Economic Development and Environmental Sustainability
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IEEPA Secretary-General Attended 2010 China Science and Technology Forum

On Oct. 24, 2010, China Science and Technology Forum was held in Beijing. Secretary-General Jon Li, at the invitation of Chinese Academy of Technology Development Strategy of the Ministry of Science and Technology, attended the forum and made keynote speech on Analysis of Energy Conservation Industry Development and Future Strategy of Capability Construction, and discussed strategic emerging industry development and business mode with other attendees.

Energy conservation environmental protection is a multi-industry task with strong extensibility and wide application. Chinese government has made official definition and placed it on top priority. From the perspective of energy, energy conservation is one of the most important national strategies in the 21st century, which involved not only industry upgrading, technological innovation and emission reduction objects, but energy security system of future national development, indicated Li.

Recently, International Energy Agency has concluded that China was the largest energy consumer in the globe, to which Mr. Li offered three opinions and one definition: 1. China's per capita energy consumption was far below western countries, for instance, which is only 2/9 of USA; 2. China's energy was mainly from domestic market, and its overseas dependence was far lower than western countries, therefore, China posed no thread to world energy crisis; 3. Of all the energy China consumed in the course of economic development, some were from developed countries who transferred their industry to China, with high value-added products taken away, while high energy-consuming industry base left in China. As a major power in the third world, China also paid high price therein. Therefore, we can conclude that China is a major energy consumer, also a major contributor to world economic development and energy security as well as major cost payer.

In 2009, China's total energy consumption was 3 billion tons standard coal equivalent. If energy consumption keeps pace with economic growth, China's total primary energy demand will reach round 5 billion tons of standard coal equivalent by 2020. China has to confront with practical problem as a major consumer, and energy demand pressure. On the one hand, China's total energy utilization has reached 33% or so, 10 percentage point lower than developed countries, which will bring China with wider development potential; on the other hand, from the perspective of policy, Chinese government indicated definitely that CO2 emission rate of per capita GDP would reduced by 40-45% by 2020 when compared with 2005, namely reached 45% in 3 five-year plans (20% for the 11th Five-Year Plan, 28% for the 12th, 15 for the 13th). To attain such goal, the most important channel is by energy conservation and consumption reduction. Among the 45%, of which over 80% (or 85% according to experts) will be reliant on energy conservation, which will even reach 90% by 2020. At present, China's energy conservation industry has entered an unprecedented development period, and covered four fields like industry, building, traffic, life, added he.

In conclusion, Mr. Li said we should strengthen guidance and promote energy conservation mechanism to make transition to market level. On the one hand, we should push forward government-level energy conservation capability construction; and establish market operation environment of Energy Management Contract (EMC) as soon as possible, including government support degree; on the other hand, we shall support energy conservation industry services from different angles, including comprehensive capability construction of energy management company.

Conference background: on Oct. 18, 2010, the State Council officially promulgated Decision on Accelerating the Fostering and Development of New Strategic Industries, which stipulated that: of all the 7 strategic emerging industries, energy conservation environmental protection industry is the most important development one, which covered energy conservation, resource cyclic utilization, environmental protection, energy conservation environmental protection technology and equipment, product and service and so on.

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