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Great Western Development and Environmental Protection


Great Western Development and Environmental Protection
ISSUE TIME 2000-11-2
MEETING THEME Great Western Development and Environmental Protection
MEETING-PLACE Beijing
HOLD TATE 2000-10-31
FINISH DATE 2000-11-2
PICTURE  
MINUTES OF MEETING EXECUTIVE SUMMARY OF THE 4th MEETING OF THE 2nd PHASE OF CCICED



The 4th Meeting of the 2nd Phase of the China Council for Internatio nal Cooperation on Environment and Development (CCICED) was held from Oct. 31 to Nov. 2, 2000 in Beijing.42 chinese and international Council Members, 15 Workin g Group Co-Chairs, 8 specially invited guests, and 28 observers attended the me eting. The meeting was chaired by Council Chairman Wen Jiabao and Vice Chairmen Len good, Qu Geping and Xie Zhenhua respectively.

After the meeting, Premier Zhu Rongji met with Council Members and WG Co-Chairs. After Listening to the briefings and recommendations by 9 international Council Members, he made some important remarks. He made a high evaluation of the Counc il's work and fully affirmed the recommendations by Council Members. He expresse d his sincere hope that CCICED could continue to work hard and carry out researc h on key issues in the field of environment and development, and play a greater role in the future.

Vice Premier Wen Jiabao made a speech at the opening ceremony of the meeting. He fully affirmed the strong support by CCICED to the scientific decision-making o f the Chinese Government on environment and development in the past 9 years sinc e its establishment. He hoped that Council Members could pay attention to China' s Western Development Strategy, carry out targeted research on issues of ecologi cal restoration and environmental protection in the implementation of the Wester n Development Strategy, and make valuable recommendations in that regard. He sta ted that the Chinese Government will continue to support CCICED, and hope that t he work of CCICED could be further promoted.

The Meeting invited the Western Development Office of the State Council, the Min istry of Science and Technology, the Ministry of Land Resources, the Ministry of Communications, the Ministry of Water Resources, State Environmental Protection Administration, and State Forestry Bureau to give presentations on the basic p lans and measures for Western Development Strategy in their respective areas. Th e newly establishment Task Force on Forestry and Grassland Issues gave a present ation on the current status of forestry and grassland in the western regions and the implementation of the policy of converting steep arable land back to forest ry and grassland. Inner Mongolia Autonomous Region, Sichuan Province, Gansu Prov ince and Kunmin City were invited to give briefings on the progress they have ma de in the field of environment and development. The meeting had a general debate on the theme of “Great Western Development and Environmental Protection".

The meeting also listened to the Work Report by the Secretariat and Report on Wo rking Group Co-Chairs' Coordination Meeting, listened to and discussed the repor ts and work plans of the WG on Energy Strategies and Technologies, WG on Sustain able Agriculture, WG on pollution Control, WG on Cleaner Production, WG on Biod iversity, WG on Trade and Environment, WG on Environmental Economics, WG on Envi ronment and Transportation, and the Task Force on Environmental Protection and E conomic Planning.

At the meeting Chinese and international Council Members and WG Co-Chairs were enthusiastically concerned about the issues of ecological restoration and environ mental protection in the process of Great Western Development, had heated debate, proposed many valuable recommendations. Based on their discussions, and after being revised for several times, the Recommendations of CCICED to the Chinese Government on Great Western Development was adopted by the meeting. At the same time. the meeting discussed more general issues and adopted General Recommendations by CCICED to the Chines e Government.

It was decided at the meeting that the 5th Meeting of the 2nd Phase of CCIED will be held from September 25-27, 2001 in Beijing. The theme of the meeting will be a comprehensive review of the work by the 2nd Phase of CCICE D . The Working Groups/ Task Force were required to review and sum up their rese arch and achievement for the past 5 years and wrap up the send phase successfull y.

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The meeting announced some preliminary ideas for Phase III of CCICD.For example, the recommendations of CCICED on macroscopic decision-making should be more in- depth so as to make them more effective;the membership of the Council should mai ntain high status and be of a smaller number.

With the common efforts of all the participants, the meeting completed all the items on the agenda and achieved a complete success.

MEETING PROPOSING RECOMMENDATIONS TO THE CHINESE GOVERNMENT ON CHINA'S GREAT WESTERN DEVELOPMENT BY THE 4th MEETING OF THE 2nd PHASE of CCICED

Nov.2,2000,Beijing



Great Western Development is a strategic transcentury plan by the Chinese Gove r nment. It will be of great significance to the sustainable development of the we stern regions and even all China. Due to natural, social and economic constraint s, Great Western Development will be a longterm and arduous historic task, an d will be faced with many difficulties and challenges. Its implementation needs to draw upon all kinds of knowledge and experience possessed by mankind.

