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By Wan Zhihong (China Daily)
Updated: 2007-11-10 08:32

The International Energy Agency (IEA) praised China on Friday for its efforts to address the causes and consequences of energy use, but warned the country of challenges in meeting rising energy demand.

"The ongoing efforts of the Chinese government in energy conservation and emission control have set a good example for other countries," said Nobuo Tanaka, executive director of the IEA, while releasing its World Energy Outlook 2007.

In the five years to 2010, the government has pledged to cut energy consumption per unit of gross domestic product by 20 percent, or 4 percent each year, and reduce pollutant emissions by 10 percent.

But as the world's second largest energy consumer, China's primary energy demand is projected to more than double from 2005 to 2030, the report said.

The China highlights of the report are:

In 2010, the country will overtake the US to become the world's largest energy consumer.

Conventional oil production in the country is set to peak in the next decade and then start to decline.

Coal consumption is also expected to grow rapidly. Energy resources, especially coal, are extensive, but will not meet all the growth in energy needs.

Increased fossil fuel use will push up CO2 emissions from 5.1 gigatons today to 11.4 gigatons by 2030; and the country will overtake the US as the world's biggest CO2 emitter this year.

Rapid economic development in China and India will inevitably push up global energy demand, but will also bring major economic benefits to the rest of the world, said the report.

"Energy developments in China and India are transforming the global energy system by dint of their sheer size and their growing weight in international fossil-fuel trade," it said.

The world's energy needs would be over 50 percent higher in 2030 than this year. China and India will account for 45 percent of the increase in demand if the governments around the world stick with their current policies, it said.

Wang Siqiang, a deputy director in the office of the National Energy Leading Group, said: "As the report is based on some hypotheses or scenarios, it is not precise", adding the government welcomes future collaboration with the agency.