From the Australian:

China will cut the intensity of carbon dioxide emissions per unit of gross domestic product in 2020 by 40 to 45 per cent from 2005 levels, said a statement from the State Council, or cabinet.

“This is a voluntary action taken by the Chinese government based on its own national conditions and is a major contribution to the global effort in tackling climate change,” the statement said.

The announcement marks the first time China has put specific numbers on a September pledge by President Hu Jintao to reduce the intensity of its carbon emissions as a percentage of economic growth by 2020.

This is a fantastic economic decision. Cleverly China is talking about voluntary decrease of carbon intensity and not any specific carbon emission reduction. If I was running China, I would do the same. It is a economic decision to save energy, be more efficient and conserve energy in a world where it’s getting expensive.

Secondly, it is a great political statement. Before the Copenhagen meet it has shown commitment in a way it does not hurt the economy but actually helps China to be more productive.  India needs to do something similar.