China Aims to Minimize Reliance on Coal, Invests Billions on Energy Conservation, Anti-Pollution Measures
By EW News Desk Team | August 27, 2012 12:04 PM EST
The Chinese government has set aside up to 2.37 trillion yuan ($373
billion) for investment into energy conservation and anti-pollution
projects over the next three-and-a-half years, claimed a report by Reuters
on Wednesday, with $155 billion of the money already earmarked for energy
efficient projects that could reduce the nation's reliance on coal.
According to a report by China's State Council, the nation is likely to
reduce the amount of energy it uses to produce every unit of gross domestic
product by 16 percent from 2010 to 2015, while the Ministry of Industry and
Information Technology (MIIT) has also set an overall 21 percent energy
intensity reduction target for industry over the same period.
If all the energy projects work out, the world's second-biggest economy
could also be set for energy savings equal to nearly 670 million tons of
standard coal equivalent energy, added the State Council, who cautioned
numerous industries - including steel and cement manufacturers - to reduce
their energy use per unit of production.
Previously, the Chinese government had also said that it intended to cut
the amount of carbon it emits per unit of economic output by 40-45 percent
by 2020 from 2005 levels. China is the world's largest emitter of
greenhouse gases, producing close to 9.7 billion tons of carbon emissions
last year, or 29 percent of the world's total CO2 emissions.
Government officials said they expect China's greenhouse gas emissions to
peak around 2030, as the economy continues to grow.
The latest measures though are seen to improve energy and emission
efficiency, though the total amount of energy used and carbon emitted is
still likely to increase.
Wei Wei, an analyst at West China Securities in Shanghai, told
Bloombergthat the State Council's announcement could see a surge in shares
of environmental protection companies.
"The environmental protection industry is one of the few areas that have
good growth potential in China as the government is increasing investment,"
he said. "Stocks in the sector will do well in a scenario where most
industries are slowing down."
On Wednesday, shares of Hebei Sailhero Environmental Protection High-tech
Co, a leading manufacturer and integrator of environmental monitoring
instrument in China, jumped by the 10 percent daily limit to the highest in
a month in Shenzhen. Shares in Dalian East New Energy Development Co. also
gained by as much as 9.2 percent on the same day, while Hunan Yonker
Environmental Protection Co. saw a 5.9 percent increase in its share price.