China set to use Iron Hand to Force Energy Efficiency

CHINA is set to use an “iron hand”, in a silk glove of an extra $12 billion, to their achieve energy efficiency targets.

The hard line is being taken after it was revealed that energy use rose 3.2% in the first quarter compared to last year, reversing the decline in the energy used to produce each dollar of gross domestic product.

This is seen as a major setback in China’s push to cut energy use by 20% by the end of this year from 2006. China had lowering the relative use of energy by 14.38%, according to Premier Wen Jiabao.

Wen held a nationwide videoconference on Wednesday and used the occasion to direct government officials to wield an “iron hand” and shut down inefficient enterprises. China Daily, in reporting on the videoconference, stated the Chinese government had also earmarked an extra $12 billion to pay for upgrades and other measures to reach its energy efficiency goals.

The government pledged to shut down hundreds of smaller coal-fired power plants, below standard steel mills and smelting plants, cement works, aluminum manufacturers, glass factories and paper mills.

China’s efficiency goals are a concern, particularly after a commitment China’s President Hu Jintao made during a U.N. summit to reduce the rate of China’s carbon emissions, which meant efforts to make cuts of 40%-45% by 2020 from 2005 levels.

The majority of China’s carbon emissions are related to its high reliance on coal. Increasing energy efficiency will require burning less coal and hence releasing less global warming greenhouse gases.

Friday 7th May 2010


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