4) We need to increase policy support. We will improve the fiscal and tax policies for encouraging energy conservation and reduction of energy consumption. An energy-saving fund has been set up in the central government budget to support the application of highly efficient, energy-saving products and the operation of major energy conservation projects and the major demonstration projects for energy-saving technologies. We will improve the policy of differential electricity and water charges for enterprises that consume large amounts of energy or are highly polluting. We will improve the system of charges for pollutant emission. All cities and towns must begin collecting charges for sewage treatment by the end of the year and gradually increase the charges, and all cities must begin collecting charges for garbage disposal within the specified time. We will increase the price for electricity from coal-fired power plants using desulphurization equipment and disallow the increased price for power plants that turn off desulphurization equipment without a proper reason and fine them severely. We will introduce a policy to encourage the use of by-product heat and pressure, coal gangue and waste incineration to generate power and set preferential prices for electricity from such sources when supplied to the state power grids.

5) We need to develop a circular economy. We will promptly formulate a national plan for the development of a circular economy, improve the system of assessment indicators and statistical database for a circular economy, and press ahead with the first group of trial projects for a circular economy. We will energetically promote comprehensive utilization of resources and do a good job conducting trials to recycle renewable resources, recover and dispose of used home appliances and remanufacture auto parts.

6) We need to do more to protect the environment. We will fully promote clean production, carry out mandatory clean production inspections in enterprises whose pollution discharge seriously exceeds stipulated standards and order them to make corrections within a prescribed time. We will continue our comprehensive efforts to prevent and control pollution in key river valleys and regions, including the Huai, Hai, Liao and Songhua rivers, Tai, Chao and Dianchi lakes, the Bohai Sea, the Three Gorges Reservoir area and the upper reaches of the Yangtze River, and the sources and routes of the South-to-North Water Diversion Project. We will strengthen guarantees for the safety of urban drinking water supplies, improve the capacity of cities to treat sewage and waste, and stop direct discharge of pollutants into the zones for conserving and protecting potable water sources according to law. We will vigorously develop the environmental protection industry.

7) We need to conduct effective oversight and inspection. We will carry out inspections for energy conservation and pollution reduction, and strengthen oversight and inspection of compliance with the responsibility system for meeting energy conservation and pollution reduction targets, requirements for mandatory energy efficiency labeling and adoption of energy saving measures by high energy-consuming enterprises. We will carry out on-line monitoring of target energy consuming enterprises and major pollution sources and increase oversight over the operation of facilities for urban sewage and waste treatment and desulphurization.

8) We need to conserve land and use land intensively. We will implement the strictest possible land management system, carefully follow the master plan and annual plans for land utilization, strengthen control over the amount of land to be used for development projects, protect arable land, especially basic farmland, and prohibit unauthorized development on agricultural land. We will strictly implement quotas for the amount of land that can be used for development projects and minimum price standards for the transfer of land for industrial use. We will standardize management of revenue and expenditures deriving from the transfer of land and incorporate into local budgets all the proceeds from and payment for the transfer of the rights to use state-owned land.