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China's environmental leader suspends approvals for new refining projects

China's environmental watchdog has suspended approvals for new oil-refining projects, after two of the country's largest refiners missed pollution targets last year.

China National Petroleum Corp. didn't meet its chemical oxygen demand target and China Petrochemical Corp. didn't meet its nitrogen oxide target, the Ministry of Environmental Protection said in a statement on its website. The targets refer to pollution from CNPC and Sinopec's refineries.

The ministry is temporarily suspending approvals for environmental impact assessments for new refining projects and the renovation and expansion of existing refineries, it said. The approvals are needed before a project can move forward.

However, projects that aim at reducing emissions and improving fuel standards would still be reviewed, the ministry said.

COD is an indicator of water pollution, while nitrogen oxide is a metric for air pollution. Both are key environmental targets in China's current 12th five-year plan.

The environmental ministry said CNPC and Sinopec's COD fell by 0.08% and 2.6% in 2012. CNPC and Sinopec's nitrogen oxide emissions, meanwhile, grew by 3.3% and 1.3% last year, it said. CNPC's target was to reduce COD by 0.6% last year, while Sinopec's target was to keep nitrogen oxide emissions flat.

In contrast, China's overall COD fell by 3%, while nitrogen oxide emissions fell 2.8% in 2012, the ministry said.

China's current five-year plan calls for an 8% reduction in COD and a 10% reduction in nitrogen oxide between 2010 and 2015.

Sinopec and CNPC didn't immediately respond to a request for comment.

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