Pulp and paper production, an energy-intensive process, is among the main light industries contributing to energy saving and pollution emission reduction in China. The improvement of energy efficiency is essential for energy consumption and sustainable development. This study analyzes the negative factors in the pulp and paper sector by calculating energy efficiency from the lengthways time and investigating the gap between China and foreign countries through a horizontal comparison. Accordingly, energy efficiency has increased in the Chinese pulp and paper industry with years of efforts, but its transformation remains unclear. Furthermore, the energy-saving potential, energy cost saving, and carbon dioxide emission reduction in the pulp and paper industry are evaluated according to the Twelfth Five-year Plan (2011-2015). The results show that the pulp and paper industry has further capabilities for energy-saving and carbon dioxide emission reduction by improving energy efficiency in China, resulting in great economic benefit. In brief, new technology and energy structure adjustment are long-term strategies for energy conversation, with changes in the scale of mills expected to provide huge opportunities to improve energy efficiency in China within a short period. (C) 2015 Elsevier Ltd. All rights reserved.