China's State Environmental Protection Administration has announced plans to lift the ban on approving new projects for two major power companies, in recognition of their implementation of environmental protection measures.

Pan Yue, deputy director of SEPA, says that the two companies Huaneng Group and Guodian Corporation, have shut down problematic generators for environmental evaluation and launched a bid to install water recycling and desulphurization facilities in the plants. The environmental watchdog agency has also lifted the approval ban on Laiwu in Shandong.

On January 10, 2007, SEPA withheld approval for new projects for Huaneng Group and China Guodian Corporation, both serving as giants in the national power industry. Pan Yue also said that progress has been made in rectifying 82 firms in the steel, power, metallurgy and chemical sectors that have seriously violated environmental protection laws. Eighteen of the 82 projects that have failed to install pollution control facilities have now finished or are conducting audits for construction.

Pan Yue noted the approval ban is part of the government's measures in its bid to meet the pollution emission reduction target for the Eleventh Five-Year Plan. He urged the energy companies to enhance internal management and ensure that all their projects comply with environmental protection laws and regulations. He also asked the power producers to update their existing generators and discard those that cause serious pollution.