II. Policies and Goals of Energy Development

As the largest developing country in the world, China is faced with the daunting tasks of developing its economy, improving its people's livelihood, and building a moderately prosperous society. It is an important strategic task of the Chinese government to maintain long-term, stable and sustainable use of energy resources. China's energy development must follow a path featuring high-tech content, low consumption of resources, less environmental pollution, satisfactory economic returns, as well as security. It is moving towards the objective of economical, clean and secure development.

The basic contents of China's energy policies are: "giving priority to conservation, relying on domestic resources, encouraging diverse development, protecting the environment, promoting scientific and technological innovation, deepening reform, expanding international cooperation, and improving the people's livelihood." The state strives to advance the transformation of its energy production and utilization modes, and build a modern energy industrial system which features secure, stable, economical and clean development, so as to support sustainable economic and social development with sustainable energy development.

-- Giving priority to conservation. The state exercises control over both total energy consumption and intensity. It is working to build an energy-saving production and consumption system, promote the transformation of the patterns of economic development and household consumption, and accelerate the pace of building an energy-efficient country and an energy-saving society.

-- Relying on domestic resources. The country relies on domestic resource advantages and its own development basis, makes special efforts to enhance its energy supply capability and security, improves its emergency energy reserve and emergency response systems, and controls its dependence on foreign energy sources.

-- Encouraging diverse development. China endeavors to raise the proportion of clean, low-carbon fossil energy and non-fossil energy in the energy mix, promotes the efficient and clean utilization of coal, develops substitute energy resources in a scientific way, and speeds up the optimization of energy production and the consumption mix.

-- Protecting the environment. The state encourages fostering the concept of environment-friendly and low-carbon development, coordinates the development and use of energy resources with the protection of the eco-environment while paying equal attention to both, and actively fosters an energy development pattern that meets the requirements of ecological civilization.

-- Promoting scientific and technological innovation. The state strengthens basic scientific research and frontier technological research in the energy field to enhance its scientific and technological innovation capabilities. Through the implementation of key energy projects, the state advances independent innovation in key technologies and equipment, and speeds up the fostering of innovative personnel.

-- Deepening reform. The state gives full play to the role of the market mechanism, makes unified planning with due consideration for all concerned, addresses both root causes and symptoms of various problems, and expedites the reform in key fields and links to establish a framework of systems and mechanisms conducive to sustainable energy development.

-- Expanding international cooperation. China gives simultaneous consideration to both domestic and international energy development, works to increase the scope, channels and forms of international cooperation, enhances its capability to "introduce" and "go global," propels the establishment of a new international energy order and promotes mutually beneficial cooperation.

-- Improving the people's livelihood. The state coordinates energy development in both urban and rural areas, enhances energy infrastructure and basic public services, and strives to eliminate energy poverty and improve civil energy-use conditions.

It is stipulated in the Outline of the 12th Five-Year Plan (2011-2015) for National Economic and Social Development that by 2015 non-fossil energy will rise to 11.4 percent in the national total primary energy consumption, energy consumption per unit of GDP will drop by 16 percent from 2010, and CO2 emission per unit of GDP will decrease by 17 percent from 2010.

The Chinese government has made the commitment that by 2020 non-fossil energy will account for 15 percent of its total primary energy consumption, and CO2 emission per unit of GDP will be 40-45 percent lower than in 2005. As a responsible nation, China will make every effort to fulfill its commitment.