To address the issue, Yunnan's provincial government will work towards striking a balance between economic development and environmental protection through a project supported by a $400,000 grant from the Asian Development Bank's (ADB) Climate Change Fund.

The Yunnan provincial government will contribute $100,000 to the project.

'To follow the current path of energy-intensive development is neither economically desirable nor environmentally sustainable. Yunnan has recognized that it must shift to a low-carbon growth path,' said Hongliang Yang, Energy Specialist in ADB's East Asia Department.

The technical assistance will involve a review of energy consumption, energy efficiency, and the potential to reduce carbon emissions in the province's five energy-intensive industries: iron and steel, power generation, chemicals, building materials, and non-ferrous metals.

A strategy and action plan will be drafted to enhance energy efficiency and reduce emissions, followed by training and information dissemination to introduce international and national experiences.

PRC is the world's second largest energy consumer after the US and has one of the fastest growing energy sectors. Like other provinces in the country, Yunnan's rapid economic growth over the past 20 years has been fueled by intensive energy use.

Yunnan, however, is not familiar with international best practices to improve energy efficiency and lacks suitable financing. Moreover, its industrial enterprises do not see much incentive in saving energy.

The province's total energy consumption in 2008 amounted to 76 million tons of coal equivalent, up 5.92% from a year earlier. It is expected that 1% of energy efficiency enhancement will reduce 1.5 million tons of carbon emissions in the province.#