Xinhua News Agency reports the new policy came into effect on January 1, 2007. The policy will be further implemented in governments of all levels from 2008.

The policy has been put in place at a time when the Chinese people are growing increasingly aware of the environment. The State Environment Protection Administration recently conducted a survey that found 78.8% of Chinese people would be willing to spend more more to buy an environmentally-friendly product.

Now the Chinese government has decided to formally recognize the need to factor environmental costs into its purchasing decisions with the green procurement policy.

Wu Xiaoqing, Deputy Director of the State Environmental Protection Administration, says the new policy will promote environmentally-friendly manufacturing processes and consumption habits.

The Ministry of Finance and the State Environmental Protection Administration released the circular outlining the green procurement policy on November 22, 2006.

The circular said governments should try to purchase products that have been officially certified as environmentally-friendly. They should not purchase products that threaten the environment and public health.