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China's development of clean coal needs government subsidies and clear industrial standards, according to a proposal submitted by China Environmental Chamber of Commerce (CECC) to the Chinese People's Political Consultative Conference on Monday.

Wen Yibo, head of CECC, said China's clean coal technology has reached international level through innovation, but the industry lacks support of policies to take it further.

By applying a new coal-to-gas technology, the energy efficiency can be raised by more than 15 percent and the carbon emission can be as low as using natural gas, said Wen.

Bian Cheng, vice president of CECC, said the government should use strict measures to punish those companies that fail to meet the environmental standards and encourage clean coal utilization through subsidies.

"In the environmental protection industry, we already have innovation and technology, but we need an open and fair market to develop," he said.

The proposal was submitted through the All-China Federation of Industry and Commerce to CPPCC.