According to a release by China's National Development and Reform Commission, China's energy consumption per unit of GDP dropped 2.89% in the first quarter, and 3.35% in the first half year, compared with 2008.  Energy consumption per unit of value added by large enterprises dropped 11.35% year on year.  SO2 discharge dropped 5%, and COD discharge dropped 2%.

One of the reason for the improvement is the economic structural change.  In the first half, the weight of the tertiary industry in the total GDP increased 0.5% , while the secondary industry dropped 0.8%.  Another reason is the efficiency improvement by the energy-intensive industries.  The energy consumption per unit of value added dropped 3.83% by the coking industry, 8.43% by the iron and steel industry, 19.59% by the non-ferrous metal industry, 9.03% by construction materials industry, 8.21% by petrochemical industry, 15.16% by chemical industry, 11.45% by textile industry, and 9.5% by power industry.  The third reason is the closing of out-dated production facilities, and improved management in energy saving and discharge supervision.  Among enterprises with total energy consumption of more than 10,000 tons of standard coal equivalent, 80% of the 108 energy consumption indicators showed improvement.

According to the 11th five-year plan (2006-2010), the central government had invested 84.1 billion yuan in the first three years for energy efficiency and pollution control.  As part of the 4-trillion-yuan stimulus package, China has allocated 23 billion yuan for energy saving, anti-pollution, ecological and environmental protection projects since the fourth quarter of last year, accounted for 10% of the stimulus fund that has been allocated.

With new investment, the government has strictly controlled the construction of high energy consumption and high pollution projects.  Meanwhile, the government has speeded up the process of closing outdated facilities.  In the first half year, small coal-fired power plants with total capacity of 19.89 million KW had been closed, one and half year ahead of the 11th 5 -year plan target.  The plan for this year is to close out-dated facilities of 10 million tons for iron making, 6 million tons for steel making, and 5 million tons for cement making.  The government has allocated 34.2 billion yuan of special fund for improving energy efficiency and reducing pollution.

Last year end, the government adjusted energy consumption taxes and started to implement value-added taxes.  This year, the government has implemented a series of policies to improve energy efficiency, including lowering taxes for purchasing energy efficient vehicles, subsidizing the trade-in of old air conditioners, refrigerators, and automobiles, and promoting new energy efficient products.

The State Council reviewed, at provincial level, the accomplishment of the 2008 energy efficiency and pollution control objectives, and publicized the result.  In addition, it fined 8 cities and 5 power corporations for their failure to fulfill the energy efficiency and pollution control objectives.  The intensified supervision and management greatly stimulated the local governments and enterprises to become proactive in energy efficiency and pollution control.