The China Council for International Cooperation on Environment and Development r ecommends:

1. On the basic principles of Great Western Development

 The comprehensive development of economy, society and environment shou ld be pr omoted. Modernization construction should be pushed forward. Guidance needs to b e provided for the balanced distribution of population,economic activities, citi es and towns. People's living environment should be protected and improved, and people's living standard should be raised in general.

 Sustainable use of biodiversity and careful utilization of non-renewab le resou rces should be adhered to as the prerequisite for development. The required inpu t of energy and other resources should be minimized to the greatest extent possi ble. Waste discharge shall be reduced and recycling should be encouraged. 

 Development should be based on the characteristics and advantages of t he weste rn regions. The western regions should not simply rely on resources exportation, nor should they follow the model of largescale industrial development of the e astern regions. Rather, they should take advantage of their rich resources, ado pt the market mechanism in order to increase the value of the resources, develop their economy, and cultivate local talents.

 Steps should be taken for achieving speedily the technological and inf ormation empowerment of local communities through blending traditional wisdom and techno logies with frontier technologies such as information, space and renewable energ y technologies, as well as environmentally safe biotechnologies, thereby helpi ng to create more skilled and sustainable livelihoods and jobs.

 The functioning and carrying capacity of ecology should be taken into account in the formulation of urban and industrial development plans. At the same time, attention needs to be paid to the protection of historical and cultural sites as well indigenous natural endowment.

 The regulatory role of the government should be combined with the mark et mecha nism. The concentration should be on a few core areas and cities that may trigge r or lead the development of other areas.

 The sustainable use of water resources is a key issue for the western developm ent. Integrated water management should be strengthened for key areas such as th e upper reaches of the Yangtze River and the Yellow River.

2.On development planning and environmental impact assessment

 Development should be preceded by careful planning and monitoring,in o rder to make sure that development achievements will not be superseded by environmental degradation. During the planning process, the various departments involved shoul d strengthen their coordination and cooperation. The core of planning should be protection of resources & environment, rational distribution of infrastructure f acilities, and development of cities and towns. All development plans and key la rgescale construction projects should undertake environmental impact assessmen t . Scientific estimate should be made on the environmental capacity and natural r esources supplying capacity in a timely manner, and focused attention should be paid to the impacts on diversity, so that western development could be based on benign circle of ecology. Mechanisms for supervising and coordinating the implem entation of plans should be established.

 Special Plans for Ecological Restoration and Environmental Pro tection shall be well formulated. Scientific and rational ecological and environmental targets shall be set.Concrete and practical measures should be for mulated to increase government input, standardize environmental management, att ract domestic an d foreign capital and technology, and provide fiscal and taxation policy support ,etc.

 Environmental impact assessment should be undertaken for cities, indus trial zo nes, public infrastructure facilities, largescale farm construction, and land d evelopment activities, etc. The planning,designing and construction of industria l zones should be based on the concept of “environmentally sound resource recyc ling” and “zero emission". Importance should be attached to the construction o f e nvironmentally important infrastructure facilities, including centralized treatm ent and disposal facilities for wastewater, hazardous waste and toxic waste. Joi nt ventures and BOT(buildoperatetransfer)practice should be encouraged.

3.On environmentally friendly economic policies  Integrated investment policies for sustainable development should be e stablish ed. Incentives (such as tax reduction or exemption) should be created to encoura ge investment into sustainable utilization of resources, high valueadding indu s tries and cleaner industries. Likewise, disincentives should also be created to prevent pollution intensive industries and industries that have been banned by i nvestor's home countries or prohibited by international environmental agreements from transferring into western China. Measures should also be taken to encourag e all corporate companies to follow more stringent applicable environmental stan dards. Investors from the eastern regions should be encouraged to invest in the western regions. Effective management investment by public financial institution s should be established, and lowinterest funding support should be made availa ble to environmentally friendly development projects.

 Relevant environmental taxation reform should be implemented. Environm ental ta xation should be adopted as a market instrument, so as to reflect environmental cost and promote the commercialization of sustainable technologies. The pollutio n fee collection system and other environment related taxes could be unified int o a coordinated and efficient environmental taxation management system. This ref orm could be integrated with market pricing system. so as to replace or improve the existing fee collection system, reduce the consumption of polluting products , and raise funds for environmental or general public purposes.The main measures could include:Levying SO2 emissions tax on coal fuel;levying coal resources t ax at higher rate;experimenting on levying additional tax on petrol and diesel c onsumption for environmental protection purposes;levying household wastew ater treatment fees in order to support the construction and operation of centra lized wastewater treatment facilities; levying pollution discharge fees on all e nterprises ;levying water pollution tax on small sized enterprises and tertiary industries according to industry and product categories, standard emission rate and output volume; levying tax on pesticide and fertilizer in key river and lake basins so as to reduce water pollution; and in some urban areas, levying on pro ducts like plastic bags so as to reduce their use and promote their recycling. E conomic incentives such as pricing of natural resources and pollution taxes shou ld reflect regional variations in environmental costs, which in the western regi on are influenced by factors such as its relative poverty and low population den sity.

