The landscape of Zhenyuan in Pu'er, Yunnan province. [File photo/dfic.cn]

The city of Pu'er in Yunnan province has established the country's first pilot zone to develop a range of "green industries" that will feature low pollution - and high profit.

Mayor Qian Dewei said the pilot zone will support industries such as biomedicine, clean energy, forestry-related products and modern leisure and health.

"Low-emission and green industries already generate more than 90 percent of the economic activity of Pu'er, and the city wants to share the benefits and set an example for other cities," said Qian. "By 2016, the proportion is expected to increase to 95 percent."

In October 2013, the State Council, which is China's cabinet, approved the establishment of the Pu'er pilot zone, which is intended to build on the area's advantages in hydropower, tea and coffee, and resorts.

Pu'er has established 16 nature reserves and six provincially recognized scenic sites, including the Taiyang River National Park.

Forest coverage rose to 68.7 percent last year from 65.7 percent in 2010.

The city is home to 5,600 species of plants and more than 1,500 animals.

"As China struggles with deteriorating air and environmental conditions, the core competitiveness of Pu'er lies in its environmentally friendly methods of agriculture and manufacturing," said Qian.

Pu'er leads the nation's cities on the list of water resources per capita, and it's first in terms of the area of farmland, forests and tropical plantations in Yunnan.

The city is also a key base for hydropower, with electricity transmitted to other Chinese cities as well as Laos and Vietnam.

In 2011, the GDP per capita in Pu'er was 11,795 yuan ($1,900), just 33 percent of the national average. The city won't thrive if its advantages in green resources aren't used wisely, local officials said.

The city of Pu'er is among the sites in Yunnan famed for high-quality tea and coffee. Those crops make beverages for sale to a wide range of domestic and foreign markets.

Jin Jihui, general manager of the One Percent Coffee Co in Pu'er, said that abundant agricultural resources and large-scale plantations in the city offer great potential in a sector that features low levels of carbon emissions and other types of pollution.

The city government is making an overall plan for the pilot zone, and Jin said he hopes the pilot zone plan will offer more incentives to companies, such as funding from the central and provincial governments.

As one of the nation's three major production bases of pu'er tea, the city held the International Forum on Tea last year as a boost for the local tea industry. Qian said the sales of black tea will reach 100 billion yuan within 10 years if the overall plan is implemented.

Qian said the pilot zone is expected to boost the local economy and social progress over a five-year period and lead to an overhaul of the agricultural, industrial and service sectors.

Li Yingqing and Guo Anfei contributed to this story.