China's rapid economic growth in the last few years has spurred a construction boom for power plants on an unprecedented scale. In 2006 alone, 102 GW of generating capacity was brought online, 90 GW of which are from coal-fired power plants. Further, energy has grown faster than GDP since 2001, reversing a two-decade trend of declining energy intensity from 19080 to 2000. The ramifications of this reversal are far-reaching for global energy market and environment. China has since set an ambitious target of reducing its energy intensity by 20% by the year 2010, with a first-year goal of 4% reduction for 2006. This presentation will discuss the implications of China's 20% energy intensity reduction target and explore some of options that may help to achieve this goal.