China’s most recent five year plan (FYP) covers the period 2011-2015,and China’s National People’s Congress (NPC) is expected to approve thefinal version in March 2011. This FYP is expected to shift China’sdevelopment agenda towards sustainable growth.
The FYP willstrengthen its energy-saving implementation in key sectors such as heavy industry, construction, and transportation. China will initiate morepreferential measures for developing energy-efficiency technologies. Inaddition, management on supply and demand sides will be improved.National utility demand-side management (DSM) will be established.
China may start levying a carbon tax and further boost prices of fossilfuels. The government may begin to levy environmental and resourcetaxes, although the details have not yet been released.
Chinaplans to implement a domestic carbon-trading market to reduce carbonemissions and promote clean-energy industries. A cap-and-trade market in China may be in place by 2020 and could begin targeted applications asearly as 2013.
China will support the development of clean energy technologies and boost its domestic clean-tech market. China isseriously considering investments of up to US$1.5 trillion over the next five years in seven strategic industries, such as alternative energy,alternative-fuel vehicles, and environmentally friendly technologies.Moreover, approximately US$300 billion will be invested in theconstruction of smart grid in China in the same time.
China willimplement marine ecological restoration focusing on supervising chemical oxygen demand which measures the amount of organic pollutants found insurface water and the limitation of emissions of nitrogen andphosphorus, which causes eutrophication. New construction will bestrictly examined to ensure they are not adversely impacting theenvironment.
Richard Matthews is a consultant, eco-entrepreneur, sustainable investor and writer. He is the owner of THE GREEN MARKET, one of the Web’s most comprehensive resources on the business of the environment. He is also the author of numerous articles on sustainable positioning, green investing, enviro-politics and eco-economics.