 Reform should be carried out on the property right system for resource s such a s land. The property right for resources like land, forest and timber should be clarified. so as to bring farmers' initiative into full play and effectively pro tect resources.

 Existing and newly approved national level economic zones in the weste rn regio ns should draw upon the experience and lessons gained by coastal economic develo pment zones in the eastern regions, and formulate and implement a strategy of su stainable development of trade, investment and environment. In order to coordina te trade, investment and sustainable development policies, it is desirable to es tablish advisory committees on trade, investment and environmental protection un der the competent economic and trade departments of the provinces where the deve lopment zones are located. Foreign enterprises in the development zones should b e required to adopt applicable environmental standards, and sign voluntary agree ments with the relevant departments so as to regulate their own environmental be havior.

 The clean development mechanism (CDM) could be utilized to promote the develop ment of the western regions. CDM,which has been put forward by the Kyoto Protoco l, provides new opportunities for the promotion of foreign investment and transf er of clean coal technologies to the western regions. CDM policies should be res earched and formulated.Pilot CDM projects could be established in the western re gions. This could promote the participation of the western regions in CDM and he lp them obtain extra funding and technical assistance under the precondition th at deve loping countries shall undertake no obligations for reducing greenhouse gas emis sions for the current stage.

4.On ecological restoration and biodiversity protection

 Enough attention needs to be paid to the ecological restoration of the western regions. Surveys should be conducted on the environmental restoration ability o f the ecologically degraded areas, so as to assess and distinguish between human activity zones and nature protection & restoration zones in a scientific manner . Measures should be taken to ban or restrict logging and grazing activities, re store vegetation, and ensure water supply. Relevant laws and regulations should be established for such purposes. Illegal land use should be strictly banned in nature reserves, scenic and historical sites, water source areas, natural fores t areas and grassland areas.

 Ecological environmental construction[ZW(]Ecological constructio n:a dire ct translation of a Chinese concept that similar to ecological restoration, but may also be understood as taking ecological protection, restoration and ameliora tion all together.[ZW)] should become a longterm policy. Un ified plans and longterm & stable ecological environmental construction and ec o nomic compensation policies should be formulated as soon as possible. Ecolog ical construction should be combined with the improvement of people's living sta ndard. The traditional exploitative production patterns should be changed.In l ight of different local conditions,ecological construction should be implemente d on an area by area and phasebyphase basis so as to improve ecological environment.

 In converting steep arable land back to forest and grassland, measures such as“closing hillsides (to livestock grazing and fuel gathering) to facilit ate affo restation" should be adopted in order to restore ecological systems. Attention n eeds to be given to rationalizing the ratio between forest and grassland and the ratio between different types of forest. The species of trees and grass for pla ntation should be carefully chosen so as to comply with the climatic and ecologi cal characteristics of the various parts of the western regions. Local species s hould be preferred. Species with stronger adaptability and greater economic & en vironmental benefits should be selected for popularization and demonstration. No n governmental organizations and volunteers should be encouraged to play their r ole in forestation, plantation and recycling.



 A rational water distribution mechanism should be established for the various catchments as soon as possible. Water saving should be promoted, and water savin g agriculture and ecological agriculture should be developed. The water resource s of Yellow River, Black River (Heihe)and Talim River should be distributed in a scientific and rational way. Greater support should be given to the economic s tructural transformation of resourcedependent cities and the environmental pro t ection of mines. Environmental treatment and land reclamation should be well imp lemented for mining areas.

 Development of energy and mineral resources in the Loess Plateau must be close ly linked with ecological construction. Part of the revenue from development act ivities should be used as ecology compensation fee in favor of environmental imp rovement. Local residents should be allowed to participate in various kinds of e n ergy development activities so as to facilitate the process of industrialization and urbanization.

 Water conservation functions should be restored for the upper reaches of China's major rivers. This is important for the protection of endemic biodive rsity. P ermanent funding sources should be established in order to ensure the sustainabi lity of such plans. The construction of ecological forests should be emphasized. Ecologists should be involved in the planning and implementation of ecological engineering projects.

 Domestic legislation should be strengthened to control the invasion of alien s pecies. Large amount of imported alien grass species will definitely cause irrev ersible destruction to and impact on China's unique biodiversity. For water and soil erosion control projects and plantation projects, the use of local species rather than alien species must be emphasized.

