.48 million tons and 20.86 million tons, respectively, 8 percent lower than the 25.52 million tons and 22.68 million tons in 2010.

- Emissions of ammoniacal nitrogen and nitrogen oxides will be controlled at 2.38 million tons and 20.46 million tons respectively, which are 10 percent lower than the 2.64 million tons and 22.74 million tons in 2010.

Progress in the 11th Five-Year Plan Period

- The energy consumption elasticity coefficient dropped to 0.59 from 1.04 in the 10th Five-Year Plan (2001-05) period, saving energy of 630 million tons of coal equivalent.

- Emissions of carbon dioxide were reduced by 1.46 billion tons.

(Source: 12th Five-Year Plan on Energy Saving and Emission Reduction)

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