Shanghai aims to cut energy consumption per 10,000 yuan (US$1,464) of gross domestic product by at least 3.6 percent this year in response to the central government's call to reduce emissions and save energy.
Government officials said that although it is not a high target, the city is faced with high energy demands this year from the 2010 World Expo.
Steel mills and petrochemical plants, back in production on the economic recovery, will also require more energy.
Last year, Shanghai reduced energy consumption by 6.17 percent per 10,000 yuan of GDP, beating a 3.6 percent target set at the beginning of the year, after the government strengthened emissions controls and industrial demand slowed amid the financial crisis.
Energy consumption this year is estimated to increase by as much as 7 million tons. That includes 1 million tons consumed by the Expo transportation system and 4 million tons by new projects in the steel and petrochemical industries, said Vice Mayor Yang Xiong.
To achieve the emission-cutting goal, the city government has worked out a guideline involving nearly 200 projects in such areas as commerce, tourism, transportation and construction.
The government said it would reduce 800,000 tons of standard coal equivalent by continuing to eliminate outdated production capacity. A batch of small coal-fired power plants will be shut without affecting the city's power supply.
Last year, the emission of water-choking chemical oxygen demand was reduced by 8.74 percent to 243,400 tons, and air-polluting sulfur dioxide was cut by 15.05 percent to 379,000 tons.
That meant Shanghai met 2010 targets to reduce water and air pollution a year ahead of schedule.