After deliberation of the executive meeting of the State Council, the State Council recently issued Opinions on Accelerating the Development of Environmental Industry. This marks another important step beneficial to both the present and the future the new government has taken for the purpose of maintaining economic growth, adjusting economic structure, facilitating reform and benefiting the people. It is of great significance to ease the restraint of resources and environment, boost domestic demand, transforming the pattern of economic development, promoting industrial upgrading and enhancing the endogenous dynamics.

The Opinions state that to accelerate the development of environmental industry, efforts should focus on improvement of industrial technological level and competence with companies as the major players. This process will be guided by market and promoted through projects. It has to be advanced by enhancing government leadership, improving policies and mechanism, cultivating a regulated market, stressing technological innovation and upgrade technical equipment, products and services. All this aims to unleash potential market demands, foster new sources of growth and make contributions to the strategy of maintaining economic growth, adjusting economic structure, boosting domestic demand, bettering environmental quality, safeguarding and benefiting the people and speeding up the building of ecological civilization.

The Opinions set out the objectives for the next three years. By 2015, total output value of the environmental industry will reach 4.5 trillion yuan with an annual growth rate at 15% or more. Industrial technological level will be elevated remarkably, laying a solid material foundation and providing technical guarantee for achieving the goal of energy conservation and emission reduction.

The document also identifies four key tasks for accelerating the development of energy-saving and environmentally friendly industry. First, an overall lift of energy-saving and environmentally friendly industry will be facilitated centering on the key fields. Efforts will be made to hasten the development of energy-saving, environment-friendly and resource-reusing technologies and equipment to elevate technical level. Creativity is needed to change the development pattern and expand environmental services. Second, the government will take a leading role to channel social funds into environmental projects. We will strengthen technological reform on energy conservation, implement key projects on pollution control, further resource reuse in industrial parks, speed up construction of urban environmental infrastructure and promote green building and green transport. Third, we will extend green products and expand market demand. We will keep on enforcing and adjusting the policy of using green products for the good of the people, implement energy efficiency leadership action plan, improve certification system for green products, introduce the policy of “old for reproduced products” to drive consumption of green products. Fourth, technological innovation will be strengthened to improve the competence of environmental industry. Support will be given to companies for capacity building on technology innovation to accelerate mastering core technologies, promote commercialization of scientific results and facilitate international cooperation and the building of professionals.

The document highlights the need to take effective measures to strengthen restraint and incentives, creating a good market and policy environment for the development of green industry. First, improving laws, regulations and standards. We will hasten the revision of standards on energy conservation and environmental protection, improve laws and regulations and investigate and punish various violations strictly. Second, strengthening target responsibility. We will implement the target responsibility system on energy conservation and emission reduction, improve assessment and review system for energy conservation and intensify assessment of major energy-consuming companies. Third, enhancing investment in energy conservation and emission reduction from central budget funds and central special funds for energy conservation and emission reduction. Fourth, expanding investment and financing channels. We will support green credit and financial innovation, encourage qualified environmental companies to issue corporate bonds, collective bonds of small and medium sized bonds and short-term financing bonds, etc. Fifth, improving pricing, charging and land policies. We will formulate and enforce policies on on-grid power and pricing for power generation by residual heat, pressure and energy, back pressure turbine and renewable energy, enforce desulphurization and denitration power price for coal-firing plants and tiered pricing for residents and improve charing system for urban sewage treatment and refuse disposal. Sixth, promoting reform and innovation. We will establish extended producer responsibility and deepen trial programs on paid use and trading of pollution discharge permits. We will select representative areas to first practice ecological civilization and establish demonstration areas. Seventh, intensifying publicity and education on energy conservation and emission reduction. Effort will be made to strengthen education on the concept of ecological civilization and resources and environmental conditions of China, popularize knowledge and methods on energy conservation and advocate green consumption.

The Opinions requires all localities and departments to enhance leadership and cooperation, clarify tasks and assignments and do all the tasks down to earth so as to ensure solid progress in the development of the green industry.