Looming energy shortages are now one of the biggest threats to the sustainable development of China's economy, according to a report scrutinizing energy conservation in China.
Released during the ongoing meeting of the Standing Committee of the National People's Congress, the report also found the upcoming shortages threaten economic security.
CRI's Yixiu reports.
 Reporter:
Li Tieying, vice chairman of the Standing Committee of the National People's Congress of China, the top legislative body of the country, has recently delivered a report scrutinizing the implementation of China's Energy Conservation Law, which was enacted eight years ago.
The report reveals that current efforts to conserve energy lag far behind energy consumption.
Economic development has relied heavily on industries with high energy consumption levels, at the expense of sustainability. Spending on energy conservation has actually decreased every year.
"In 1983, the investment for improving energy efficiency accounted for more than 13 per cent of total investment in energy. Within 20 years, the ratio shrank by 8 percent. Now investment on energy efficiency only accounts for 4 per cent of the total spending in the energy sector."
Li Tieying attributes such phenomenon to rapid and extensive development, as well as negligent local governments who try to increase Gross Domestic Product and neglect energy conservation.
The report also says technical incompetence and weak law enforcement is at fault.
Li Tieying says China has to establish an energy conservation-oriented system reflected in energy prices and taxes if it wants to meet energy consumption goals.
It's supposed to reduce energy consumption by 20 percent by 2010 under the eleventh five-year plan.
"China should issue consumption taxes on nonrenewable energy products, such as coal and petroleum. The energy taxes should be levied according to the reserves of resource. In the words, taxes should be used to actively change the public's behavior."
Li Tieying also suggests all businesses with high energy consumption levels be legally required to report their annual consumption levels and submit to public supervision.
He says the Energy Conservation Law will be amended to reflect the report's recommendations.
Yixiu, CRI news.
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