Ladies and Gentlemen,
The environment and development are two issues of common concern facing all human beings, The implementation of China's Agenda 21 and the maintenance of sustain able development will enable the realization of a balanced development of both the economy and the environment, as well as facilitate the building of socialism with Chinese characteristics.
The State Economic and Trade Commission (SETC) is a cross-sectoral agency under the State Council which administers It is responsible not only for promoting the sustainable, rapid and healthy development of the national economy through comprehensive coordination, but also guides enterprises to take positive measures wit h a view to preventing industrial pollution. As a result, SETC has attached great importance to environmental pollution and regards the enforcement of Agenda 21 as a priority.
I. Optimize the Structure and Quality of Economic Growth in order to Enhance Efficiency
Early this year, SETC suggested focusing more attention on the adjustment of present structures in order to enhance economic performance. In order to accomplish this task, the transition from an extensive to an intensive management of the economy needs to be made, maintaining the development momentum on the basis of maximum output with minimum input, and high quality and efficiency with low cost.
Among other major tasks of the economic year are the strengthening of structural adjustment intensification of management, promotion of technological advances, and the overall enhancement of the quality and efficiency of economic growth. Enterprises with low efficiency which consume too much energy and are a source of heavy pollution will be closed down permanently or temporarily, or merged with other enterprises. If there is a surplus of products that are the source of environ mental pollution and have consumed excessive energy and raw materials in their production, the manufacture of these items should be limited of shifted.
Through strict management measures, we strive to reduce the consumption of energy and raw materials, optimize the allocation of resources, enhance the efficiency of resource utilization, and introduce new energy-saving technology.
Ⅱ. Take Advantage of Technological Advances and Prevent Industrial Pollution
A. Environmental Protection Should Be Included in Technological Transformation Plans and Programs.
SETC has suggested that the prevention of industrial pollution be considered a major factor when undertaking technological transformation. Those projects which increase output in the short term but heavily pollute the environment and disrupt ecological balance should not be incorporated into technological transformation plans and programmes.
In order to further the key role of large- and medium-sized enterprises in the development of the national economy and to meet the demands of national industrial structural adjustment, SETC has begun the implementation of projects based on a dual approach. These types of projects demonstrate both increased investment in technological transformation and the expedition of the speed of technological transformation of enterprises. The reduction of energy consumption, comprehensive utilization of resources, and environmental improvement have been listed as some of the priorities of the "dual ex "projects.
Fifty-seven priority have been defined and planned that meet these criteria. The range of projects is as follows: generating electricity with low-heating point fuel, replacing old heating units with new, inception of a non-CFC refrigerator production line, controlling bleach pollution and monosodium glutamate waste water, beginning of the generation of methane and wind power, establishing high-temperature geothermal power stations, producing 500,000 solar vacuum tubes, upgrading the energy-saving efficiency of synthetic ammonia, and improving coal-washing technology, These projects involve a total investment of RMB 21.6 billion yuan, with RMB 6 million yuan as part of a special state loan.
B. Technological Transformation Projects Should Strictly Comply with Environment al Impact Assessments and the "Three Simultaneous " Stipulation.
This stipulation specifies that a technological transformation project will not be approved by SETC unless the related environmental improvement project is designed, built, and put into operation at the same time as the main project. At present, the investment in 'three simultaneous' projects accounts for 5% of the total in vestment into technological transformation projects. The breakdown by sector of these projects is as follows: 42 are paper industry projects, and 18% are leather and hide-related and 10% involved in the chemical and non-ferrous industry .The investment in these types of projects has represented approximately 13 billion yuan RMB for the past two years.
C． Technological Development Has Been Strengthened.
Environmental protection has been viewed as a priority whenever SETC makes plans for trial production in all SETC planning for trail production of national key green-field products, and the development and popularization of national key new technology .A series of key technology, equipment, and new products for environmental protection have been planned. These represent a range from domestically to internationally advanced technology, At the same time, economic policies favourable to the technological development of environmental protection have been promoted.
Ⅲ. Conserve Energy, Reduce the Consumption of Raw Materials, Increase the Efficiency of Resource Utilization, and Reduce Emissions of the "Three Wastes "
The improvement of the environment in China to a large extent revolves the rational and efficient utilization of energy. Environmental improvement should be realized through conserving energy and reducing emissions of the " three wastes ".
The predominance of coal as the main energy source in China has not changed for many years. As a result, the extraction and consumption of coal has aggravated atmospheric pollution, The greenhouse effect and acid rain, mainly attributed to t he emission of SO2 and CO2, have had a tremendous impact on the environment. SETC has thus had a tremendous impact on the environment. SETC has thus had a tremendous impact on the environment. SETC has thus regarded the areas of research, demonstration of clean coal, and efficient consumption of coal as the heart of energy-saving technological advances. Ten technology development and forty pilot projects of clean coal have been selected and will be put into operation as technological transformation projects. The projects include those investigating washed coal, briquette coal, coal-water mixture, advanced furnaces, FBC, IGCC, and the desulphurization of flue gases.
As one of the national key technological transformation projects, the area of energy conservation has been given loan subsidies totaling 500 million yuan RMB each year, In the meantime, a series of conservation related pilot projects that deal with varied issues such as coke dry quenching, cogeneration, industrial coal, frequency control motors, and CFBC, have been panned and organized. New, recyclable, and non-polluting energies such as solar and wind power, biological power, geothermal energy, and oceanographic power have been explored extensively to ensure energy diversity. Each year, 100 million yuan RMB has been set aside for these special projects as part of the national key technological transformation projects.
An important approach to the efficient utilization of energy is the strengthening of energy conservation management with a simultaneous reduction in the consumption of raw materials. The Law of Energy Conservation, which was jointly drafted by SETC and the State Planning Commission, has been reviewed by the Standing Committee of the National People's Congress and is expected to be enacted within the year. The complementary regulations to the Law of Energy Conservation will be announced. Energy audits, certification of energy-conserving products, and a nationwide campaign to promote conservation have been organized and conducted in order to achieve the above-stated goals, particularly in the industrial field.
Ⅳ. Give Energetic Support to the Integrated Utilization of Resources and Make Maximum Use of the " Three Wastes "
Through adherence to the instructions of the State Council leadership that environmental protection should be combined with the integrated utilization of natural resources, SETC has actively promoted environmental protection and the unified development of the economy, the environment, and society.
Firstly, economic policies have been drafted to encourage enterprises to operate with a commitment to the integrated utilization of resources and the recovery of used and waste materials, On the basis of investigation and research, SETC has put forward proposals to the policy scheme whereby preferential tax rates will be offered to business enterprises of they adhere to these principles, The Ministry of Finance and the General Tax Administration of China have jointly published documents which will give preferential tax treatment to these types of environmentally-conscious enterprises. SETC is simultaneously drafting Provisions on Further Conducting the Integrated Utilization of Resources.