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Important first step
2006-07-05
China Daily
The publication of a national list of energy efficiency by region is an important first step in the nation's energy saving race.
The government has made a 4 per cent cut in China's overall energy consumption per unit of GDP a key goal this year.
The reduction is the first step towards achieving one of the main targets of the new 11th Five-Year Program (2006-2010) to lower energy consumption per unit of GDP by 20 per cent over five years.
With our economy growing into the world's fourth largest, China has increasingly tested its energy and environmental limits in recent years.
In response, the nation has reached a consensus on the need to set higher efficiency goals and pursue sustainable development.
However, besides firm resolutions from the top, an explicit energy use baseline that can measure progress in local power-saving efforts was also needed to translate ambitious goals to reality.
The energy list, compiled by the National Development and Reform Commission, the National Bureau of Statistics and the National Energy Leading Group Office, offers that baseline for energy efficiency.
The country consumed, on average, 1.22 tons of standard coal for every 10,000 yuan (US$1,234) of gross domestic product in 2005.
We should keep this simple figure in mind. It can both measure how much we have improved energy efficiency, and remind us of the huge efficiency gap between China and developed countries.
It is reported that the current energy consumption per unit of GDP in China remains about three times that of the United States and 10 times that of Japan.
For a fast-growing economy of China's size, higher energy efficiency is a necessary and practical goal.
Meanwhile, the newly-issued list shows that coal and electricity consumption in different regions varies significantly, in line with their economic strength and industrial structures.
Economic powerhouses like Guangdong and Beijing ranked top for efficiency, while less-developed areas like the Ningxia Hui Autonomous Region in Northwest China consume more energy to produce the same amount of GDP.
One implication of these differences is that development doesn't have to come at the cost of efficiency. Instead, economic progress is characterized by an industrial mix that is able to create more value with less energy.
To accelerate growth and raise energy efficiency, less developed regions should focus on a fundamental change in their growth pattern.
Local governments must stop chasing fast growth through extensive investment. It is important for them to undertake drastic industrial restructuring as soon as possible to reduce their dependence on inefficient energy use.
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