Acid rain damage to the environment and people's health in China has led to financial losses in excess of 100 billion yuan (US$12 billion), according to China's State Environmental Protection Administration (SEPA.) These types of losses from pollution are expected to increase continuously in future years.

According to SEPA experts, large amounts of sulfur dioxide (SO2) emissions can lead to acid rain, which damages agriculture, metals, and historical sites. Exposure to high levels of SO2 can also lead to serious lung and heart problems.

SO2 is primarily produced from burning of fossil fuels such as coal and oil, and from smelting of sulfur-containing metals.

It is estimated that the sulfur dioxide discharge rate in Mainland China will reach approximately 28 million tons by 2020, which will exceed the air’s capacity by approximately 16 million tons and cause an even greater negative impact on the ecology and people's health.