7. Development of a resource-conserving and environmentally friendly society was accelerated.

Energy conservation and pollution reduction efforts were intensified. For the whole year, 42.3 billion yuan from the central treasury was spent to support construction on ten major energy conservation projects, development of the circular economy, upgrading of urban sewage and garbage treatment facilities and sewer lines, treatment of water pollution in key water basins, and strengthening of our energy conservation and environmental protection capacity. More than 60 million energy-efficient lights were distributed. The campaign to limit the production, sale and use of plastic bags achieved significant success. The national catalog of major energy-conserving technologies for extensive application was published. The construction and transportation sectors and public agencies made further progress in saving energy. We launched a science and technology initiative for energy conservation and emissions reduction, made breakthroughs in a number of major energy-conserving, pollution-reducing technologies in key industries, and widely demonstrated and applied these technologies in key areas and industries. The second round of demonstration trials for the circular economy was conducted smoothly, and trials for remanufacturing auto parts were begun in 14 auto enterprises. Economic policy played a bigger role in providing incentives. A preferential income tax policy for energy-and water-conserving and pollution-reducing equipment was promulgated. Excise tax rates for passenger vehicles of varied engine displacements were adjusted. The preferential tax policy concerning the comprehensive utilization of resources was improved. We developed a scheme for using surcharge and quotas to subsidize the price of electricity generated from renewable sources. Assessments were conducted on provincial governments' performance in meeting the targets and implementing the measures for energy conservation and pollution reduction in 2007. The results of evaluations of how well the 1,000 energy-intensive enterprises met energy conservation targets set for 2007 were made public. The campaign urging major energy-consuming enterprises to set, review and live up to the energy efficiency benchmarks progressed smoothly. A campaign was organized to supervise energy conservation and emissions reduction efforts and enforce environmental protection laws. Publicity activities to get the people to save energy and reduce pollution produced positive social effects.

Progress was made in ecological and environmental conservation. The projects to improve the ecosystems of the Tarim and Hei rivers and the Beijing water resources protection project were carried forward. The key project to restore the ecosystem of the Shiyang River was launched. While continuing to press ahead with major ecological projects, including virgin forest protection, development of shelterbelts and treatment of the sources of dust storms affecting Beijing and Tianjin, we launched a comprehensive project to prevent karst regions from turning into stony deserts. Work was energetically carried forward to improve the water environment of Taihu Lake and prevent and control water pollution in the Liao, Huai and Songhua rivers and other key water basins. The third phase of the project to prevent and control geological disasters in the Three Gorges Reservoir area was carried out smoothly. Environmental protection work was initiated on a broad scale in rural areas. Last year, the daily urban sewage treatment capacity was increased by 11.49 million tons, 65 percent of urban sewage was treated and 64 percent of urban household waste was safely handled, an increase of about two percentage points year on year in both cases. Further progress was made in the desulfurization of coal-fired power plants. Desulfurizing devices were installed in more thermal power plants with nearly 100 million kilowatt capacity, raising the percentage of the total capacity of the coal-fired plants equipped with such devices to around 60 percent.

China's National Climate Change Program was implemented well. The white paper China's Policies and Actions for Addressing Climate Change was published. The Beijing High-Level Statement on Technology Development and Technology Transfer for Climate Change was adopted. Cooperation on projects concerning clean development mechanisms was energetically carried out.