Hong Kong (Platts)--26Nov2009/554 am EST/1054 GMT

China has set a target of reducing its carbon dioxide emissions per unit of GDP in 2020 by 40%-45% compared with the 2005 levels, the State Council, or cabinet, said Thursday.

The CO2 emission cut targets were set in a regular State Council meeting presided over by Premier Wen Jiabao on Wednesday, according to a statement published on the Chinese government's website. The meeting also reviewed a national task plan addressing climate change, the statement added.

This is "a voluntary action" taken by the Chinese government "based on our own national conditions" and "is a major contribution to the global effort in tackling climate change," the cabinet said.

The State Council also stressed that the country would face a daunting task of meeting the CO2 emission cut targets, pointing to the developing stage of the Chinese economy which experience rapid industrialization, urbanization and improvement of people's livelihood. Last but not least, China remained reliant on coal in its energy consumption structure, the statement said.

According to the statement, the State Council reiterated China's stand for implementation of the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, and advocated global concerted efforts in addressing climate change "through pragmatic and effective international cooperation."

The announcement marks the first time China has put specific numbers on a September pledge by President Hu Jintao to reduce the intensity of its carbon emissions as a percentage of economic growth by 2020.

China's announcement came a day after Washington said President Barack Obama would attend the December 7-18 UN Climate Change Conference in Copenhagen with an offer to cut US emissions by 17% from 2005 levels by 2020.

Beijing also announced earlier Thursday that Wen would join dozens of other world leaders at the December summit, which was called to seek a successor to the Kyoto Protocol on limiting greenhouse gas emissions.

Pressure has mounted on China and the US, the number one and two sources of carbon emissions, to announce substantive steps to limit their carbon emissions and seek a meaningful deal in Copenhagen.

China has only set goals of cutting energy consumption per unit of GDP by 20% between 2006 and 2010 and getting 10% of its power from renewable sources by 2010 and 15% by 2020.

--Winnie Lee, winnie_lee@platts.com