China seeks more efficient use of energy in industrial sector

01 March 2012 05:13  [Source: ICIS news]

SINGAPORE (ICIS)--China is aiming to improve energy efficiency in the industrial sector, which accounts for 70% of the country’s energy consumption, industry sources said on Thursday.

Under the country’s 12th Five-Year plan (2011-2015), China will seek to cut its energy consumption per unit of industrial value-added output by 21%, the Ministry of Industry and Information Technology (MIIT) announced on 27 February.

The country targets to save the equivalent of 670m tonnes of coal in the five-year period, compared with the 630m tonnes target for the previous five-year period from 2006 to 2010, the MIIT said.

The plan also details reduction targets for nine major energy-intensive sectors, comprising the steel, non-ferrous metals, petrochemical, chemical, building material, mechanism, textile, electronic information and light industries.

As a result of the country’s efforts, energy consumption per yuan (CNY) 10,000 ($1,590) of industrial value-added output fell to 1.91 tonnes of coal equivalent in 2010, down by 26% from 2.59 tonnes in 2005, according to data from the National Bureau of Statistics (NBS).

The petrochemical and chemical industries were asked in 2010 to cut their energy use per unit of value-added output by 18% and 20% respectively over the next five years, according to the plan.

The government will adopt a series of measures to promote energy conservation and emission reductions, including phasing out backward production capacity and closing down excess capacity.

The country plans to invest a total of CNY590bn to implement nine energy conservation projects from now until 2015, the MIIT said.

Analysts said China would have to manage challenges in meeting the targets, while keeping up with rapid development of the industrial sector at the same time.

“The new targets are a tough task for all the energy-intensive industries. It will urge them to adjust their energy consumption structure and find an effective way to solve this problem,” said Li Yongliang, deputy director of MIIT’s development department.

Lin Boqiang, director of China Energy Economics Research at Xiamen University, said: “The Chinese government has already realised the importance of controlling energy consumption and shown its commitment to low carbon development.”

“The new target is relatively aggressive and surely will force the local government to restructure industries, and pay more attention to energy-efficient projects,” he added.

($1 = CNY6.30)

By: Adele Zhu

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