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The first draft of China's first energy law, which will shape the country's future energy policies, will be outlined before the end of the year, according to the National Development and Reform Commission (NDRC).

Energy experts have called for the law, which needs two years to be passed by the legislature, to define clearly the regulations for foreign acquisitions and to set up an authoritative body through which all energy projects have to be approved.

Experts also suggest that the responsibilities of the central government and the local governments regarding the approval of energy projects should be stipulated, along with specific regulations on environmental and safety measures.

Meanwhile, the draft of the recyclable economy law has been completed and will be submitted to the legislature next year, according to a recent forum on a recyclable economy.

The 11th Five-Year Plan guiding China's development between 2006 and 2010 emphasized that building a recyclable economy was an important way for China to build a resource-efficient and environment-friendly society, thus realizing sustainable development.

As the second largest energy producer and consumer in the world after the United States, China now has four specific energy laws, covering the coal industry, electric power, energy conservation and renewable energy.

However, the country has yet to draw up legislation on petroleum and natural gas.