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中国环境与发展国际合作委员会
回顾与展望报告
CCICED Review and Perspective General Report
国合会回顾与展望高层课题组
High-level Task Force on Review and Perspective of CCICED
国合会三届五次会议
5th Annual General Meeting of CCICED
2006.11.10-12
Participants list of Task Force
Task Force Co-Chairs:
Song Jian Former State Councilor, Former Vice-chairman of the Chinese People's Political Consultative Conference, Chairman of CCICED Phase Ⅰ
Huguette Labelle Chancellor of the University of Ottawa,
Former President of CIDA, Canada
Task Force Members:
Qu Geping Former Chairman, Committee of Environmental and Resources
Protection, National People’s Congress, China
Zhu Guangyao Vice Minister, State Environmental Protection Administration, China
Secretary-General of CCICED
Shen Guofang Vice President, Academician, Chinese Academy of Engineering,
CCICED Member
Du Ping Director General, Department of Comprehensive Planning Office of the Leading Group for Western Region Development of the State Council
Earl Drake Former Canadian Ambassador to China,
Director of CCICED Secretariat Canadian Office
Arthur Hanson Former President, Canadian International Institute for
Sustainable Development, CCICED Member
Crispin Tickell Former British Ambassador to the United Nations in New York,
Chancellor of University of Kent, CCICED Member
Laurence Tubiana Environment Advisor, Office of Former Prime Minister of France
Director, Institute of Sustainable Development and
International Relation, CCICED Member
R K Pachauri Director General, TATA Energy Research Institute, India
CCICED Member
Core Members of the First Sub-Task Force
Peng Jinxin Former Department Director General of SEPA,
Former Vice-Secretariat General of CCICED
Earl Drake Former Canadian Ambassador to China,
Director of CCICED Secretariat Canadian Office
Shu Qing Vice Director General of department, SEPA, PhD.
He Jun Director of division, SEPA
Gao Jixi Fellow, Chinese Research Academy of Environmental Sciences
Chen Huijun Senior Engineer, Chinese Environmental Newspaper
Core Members of the Second Sub-Task Force
Hu Tao Research Fellow, Policy Research Center for Environment and Economy, SEPA
Arthur Hanson Former President, Canadian International Institute for
Sustainable Development, CCICED Member
Pan Jiahua Research Fellow, China Academy of Social Science
Lv Zhi Professor, Peking University
Li Shantong Research Fellow, Development Research Center of State Council
Wu Yuping Research Fellow, Policy Research Center for Environment and Economy, SEPA
Core Members of the Third Sub-Task Force
Shen Guofang Vice President, Academician, Chinese Academy of Engineering,
CCICED Member
Zhang Jianyu Visiting Research Fellow, TsingHua University
Arthur Hanson Former President, Canadian International Institute for
Sustainable Development, CCICED Member
Wang Xiaowen Chinese Academy of Engineering
Table of Contents
Introduction 1
Chapter 1 4
Review and Assessments of Environment and Development in China 4
1. Review of Environment & Development in China 4
1.1 International Background of Combined Opportunities & Challenges 4
1.2 Environment & Development in China: Achievements & Progress 7
1.3 Environment & Development in China: Great Challenges 16
2. CCICED: Research Achievements & Policy Recommendations 17
2.1 Environmental Economics 18
2.2 Energy & Environment 18
2.3 Pollution Control 19
2.4 Ecological Conservation 19
2.5 Environment & Trade 20
2.6 Agriculture & Rural Environment 20
2.7 Public Participation & Environmental Legality Building 20
2.8 Western Development & Environmental Protection 21
3. CCICED: Assessment of Contributions & Impact 21
3.1 Contributions & Impact: Realms & Mechanisms 21
3.2 Contributions & Impact: Forms & Effects 22
3.3 Assessment of Major Contributions & Impact 23
3.4 Assessment of CCICED Forms of Organization 29
Chapter 2 31
Prospect of China’s Environment and Development in the Future 31
1. Introduction: the Coordination between Environment and Development in the Future 31
2. Overall Xiaokang Society: Prospect of China’s Economy in the Future 32
3. Environmental Challenges: Prospect of China’s Environment in the Future 33
3.1 Challenge 1: China will be faced serious energy security, severe air pollution and increasingly heavier pressure on reduction of emission of greenhouse gases. 33
3.2 Challenge 2: Increasingly Severe Water Crisis 38
3.3 Challenge 3: A Continuous and Rapid Increase Of Municipal Waste, Industrial Waste and Hazardous Waste 41
3.4 Challenge 4: Degraded Ecosystem and Loss of Biodiversity 45
3.5 Challenge 5: Emerging Environmental Issues in the Future 48
3.6 Challenge 6: Continuously Worsening Global Environment 53
3.7 Challenge 7: China’s Increasing External Environmental Impacts with a Rapid Economy 56
3.8 The Pollutants Discharge in the Baseline Scenario Of Trend Extrapolation 59
4. Scenario Analysis: resource-efficient, environmental friendly, and social harmonious sustainable development 59
4.1 The 11th Five-year Plan is the strategic step for arresting the environmental deteriorating trend 59
