China hard pressed to meet energy conservation goal

It will take an investment of some RMB2.4 trillion for China to achieve energy conservation targets intended to make it a green manufacturer.

The Chinese cabinet said China needs this massive investment if it is to meet its energy conservation targets under a five-year plan ending 2015. The investment will cut China's energy consumption per unit of GDP by 16% by 2015 and save an equivalent of 670 million tonnes of coal.

After decades of rapid but dirty economic expansion caused by its over reliance on coal, China wants to shift to using more renewable energy sources. A key goal is to consolidate energy-intensive sectors, such as steel and metal-smelting, and close those using outdated technology.

"According to preliminary calculations, investment of RMB2.37 trillion is needed to implement the energy-saving projects under the five-year plan," the cabinet said.