The Blog:

China’s 12th Five Year Plan is Formed 4/7/2011

China's five year planLast month, China’s newest Five Year Plan (FYP) was developed at the Annual Sessions of China’s National People’s Congress. At the center of the 12th FYP is possibly their most ambitious energy goal to date. The new plan calls for a reduction of energy intensity by 16 percent over the next five years. As the goal is quite bold, it is possible considering that during the previous FYP, China managed to reduce energy by 20 percent.

Other goals of the FYP include a plan to reduce pollution and reduce China’s dependency on fossil fuels. China is aiming to reduce carbon dioxide emissions by 17 percent and to increase the use of non-fossil fuels from 8 percent (current state) to 11.4 percent in 5 years.

When it comes to implementation, China has decided to encourage development and foreign investment in industries that will increase their ability to move towards these green goals. They will be executing programs to support growth in the high-end manufacturing industries such as clean energy, various service industries and environmental protection.

Of course, there are supporters and opponents of the newest FYP. Supporters of the plan include environmental protection groups and clean energy groups who are encouraged by China’s step towards a greener country. Some opponents say however, that the plan could be too ambitious and that some of the other goals included in the plan may be conflicting with their green initiatives; such as the target to build upwards of 40 new airports over the next five years.

Ambitious or not, achievable or not, changes are on their way for foreign investors and where different incentives will be placed in the upcoming years.

Tags: , , , , , , .
No Comments. Join the Discussion.

China Raises Gas Prices 10/25/2010

Bloomberg Business Week Reports: Today China has increased gas prices by 3 percent. According to the National Development and Reform Commission, the ceiling for gas prices will increase by 230 yuan or $34.50 USD per metric ton. Diesel prices will also go up by 220 yuan.

The increase is said to be in part to help China reach its energy goals (cut energy consumption per unit of gross domestic product 20% by 2020.) It is also a way to help slow down China’s economy and focus on its green energy efforts.

The price hike is also reported to affect inflation, although it is predicted that the overall affect on prices will not be much. Picture Source

Bloomberg’s Full article

Tags: , , , , , , .
No Comments. Join the Discussion.