The NDRC recently published an article on its website, announcing that it will vigorously promote energy conservation and emission reduction in 2014, issuing and implementing the "2014-2015 Energy Conservation, Emission Reduction, and Carbon Reduction Action Plan." It will implement a "double veto" assessment of energy consumption intensity and energy consumption increments. It will also formulate and release implementation plans for the industrialization of major energy-saving, environmental protection, and resource recycling technology and equipment projects. It will also deepen the nationwide campaign for energy conservation and emission reduction. The agency believes that my country's energy conservation and emission reduction situation will be severe in the coming years. In promoting nationwide energy conservation and emission reduction efforts, the LED industry is currently the most promising sector for growth. The agency predicts that global LED lighting will grow by 90% in 2014, and China will become the world's primary production base for LED lighting. The latest data from the National Development and Reform Commission (NDRC) shows that in 2013, my country's energy consumption per unit of GDP fell by 3.7%, achieving the annual target; chemical oxygen demand, sulfur dioxide, ammonia nitrogen, and nitrogen oxides also met their annual targets; and carbon dioxide emissions per unit of GDP fell by over 3.7%, meeting the annual planned target. However, according to the mid-term assessment of the 12th Five-Year Plan, my country's progress in reducing its energy consumption per unit of GDP, carbon dioxide emissions per unit of GDP, and total nitrogen oxide emissions is lagging behind, indicating a severe energy conservation and emission reduction situation and a daunting task. The NDRC stated that in 2014, it will focus on building a beautiful China, accelerate the development of an ecological civilization, and promote the transition from an extensive development model to a green, circular, and low-carbon one. Specific measures include: formulating and implementing the "Opinions on Accelerating the Development of an Ecological Civilization," which provides overall planning for ecological civilization development; vigorously promoting energy conservation, emission reduction, and carbon reduction, issuing and implementing the "2014-2015 Action Plan for Energy Conservation, Emission Reduction, and Carbon Reduction"; implementing a "dual" veto assessment of energy consumption intensity and energy consumption increment; and deepening the nationwide campaign for energy conservation and emission reduction. Advocating a social trend of respecting thriftiness and opposing extravagance and waste. The severe energy conservation and emission reduction situation has created enormous development potential for the energy-saving service industry. Zhou Chun, director of the membership department of the Energy-Saving Service Industry Committee of the China Energy Conservation Association, stated at a recent forum that by 2015, the total output value of my country's energy-saving service industry will reach 300 billion yuan, and the number of energy-saving service companies will reach 2,000. Industry insiders believe that the LED industry is currently the most promising sector for growth. A recent research report released by Shenyin Wanguo Securities suggests that LED lighting is in a golden three-year period of rapid penetration growth. Continued cost reductions have led to the opening of the residential lighting market. Due to the rapid development of various lighting applications, penetration rates continued to rise rapidly from 2013 to 2015. Global LED lighting is expected to grow by 90% in 2014, with a quantitative penetration rate reaching 20%. Due to LED lighting's short manufacturing process and relatively easy-to-master technology, China has already gained cost advantages in all LED lighting segments and is poised to become a major global LED lighting production base. The domestic LED indoor lighting market grew 86% in 2013, and is expected to grow by 65% and 43% in 2014 and 2015, respectively.

 Source: Shanghai Securities News