The 18th National Congress of the Communist Party of China is being held at a time when China is facing some critical economic challenges. Foremost among them is the balance that needs to be struck between economic growth and sustainable development.

The concerns over environment, and the priority to be given to its preservation, were reflected in CPC General Secretary Hu Jintao's opening address to the 18th CPC Congress, where he put as much emphasis on ecological civilization and sustainable development as economic, political, cultural and social civilizations.

The environment has paid a high price for China's high economic growth. There are two aspects to the environmental damage. The first is the increase in air and water pollution. The second is the increase in carbon emissions. These increases are the result of rapid industrialization, energy-intensive economic growth, urbanization, increasing affluence and demand for energy- and carbon-intensive products (such as automobiles and air-conditioners).