China's massive economic growth has come at a major cost to its environment and even its environmental ministry has described the country's environmental situation as "grim". Under the plan, environmental protection industries will receive funding from the government in an effort to stimulate technological innovation. The funding will cover a wide range of technologies that address air, water and soil pollution including energy saving products, waste disposal, electric vehicles and pollution monitoring.
Many analysts welcomed the plan and some were quoted in the Chinese media as saying that it will create opportunities for investors and will give direction to the industry. The plan also includes policies, standards, pilot programmes, financing mechanisms and incentives, emissions and carbon trading.
It shows the ambition of the Chinese government to tackle its growing environmental problems while making the country the world's biggest manufacturer of the environmental protection technologies. However that more details need to be known before it is possible to assess the effectiveness of the new plan.
Tackling pollution has been a priority of the new administration under Xi Jinping, especially as pollution has become a major concern among Chinese citizens and is one of the main causes of social unrest. In an effort to tackle the problem, China has also committed to reducing its carbon emissions per unit of GDP by 40-45% by 2020 from 2005 levels and is aiming to increase renewable energy to 15% of its total energy consumption.
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