This paper describes how the Shanxi Environmental Protection Agency and SINTEF have acted on the recommendations of a joint study by UNEP and the National Environmental Protection Agency of PR China (NEPA) to implement the following cooperation programme: (1) to establish the Shanxi Centre far Energy and Environment; (ii) to develop a masterplan against air pollution in Shanxi province; (iii) to initiate pilot projects with cleaner technologies. The work has so far (1997) been funded by Norwegian agency for development aid (NORAD). Further action will however require contribution from a number of other sources, such as the Global Environment Facility, private companies, investment banks and governments. The results from our work have shown that such efforts, in a region like Shanxi province, give environmental cost benefits far ahead of most other places in the world.