5. On sustainable use of energy

 It is important to make a rational choice of energy supply bases and e nergy. transportation channels. Precautionary measures should be taken against acid rai n and fluorine pollution caused by the burning of coal with high sulfur content and high fluorine content. Areas that use wood fuel should shift to new energy sources such as methanol, dimethylether (DME) so as to prevent increased logging as a result of population growth. Biomass energy resources are rich in some wes tern regions, therefore modern methods (such as low tar gasification) should be adopted to utilize biomass. Largescale experimental solar energy system should be set up. Efforts to couple the use of renewable energy sources with the manufa cturing of related equipment in the western region should be encouraged, given t he contribution they would make to the development of domestic technology and th e generation of employment .

 Xinjiang and Inner Mongolia have rich wind resources (accounting for m ore than 50% of the national total), and should become an important component of "West t o East Electricity Delivery Plan". Renewable portfolio system (EPS) should be pu t forward at the national level to require that power supply departments must ha ve a certain percentage of "green electricity" (i.e electricity generated by ren ewable energy) in their power supply. The concession approach, which has been su ccessfully used by China Marine Petroleum and Natural Gas Company, should be ado pted, and the market mechanism should be introduced, so that the monopoly of pow er departments could be broken ,and that wind power generation could enter into the "fast lane" of development.

 Energy development strategies for Western China should maximize local benefits . Natural gas development strategies should target application of the LPG byprod uct to displacing coal and biomass in the rural areas. High valueadded product s should be emphasized when exporting fossil energy to Eastern China. Polygener a tion strategies should be adopted to get clean liquid fuels, chemicals and elect ricity.

6. On pollution control and cleaner production

 The advantages of scientific and technological progress should be made best us e of .Hightech industries should be developed. Extensive industrial growth pat t ern, which is characterized by high input, high consumption and low output, shou ld be transformed. The old practice of“taking treatment measures only after po llution has already occurred" and “endofpipe treatment" should be avoided. In other words, the traditional industrial stage characterized by heavy environm ental pollution should be leapfrogged. Efforts need to be strengthened on the pr evention and control of pollution caused by industrial wastewater, urban househ old wastewater and agricultural nonpoint source pollution, in order to tackle water shortage problems of the western regions as a result of water pollution, and to realize innocuous treatment, utilization and recycling of wastewater to the g reatest extent possible. Strong measures should be continued to control acid rai n and SO2 emissions in the southwestern region.

In order to protect the water quality of the Three Gorges Reservoir, constructio n of urban wastewater treatment plants and urban garbage disposal plants in the upper reaches of the Yangtze river should be sped up.In order to promote the pr evention and Control of water pollution in the northwestern provinces and improv e the water quality of the Yellow River and its tributaries, Planning on the Pr e vention and control of Water Pollution in the Yellow River Basin should be formu lated as soon as possible.

 The program on cleaner production demonstration cities and industries has a chieved preliminary results. State Economic and Trade commission (SETC) and Sta t e Environmental Protection administration (SEPA )should conduct surveys and rese arch to summarize the experience of the 10 cities (such as Taiyuan) and the 5 in dustries (such as chemical industry) which have participated in this program, an d disseminate it to other areas. While the Cleaner Production Law is being formu lated, the relevant departments should carry out assessment and make adjustment on the existing policies, and adopt cleaner production as soon as possible as a core requirement for policies related to industrial structure transformation, te chnological retrofitting and renovation, total amount control of pollutant disch arge, and environmental quality management, etc. A national cleaner production d atabase, cleaner production indicator system and cleaner production network shou ld be established and updated.

7. On transportation infrastructure construction

 The development of transportation in the western regions should focus on road transportation,and the importance of rail transportation should be emphasized,

while sufficient attention should also be paid to other transportation modes. Im p ortance should be attached to the design and optimization of multimodal transp o rtation system. Key cities and mining areas should serve as centers, from which road transportation could radiate outward and gradually form a network that conn ects cities, mining areas and other areas.

 Existing transportation facilities should be make full use of ,and sho uld be upgraded and improved on a gradual basis. In constructing new roads, the transp ortation load should be taken into full account. Expressways should not be const ructed too quickly and in too large numbers. In accordance with the principle o f “stressing on prevention and giving priority to protection",environmental imp a ct assessment should be conducted in a serious manner for road construction. In southwestern regions, land use for road and rail construction should be planne d carefully so as to prevent new water and soil erosion. In northwestern regions , ecological protection should be given enough attention during road constructio n and repair so as to prevent desertification and stabilize sand.

