4. We will make greater effort to save energy and reduce pollution emissions and strive for even better results.

1) We will tighten the responsibility system for meeting goals in energy conservation and emission reduction. We will implement a master work plan for saving energy and reducing emissions, carry out the plan and methods for compiling statistics on and monitoring and assessing progress, and follow a stringent accountability system and a "failure in one aspect equals total failure" approach. We will improve the oversight system and intensify law enforcement and inspection for energy conservation.

2) We will devote a great deal of effort to retiring backward production facilities. This year we will shut down small thermal power plants with a total capacity of 13 million kilowatts, backward cement plants with a total capacity of 50 million tons, backward steel mills with a total capacity of 6 million tons and backward iron foundries with a total capacity of 14 million tons. We will set up a mechanism for retiring backward production facilities and do everything possible to take care of their employees.

3) We will concentrate on saving energy and reducing emissions in key industries, key enterprises and key areas and on building key projects. We will launch a campaign to meet standards for energy efficiency, improve the system of auditing for energy efficiency and inspection for clean production and promote energy conservation in major energy-intensive enterprises, aiming for a total reduction in energy consumption of 20 million tons of standard coal in 1,000 target enterprises. The development of ten major state energy conservation projects will be accelerated, striving for a total energy saving equivalent to 35 million tons of standard coal. A total of 50 million units of high-efficiency lighting products will be put to use. We will promote architecture that conserves on energy and land and is environmentally friendly, and promote energy saving operation and management of large public buildings and improvements to make them more energy efficient. Advanced and appropriate technologies will be developed to conserve, substitute and recycle natural resources and control pollution, and projects will be built to demonstrate the use of major technologies for saving energy and reducing emissions.

4) General policies on energy conservation and emission reduction will be improved. Efforts to set up a mechanism of compensation for ecological damage will be accelerated. Pricing, fiscal, tax and financial incentives for energy conservation and emission reduction will be put in place and improved. We should make good use of revenue from differential electricity charges and institute differential water prices. The nationwide trial to promote energy-efficient electricity generation and distribution will be accelerated, and fiscal support will be increased for energy-efficient retrofitting projects, the shutting down of backward production facilities and promotion of the use of energy saving, environmentally friendly products. In addition, we will institute a mandatory government procurement system for energy-efficient products, formulate policies to promote the development of the energy conservation service industry, improve the system for assessing and examining energy savings in fixed asset investment projects, and formulate and implement market access requirements, compulsory energy efficiency standards, energy consumption quotas and environmental standards to promote energy conservation and emission reduction. Finally, improvements will be made in supporting regulations for the Law on Energy Conservation.