China has reiterated that it will introduce a fuel tax at an 'appropriate' time, adding that it is currently studying the feasibility of an 'environment tax' designed to encourage energy efficiency and pollutant reduction, State Council documents show.
China has a target of reducing major pollutant discharges by 20 pct and to reduce energy consumption per unit of GDP by 20 pct.
In 2006, China failed to reach its goal of a 4 pct reduction in energy use per unit of GDP and cutting emissions of pollutants by 2 pct.
Yesterday, the State Council released its general work plan for energy conservation and pollutant discharge reduction, which was published on the central government's website (www.gov.cn).
Under the work plan, China will reform pricing mechanisms for resource products, such as refined oil, natural gas and electricity, and restrict the export of high-energy consuming and heavy-polluting products.
China will also promote the use of renewable energy resources, such as wind power, solar power, hydro power, methane and terrestrial heat.
It is compulsory for government departments to purchase highly efficient, energy-saving, water-saving and environmental-friendly products in official procurement, the State Council said.
Financial institutions will be encouraged to strengthen credit support for environmental-protection and pollution-reduction projects, and the government will look into offering these projects preferential tax treatment, the State Council said.
In addition, China will optimize energy use in energy intensive industries, such as steel, non-ferrous metals, petrochemicals and cement production. It wil also accelerate the shutdown of outdated production capacity in several sectors, such as power, steel, coal and aluminium.
Detailed elimination targets in these sectorshave been set for both 2007 and 2010, with the iron ore sector to lose 30 mln tons of capacity this year and 100 mln tons by 2010. The steel sector will close 35 mln tons this year and 55 mln tons by 2010.
Both central and local governments are required to make such initiatives their priority and use economic, legal and administrative methods to curb excessive growth in energy-intensive and highly polluting industries, the report said.