 Protection of ecological functions needs to be strengthened during tra nsport c onstruction. Special economic policies should be adopted for water and soil erod ed areas. Local governments could be made responsible for planting green belt al ong the roadsides. Active participation of local residents in this process shoul d be encouraged according to the principle of "whoever takes treatment measures should benefit".Road construction department should strive to save land resource s .

 Balanced urban and traffic planning should be made, taking into

account the projected needs for mobility. State of the art technologies should

be utilized for public transportation systems.

 The western regions should develop tourism, and attract domestic and f oreign tourists.

8. On development of sustainable agriculture in the western r egions

 The implementation of projects that have both ecological and economic benefits should be given priority. Emphasis should be put on fruit industries, animal hu sbandry, production of economy crops with distinctive local characteristics ,and ecological agriculture, etc. Certain incentives are needed to reduce risks inhe rent in adoption of new minimum and zerotill land management.



 Input into grassland protection and restoration should be increased. D evelopm ent of animal husbandry should be sped up. careful assessment needs to be conduc ted for grassland resources, so that the production system could be improved a nd adjusted according to regional natural characteristics. The percentage of art ificial grassland should be increased,and the carrying capacity of grassland sho uld be promoted. Demonstration bases for grassland management and applied resear ch projects should be established. Relevant policies regarding grassland use and contract system should be reformed.



 Conversion of steep arable land back to forest and grassland and resto ration of grassland in the Loess Plateau should be incorporated into the 10th Fiv eYear Plan.Extension of plantation should be restricted so as to reduce farmin g pressure and increase vegetation coverage. Land property rights should be clari fied. Farmers should be encouraged to invest more in land. Credit services in th e rural areas should be improved in a proactive way. Development of nonagricul tural industries should be promoted. 

9. On the development of science, technology and education in the western regions

 Governments at all levels should increase their scientific and technol ogical input into ecological environmental construction and protection, should proativ ely support domestic and foreign enterprises, the society and experts to researc h and develop advanced and applicable technologies in the western regions, and sh ould promote the dissemination and application of such technologies. The develop ment of human resources should be promoted for the western regions Input into ed ucation should be increased. Education and training of the population should be increased.

 Special efforts should be made to upgrade and extend the higher educat ion and the vocational training systems in key cities and areas of western China . Only by cultivating human capital can economic growth be accelerated in ways consiste nt with the objectives of sustainable development. Efforts to promote disseminat ion of information and communication technologies in western China should be enc ouraged, with an aim to enable an increasing number of people to use the interne t. Demonstration projects in distant learning using be internet should the stro ngly supported.

 Satellite monitoring on the state of natural degradation should be car ried ou t. Analysis on the cause and impact of "sand storms" and quantitative analysis o n the environment of watersheds in Yangtze and Yellow river basins should be con ducted, so as to provide support for policymaking and planning. Monitoring and forecasting should be strengthened for natural disasters such as sand storms.

 A monitoring system for ecological environment should be established a s soon as possible. Monitoring experts and equipment should be in place to promote the quality of monitoring on resources, and ecological & environmental change in the western regions. As an important basis for the formulation of environmental qua lity standards, scientific assessment and precautionary control measures should be carried out on the health hazards caused by environmental pollution.





