06-03-06
China will cut the amount of energy it uses to produce each dollar of
national income by 4 % this year, Premier Wen Jiabao will say in a speech that
gives unprecedented prominence to energy challenges. The world's second-largest
oil consumer will also publicly name wasteful energy users, as part of a drive
to curb a booming appetite for resources and a growing reliance on imported
crude.
“Beginning this year, we will publish annually details of the energy consumption
of every region, and of firms in all key industries," Wen said, according to
excepts from his annual address to parliament.
In previous years, energy issues received little more than a passing mention
in the premier's annual report, but Wen devotes unusual attention to
conservation. China burns over four times more energy to generate a unit of
economic output than the average Group of Seven developed country, according to
the Asian Development Bank -- although on a per person basis, its energy use is
below those nations'.
Its vast domestic coal reserves provide around 70 % of that energy, but China
still imported 127 mm tons (927 mm barrels) of crude oil last year -- more than
40 % of its consumption.
It has not yet built up strategic stockpiles, making its economy particularly
vulnerable to oil supply disruptions, and dirty-burning coal causes
environmental problems ranging from acid rain to air pollution that kills tens
of thousands annually. To tackle these problems, Beijing had already pledged to
cut energy use per unit of economic output by 20 % by 2010, but a reluctance to
pass rising global oil prices on to consumers could hinder progress.
State-set caps currently keep the cost of diesel and gasoline far below
international markets, and there is a similar tight control system for
electricity costs. Higher prices might encourage greater efficiency, the World
Bank said in a recent report, since data suggests they contributed significantly
to past improvements.
Beijing has launched limited reforms of natural gas pricing and freed up some
coal markets, and analysts expect a revamped fuel price system could be unveiled
as early as this month -- but one that will fall short of full liberalisation
because officials are wary costly energy could spark inflation or social unrest.
Wen says the government wants to improve pricing mechanisms for resources --
without specifically mentioning energy -- but highlighted concerns about the
poor.
"The changes should take into account the interests of all parties, and
especially consider the impact on the daily lives of low-income groups," he
says.
China has also been fretting about the growing concentration of high-energy
industry within its borders.
Wen says it will shut down the most wasteful and dangerous operations.
"In accordance with the law we will close down enterprises that are wasting
resources, polluting the environment or failing to comply with safety
regulations," he says.
Source: www.planetark.org