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May 29, 2010

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Home » Business » Energy

City steps up push to cut energy use, emissions

SHANGHAI plans to halt some production at energy-intensive enterprises and stop construction of highly energy-consuming projects to reach its annual goal for cutting emissions and energy consumption, government officials said yesterday.

The announcement follows a pledge by Mayor Han Zheng earlier this month to strengthen efforts to ensure that the city this year will reduce the energy needed to produce 10,000 yuan (US$1,464) of gross domestic product by at least 3.6 percent and reduce the equivalent of as much as 1 million tons of standard coal.

"The goal is very hard to achieve because energy consumption in the first quarter increased significantly and it is expected to keep growing at a relatively fast pace in the rest of this year," said Zhou Ya, vice director of the Shanghai Development and Reform Commission.

Energy consumption in the first quarter jumped 17 percent year-on-year.

The net increase in industrial energy consumption reached 3.2 million tons of standard coal in the first quarter, fast approaching the 4-million-ton target for the whole year, according to Zhou.

In order to contain the consumption, the city government will every month check enterprises that consume more than 50 million tons of standard coal per year and will rein in their production capacity if necessary, government officials said.

The transportation, oil refining, chemicals, steel, construction material and rubber manufacturing industries will be under particularly strict control.

The authorities will halt construction of projects with high energy consumption and stop electricity and water supplies to block high-energy consumption projects under operation.

It all underscores a tougher stance by the government.

Earlier this month, Han put a stop to approvals of new projects that consume lots of energy to curb the growth of industries producing high emissions.

The city government will invest 4.6 billion yuan this year to support the elimination of outdated production, sewage and garbage treatment, construction of energy-saving projects, Zhou said.

Subsidies will be increased to enterprises that upgrade their techniques to reduce energy consumption or phase out outdated production capacity. For instance, a company could get a subsidy of as much as 50 million yuan for a single outdated production elimination project, compared with 15 million yuan previously.

Subsidies for energy-saving air-conditioners and light bulbs will be extended to May 31, 2011.

Last year, Shanghai reduced energy use by 6.2 percent per 10,000 yuan of GDP, beating a 3.6 percent target, after the government strengthened emissions controls and industrial demand slowed.




 

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