The pledge to accelerate investment in technology to save energy and tackle pollution symbolizes a fundamental change toward more sustainable development, a change that is desperately needed in the world's second-largest economy.

The State Council said on Sunday that environmental protection has been elevated to a "pillar industry" and it will receive government support in the form of tax breaks. According to a three-year plan, the environmental protection industry is to grow by 15 percent a year and will generate 4.5 trillion yuan ($735 billion) by 2015.

The flow of private and foreign capital to the sector will be encouraged as well to facilitate the plan.