According to the International Energy Agency, China is the largest consumer of energy, exceeding that in the US, recording an overwhelming doubling of energy consumption in 2012 compared to 2000.

At this pace, China is expected to double this consumption again by 2020 making it responsible for 25% of the worlds total energy consumption.

The challenge is adding up with the fact that China has also been recorded as the largest pollutant emitter driven by its growing industrial and construction activity while being unable to conserve energy accordingly. Actions have been undertaken following the promotion of 'green' activities in China, including the current 5-year plan target of cutting down energy intensity by 16 percent through the increased use of alternative energies and green building development.

Being the largest manufacturing center in the world, industry contributes to over 50% of total energy demand in the country while transport is expected to grow at a faster rate. Road transport has been and is expected to remain, the largest energy consumer with the significant increase in sales of auto vehicles, especially private cars, which is projected to hit 200 million units by 2020.

With dependency on gasoline, private cars are the largest contributor to energy consumption in China, as well as the worst CO2 emitter, causing the government to take direct measures to combat further pollution with policies ranging from new standards/regulations, policies, subsidies, as well as investment in the development of alternative fuels.