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The green gross domestic product (GDP) for last year is being prepared despite the indefinite postponement of the 2005 report's release, a top green GDP accounting expert said yesterday.

"Although there is no internationally recognized methodology for the accounting (of green GDP) and there are lots of difficulties in technologies, systems and understandings, China should not give up its efforts to devise a suitable accounting system," Chinese Academy for Environmental Planning Vice-President Wang Jinnan told China Daily.

His remarks follow the National Bureau of Statistics (NBS) chief Xie Fuzhan's press conference on Friday where he said calculating the economic cost of environmental degradation may be a tough task but his organization would continue to do so.

"We are still carrying out research" to find the best way to calculate the green GDP, Xie said.

Officially called the Environmentally adjusted GDP Accounting Report, the green GDP paper is aimed at showing the public and officials the waste created and environmental damage done because of economic growth.

In simple terms, green GDP is calculated by deducting the cost of depleting natural resources and environmental degradation from the traditional GDP.

The State Environmental Protection Administration and NBS published the first report, for 2004, in September last year.

It showed the financial loss caused by environmental pollution was 511.8 billion yuan ($64 billion), or 3.05 percent of the country's economy, based on the traditional GDP accounting method.

The 2004 report shook the traditional concept of pursuing short-term economic gains at the cost of the environment, especially among officials of the 10 pilot areas - Beijing, Tianjin and Chongqing municipalities, and Hebei, Liaoning, Anhui, Zhejiang, Sichuan, Guangdong and Hainan provinces. Wang said.

(China Daily 07/23/2007 page1)