4.2. The Strategy of “Resource-efficient, Environmental Friendly, And Social Harmonious Sustainable Development” 62
4.3 The Necessary conditions for enabling the Strategy of Resource-efficient, Environmental Friendly and Social Harmonious Sustainable Development 63
5. Major conclusion: Enabling the Resource-efficient, Environmental Friendly, and Social harmonious Sustainable Development: To Meet the Future Severe Challenges of Resources and Environment 79
Chapter 3 81
Concluding Observations and Recommendations for China’s Environment and Development Progress 81
1. Introduction 81
2. Some Implications of the Three Changes in China’s Future Environment and Economy Relationship 81
3. Environmental Aspects of Xiaokang 83
4. Scientifically-based Development 83
5. Towards an Environmentally Friendly, Resource Efficient Society 85
6 Recommendations on China’s Future Environment and Development 88
5.1 Improve quality, reliability and usefulness of environment and development information. 88
5.2 Introduce comprehensive environmental fiscal reform. 88
5.3 Encourage transformative improvements in environmental management through technological innovation. 89
5.4 Align Chinese Production, Consumption and Trade with International Practices. 91
5.5 Make environmental protection good for people and for the economy. 92
5.6 Conclusion 93
Chapter 4 94
Recommendations for CCICED’s Work in Future 94
1 Characteristics of CCICED 94
2 In the new time the new task of the CCICED 98
2.1 Environmental priorities identification 98
2.2 Working Mechanism 98
2.3 New Missions and Location for CCICED 99
2.4 The fourth session oh the CCICED’s priority attention domain 100
Introduction
Since the beginning of the reform and opening-up in 1978, China's rapid economic and social development has yield remarkable progress. Within 30 years, China has made significant progress in industrialization and modernization, the level of which have cost many developed nations more than 100 years to reach. China’s development has not only brought a strong boost to China's national strength and people's living conditions, but also had a definite impact on world's economic and social balance. However, China’s rapid economic development comes at the cost of tremendous pressure and sometimes adverse impact on resources and the environment, and thus also creates a series of social problems. Solely from the environmental point of view, the current situation is very challenging. The "State Council Decision on the implementation of the scientific development theory and strengthening environmental protection " (State Council [2005]39 ),summarizes it as the following: "……Key pollutant emissions have exceeded their carrying capacities; rivers flowing by cities are generally polluted; many cities have serious air pollution problems; acid rain problems are getting worse; persistent organic compounds (POPs) start to occur; the area of contaminated soil expands; coastal waters pollution aggravates, there are potential hazard from nuclear and radiation materials; ecological damage, soil erosion and desertification are getting worse; biodiversity ecological system deteriorate. Environmental issues that emerge during other developed nations’ more than 100 years industrialization process have occurred during China’s more than 20 years’ development, with unique structure, complexity, and concentration. "
The Chinese government and public have gone through a gradual and clear development process in their recognition of the relationship between development and environmental protection, from no awareness at all to self-motivation, from no dedicated agency to the establishment of a ministry-level State Environmental Protection Administration (SEPA), from basically no laws and regulations to basic functional environmental legal system, from one agency and a small number of people to a consortium to multiple agencies and extensive public participation. Prior to the 1992 Rio Conference, Chinese government, together with cooperating nations and renowned international environmental figures, founded the China Council of International Cooperation on Environment and Development (CCICED). With input of international experiences, CCICED has been carrying out research and study on a series of environmental and development issues and making recommendations to the Chinese government on the area of development and environmental protection. These recommendations have attracted attention by the Chinese government and various ministries and yield good results. It is recognized that the progress that China has made in environment and development issues during the past 10 years is almost all related to CCICED’s effort: from concept to implementation, from issues to recommendations, from experience to innovation. All these progresses are representation of the collective wisdom and contribution from both foreign and domestic experts who have worked with CCICED. The unique operation mechanism of CCICED has also had a positive impact on the international environment community.
