Pilot projects were launched in the three municipalities of Beijing, Tianjin and Chongqing, and the seven provinces of Hebei, Liaoning, Anhui, Zhejiang, Sichuan, Guangdong and Hainan.

Pan admitted that initially, SEPA did meet with many difficulties ranging from technical ones to resistance from regional and industrial officials. But much to his relief, SEPA has managed to work with the 10 regional governments to stick through, Pan said.

The general environmental situation remains bleak, as a result of what Pan called catering to immediate interests and reckless energy consumption.

Last year, China flunked its target of cutting major pollutants by 2 percent, which instead witnessed a growth of 2 percent.

Meanwhile, SEPA officials explained that the retirement last year of two vice-ministers senior to Pan, Zhu Guangyao and Wang Yuqing, did not mean Pan was promoted.

SEPA does not have the position of a "first vice-minister" as some Chinese-language press had reported, they said.

(China Daily 01/18/2007 page1)

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