GENERAL RECOMMENDATIONS BY THE CHINA COUNCIL TO THE CHINESE GOVERNMENT



from the China Coundil For Internatinal Cooperation On Environment And Development Beijing,November 2nd2000. The Fourth Meeting of the Second Phase of the China Council for International Co operation on Environment and Development took place in Beijing from 31 October t o 2 November.This was the eighth time that Council had met,and as on previous oc casions,it ventures to make recommendations to the Chinese goverment. Over the years,the Council has expanded the scope of its activities,with eight Working Groups and two Task Forces,and has increasingly shifted its work from th e general to the specific.This is partly because the linkage between environment a nd development has been widely accepted in China as elsewhere.A healthy environm ent is a fundamental resource for all human society,and the principles of susta inable development enter into all fields,from social and economic policy to the educational system and regional planning. On this occasion,the Council was invited to give particular focus to plans for t he development of western China.In doing so it did not attempt to work out a spe cific regional policy for western China,but rather to adopt a regional approach within the framework of environment and development policy as a whole.It took a ccount of the fragility of the western Chinese environment,and relative lack of knowledge about it. The Council stands by the previous recommendations it has made,particularly on the central importance of policies which reconcile protection of the environment with social and economic development,and confirms the need for effective coordi nation of such policies at all levels,whether national,regional or local. Attached to these recommendations is a detailed annex by the Secretariat on the problems of western China,and a strategy for dealing with them.Also attached are the reports of the various Working Groups.The Council's broad recommendations n ow follow. 1.Environmental economics should be applied in all parts of t he planning process. The place of environmental economics in a socialist market economy is critical.A lthough it is easier said than done,governments must determine true costs,coveri ng such issues as environmental damage and depletion of natural resources,and en sure that prices take due account of them.Market forces are indispensable but th ey must be brought within the framework of the public interest.Within this fram e work there are many possibilities for partnerships between the public and privat e sectors,including small and medium sized enterprises.For their part governments should use economic instruments,including tax incentives and disincentives,acro ss the field,and so far as possible,avoid perverse subsidies. In the case of western China,the Council recommends that such policies should ta ke account of local circumstances,in particular the fragile environment,climatic extremes,low population density and the relative poverty of the region.The poo r est members of society may need at least temporary protection from the impact of reforms. 2.Economic planning and environmental protection should be mo re closely integrated. With a growing population and rising living standards,pressure on the environmen t is likely to increase.A high priority is the rehabilitation as well as the pro tection of the environment,and this needs better recognition in the planning pro cess.So does the growth of environmental industries,which are a major source of wealth and employment in other countries. The Council recommends fresh efforts to coordinate the work of institutions,in p articular Ministries in central and provincial governments,so that all aspects o f policy can be brought together and seen in terms of each other.Over the next te years,the Chinese economy may well double in size,and its success requires far reaching coordination of energy,transport,industrial and agricultural policy,wit h overriding respect for the environment and comprehensive legislation to give i t full effect.Nowhere is this more necessary than in western China. 3.Energy policy should have high priority. Demand for energy is constantly increasing,and supply has difficulty in respondi ng.So far coal,which is abundant and easily available,has been the primary sourc e,and this will continue.But there are heavy environmental penalties.In both the short and long term the introduction of new and cleaner techniques for extracti ng energy from coal-in particular coal gasification-is essential.In the meantime measures are already in train to cope with air pollution and acid rain caused b y combustion of coal with high sulphur content.There are good prospects for pol y-generation whereby low cost chemicals,clean liquid,gaseous fluids,heat and ele ctricity are obtained from coal and natural gas.Of increasing concern is the pro blem of increasing atmospheric carbon,which must be seen in the context of clima te change.Here the possibilities of carbon sequestration are already opening up , and it is in China's interest to join with other countries in promoting what has been called the low carbon economy.

The development of other energy sources and technologies is an equal priority.Am ong them are natural gas,hydrogen and photovoltaics for industrial as well as tr ansport purposes.Worldwide there is increasing interest in small scale electrici ty generation,and over a quarter of new annual investment in generation capacity comes from units of ten megawatts or less.Of particular importance in rural are as such as western China is biomass technology,where more research is needed to improve energy transformation.Local generating systems from photovoltaics would give greater local self-sufficiency,and reduce costs arising from dependence on extension of the grid.

For western China,wind energy resources (accounting for half the national total) should help to meet energy demand not only in the west but elsewhere in China.A mbitious Renewable Portfolio Standard (RPS) policies should be put forward at th e national leval to ensure that power supply departments include a percentage o f green electricity (ie generated from renewable resources) in their supplies,ei ther self generated or purchased. 4.Sustainable agricultures is another priority. There are four broad issues.The first is over of pesticides and the need for a n ational strategy for integrated pest management.There is clear evidence that far mers use more pesticides than they need,and that reduction in pesticide use can be lowered without damaging rice,cotton or other crop yields.It can also be of d irect benefit to crops.In this area government departments seem to play conflict ing roles in the regulation,production and sale of pesticides.Excessive pesticid e use can lead to health problems,waste farm resources,and damage water quality with effects on meeting drinking water standards and fish production.

The Council believes that existing national food security policy needs reconside ration.The effect of current regulations is to limit the internal grain trade to no good purpose,and to cause grain to be produced on land not suitable for the purpose.Now that food can be distributed without difficulty throughout China,the main constraint is not lack of grain but of low farmers'income in different pa rts of China.

Although there has been some progress in agricultural management,some unsustaina ble practices continue,for example soil erosion,burning of crop residues and was te in use of water,fertilizers and pesticides.The Council recommends a new look at the whole subject.

Last there is concern over the introduction of genetically modified organisms.Bi otechnology has many positive aspects,and its applications have great potentiali ties.But although no ill effects have so far been detected on human health,they raise serious environmental issues,which have yet to be resolved.The Council re commends caution in the use of genetically modified materials until greater unde rstanding of them is achieved.It is proposing to set up a Task Force to enquire further into how the rich resources of China be converted into economic wealth t hrough the application of biotechnology.

5.Biodiversity should be cherished.

