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China continues its long term strategy to reduce emissions and energy use by removing old, outdated capacity. However, despite previous measures there is still high annual growth of high energy industries such as ferro alloy production.
16 provinces, in particular Inner Mongolia, face the challenge of reducing emissions and the Chinese government will have to toughen up measures to have any meaningful impact. Options include improving the price control system and control of energy use through stricter differential electricity prices.
It has also been recently reported from Gansu and Ningxia province that the government is taking action after failing to meet targets in the first half of 2011 and that electricity prices have also increased. Both provinces are major producers of Ferro Silicon which is a very energy intensive production process.
