Enhanced protection of intellectual property and innovation are crucial to sustainable growth in the environmental industry, said Xie Zhenhua, deputy director of the National Development and Reform Commission (NDRC), China's top economic planning agency.

In comments to the Xinhua news agency, Xie said breakthroughs are needed to improve energy efficiency, the use of cleaner coal and control of pollution.

The nation's environmental industry is expected to generate 2.8 trillion yuan in revenues in 2012, he said.