Since the beginning of the new century, particularly after the current administration took office in 2003, China's economic and social development has entered into a new stage, and the increasingly prominent emerging environmental issues in the development, along with China's collective leadership ever-deepening understanding of the environment and development issues based on the Chinese and foreign experience and lessons, the Chinese government has put forward a series of new development concept, development goals and guiding principles. First of all, in the autumn of 2003, the third Plenum of the 16th CPC Central Committee made it clear:” uphold the people-first concept, and establish a comprehensive, coordinated and sustainable scientific development theory”, stressing according to” overall plans for urban and rural development, balancing development among regions, balancing economic and social development, the harmonious development of man and nature, and coordination of domestic development and opening up to the outside world” requirements to promote reform and development. In 2005, the central government observed increasingly excessive consumption of resources and deteriorating environmental impact, proposed "building a resource-efficient and environment-friendly society", "building a new socialist countryside" and "building a socialist harmonious society”, which are integrated into the previously established target to achieve a “well-off” society by 2020. All of these are incorporated into China's 11th five-year social and economic development plan beginning from 2006. Some targets related to population growth, resources consumption and environment development have become compulsory requirements in the "11th Five-Year" plan..
Environment and development issues have become a critical concern in China’s future development, as well as a major problem China and the rest of the world are facing in the globalization process. On April 23rd, 2006, at the Sixth National Conference on Environmental Protection, Premier Wen Jiabao proposed " To implement the scientific development theory, and to promote the harmonious development of man and society, we must strengthen environmental protection; To achieve the goal a well-off society, we must strengthen environmental protection; To improve the people's quality of life and level of health, we must strengthen environmental protection; To preserve the long-term potential of development and survival of China, we must strengthen environmental protection. " Premier Wen emphasized that the three conversions need to be fulfilled in order to well develop environmental protection work. The first is the change from economy oriented to equal attention to environmental protection and economy so as to develop economy in the process of environmental protection. The second is the change from delayed environmental protection after economic development to synchronous environmental protection and economic development. The third and the last is the change from taking administrative orders as main instruments to adopting integrated tools of law, economy, technology and necessary administrative methods. These four" must "and three" conversions” reflect the call of the times, reflect the government's new policy direction, and are the challenges that we should strive for.
It is at this crucial moment of environment and development that CCICED will soon complete its work of the third phase, and review future work needs and challenges. A lot of experiences and work done by CCICED in the last 15 years are worth reviewing, the new situation and problems of China environment and development issues that CCICED is facing need analysis, the new challenges China will have to face in the future development process require an overall assessment. Thus, CCICED council decided to establish a special high-level task group, which will be headed by the former state councilor academician Song Jian and former CIDA Director Ms. LaBelle, with the support of a group of renowned Chinese and foreign experts, to conduct research on the review of past 15 years and prospect of the next 15 years, so as to provide insight and direction for future development. The entire work consists of four parts: review, prospect, policy recommendations, and recommendations to the Phase IV of CCICED. Detailed reports on “review” and “prospect”, as well as a series of special subject research reports are also attached.
Chapter 1
Review and Assessments of Environment and Development in China
‘China has formed a China Council for International Cooperation on Environment and Development (CCICED), which is composed of Chinese and foreign celebrities and provides advisory services on environment and development issues in China. This effort is reflective of Chinese government’s sincerity and determination in response to the issues,’ said the former prime minister of the State Council of China, Li Peng, when addressing the Summit of the United Nations Conference on Environment and Development (UNCED).
