Continuing economic growth while controlling energy consumption is a precarious balancing act China must perform successfully if its development is to remain sustainable.

An invitation-only panel of government leaders, CEOs and senior executives from Fortune 500 companies tackled this problem last Friday at the 29th China Daily CEO Roundtable, entitled “Energy Risk and Sustainable Development: Balancing China's Growth and Challenges.” The event was the second roundtable at BusinessWeek's 10th Annual CEO Forum hosted at the China World Hotel in Beijing, in honour of their strategic partnership at this event.

Han Wenke, Director of the Energy Research Institute of the National Development and Reform Commission (NDRC), and keynote speaker at the CEO Roundtable, said it is urgent for China to immediately move forward with steps to protect China's energy supply.

“China is in a critical state of adjustment of energy policies and strategies because energy consumption increased over the last five years, and the majority of Chinese experts feel this growth is not sustainable. As such, in formulating the 11th Five-Year Plan, Chinese experts place a strong emphasis on sustainable growth,” Han said.

Lim Haw Kuang, honorary co-chairman of the roundtable and executive chairman of Shell Companies in China, pointed out that while China is the world's second largest energy producer and consumer, pollution costs the country US$54 billion per year, according to World Bank figures.

He said that the 11th Five-Year Plan is “not dissimilar to a blueprint for sustainable development” because it addresses three major problems: Energy supply security, environmental protection and energy efficiency and savings.

Sinopec works for sustainability

Sinopec, a key player in China's petrochemical sector, has been stepping up efforts in the battle for energy security and sustainable development. The company is ranked 23rd on the Fortune Global 500 list this year.

According to Wang Jiming, honorary chairman of the 29th China Daily CEO Roundtable, Sinopec Corp adviser and director of the Sinopec Science & Technology Committee, Sinopec has been following the “scientific approach” to sustainable development by focusing on the structural adjustment of power plants, technological upgrades, productive capacity expansion and reduction of energy consumption.

Structural adjustment

Structural adjustment measures have included enlarging refineries and chemical plants in order to increase productivity and efficiency. The number of 10 million-metric-ton (mm) capacity refineries increased from five to nine between 2000 and 2005, and large 1 mm-ton capacity ethylene plants are slated for construction near Bohai Bay, the Pearl River Delta and Northwest China. As much as 16.2 mm tons worth of capacity of inefficient refining facilities were closed down. Internal restructuring of the refineries, including the optimization of product mix and geographic location, has increased efficiency.