China has unique biological resources which still seem to be undervalued.While d estruction of topsoils and forests,and soil erosion are visible to the naked eye ,the impoverishment of the natural resource base,and the organisms within it,fai l to attract the public and political attention they deserve.Diversity of crop s pecies and the microorganisms which support them are of fundamental importance.C onservation in gene banks,aboretums and botanical gardens as well as farm conse rvation methods adopted by farming families need strengthening.

The good management of land,water,fauna and flora,and forests is essential for s ustainable agriculture.The increasing demand for grain for livestock production as population and living standards rise underlines the importance of healthy agr iculture in China.

Conservation or restoration of grasslands and forests is already under way.But e xpert advice is always needed on the appropriate treatment to be used.Indeed env ironmental impact assessments are as necessary for conservation and restoration as they are for new urban and industrial development,particularly in such vulnerable areas as western China.

The Council draws particular attention to the following points:

 On the international side,China has responsibilities under the Convent ion on Bio logical Diversity,and the Cartagena Protocol on Biosafety.The enormous wealth of Chinese plant species calls for particular attention in their exploitation for human purposes.China should enter into biopartnerships with national and intern ational companies.It should also develop guidelines for such partnerships based on prior informed consent and sharing of the benefits.

 There is an opportunity for classifying land into conservation,restora tion and s ustainable and intensified use aeras.Genetic gardens might be created in certai n areas where both native and introduced food and medicinal plants could be grown and evaluated.

 Efforts to enhance in-situ conservation of biodiversity through effect ive management of existing and new protected areas should be undertaken.

In all environmental impact assessments,the biodiversity dimension should be inc luded and fully respected.

 There are particular dangers arising from invasive species which might do harm t o native ecosystems.There is also a potential danger arising from incautious use of genetically modified organisms.

 There is widespread ignorance of the importance of biodiversity,and th e need for better public understanding of the issues.In promoting such understanding,it is important to use local knowledge and engage the interest and support of local c ommunities.

6.Cleaner industrial production and contro of pollution need further encouragement.

The Council makes three main points.

 Cleaner production and pollution control go hand in hand with environ mental bene fits.They give many opportunities for more efficient and profitable production a s has been well shown elsewhere.Failure to adopt them can carry heavy penalties,w hich in future could become heavier,with implications for human health and impa cts on ecosystems generally.Different pollutants can combine to have serious con sequences.

 We need to know more about water pollution in river basins,and how bes t to protect aquifers.

 Demonstration projects bringing together public and private enterprise might be made to show what can be done in specific areas,perhaps in a Chinese province or region.Western China might provide the opportunity for showing what might be do ne under careful management.

In t he future work of the Council,more weight should be given to industry,and g reater business representation on the Council would be welcome.There is already a proposal by the China Enterprises Confederation for a Working Group on Sustain able Industrial Development which would have wider scope than the existing Worki ng Groups on Cleaner Production and Pollution Control.

7.Integrated transport policy is another priority.

China is no different from any other country in needing an intergrated transport policy in which the advantages and disadvantages of different modes can be weig h ed and judged against each other.As the number of private cars increases,so does the need for better and more reliable public transport.Prices for such transpo rt ,whether of people or freight ,should reflect the real social,economic and envir onmental cost.Throughout strict environmental standards need to be applied.Parti cular attention needs to be given to planning of urban transport systems to resp ect local circumstances.

This has direct application to western China.In some cases,railways may be of mo re value both for freight and passengers than roads.In others,roads may be requi red,but in this case upgrading of existing roads,and building of feeder roads ra ther than expensive new expressways may be the more desirable option.To minimize the impact of new transport systems,rail and roads can often be laid in paralle l.

Energy planning for cities needs to take account of pollution control and develo pment of transport.Pilot studies are necessary to cover public and private trans port systems,and eventually limitations on the of private cars.

Again,public understanding is essential.Pedestrian areas and use of bicycles in r elatively small communities may be the best mode of personal transport,and no so cial stigma should be attached to them.

The costs of aviation also need environmental assessment.At present,worldwide,av i ation has a hidden subsidy in that aviation fuel is not taxed in the same way as fuels for surface use.China may wish to consider joining in an international ef fort to correct this anomaly.

8.More work is needed on the implication of Chinese membershi p of the World Trade Organization.

Chinese entry into the World Trade Organization will carry additional obligation s for an improved environmental management system,and China will have to adjust some of its investment and trade policies accordingly.This may serve to attract new investment to western China and elsewhere.Chinese experience in eastern coas tal development zones could be of value in shaping better investment policies in designated state-level zones in western China.Trade,investment and sustainable development need to be more tightly linked.China could profit from the experien ce of other countries in this respect.