As a senior international advisory body to the Chinese government, CCICED has been in operation for fifteen years since its formation on April 19th, 1992. During the past one and a half decades, CCICED has been dedicated to policy studies in the fields of environment and development in China, providing recommendations, intelligence and experiences to the government, which has been successful in promoting the sustainable development of the Chinese economy, society and environment.
1. Review of Environment & Development in China
1.1 International Background of Combined Opportunities & Challenges
In the previous fifteen years, China’s remarkable advances in environment and development, along with the extraordinary and effective research achievements and policy recommendations of CCICED, are unexceptionally associated with the international background.
Since 1992, the international and political communities have penetrated the fact that human society is confronted with critical environmental risks and development challenges, who have adopted a series of significant efforts at the international level with their admirable commitment.
In June 1992, the United National (UN) held the Conference on Environment and Development in Rio de Janeiro. The delegation of the Chinese government, led by Song Jian, member of the Chinese State Council, attended the conference, where Song delivered a speech titled the Basic Principles on Establishing New Global Partnership, which was commonly recognized at the conference. Li Peng, former Chinese prime minister, addressed the Summit of the Conference on invitation, and raised five propositions in response to the world environment and development issues, which were attended by the Conference and praised by the international community. This Conference led to the Rio Declaration on Environment and Development, which stresses that: human beings are at the centre of concerns for sustainable development; environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it; and reducing and eliminating unsustainable patterns of production and consumption are the basis of sustainable development. The Conference called attention to sustainable development that human society must adopt, and became a cornerstone in the history of human sustainable development.
Related information: Five propositions in response to world environment and development issues
1. Continued efforts must be made to coordinate economic development and environmental protection;
2. While environmental protection is a responsibility shared by the entire human race, the countries with developed economies hold greater responsibility;
3. Strengthened international partnership must be established on the basis of respect for national sovereignty;
4. World peace and stability are dispensable for environmental protection and development;
5. Response to environment issues should give consideration to the practical benefits for each country as well as to the long-term benefits for the world.
Li Peng: Remarks at Summit of UNCED, 1992.6.12
In September 2000 at the dawn of the new millennium, heads of state and government from all over the world gathered at the UN Headquarters in New York to sign the United Nations Millennium Declaration. As is stated in the Declaration, prudence must be shown in the management of all living species and natural resources, in accordance with the precepts of sustainable development; Only in this way can the immeasurable riches provided to us by nature be preserved and passed on to our descendants; Responsibility for managing worldwide economic and social development, and the costs and benefits in response to globalization must be evenly distributed.
In September 2002, heads of state from countries worldwide gathered in Johannesburg for the World Summit on Sustainable Development. The former prime minister of Chinese State Council, Zhu Rongji, attended the summit and gave a speech titled Taking the Road of Sustainable Development Unswervingly. Prime Minister Zhu pointed out in the speech: in the past ten years since the issuing of the Rio Declaration, the international community and the governments of countries have taken significant efforts in promoting environment and development, and regional and mutual partnerships on environment and development continue to further; however, the global trend of environment deterioration has not been turned fundamentally, and with the globalization of world economy, the gap between the North and the South will continue to extend. In response, Zhu posed the five propositions regarding the adoption of sustainable development, which were greatly recognized and praised by the summit. The Declaration on Sustainable Development issued at the summit deepened the human understanding of sustainable development, recognized environmental protection, economic development and social progress as the three headstones for sustainable development, and that environmental protection is a shared responsibility of all governments.
Related information: Five propositions on taking the road of sustainable development
1. Deepen the understanding of sustainable development;
2. Realization of sustainable development relies on the joint efforts of countries across the world;
3. Strengthen science and technology cooperation in sustainable development;
4. Create an international economic context in favor of sustainable development;
5. World peace and stability are dispensable for sustainable development.
Zhu Rongji: Speech at World Summit on Sustainable Development, 2002.9.3
Since the 1990s, the international community has developed a number of international environment treaties and agreements, aiming to protect the environment and promote sustainable development.
When established in the mid-1990s, the World Trade Organization (WTO) explicitly included promotion of global trade, environment and sustainable development in its missions.
