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To ensure energy to meet needs for economic growth and sustainable development more emphasis should be given to energy efficiency, renewable energy and new technologies for both energy end-use and supply. One key technology is gasification of coal to produce liquid and gaseous fuels, and electricity. The overall conclusion is that there are plausible energy-technology strategies, well within reach if early action is taken, that would enable China to continue social and economic development through at least the next 50 years, while ensuring security of energy supply and improving local, regional and global environmental quality. Such desired energy futures will not happen in the present policy environment, and options to enhance the energy systems for sustainable development are discussed.

China's achievements over the last 20 years are impressive. Economic growth has been rapid, development extensive and poverty has been drastically reduced in rural areas. Food supply and demand has been brought into balance. A socialist market economy is successfully negotiating its difficult initial stages, and there is a wider opening to the outside world. Remarkably, this has been achieved without incurring foreign exchange imbalances. China has also met its soaring needs for energy services while at the same time has improved the efficiency of its energy use by a factor of nearly three. Even coal use has been reduced in recent years notwithstanding the nation's coal dependency and its outstanding economic growth. At the same time, large challenges lie ahead. Population growth continues and with it a parallel trend of urbanization. The demands of modernization and of rapid economic growth will stretch material and human resources. Poverty alleviation and the satisfaction of basic human needs remain as urgent priorities. Market reform is far from complete and adjusting to globalization and WTO entry will need to be accomplished without further widening disparities between rich and poor. As recognized in the 10th Five Year Plan, growth will have to be more geographically balanced. Continuous attention needs to be paid to environmental and health issues induced by energy supply and use, including high levels of indoor and urban air pollution, increasing acidification, ongoing climate change, among other environmental challenges, all of which are increasing. China is a Party to the United Nations Framework Convention on Climate Change, and has as all Parties an obligation to mitigate climate change, taking into account common but differentiated responsibilities. Energy is an important element in all these challenges, in both positive and negative senses. China's economic aspirations will lead to large increases in demand for energy services. So it is crucial to analyze the energy choices confronting China if all the challenges are to be addressed. It is from these options that strategic energy policies will emerge. A long-term view is clearly necessary if these issues are to be fully addressed. Step-by-step advances appear the most promising development mode in energy technologies, as do open-ended rather than closed technical pathways. Equitable access to modern energy services needs to be provided to all people in China. Concerns over energy supply security arise, especially for liquid fuels in light of increased needs for mobility and transportation. Energy transport within China, from north to south (coal) and from west to east (oil and gas, and electricity) is an active trend, and will incentivize continuing growth in the electricity, liquid fuels and gas grids, and limit energy imports from outside China. If all of the above considerations, derived from China's Agenda 21, are to be addressed, China's energy strategies are required at the earliest opportunity, to fulfill four key objectives: • to deliver the power needed for economic growth and sustainable development; • to ensure security of energy supply; • to ensure that energy supply and use are conducted in ways that safeguard public health and the environment; • to achieve an equitable distribution of energy services throughout the nation.

The energy system in China is in tremendous development. The Working Group has identified initial options and strategies and policies to guide the development of a sustainable energy system development based squarely upon China's indigenous energy resources. This system has the capacity to become fully compatible with and supportive of China's economic growth and socio-economic development. This hopeful message has a corollary that much difficult work remains to be done at all levels, and serious strategic decisions involving capital and human resource commitment need to be made early on. This is to enable timely systems analysis, research and development, and the demonstrations necessary to refine strategic thinking and innovative policy development. All this is being conducted on an unprecedented scale and yet must remain compatible with the historic changes brought about by the new socialist market economy unfolding in China.