Chen, when decorating a new flat he bought in Shanghai, chose an energy-efficient air-conditioning system and was rewarded by a city government subsidy that reduced the price by 20 percent.

"The trend is toward going green," said Chen, a 31-year-old engineer. "And the subsidy is a nice carrot."

Chen is the face of the new Shanghai, whose World Expo slogan "Better City, Better Life" is trying to breathe new life into the concept that saving energy will help clean up the air and make cities like Shanghai more livable in the future.

"In the long run, a lower-carbon economy is the high-road for Shanghai's economic growth," said Xiao Lin, deputy director general of Shanghai Municipal Development and Reform Commission. "It is also an effective way to tackle the energy crisis."

Shanghai's first-quarter power consumption, both residential and industrial, is the equivalent of 23.4 billion kilowatt hours, up 16.79 percent year on year. Most of Shanghai's power comes from coal-fired plants.?

Shanghai has set itself a goal to cut energy consumption, per 10,000 yuan (US$1,464) of gross domestic product, by at least 3.6 percent this year.

The government said that would reduce coal use by an equivalent 800,000 tons. The eventual goal is to reduce that standard by as much as 1 million tons.

To do that, city officials have issued guidelines involving nearly 200 projects in such sectors as tourism, transportation and construction.

Shanghai has pledged to continue to pare back production related to energy waste. It is strictly controlling new projects based on high energy consumption and curbing excess growth in high-polluting industries.

Earlier this month, Mayor Han Zheng said Shanghai would stop approving permits for expansion projects that fail to pass strict environmental criteria.

A group of small coal-fired power plants will be shuttered without the city's power supply being affected.

Policies enabling the city to fine companies that violate environmental rules will soon be announced.

On the residential front, subsidies are offered subsidies on purchases of more energy-efficient home appliances. For air-conditioners alone, the subsidies range from between 400 yuan and 1,000 yuan. Chen got a 700 yuan discount on a Haier brand air-conditioner costing 3,499 yuan.

The program came into force last July. About 340,000 energy-saving air-conditioners were sold last year in the city, increasing their market share to 54 percent from 17 percent in 2008. That saved power consumption of 42 million kilowatts hours and reduced emissions as well.

Despite the strengthened efforts, local authorities admit achieving this year's goal won't be easy. Operation of the six-month World Expo, which ends on October 31, is placing extra energy burdens on the city.

Steel mills and petrochemical plants, enjoying higher production as the economy rebounds, will also require more energy.

Expo burden

Energy consumption this year is estimated to increase by as much as 7 million tons of standard coal. That includes 1 million tons consumed by Expo transportation alone, and 4 million tons being gobbled up by new projects in the steel and petrochemical industries, according to Vice Mayor Yang Xiong.

"It is austere to achieve 2010 targets to reduce emissions and save energy," Mayor Han said. "We have to rigorously stick to this goal and ensure implementation of rules."

Han pledged to increase financial support to encourage the use of renewable and clean energy such as wind power, solar power and natural gas. He also said industrial restructuring toward higher energy efficiency will continue.

Meanwhile, industry watchers voiced some problems in popularizing energy-saving products.

German-based BASF, the world's largest chemical company, has developed some new plastics that can maintain indoor temperatures at 25 degrees Celsius all year around without consuming any electricity. The new insulating materials are on display in the Hamburg House in the Urban Best Practices Area of Shanghai Expo.

The city of Shanghai would consume two-thirds less energy allocated for heating and cooling if all households were fully insulated with such systems, the company said.

"But it is a challenge to commercialize the insulation systems due to the low investment returns," said Martin Brudermuller, a BASF board member. "The cost of energy consumption is not high enough to push forward the application of such energy-efficient products."

He said the government has to take the lead in promoting new technology use and setting new standards.

Carlos Zorrinho, Portugal's secretary of state for energy and innovation, said one of the best ways to promote the use of new energy is to showcase its development and increase public understanding.

"Although it is expensive to build the new energy network, it is vital to make the public aware of future trends in energy," said Zorrinho.

He said the Portuguese government has developed incentives to encourage the development of wind and hydropower.

"In the future, prices of traditional energy will get higher while clean energy will be more affordable when the technology matures," said the energy minister.