Experts argue that China is facing various severe energy challenges, especially relating to energy supply security and environmental cost. Additionally, the government faces other challenges related to investment efficiency and social equity. In relation to this, the Chinese government has launched significant policy initiatives with the objective to change the country’s energy portfolio. These policies include efforts to foster and advance the reduction of energy intensity and carbon emissions, the radical reduction of air pollution, the reform of state-owned enterprises (SOE), and the reform of the pricing systems for energy products. These policy initiatives involve different sets of strategies in order to achieve the goals. These differences show the various programs that are implemented, suggesting the possible consequences based on observations of past efforts. In this context, China’s Action Plan for the Prevention and Control of Air Pollution establishes ambitious objectives for the industrial sector. Addressing air pollution represents a crucial priority for China, experts say. According the experts, this plan will need to be supported by concrete measures, including strategies for the power sector, for identified industries, and for key regions. In addition to that, the government need to implement longer-term structural and policy shifts inside the country. However, experts show that while the Chinese ambition to introduce carbon trading represents a good signal, the government still faces a number of serious obstacles to achieve effective implementation. The gLAWcal Team EPSEI project Tuesday, 20 November 2014 (Source: NBR)