It is estimated from GEF statistical data for 1991 that more than 500,000 industrial boilers (mostly stoker-fired) in China consume over 400 million tons of coal per year. Each year, because of low boiler efficiency, 75 million tons of coal is wasted and 130 million tons of excess CO2 are emitted. An analysis of 250 boiler thermal-balance test certificates and 6 field visits in three provinces have shown that: (1) boilers with efficiencies of less than 70% account for 75% of the total boiler-population; (2) the main causes of the low efficiencies are high excess air and unburned carbon in the slag and fly ash. The effect of unburned carbon on CO2 emission is a balance of positive and negative contributions: while the unburned carbon does not produce CO2 emissions, its replacement carbon, burned at a low efficiency, contributes to a net increase in CO2 emissions. It seems from the analysis that the average boiler efficiency can be raised to 73% by relatively simple means, such as the size grading of the coal, improved boiler operating practice and some inexpensive equipment modifications. This could then result in savings each year of 34 million tons of coal and a reduction in CO2 emissions of 63 million tons at an estimated cost of $10 per ton of CO2.