China will impose stricter energy-saving standards on air-conditioners. Starting in 2009, only air-conditioners that meet the new energy-efficiency standards will be allowed to hit the stores.

The new energy-saving standards are expected to be launched in March 2009 around China. Current standards require air-conditioners to meet a minimum energy-efficiency level of five. The highest energy-efficiency level is 1.

The new standards will raise the threshold from level five to level 2 or 3. This will help push products' energy-saving efficiency levels by as much as a third. It also means the production costs of air-conditioners will increase, possibly by 10 to 15 percent, implying a possible rise in market prices. But insiders say most consumers will adjust to the price hikes eventually.

Fang Qing, Secretary-General of China Energy Conservation Association said "Considering the rising power prices and longer product lifespans, it's worth buying an energy-efficient air-conditioner."

For manufacturers, the new standards could pose a great challenge. In the first half of this year, nearly 14 million air-conditioners were sold around the country. Among these, over 80 percent had efficiency levels of 4 or 5.

Moreover, there are currently more than 10 million air-conditioners in stock, most of which have efficiency levels of 4 or 5. After the new standards take effect, those products will need to be weeded out.

In response, many firms have begun adopting advanced energy-saving technologies.

Fang Qing said "Energy-saving technology plays a crucial role in the development of energy conservation and pollution reduction."

Experts say adopting advanced technologies will help both save energy and control costs. And consumers will be the eventual beneficiaries.

(CCTV September 5, 2008)