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The government has earmarked 6 billion yuan (4 million) to pay for energy conservation projects to be launched before the end of this year, a senior official from the top economic planner said Monday."The special funds will support 10 major energy-saving projects, such as reducing the use of petroleum and developing petroleum substitutes and green lighting technology. It is hoped these developments will help the country use less energy," Xie Zhenhua, vice-minister of National Development and Reform Commission (NDRC), said at the China Energy Saving and Emission Reduction Forum 2007."Incentives have been devised to encourage enterprises to save energy. Enterprises will receive financial aid according to the energy they can save while reducing emissions."Xie said the central government has also set aside an additional 2 billion yuan to compensate local governments and enterprises for eliminating excess production capacity in the latter half of this year.The government has set a target of reducing energy consumption per unit of GDP by 20 percent between 2006 and 2010, with annual cuts of 4 percent. However, the decrease was only 1.33 percent last year compared with 2005."If we cannot reverse this situation in a timely manner, it will be difficult to meet this year's energy-saving target, which could have an unfavorable effect on the energy-saving and emissions-reduction targets in the 11th Five-Year Plan," Xie said.To prevent this from happening, the government will accelerate the elimination of obsolete production capacity in 13 sectors.He also said the NDRC and the State Environmental Protection Administration will soon organize a conference on the recycling economy in Chongqing.The government will guide the price of power from small thermal power plants, and raise excise taxes on resource-consuming products such as refined oil, automobiles and solid wood floors.

The highly anticipated Beijing-Shanghai high-speed railway will begin construction next month, a Ministry of Railways official said.The ministry source, who did not want to be named, confirmed in a phone interview yesterday that preparations are now being made for a ceremony to commence construction of the system.Based on that timeframe, the railway will be completed by 2013. Trains running on the 1,318 km railway will then be able to travel at speeds of up to 350 kph and will cut travel time between the two cities from the current 10 hours to less than five.The project involves one of the largest amounts of investment on railways. Industry sources say it will cost more than 200 billion yuan ( billion), more than the 180 billion yuan needed for the Three Gorges Project.Officials say the project will also employ a set of locally developed high-speed railway technology for the first time.The country is said to have already mastered the technologies needed to lay high-speed rail tracks and trains.The first homegrown train able to reach 300 kph rolled off the production line over the weekend, marking China's entry into "an elite club that includes Japan, France and Germany to become the fourth country capable of making such trains", Wang Yongping, Ministry of Railways spokesman said.Officials added that the railway still relies on foreign companies, such as the Germany-based Siemens, to build its signal network and other systems.China has been upgrading the scale and speed of its railway network in the past decade, and the 11th Five Year Plan period (2006-10) is regarded as a critical period for building high-speed railways that can travel at speeds of 200 kph as part of an extensive transport network.At least eight express passenger railways were being constructed as of last year.Xinhua contributed to the story

CHONGQING -- A bus fire that killed 27 people in southwest China's Chongqing Municipality on Tuesday had been an arson attack, local police said on Wednesday.Xiao Yonghua, a former employee of the company that operates the ill-fated Yutong bus, hid gasoline in his baggage before he got on the bus that left Wansheng district for downtown Chongqing at around 5:00 pm on Tuesday, said Wang Yunsheng, deputy head of the municipal public security bureau.In less than 20 minutes, the bus carrying 38 people caught fire. The driver pulled over, and the panic-stricken passengers tried to flee. But the flames started in the front of the bus and blocked the exit.Twenty-seven were killed in the accident, including 17 men and 10 women, and the remaining 11 people were injured.One passenger, Zhang Dazhong, said he had to jump out of the window to survive but was injured on the head.Xiao, 50, was sitting with his wife, 38-year-old Zhang Xiaoya, in the first row on the left side of the bus, right behind the driver, said Wang.Both died in the fire.Lab work has confirmed the presence of gasoline traces on their seats.Until September 20, Xiao was deputy manager of the Wansheng branch of the Guanzhong Public Transport Company that owned the bus.He was suspended from his post because of family disputes, and was unhappy with the punishment, the company said.The Ministry of Public Security sent experts to join the investigation in Chongqing.Hospital sources said the 11 injured are out of danger.By 5:00 pm Wednesday, 26 of the dead have been identified by their families.

BEIJING, March 27 (Xinhua) -- China's economy would moderate but remain robust in 2008 with a growth rate of 10.7 percent, providing a cushion against the expected international downturn, according to a forecast issued by the United Nations commission here on Thursday.     "Investment continues to be the main driver of growth, remaining resilient despite government cooling measures and with support from low real interest rates," said a report released by the UN Economic and Social Commission for Asia and the Pacific (UNESCAP).     "A slowdown in exports and the country's efforts to cool the economy are the main reasons for the moderation," it said.     Other factors expected to underpin China's growth include domestic demand, increasing spending power of rural consumers and rising consumption through higher government spending on social welfare.     Official statistics show China's gross domestic product growth accelerated to 11.4 percent in 2007, the fastest for 13 years.     The report said the U.S. sub-prime mortgage crisis is not expected to have a strong impact on growth in China.     "In a worst case scenario where the U.S. economy goes into recession, the impact on China will not be as great as on other Asia-Pacific countries. Due to its blistering pace, China's growth will remain resilient, but will slow," said Shuvojit Banerjee, a senior expert with the UNESCAP.     According to the report, China's increasing exports to the European Union are expected to compensate for a steady fall in exports to the United States, China's second largest export market. China has also witnessed a boom in trade with Africa.     It said Chinese and other Asia-Pacific investors are playing a key role in supporting developed countries through the turmoil. Sovereign wealth funds and state investment institutions from the region have bolstered weakened banking sectors in the United States and the Europe.     The report said China is facing an increasing challenge from inflation. The chief inflationary concerns lie in higher international oil and food prices. "Rising food prices are a bigger inflationary concern than oil prices because food accounts for a far higher proportion of consumer spending. Food price inflation particularly hits low income households."     The report also warned that the fast growth is coming at an increasing cost to the environment. It said the destabilizing effect of growth on the environment is becoming more apparent. Air pollution, especially in large cities, is increasing the incidence of lung disease.

A top energy team under China's cabinet is drafting a strategy to increase access to sustainable energy among the rural poor.The plan will be based on research of other countries' experiences and is scheduled for release next year, the United Nations Development Program (UNDP) announced on Friday.The UN agency will help the Energy Leading Group affiliated with the State Council to attract global energy experts to work on the draft."We want to help the (Chinese) government come up with a viable rural energy strategy, which may serve as a role model for other developing countries," Shen Yiyang, program manager of UNDP's Energy & Environment Team, told China Daily.Details of the draft's contents were unavailable.Ma Xiaohe, vice-president of the Academy of Macroeconomic Research under the National Development and Reform Commission, confirmed that an overall rural energy strategy is being developed.Energy demand in rural areas is expected to increase rapidly in the run-up to 2030, he said.Rural energy consumption is expected to reach between 1 and 1.4 billion tons coal equivalent by 2015, compared to 370 million tons in 2000.The supply of commercial energy - electricity, coal and natural gas - is expected to meet two-thirds of rural areas' energy demand. Energy sources located in the countryside will supply the other third, Ma said.Currently, renewable energy accounts for only a small amount of rural energy supplies. But according to Ma, green energy will reach 400 million tons of coal equivalent by 2020.The country has set a goal of raising the ratio of renewable energy in the total energy supply to 15 percent by 2020, compared to the present 8 percent.