Huge challenges

Energy consumption per unit of GDP was 1.17 tons of standard coal equivalent, down 3.27 percent from 2006. The decline was 1.94 percent faster than the year before. In 2007, the country saved 89.77 million tons of standard coal equivalent in energy. According to China's 11th Five-Year Program (2006-10), it aims to cut energy consumption per unit of GDP by 20 percent from 2005 before 2010 by improving resources, utilizing efficient technology, and saving energy.

"We are still faced with many challenges in meeting the ceiling target," Wen said at last week's national conference on energy saving. "Our development pace is too fast."

Lawyer Zhang Libin said it's urgent for China's legislative body to discuss and then approve the draft of the new Energy Law, which can work as legislative framework for the new energy agency.

A draft is finished, but the central government has still not decided when to read it, despite the fact that it took two years to complete.

"We haven't discussed it so far," Dong Chaojie, a deputy department director of the State Council's Legislative Affairs Office said earlier in an interview. In line with China's law-making process, Dong's office is entitled to decide when to submit the drafts to the National People's Congress to for consideration and voting.

She said it would be "complicated" for the drafters and legislators to weigh the diverse interests of stakeholders and parties governed by the energy law. The biggest challenge is the consolidation of separate responsibilities in various governmental departments.

Ye Rongsi, deputy head of drafting group under National Energy Leading Group, also said "it will take further time" to absorb public input to improve the draft.

"I think 2009 would be the earliest possible date for the legislative body to read and vote on the draft," Ye says.

China's energy agencies are struggling with small staffs and an unusual division of responsibilities that has made it to consolidate the authority.

"Given the background, significant institutional restructuring may be required in order to administer a cohesive national energy plan," says Zhang.

(China Daily July 8, 2008)