'Coal harbor' Shanxi takes the lead in going green

Shanxi, a major powerhouse of China, is taking a lead in the country to make its resources-based economy greener and more diversified.

Starting from the founding of the People's Republic of China in 1949, this northern province has excavated 13 billion tons of coal, of which about 9 billion tons were transported out of the province, according to the Shanxi provincial government.

In 2011, the coal output of Shanxi reached a record high of 870 million tons, about a quarter of the country's total, official figures show.

However, while Shanxi was helping to meet the demands of national energy consumption, it was creating problems for itself.

"Our reliance on coal has brought side effects, such as a deteriorating environment and a single-industry economic structure," Shanxi Governor Wang Jun, who is in Beijing attending the ongoing session of the national legislature, told China Daily in an exclusive interview.

At present, about 60 percent of Shanxi's industrial output is related to coal, according to the Shanxi government. Such heavy reliance on coal has made the province's economy vulnerable.

In the 1990s and late 2000s, amid two major world financial crises, Shanxi's economic growth slowed down, principally due to shrinking demand for coal and steel.

"Restructuring our economy and exploring a new development model is a must," Wang said.

With the support and approval of the central government, Shanxi declared itself a national "pilot economic transformation zone" at the end of 2010, hoping to set an example for all energy-dependent regions in the country.

"We want to achieve progress with coal-based, diversified development," Wang said.

While upgrading the traditional industries of coal, carbon coke, metallurgy and electric power, Shanxi is making great efforts to foster new industries, such as manufacturing, new materials, food processing, logistics, tourism and culture, Wang said.

Figures from Shanxi government show that last year, investment in non-coal industries reached 209.7 billion yuan ($33.2 billion)， accounting for 63 percent of all industrial investment in the province. Investment in non-energy-hungry industries was about 217.8 billion yuan, up 49.7 percent year-on-year.

A number of projects are also progressing well, such as a major new energy automobile project in Jinzhong city and a photovoltaic project in the city of Datong.

"Facts show that our strategy of economic restructuring is correct and has started to pay off," Wang said.

The governor said Shanxi is also looking to achi