China energy saving target hard to meet - planner

BEIJING, Aug 26 (Reuters) China may fail to meet its goal to reduce the energy intensity of its economy by 4 percent this year, the country's top economic planner said in remarks published on Saturday.

China has said the energy used to generate each dollar of national income rose 0.8 percent in the first half of 2006.

''It will be very difficult to realise our targets of saving energy and reducing pollution,'' the official Xinhua news agency quoted National Development and Reform Commission chief Ma Kai as telling an annual meeting.

Ma also said China -- which is focusing on green development in its latest 5-year plan -- had suffered from severe pollution in the first half as many new projects flouted environmental regulations.

Sulphur dioxide discharges across 17 provinces and regions rose 6 percent in January-June, he said.

To tackle the problem, China would step up enforcement of environmental impact assessments on new projects and make power guzzling companies pay more for resources, he said.

In a separate report, Xinhua quoted vice chairman of the parliament's standing committee Li Tieying as saying energy shortages posed the biggest threat to China's economy and society.

Huge inefficiences persisted in the way China used its energy despite tight supplies of recoverable petroleum reserves, natural gas and coal, Li said.

The country's recoverable coal reserves would only last for 80 years compared to a world average of 230 years. China's petroleum stocks were sufficient for 15 years versus 45 years elsewhere, he said.

Li called on China's provinces to adhere to environmental rules.

A tendency among local officials to seek growth while ignoring the environment were a major contributor to the nation's energy woes, he said.

REUTERS PV RN1336