These monumental declarations, treaties and agreements made by the international community with respect to environment and development have been a potent drive for global economic and social development.
In the aspect of economic development, the global economic aggregate has continued to grow. Between 1990 and 2004, the growth in the economic aggregates of the medium- and higher-income countries accumulated 91% and 68%, respectively; their per capita GNI increased by 89% and 44% accumulatively during the same period; and the world trade volume increased from 6970.7 billion USD to 18581.9 billion USD, an rise of 1.67 times.
In the field of social development, the world population grew from 5.25 billion to 6.27 billion over this period, and the average life span increased from 65.3 years to 66.8 years. The rate of urbanization climbed from 43.4% to 48.7%.
In the field of environment, the international community made more than 30 international environment treaties and defined the international partnerships for sharing the responsibility to protect the global environment, in which progress was made. However, the overall situation of the global environment remained reasons for concern, with certain severe problems turning increasingly dejected.
One problem is that environmental pollution remains serious. According to the 2001 data provided by the World Bank, many developing countries have their SO2 and suspended particle matters in urban atmosphere fail to meet the standards for air quality provided by the World Health Organization (WHO), the persistent organic pollutants (POPs) are posing great threats to the environment and to population health, the ozone layer depleting substances (ODS) are not fully controlled, and the ozone hole over the South Pole had reached 280 million km2 by 2000. The data issued by the UN Environment Program (ENEP) in 2000 indicate that the average ozone loss is 6% in the mid-latitude region of the Northern Hemisphere during winter and spring, while the annual loss is 5% in the mid-latitude region of the Southern Hemisphere.
Another problem is the unprecedented ecologic crisis the human race is faced with. Forests around the world continue to disappear at a rate of 0.2% each year, which is as high as 0.8% in the lower-income countries where the disappearing forests are 79% of the world total. As UNEP estimates, 2/3 of the global usable land is affected by deterioration, leading to lower productivity. And deterioration is occurring to 70% of the world’s arid land. The data from the World Conservation Union (IUCN) show that some 24% of mammals (1130 types) and 12% of birds (1183 types) are at the brink of extinction worldwide.
The third problem rests with the increasing release of green-house gases, which tend to cause the globe to warm up. The current atmospheric CO2 concentration is about 370ppm. The Inter-Governmental Panel on Climate Change said in 2001 that the 1990s ‘might well’ have been the warmest decade since the recording was started in 1861, and the year of 1998 was the warmest ever recorded.
1.2 Environment & Development in China: Achievements & Progress
The above international declarations, treaties and agreements have offered new ideas, conclusions and measures regarding environment and development. They provide China with fresh opportunities and energy for development, facilitate China’s active response to globalization, and promote sustainable development in this country. Yet, the costs are unavoidably raised when China has to develop as having to enforce the many responsibilities and obligations provided. Therefore, the international background means both opportunities and challenges for Chinese environment and development.
1.2.1 Major Decisions & Efforts
Faced with the opportunities and challenges, through thorough consideration reflection, the high-level decision makers of the country decided to adopt a series of major policies and measures that meet the Chinese national conditions and the requirements of sustainable development, driving forward the harmonious progress of economy, society and environment actively and steadily.
1.2.1.1 In the summer of 1992, the Central Committee of the Communist Party of China and the State Council issued the Ten Responses to Environment and Development, where ‘implementing the strategy of sustainable development and transforming the traditional development pattern’ were on top of the list;
1.2.1.2 In the autumn of 1992, the 14th Congress of the Communist Party of China decided that China was to adopt a socialist market economy and included environmental protection in the ten tasks for the 1990s reforms and construction, which was the first time when market economy and environmental protection made their appearance in the political report of the Chinese Communist Party;
1.2.1.3 In the spring of 1994, China made the world’s first national 21st Century Agenda, announcing the government’s commitment to implementing the Rio Declaration as well as its plan of action and measures for sustainable development;
1.2.1.4 Beginning in the mid-1990s, China has launched fundamental transformations in environment and development: one is the transformation from planned economy to market economy, and the other is from the extensive economic growth mode to the intensive one;
1.2.1.5 In 1996 and 2005, the State Council issued the Decisions on Several Problems in Environmental Protection and the Decisions on Practicing Scientific Development Ideas and Strengthening Environmental Protection. The former identified the goals of ‘1 control and 2 reachings’ for the country (to control total pollution discharge, and discharged pollutants reaching relevant standards and environment quality in key cities reaching relevant standards), and shut down the so-called ‘15 small’ enterprises (15 types of enterprises with high recourse consumption, serious pollution, and unmet industrial policy requirements, such as small coal mines, small coking plants and small paper mills). The latter proposed the objectives for drinking water protection and water and air pollution controls, along with the measures to contain ecologic environment deterioration and strengthen rural environmental protection;
1.2.1.6 In promoting the sustainable development of environment and trade, China began its fifteen-year negotiations with the bodies of the previous General Agreement on Tariffs and Trade (GATT) and later WTO in 1986, and succeeded in joining WTO at the end of 2001. This effort quickened China’s pace to be integrated into economic globalization.
