A report released recently in Beijing found that energy consumption by Chinese enterprises has been increasing annually due to rapid economic development in the years that have passed since the reform and opening-up. In order to balance economic development, energy conservation and environmental protection, the report recommends that taxes for environmental damage and energy consumption be levied on high-consumption, high-pollution enterprises.

Enterprises—especially in the manufacturing sector—are the major drivers of China’s economic transformation and upgrading, according to the report. It argues that the green development of enterprises is essential to China’s sustainable development.

In this respect, the report proposes improving the industrial structure of enterprises, renovating and upgrading traditional industries, and fostering modern industries to improve environmental quality and increase energy efficiency. A number of innovative enterprises with their own intellectual properties and own brands should be formed. New supply chains and value chains should be created through integrating modern service industries and manufacturing to enhance the efficiency and quality of industrialization, according to the report.

The report suggests specific measures, such as encouraging enterprises to develop and promote green technology, building a system of relevant standards, and setting up related agencies and service institutions. It also recommends that authorities and enterprises set up mechanisms and establish venture funds to encourage innovation in green development.

The report also constructed an evaluation index for the green development of Chinese enterprises according to three dimensions, including green management, green products and technology, as well as energy saving and environmental protection performance.

The Blue Book of Enterprise: Annual Report on Green Development of China’s Enterprises No. 1 (2015), was produced by the Institute for Urban and Environmental Studies at the Chinese Academy of Social Sciences, Urban Planning Institute of the China Academy of Social Science (Beijing), the Economic Information Daily, and Green-Capital.Cn, and published by Social Sciences Academic Press.

Translated by Du Mei