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By Sun Xiaohua (China Daily)
Updated: 2007-12-10 10:07

The fact of climate change is unequivocal, scientists have warned. But also unequivocal is China's spending on energy efficiency and emission control.

More money is being spent and still more is coming. After the Ministry of Finance announced in late November a total of 23.5 billion yuan ($3.18 billion) has been earmarked for the effort, observers in Beijing say more can be expected from central coffers in 2008 for energy purposes.

Also in late November, Vice-Premier Zeng Peiyan reported that for the first time, emissions of sulfur dioxide and chemical oxygen demand - two key pollutants to watch in global environmental reports - have both been on the decline.

These downturns were cited as "a new platform" in China's environmental management, from which the country is ready to launch a series of efforts in environmental protection and energy conservation.

The 23.5 billion yuan budget by the Ministry of Finance will be used to support ambitious plans that include the so-called "top-10 national energy conservation projects". Though only termed "projects," each represents significant investment and involves major changes.

Economic planners estimate that the top-10 national projects will save 240 million tons of coal equivalent (TEC) in five years. Coal contributes up to 40 percent of the country's energy at present.

The projects are:

Reducing the use of petroleum and seeking substitutes

Improving coal-burning industrial boilers and raising their energy efficiency

Developing regional combined circular power plants (CCPP)

Recycling waste heat and pressure

Increasing energy efficiency in power generation systems

Improving overall performance of energy systems

Energy conservation in construction and lighting systems

Government leadership in conservation

Strengthening monitoring systems and related services in energy saving and emission controls

Each of the projects will have an environmental impact so important that it can have national significance. The adoption of regional CCPP technology, for example, is expected to save 35 million TCE in five years.

An improvement of 5 percentage points in existing industrial boiler energy efficiency can result in a further cut of 25 million TCE in five years. If the energy efficiency of all kilns can be raised by 2 percentage points, another 10 million TEC will be cut in five years.

Through saving petroleum and seeking substitutes, such as by developing ethanol and liquefied coal, China can save an accumulative 38 million tons of oil by 2010.

And the country's new buildings for both private and public use are required to save 50 percent of energy compared to the level of energy consumption in the 1980s by adopting green technology and materials, which can conserve at least 100 million TEC in five years.

The 10 projects cover not just industrial but also domestic consumption. Advocacy of green lighting systems is directed toward Chinese families. The nation plans to push forward the use of highly energy-efficient bulbs at home and in public infrastructure, which could save about 29 billion kWh of electricity.

Around 9 billion yuan, 13 times that of 2006, has been allocated towards these projects, as the National Development and Reform Commission (NDRC) said in July.

Of the more-recently announced 23.5 billion yuan from central coffers, 7 billion yuan will be used as financial rewards for successful implementation of the top-10 national projects, according to Zhang Shaochun, vice-minister of finance.

The rest will be spent on:

Sewage treatment and pipelines in cities in central and western China - 6.5 billion yuan

Relocation and other compensation for phasing out old and wasteful production capacity - 2 billion yuan

Building up the monitoring and statistical system on environment and pollution - 3 billion yuan

Prevention of water pollution in the Yangtze, Yellow and Huaihe Rivers and Dongting, Poyang and Taihu Lakes

"It is great that a government's efforts are reflected in its policies and fund allocations, which correspond with its commitments," Zhang Jianyu, a visiting environmental scholar at Tsinghua University, told China Business Week earlier.

"It also shows that government is taking this (energy conservation and emission reduction) as its own, rather than allocating the responsibilities to enterprises," Zhang said.

The energy efficiency budget of the Ministry of Finance is only part of China's effort and financial spending for environmental purposes. There will also be spending by regional governments directed to similar uses.

But officials do not underestimate the challenge. Vice-Minister Zhang admitted that even such large amounts from the central government budget are only a starting point.

At the same time, according to the Economic Daily, although China's index of energy intensity, better known to the Chinese as energy use per unit of gross domestic product (GDP), decreased an annual 3 percent in the first three quarters of the year, it still remains a question whether the nation will achieve its yearly target of a 4 percent decrease.

A total 20 percent cut in energy intensity is planned for the 2006-2010 period by the Chinese government, as measured compared to the 2005 level. On average, it will have to achieve a 4 percent energy cut each year to meet the goal.