An industrial boiler-efficiency improvement program (IBEI) that focuses on simple. inexpensive measures to improve the operating efficiency of coal-fired industrial boilers in Shanxi, China. is presented. The potential mitigation of CO, emissions and its cost, based on this program. are calculated together with estimates of health benefits associated with the reduction of air pollution. The results show that. if the average efficiency of industrial boilers were improved from 60 to 70%. 3 million tons of coal could be saved. and CO2 emissions be reduced by 5 million tons annually at a cost of less than US$2 per ton of CO2. The health benefits are valued at about US$86 million per year. including the avoidance of about 700 premature deaths annually. The proposed IBEI program would. therefore provide an ideal case by which to address the issue of global warming in China and to achieve national goals concerning the growth of the economy. and environmental protection.