Activists cheer China's plan to move refinery

By Sui-Lee Wee

HONG KONG, July 31 (Reuters) - China's decision to shift the location of a planned $5 billion oil refinery and petrochemical plant in the south after years of public outcry is a sign that environmental concerns can shape policy.

Wang Yang, the Communist Party chief of Guangdong, said the province would move the plant to an unnamed location because of opposition from the community and lawmakers. The project is a joint venture between China's Sinopec Corp. (0386.HK)(SNP.N) (600028.SS) and Kuwait Petroleum Corporation.

"We only have one planet to live on, so whatever we do on this end will affect others on the other end," Wang told reporters at a news conference on Thursday.

Some environmental activists applauded the move, saying it reflected Beijing's commitment to tackling climate change after years of sacrificing the environment for economic growth.

"The decision by the government shows that they do consider the opinions from different stakeholders across the region, which is a positive sign," said Edward Chan, a Greenpeace campaign manager based in Hong Kong.

In recent years, Chinese citizens have scored some victories over local governments, which have shelved or delayed projects after vocal opposition about pollution and environmental worries.

These include a paraxylene chemical plant in the city of Xiamen that was scrapped on toxicity concerns and a delay over a planned hydroelectric power dam on the Nu river in Yunnan province.

Already the world's biggest emitter of greenhouse gases, China has come under pressure from the international community to curb emissions.