It is often difficult to determine the effects of policies at a sectoral level in the overlapping domains of pollution control and energy conservation, making it difficult to consider co-benefits of energy conservation and air pollution reduction and tensions. In China, the industry sector contributes much more carbon and pollution emissions than other sectors. In this paper, Baoshan District (BSD), one of the most important industrial zones in the Shanghai metropolis, is used as a case study to illustrate the situation and to provide information to assess the effectiveness of environmental sustainable development policies in industries. The policies resulting from China's Eleventh Five-year Plan (FYP) are considered at the level of BSD. In particular, the result of implementing local policies of air pollution control and energy are analysed at BSD. Three indicator systems are adopted for quantitatively and qualitatively evaluating energy saving and air pollution reduction achieved by technical, structural and management measures in industrial enterprises of BSD. Analysis made in the paper shows that the co-benefits of pollution cutting and energy conservation have been achieved at certain scopes and degrees in the industry sector in BSD, e.g. SO2 and Particulate Matter (PM) were reduced by 35.1% and 7.7% respectively, and the energy density was cut by 26.7%. Due to existing barriers of the lack of co-planning and co-operations in the process of designing and implementing the policies, and the overlooking the leakage of emissions in the whole project area, the overall co-benefits cannot be achieved effectively in BSD. Recommendations are made for future detailed studies of this or similar districts to develop an indicator system of co-benefits to help demonstrate the advantages of joint planning and policies for co-benefits.