Environment tax, heavier penalities under consideration

Zhang revealed the government is considering levying a tax on polluting businesses to better protect the environment. He said environmental taxes on polluting enterprises were one of the factors in the country's tax system reform.

"It has been put on the agenda of the ministries of finance, environmental protection and the state administration of taxation," he said.

"We are jointly studying the issue, and when conditions are ripe, we'll launch the taxation system on polluting enterprises," he said.

In order to impose heavier penalties, like fines, on polluting enterprises, China's legislative body is considering revising a national law on water pollution control, he said.

This would help stop enterprises refusing to control pollution emissions on the grounds that their profits far outweigh any fines.

Zhang said a coal-burning power plant was fined 50 million yuan last year for failing to reduce pollutant emissions. A general manager of a power plant in Taiyuan, capital of northern Shanxi Province, was sacked on similar charges.

As environment watchdogs, "we would rather be hated by someone whose interests are affected, than be condemned by history for failing our duty," Zhang said.

Closing polluting plants

China aims to close down small coal-burning power stations with a total generating capacity of 15 million kilowatts, according to an action plan approved by a joint meeting of the national steering committee for responses to climate changes and the State Council steering committee for energy-saving and emission control Friday.

China will continue to eliminate obsolete capacity in key industries, including 10 million tonnes in iron-making industry, 6 million tonnes in steel industry, and 50 million tonnes in cement industry, said the plan examined at the meeting presided by Premier Wen Jiabao.

The meeting decided to adopt more measures, including stricter energy efficiency and environmental assessments, to control the expansion of industries that consumed excessive energy and discharged pollutants.

The government also called for the promotion of recycling and the use of energy efficient products, including subsidizing purchases of energy-efficient air conditioners, refrigerators and light bulbs.

Central and local governments would further increase investment in energy efficient projects.

In 2009, such projects are expected to reduce energy consumption equal to 750 million tonnes of standard coal usage. New sewage treatment projects will treat 10 million cubic meters of waste water.

The government would also publicize local government efforts to reduce energy consumption, improve supervision and enhance cooperation with international agencies to develop alternative energies and low-carbon technologies.

The government has set a goal to reduce energy consumption per 10,000 yuan (1,464 US dollars) of gross domestic product (GDP) by 20 percent from 2006 to 2010.

In the three years to 2008, energy consumption per unit of GDP fell 10.1 percent, according to the State Council. That means saving 300 million tonnes of standard coal and cutting carbon dioxide emissions by 750 million tonnes.

Emissions of sulfur dioxide in the same period fell 8.95 percent, and chemical oxygen demand (COD), a measure of water pollution, was down 6.61 percent.

(Xinhua News Agency June 6, 2009)