Chinese Premier Wen Jiabao on Tuesday urged local governments to step up efforts in energy conservation and emissions reduction as the situation remains serious.

Speaking during a teleconference, Wen said local governments should be aware of the "extreme significance and urgency" of the task of energy conservation and emissions reduction, as the current situation is "rather severe."

Local authorities should fully implement the policies included in the government's work plan for the following five years.

China aims to reduce energy consumption per unit of gross domestic product by 16 percent in the five years to 2015. Carbon dioxide emissions are set to be slashed by 17 percent by 2015 from the level in 2010.

Wen asked local authorities to adjust their industrial structures and boost the development of both the service sector and new strategic industries.

The total amount of energy consumption should be controlled properly, Wen said. Local authorities should develop hydropower on the condition that displaced local residents are properly relocated, and develop nuclear power in a safe and efficient manner, he added.

China will promote reform on resource and environmental taxes and curb exports of high-energy-consuming and high-polluting products, Wen said. China will establish a carbon trading market after starting a pilot project, he said.

Wen also ordered industrial enterprises to work to prevent heavy metal pollution and curb the emissions of pollutants.

The government will also promote energy-efficient vehicles and green-energy autos, Wen said.