Chinese Environment Watchdog Blocks Chemical Projects

Citing a lack of public support, China's State Environmental Protection Agency (SEPA) has just denied approval to 12 industrial projects. So far this year, the agency says, it has blocked 43 projects worth more than $20 billion in total.

Most of the banned projects involved new coal-fired power plants or the construction of unspecified chemical facilities. SEPA notes that, since 2005, it has sought to involve the public in the approval process for projects that could harm the environment. The agency adds that companies that operate in violation of national environmental standards are required to inform the public of their misdeeds through the local media.

Last month, SEPA disclosed that two polluting companies in Shanxi province—a steel mill and an aluminum smelter—had been ignoring its requests to stop operating plants built without undergoing environmental assessments.

In a recent speech, Prime Minister Wen Jiabao stated that China needs to better control its energy consumption and its industry's environmental impact through a combination of regulatory measures and incentives. Wen acknowledged that the price of natural gas might increase as a result. He also said companies will have to pay more for resources like water and electricity and that the fees for environmental discharges will be raised.