Based on the data of SO2 emission, urban air quality, and acid precipitation, the status and characteristics of acid rain and SO2 pollution in China were analyzed. To prevent the further deterioration of acid rain and SO, pollution effectively, the Acid Rain Control Zones and SO2 Pollution Control Zones (Two Control Zones called for short) were designated. The range of Two Control Zones was 1.09 x 10(6) km(2), 11.4% of the whole territory of China, with SO2 emissions of 14 million tons in 1995. The Acid Rain Control Zone involves 14 provinces, autonomous regions or municipalities, with total area of 0.806 x 10(6) km(2). The SO2 Pollution Control Zone includes 63 cities with total area of 0.29 x 10(6) km(2). The control policies to be implemented in the Two Control Zones were formulated by the method of life cycle analysis on sulfur-in-coal. The impacts of the policy implementation on energy industry, including coal industry and power industry, were calculated and analyzed. It was proved that the policy implementation would improve the thermal power mix and promote the sustainable development of energy industry. The paper also analyzed the decrease of SO2 emission and the improvement of air quality in the cities in recent years, which were achieved by the control efforts.