6. We will make every effort to save energy and reduce pollution and make substantial progress in building a resource-conserving and environmentally friendly society.

1) Development of key energy conservation and pollution reduction projects will be strengthened. Support to the ten major energy conservation projects, the campaign to save energy in the 1,000 energy-intensive enterprises, and the development of the circular economy will be strengthened. We will intensify efforts to prevent and control pollution in key water basins and regions, including the Huai, Hai, Liao and Songhua rivers, Tai, Chao and Dianchi lakes, the Bohai Sea, the Danjiangkou Reservoir area and its upper reaches, the Three Gorges Reservoir area and its upper reaches, and the upper and middle reaches of the Yellow River. We will support the construction of facilities for urban sewage treatment and garbage disposal and for comprehensive ecological improvement of water basins. We will also support demonstrations of major environmental protection technologies. In 2009 the percentage of treated urban sewage is expected to reach 69 percent and percentage of urban household waste safely handled should reach 67 percent. We will accelerate the reform of heating supply by installing heat meters and temperature regulators in the north, vigorously develop green buildings and strongly promote energy efficiency in buildings. We will strengthen ecological improvement and environmental protection, and steadily press ahead with key ecological conservation projects such as those to build key shelterbelts, protect virgin forests, bring the sources of dust storms affecting Beijing and Tianjin under control, return grazing land to grassland and prevent karst regions from becoming stony deserts.

2) We will speed up efforts to shut down backward production facilities. We will strictly implement industrial policies, improve the mechanism for closing down backward production facilities, create a public notice system announcing enterprises that have been ordered to shut down, and implement the policy making enterprises whose production is classified as backward or restricted pay higher electricity rates. We will support the central and western regions in shutting down such facilities. In 2009 we will shut down backward iron foundries with a total capacity of ten million tons, backward steel mills with a total capacity of six million tons, backward paper mills with a total capacity of half a million tons and backward power plants with a total capacity of 15 million kilowatts.

3) We will work energetically to develop the circular economy. Improvements will be made to regulations for implementing the Law on Promoting the Circular Economy, and a plan for developing the circular economy will be formulated. We will work out economic policies to encourage the recovery of by-product heat and pressure to generate electricity to be supplied to the power grid. We will explore ways to set up a special fund for developing the circular economy and establish a sound, scientific statistics system for it. We will move forward with the second group of national pilot demonstration projects for developing a circular economy and trials for remanufacturing auto parts, and support a number of key projects for the circular economy. We will promote recovery of useful materials from damaged buildings in earthquake-hit areas. We will give more importance to comprehensive utilization of resources and promote cleaner production in all sectors. Water consumption per 10,000 yuan of value-added by industry is expected to drop by 5.6 percent, while the percentage of industrial solid wastes that are comprehensively utilized will reach 65.9 percent.

4) Laws, regulations and policies on energy conservation and pollution reduction will be improved. We will introduce the Regulations on Assessing and Examining Energy Savings in Fixed Asset Investment Projects, and will quickly establish or revise China's mandatory energy consumption quotas for products whose production is energy intensive and mandatory energy efficiency standards for major energy consuming products. Economic policies will be worked out to encourage use of more efficient air-conditioners, energy-saving electric motors and energy-efficient, environmentally friendly automobiles, and the development of the energy conservation services. We will expand the scope of energy efficiency labeling and the list of energy- and water-saving products for government procurement. We will implement the policies for giving income tax credit to enterprises for the purchase of equipment for saving energy and water and reducing pollution and giving excise tax credit to manufacturers for the production of small-displacement cars that conserve energy and are environmentally friendly. Pilot programs will be carried out to train energy conservation managers. We will tighten oversight of electricity rates charged by power plants with desulfurizing devices and improve the system for demand-side management of electricity. We will continue to experiment with the cap-and-trade emissions trading system.

5) We will tighten performance assessment and oversight of energy conservation and pollution reduction efforts. We will further improve methods for assessing performance in meeting energy conservation and pollution reduction targets. The performance of provincial-level governments and the 1,000 energy-intensive enterprises in fulfilling energy conservation targets and implementing energy conservation measures in 2008 will be assessed. We will strengthen energy conservation oversight. We will intensify efforts to protect and improve the environment. We will investigate and punish all kinds of illegal activities detrimental to the environment in accordance with the law, with the focus on ensuring the safety of the people's drinking-water supply. We will ensure that pollution control apparatus, such as urban sewage treatment facilities and desulfurizing devices in coal-fired power plants, are operating properly. We will continue the campaign to encourage the general public to conserve energy and reduce emissions.

6) We will fully carry out China's National Climate Change Program. We will strive to improve the country's ability to respond to climate change at both national and provincial levels, set up and improve supervisory bodies at all levels. We will formulate and implement provincial climate change programs. We will carry out pilot projects for developing a low-carbon economy and promote international cooperation on projects concerning clean development mechanisms. We will increase R&D on technologies for slowing down and responding to climate change.