At the same time the Council recognizes that the role of environment within the World Trade Organization is far from clear.There are risks of conflict between t he World Trade Organization and the multilateral environmental agreements,and a choice may need to be made between bringing the environment into a more central place in the World Trade Organization or creating some new organization of equal standing to menage the issues.

So far as western China is concerned,the Clean Development Mechanism under the K yoto Protocol may offer significant opportunities for bringing in foreign capit al and accelerating technology transfer,particularly in the field of energy.

The Council commends the papers and recommendations made by the individu al Worki ng Groups and Task Forces.It also draws attention to certain broad strategic con siderations,first with regard to western China:

 In the development of western China,careful urban planning,covering al l aspects of urban life,will be essential if mistakes made elsewhere permitting urban sprawl and loss of community are to be avoided.So far as possible,new town s and cities should have a personal dimension and be of manageable size. 

 Environmental impact assessments will be essential.They should be foll owed by careful monitoring of the outcome of development.

 The importance of education and training facilities in what are still relatively poor communities cannot be exaggerated.Better public understanding of change together with respect for cultural diversity(and use of local knowledge in such fields as medicine) are likewise vital.Local communities must feel thems elves to be associated with the development process,and in some sense to exercis e ownership over it.

More generally:

 China needs to play a full part in international negotiations on such issues as climate change,and to ensure that environmental considerations are tak en properly into account.China also needs to work out the regional impacts of po ssible changes in weather systems and rises in sea level.In tackling the greenho use issue,it is important to take account of emissions of methane as well as car bon dioxide. 

 China enjoys good governance but it needs to review some of its enviro nmental legislation and to do more to enforce it.

 Full consultation at all levels,including that of ordinary citizens,is essential.In this respect information about environmental conditions can be a p owerful force for reform.The Council urges the Chinese government to expand the amount of publicly available information about environmental conditions and tren ds.

 As before the Council underlines the need for the Chinese government t o leapfrog over the mistakes of other countries,protect its unique environment

and culture,and increasingly make its own distinctive contribution to sustainabl e development.

POINTS MADE BY PREMIER ZHU RONGJI DURING HIS MEETING WITH CCICED MEMBERS AND WG COCHAIRS AT THE 4th MEETING OF THE 2nd PHASE OF CCICED



I am very glad to meet you once again in Autumn, the best season in Beijing. I h ave met with most of you before. You have devoted considerable energy and made a lot of contribution to China's environment and development. I would like to tak e this opportunity to express my thanks to you.



Due to limited time, I am sorry that I could not ask every China Council Member to speak, nor could I give more time to those who have spoken. But I could assur e you that the Chinese Government would attach great importance to the recommend ations you have raised.

In recent years, China has got increasingly deeper understanding of environmenta l protection and the strategy of sustainable development. We attach a lot of imp ortance to environmental protection, and made a lot of investment into it. This is unprecedented in Chinese history. Now it is the best period for China's envir o nmental protection. In the past, we indeed didn't have sufficient understanding of environmental protection and sustainable development. But there had also been some practical reasons. For example, China used to be short of grain. Therefore ,people reclaimed land wherever possible, and carried out some industrial projec ts which caused serious pollution. Now, China has basically solved the problem o f food shortage, and there is even grain surplus for some years. Therefore, we c an afford to convert arable land back to forest and grassland, that, to turn the land that has been over reclaimed and overgrazed back to forest or grassland. A t the same time,with our economy developed to the present level, we can afford t o invest more money to improve ecological environment, promote environmental con struction, and implement sustainable development.

Of course, we still have a lot of important tasks and work to undertake. This ye ar is one in which drought has been very serious. In some places, sand storms ha ve occurred. These storms carried sand to Japan and Korea, and reportedly to Haw aii as well. I feel sorry for this. We have enough evidence to show that the san d did not just come from China, but also from other countries. But we neverthele ss would solve this problem by any means. We are currently formulating relevant plans in this regard. It is not easy to treat sand storms. Therefore, I would ve ry much like to listen to your recommendations.

I remember that during a previous meeting with you, I said that pollution in Bei jing was very serious. 3 years has passed. I think you have found that the envir onmental quality of Beijing has been improved visibly. Beijing is bidding for 20 08 Olympic Games. Although the field of competitors is very crowded, I am confid ent that Beijing will win. 8 years from now, although Beijing's problems cannot be totally solved, its environmental quality would become as good as other citie s. I hope that, when foreigner talk about the sand storms in Beijing, you could put in a few objective words for Beijing. I hope that you come to Beijing each y ear in the next 8 years, and provide your valuable recommendations to us . I am fully confident that, in 8 years, the environmental quality of Beijing would rea ch the level of sydney.

Chinese parliament stamps on premier's cabinet nominations and newly established Ministry of Environmental Protection approved
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