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The Beijing municipal government has pledged to reduce the concentration of airborne particles (PM 2.5) density by 25 per cent or more by 2017.
PM 2.5 are airborne particles measuring less than 2.5 microns in diameter which can pose health risks.
In January, PM 2.5 readings in the capital averaged nine times the safe level defined by the World Health Organisation (WHO).
The new proposal would restrict the number of new cars on the road each year from January 2014.
By 2017, the number of vehicles in the city is expected to be no more than six million, according to the new plan.
Statistics from the Beijing Traffic Management Bureau show the capital had 5.35 million vehicles by the end of July this year.
A recent report from the National People’s Congress Environment and Resources Protection Committee warns that if China continues to push its industrialisation and urbanisation drive, environmental pollution and ecological degradation may worsen.
China now aims to reduce total vehicle fuel consumption by five per cent or more compared to 2012.
The Asian nation had earlier in July announced that it would allocate over three trillion yuan ($489.3 billion) to combat the growing pollution of the country’s water and environment.
The anti-pollution plan aims to significantly improve air quality by 2017, with PM 2.5 density controlled to around 60 micrograms per cubic metre.
The country has set a target of raising $729.7 billion for environmental protection industries by 2015.