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Energy-saving Mechanism Urged

Chinese Vice Premier Zeng Peiyan said during a visit to a chemical company in Beijing that an energy conservation mechanism should be set up in China.

Zeng made the remarks at Beijing Yanshan Petrochem Company before China's Energy-saving Week, which starts Sunday.

Energy conservation must be highlighted at the level of national strategy, said Zeng.

Market reform should be sped up and the price of coal, power and petroleum and a price forming mechanism should be set up to reflect the scarcity of the resources, said Zeng.

The vice premier also urged the reform on financial and tax systems including start of taxation on fuel oil and higher standard for tax collection on resources.

China must increase structural adjustment by supporting third industry and hi-tech industry with low energy cost, Zeng said.

The vice premier urged concerned departments to set up an energy-saving legal system for tighter management and control in the field.

He also called for more efforts to develop recycling economy and push forward the recycling use of resources.

Zeng also said during a recent meeting on energy conservation that China will accelerate pricing reform of major energy products such as coal, electricity and oil, giving the market a greater role in setting prices,

While improving the taxation system, the government will also step up study on launching the fuel tax and raising the rate of taxes on energy resources, Zeng told the meeting held earlier this week to mark the energy-saving week.

Energy conservation is significant for the achievement of the goal to "quadruple China's gross domestic product (GDP) while only doubling energy consumption by 2020," said Zeng.

To save energy, the state will first support the development of the low-energy consuming tertiary sector and high-tech industry, and encourage the upgrading of the traditional industries with advanced technologies, he said.

The government will ask heavy energy-consuming sectors and enterprises to draw out and implement energy-saving plans, he said, adding that more strict and compulsory standards on energy consumption of products.

The vice premier stressed the urgency to develop a recycling economy, which the recycling of resources should not only be promoted in companies and industrial zones, but also in residential quarters.

Zeng also called for more publicity of the importance of energy-saving to enhance the people's resources-saving awareness.

(Xinhua News Agency June 12, 2005)

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