China targets 18 per cent energy intensity cuts

China will force its industrial sector to cut carbon emission and energy intensity by up to 18 per cent over the next five years in the latest push to 'green' the nation's economy.

The mandatory goals are higher than initially expected and will entail large industry reducing carbon and energy intensity levels by more than four per cent this year, the Xinhua news agency reported.

Water use will also be slashed by seven per cent this year, as part of an overall reduction in consumption of 30 per cent by 2015.

China's latest five-year plan includes a 17 per cent cut to carbon emissions per unit of GDP and a 16 per cent reduction in energy consumption by 2015, as the country looks to meet its international pledge to reduce carbon intensity by 40 to 45 per cent by 2020 from 2005 levels.

Its huge power plants, steel mills, aluminium smelters and cement factories are in the frame to bear the brunt of the cuts. Over the 2006-10 period, China reported a 26 per cent decline in energy use per unit of industrial value-added, with 750 million tonnes of coal equivalent saved.

China has been investigating market mechanisms to reduce carbon, in the hope it can avoid cutting off the power supply to large plants in order to meet its 2010 efficiency goals.

MIIT deputy minister Su Bo said the department would strengthen supervision on major energy users, but urged the country to focus on improving infrastructure and technology to meet the goals. Su also called on local authorities to set their own green targets, Xinhua said.

In related news, Wei Zhaofeng, vice chairman of the China Electricity Council (CEC),  said that, in the light of the Fukushima crisis, the country should scale back plans to almost quadruple nuclear capacity to 40GW by 2020.

China currently generates about 10.8GW of nuclear power, but the government has fast tracked a large number of new reactors, prompting predictions that either the 2020 goal would be met five years early or Beijing would announce a new target.

But, today, Wei said China should lower its ambition by at least 10GW and its nuclear plants should not comprise more than three percent of total national power capacity, in comments reported by China Business News.

China has already announced its intention to "adjust and improve" its nuclear plans following Japan's earthquake and tsunami.