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Environmentally friendly, China learns lessons from global crisis

(Xinhua)
Updated: 2008-12-12 20:11

"Emission reduction and energy saving is not only an issue of environmental protection, but important to a company's profitability, especially when the financial crisis deteriorates the economic situation," said Gu Zhanggen, Party secretary of the company.

Energy-saving measures also benefited small-businessmen like Deng Licui.

Deng owns a goose farm in Weiwu County of central Anhui province. Her goose farm encountered its worst financial situation in more than 10 years when goose feather prices decreased drastically amid slackening demand.

Deng cut costs by installing methane generators on her farm. This saved her more than 10,000 yuan in electricity costs per month.

"A good earning depends on the market, but cutting costs is one's own decision", Deng said.

Although the financial crisis has cast shadows on the economy, it provides a good opportunity for both China and the world to accelerate the transition toward economic sustainability, according to Xie Zhenhua, deputy director of the National Development and Reform Commission.

As the world's second-largest energy consumer, the Chinese government has set a target to reduce energy consumption per unit of gross domestic product (GDP) by 20 percent and major pollutant emissions by 10 percent from the 2005 levels by 2010.

Meeting the five-year energy efficiency target is crucial to re-balance the economy, but only around a quarter of the planned reduction was completed by the end of 2007.

Scholars have said that to break out of the vicious circle of an unsustainable system, China must increase investment on technology innovation and shift its reliance on fossil energy to clean energy sources such as wind power, bio-energy and solar power.

The opportunity came from the country's 4-trillion-yuan economic stimulus package, which aimed to spur economic growth by boosting domestic demand.

According to the package, 510 billion yuan would go toward technology innovation, industrial structure adjustment and environmental protection.

Of the 100 billion yuan added to the fourth quarter central budget, 3 billion yuan was allocated for rural methane projects.

Experts believed by developing new energy, the rural communities -- which comprise the majority of China's population -- could contribute to the transition to a more environmentally-friendly development.

According to the Ministry of Agriculture, by the end of 2007, 26.5 million rural households were installed with methane generating pits. These devices generate 10.2 billion cubic meters of methane, equivalent to 16 billion kilograms of coal.

Besides increasing investment, the Chinese government is enhancing supervision amid concerns that some local governments or companies might use the financial crisis as an excuse to shirk from environment protection efforts as well as emission reduction and energy-saving measures.

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