China Energy Blue Book: The expansion of high-energy-consuming industries blocks energy-saving and emission reduction

The 2008 Energy Blue Book “China Energy Development Report (2008)” was recently published by the Social Sciences Academic Press. The Blue Book states that in the first half of 2007, the six high-energy-consuming industries such as iron and steel, non-ferrous metals, building materials, petroleum processing and coking, chemicals, and electricity etc. Total added value increased by 20.1%. Driven by this, energy consumption will increase more. If this trend cannot be reversed in time, it will exacerbate the difficulty of accomplishing energy-saving and emission reduction tasks.
Since 2006, due to the easing of energy supply shortages and market-driven interest, the high-energy-consuming industries that our country was once constrained have regained its head and have shown blind expansion. In order to curb the excessive growth of high-energy-consuming, high-pollution industries, the state has issued a series of policies and measures and has launched a series of “links” in cracking down on high-energy-consuming industries. Since entering 2007, there have been some new trends in China's economic development. With the increase of national energy-saving and emission-reduction policies and macro-economic control efforts, policies to curb the development of high-energy-consuming industries have become more intensive.
But in fact, the pace of development of high-energy-consuming industries has not slowed down. According to the analysis of the Blue Book, there are three reasons for the rapid development of high-energy-consuming industries in recent years: first, the domestic and international market demand; second, the power supply tends to be loose. With the nation's power installed capacity of over 622 million kilowatts, power shortages tend to ease, and supply and demand generally balance. Some localities have adopted various preferential measures to encourage the development of high-energy-consuming industries. For example, 14 provinces across the country have introduced preferential tariffs for high-energy-consuming enterprises in various ways. This series of measures will inevitably increase the proportion of investment in the industry, leading to the rapid development of high-energy-consuming industries. Third, resource prices. Low. The low prices of domestic raw materials such as aluminum and iron provide favorable conditions for the development of high-energy-consuming industries. The low price of raw materials and the high price of export products have formed the price contrast of high-energy-consuming industries. Many companies have just launched huge profits.

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