Further evidence has emerged today that China will put low-carbon development at the heart of its new five-year plan, after vice premier Li Kequiang reportedly revealed green tax reforms and energy-saving measures are a top priority for the government.

Li delivered a wide-ranging speech to scientists and government officials late last year, detailing the government’s environmental policy plans, but the comments were only today reported by state media.

According to a transcript of the speech reported in the China Environment News and subsequently picked up by news agency Reuters, Li said the country would struggle to transition away from coal power, and as such it must step up efforts to improve energy-efficiency in order to respond to international pressure to cut greenhouse gas emissions.

“To ensure such large energy needs, we must both increase investment in energy development and ensure the security of international and domestic energy supply routes, and that requires a major foreign policy effort,” he said. “Therefore, energy-saving must always be a priority.”

Li, who is widely tipped to succeed Wen Jiabao as premier, also revealed the government was looking at pursuing “polluter pays” policies that “establish an effective system of incentives and constraints so that law-abiding businesses gain economically and law-breaking businesses pay a heavy price”.

In particular, he confirmed that the next five-year plan, which is due to be announced next month, would seek to “accelerate resource fee and taxation reforms” with a view to tackling China’s rising pollution levels.

Li also reiterated that the Chinese government is increasingly wedded to the view that low-carbon development is essential to the country’s long-term economic health.

“Our country is among the world’s biggest energy consumer and carbon emitter,” he said. “If we don’t solve resource and environmental problems, domestic development will be difficult to sustain, and we’ll also face international pressure, which will damage our external room for development.”

The release of the transcript follows reports that the next five-year plan is likely to include proposals for up to $1.5tr of investment in seven core industries: alternative energy; energy-efficient technologies; high-end equipment manufacturing; biotechnology; advanced IT; advanced material; and alternative-fuel cars.

According to various reports, a package of incentive schemes, government grants and loans will be launched with a view to increasing investment in low-carbon infrastructure such as nuclear power plants and high-speed rail lines, with a view to slashing the country’s carbon intensity by between 40 and 45 per cent by 2020.