October 13, 2010 / 1:59 AM / in 9 years

China seeks 17 pct energy intensity cut in 2011-2016 -report

BEIJING, Oct 13 (Reuters) - China aims to cut the energy used to fuel each dollar of economic activity by about 17 percent from 2011 to 2016, a Chinese newspaper said on Wednesday, citing a source involved in crafting the nation’s next five-year plan.

That plan will also set a goal of cutting carbon intensity — the amount of the main greenhouse gas from fossil fuel, carbon dioxide, emitted for each unit of GDP — by about 20 percent compared with 2010 levels, the Shanghai Security News reported, citing the unnamed source.

Both targets are in line with China’s previously announced vow to cut carbon intensity by 40 percent to 45 percent by 2020 from 2005 levels. The government, however, has not yet officially disclosed its targets for 2011 to 2016.

This report and earlier ones have stressed the difficult shift from China’s heavy industry-driven mode of growth that will be needed to achieve the reductions from the world’s biggest greenhouse gas emitter, especially while its pace of urbanisation accelerates. [ID:nTOE68E07N]

During China’s development plan for 2011 to 2016, “the conflict between heavy and chemical industry and a low-carbon economy will become even more pressing,” Feng Fei, a researcher at a state think tank involved in developing the plan, told the paper.

The key ingredients of the plan will be settled by the ruling Communist Party’s Central Committee, a policy-setting council with some 200 full members that meets from Friday. The national parliament will then formally approve it early next year.

Local governments across China have been struggling to meet the current national target to cut energy intensity by 20 percent from 2005-10.

Officials have said that the next phase of energy saving will lean less on administrative commands and shutting aged plants and more on economic levers, such as taxation reforms and generating more growth from the service sector.

Reporting by Chris Buckley; Editing by Ken Wills

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