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By Zhang Qi (China Daily)
Updated: 2007-09-28 07:50

In the past eight months, China has shut down 253 small coal-fired generating units that were heavy energy consumers and emitters, and replaced them with high-efficiency generators that cut yearly coal consumption by 13.5 million tons and CO2 emissions by 27 million tons.

Vice-Premier Zeng Peiyan said this while inaugurating the second forum on China-Japan Energy Saving and Environmental Protection yesterday.

To meet the goal of lowering energy consumption per unit of GDP by 20 percent and reducing the output of sulfur dioxide and chemical oxygen demand by 10 percent by the end of 2010 compared with 2005, thermal generators with a capacity of 355 million kW will be fitted with desulfurization devices by 2010, he added.

Zeng also said China will adopt measures to guide and encourage the development of renewable energy with taxation and fiscal incentives.

The cooperation between China and Japan on energy efficiency and environment protection has made marked progress since the first forum held last year, and has a promising future, he said.

Vice-Minister of Commerce Wei Jianguo said: "China has a very promising market in energy saving and emission reduction. Overall, around $300 billion of investment will be needed to meet the energy-saving and emission-reduction target in the next five years." If Japanese companies can take 20 percent of the market, they can earn revenue of $60 billion, he added.

The government plans to raise the ratio of renewable energy in total energy consumption to 15 percent by 2020, compared with 8 percent now. Wei said these numbers not only show the government's resolve to save energy and reduce emissions but also carry enormous business opportunities.

Japanese Economy, Trade and Industry Minister Akira Amari said Japan survived two energy crises in the last 30 years and has developed energy-saving as a national strategy with a 37 percent increase in energy efficiency.

Amari said he hoped to share Japan's experience with China in lifting energy efficiency through law, taxation, education and pricing system.

The two countries signed 10 cooperation projects on energy saving at the forum.