Monitors will investigate the local governments' performance in implementing the central government's macro controls on the energy consuming and polluting industries.

China will promote the use of renewable energy resources, such as wind power, solar power, hydro power, methane and terrestrial heat. The country will also establish medium- and long-term outlines on fuel ethanol and bio ethanol, the plan said.

According to the plan, units, branches and bodies of the central government will take the lead of using energy-saving lights and 50 million similar lights will be in use nationwide by 2010.

Meanwhile, the plan makes it compulsory for government departments to purchase highly efficient energy-saving, water-saving and environmental-friendly products in governmental procurement, such as conditioners, computers, printers and displays.

The state will encourage and direct financial institutions to enhance credit support for environment-protection and pollution-reduction projects. The government will also offer preferential tax treatments for such projects.

China will also reform pricing mechanism for resource products, such as refined oil, natural gas and electricity, and restrict the export of high-energy consuming and heavy-polluting products.

China will optimize energy use in high-energy consuming industries, such as steel, non-ferrous metal, petrochemical and cement production, realize energy-saving capacities of 50 million tons of standard coal in 2007 and 240 million tons by 2010.

The country will save 31.5 million tons of standard coal this year and 118 million tons by 2010, and cut sulfur dioxide emissions by 400,000 tons in 2007 and by 2.4 million tons by 2010.

To meet the goals, the government will accelerate the elimination of out-dated production capacities and reduce chemical oxygen demand (COD) by by 620,000 tons this year and by 1.38 million tons by 2010.

To meet the goal, the government has set a list of targets, including:

-- Solid fuel-burning electricity generating capacity will be reduced by 10 million kilowatts this year and 50 million kilowatts by 2010;

-- Iron ore production capacity to lose by 30 million tons this year and 100 million tons by 2010;

-- Steel production to close 35 million tons of capacity this year and 55 million tons by 2010;

-- Electrolytic aluminum production to close 100,000 tons of capacity this year and 650,000 tons by 2010;

-- Iron alloy production capacity to lose 1.2 million tons this year and four million tons by 2010;

-- Calcium carbide production capacity to lose 500,000 tons this year and two million tons by 2010;

-- Coke production capacity of 10 million tons will close this year and 80 million tons by 2010;

-- Cement production capacity to lose 50 million tons this year and 250 million tons by 2010;

-- Glass production capacity of six million weight boxes to be closed this year and 30 million weight boxes by 2010;

-- Papermaking capacity of 2.3 million tons to be closed this year and 6.5 million tons by 2010.

-- Alcohol production capacity to lose 400,000 tons this year and 1.6 million tons by 2010;

-- Monosodium glutamate production capacity of 50,000 tons to be eliminated this year and 200,000 tons by 2010;

-- Citric acid production to close 20,000 tons of capacity this year and 80,000 tons by 2010.

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