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| Energy Intensity Index Deserves Firm Support |
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Talk of a fundamental change in the country's growth model is giving way to action, as for the first time In his government work report delivered at the opening session of the National People's Congress (NPC) on Sunday, Premier Wen Jiabao proposed an about 4-per-cent reduction in energy intensity this year. Energy intensity is an index measuring energy consumption per unit of gross domestic product (GDP). It is a sound message that the country must bid farewell to extensive growth right now. Such a pattern of development has helped deliver rapid economic growth for more than two decades. But it has increasingly tested the limits of the country's energy and resource supplies in recent years. The nation has agreed on the need for a new growth model that is more efficient in use of energy and resources. It is the only logical choice for a developing country with a population of 1.3 billion, the world largest, to sustain its economic progress and build itself into an overall well-off society. However, it is not easy to put an end to the outdated growth model given the long-term heavy reliance on it by both officials overseeing economic growth and enterprises with low efficiency in energy consumption. By making it a main target for the national economy to chop down energy intensity by 4 percent in 2006 and by 20 percent in the coming five years, the central government has fully demonstrated its resolve to take on the challenge of potential energy shortages. When deputies to the NPC take time to examine the government work report and the 11th Five-Year (2006-10) Social and Economic Development Guidelines this week, they should not only heed traditional economic indices like GDP growth rate. The new gauge of economic performance in terms of energy consumption also demands their full attention. Particularly, for local policy-makers among them, it is important to realign priorities of local economic growth with the energy-saving goal the central government has set. According to interviews of some local officials attending the NPC, sweeping support for the introduction of the energy intensity index was accompanied by different perceptions of the challenge. Worries by officials from less-developed areas are understandable. To narrow their gap with other rich regions, they must achieve faster economic growth. But the new requirement on reduction of energy intensity seemingly will make their catching-up efforts more difficult. The central government is surely obliged to tilt public spending in favor of these areas. Yet, more important, local governments should be far-sighted enough to see the cost of doing nothing, instead of doing something, to improve energy efficiency in view of the competitiveness of local economies. Contrary to the gloomy view, complacency among some officials from wealthier provinces is more worrying. The central government has laid down a cautious growth target of 8 percent for 2006 just after the national economy soared by 9.9 percent last year. This effort is obviously to leave local economies more room for manoeuvre in rendering themselves more energy efficient. Better economic and financial conditions might make it possible for these regions to go through their work at pace this year. But that is no justification to make light of the problem. The 4-per-cent reduction in energy intensity this year is an initial stab at addressing the country's low efficiency in energy use. And even the planned 20-per-cent reduction in the coming five years will only mount to a small step to narrow the huge energy efficiency gap between Relatively developed areas that used to consume more energy and resources should pursue higher energy efficiency to help realize the national goal. Taking the task lightly is not acceptable. (
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