Since 1992, China has been firm with its implementation of sustainable development strategy and carried out the policy of open, harmonious and peaceful development. Guided by scientific development ideas, China has taken the path of novel industrialization to build a relatively well-off, resource-saving and environment-friendly society. Efforts have been made to improve the scientific, democratic, comprehensive decision-making mechanisms for environment and development, and environmental protection has been elevated from a ‘marginal’ status to a strategic position in development decision-making.
In the magnificent decisions and efforts China has made contains the determination, political will and vision that the Chinese high-level decision-makers have in mind when responding to the environment and development challenges thoughtfully and actively, which provide Chinese environment and development with scientific policy guidance and effective mechanism backing.
1.2.2 Historical Achievements in Economic Development
The historical achievements in Chinese economic development include:
a. Thoroughly restructured economic system
The economic system with the public ownership as the main body and diversified ownerships developing in common has been established in China. Thus far, the stockholding system has been instituted in more than 50% of the state-owned enterprises; the economy of non-public ownership contributes 1/3 of the Chinese GDP and generates 1/5 of new employments; and prices are decided by market for 95% of the total volume of retail sales of social consumption products, along with 96% of the total purchase of agricultural and other products and 88% of the total sales of means of production;
b. Breakthroughs in total volume of economy and per capita national income
In 2000, Chinese GDP first reached 1000 billion USD, followed by the second breakthrough in 2005 when GDP surpassed 2000 billion USD. The per capita national income exceeded 1000 USD for the first time in 2003 and continued to climb to 1743 USD in 2005. See Table 1.
Table 1 Increases in GDP and Per Capita National Income in China
Year 2000 2002 2004 2005
GDP (Billion USD) 108071080.7 127101271.0 159091590.9 222572225.7
Per Capita National Income (USD/person) 840 970 1230 1743
Sources: Statistic Yearbook of China (Vol. 2005 & 2006). All data concerning China in the tables below are from the above-mentioned sources, except where specified otherwise.
c. Accelerated process of industrialization
Since 1992, large changes have been taking place in the Chinese industrial structure. Of the Chinese GDP, the share generated by the primary industry has fallen from 22% to 13% by a decreasing rate of 40%. The secondary industry has risen from 44% to 53% by an increasing rate of 20%. See Table 2.
Table 2 Three Changes in Industrial Composition in China
Year 1992 2000 2002 2004
Industrial Composition 22：44：34 17：50：33 15：51：34 15：53：32
Over the same period, the energy consumption per unit GDP was largely cut down, from 5.7 tons/10000 Yuan GDP in the early 1990s to 1.4 tons/10000 Yuan GDP in 2004 (calculated by standard coal), a decrease by 75%. This change not only brought down the production costs but reduced pollution and increased the comprehensive benefits for enterprises.
d. Steady increases in industrial and agricultural production, ending the history of market shortage
During the past fifteen years, the major industrial and agricultural production has increased sizably, as has provided the material assurance needed for improving people’s lives and laid the material foundation for extended production and social development. See Table 3.
Table 3 Changes in Production of Major Industrial and Agricultural Products in China
Year 1992 2000 2002 2004 Rate of Increase (%)
Steel (10000 tons) 8094 12850 18236 27279 237
Cast Iron (10000 tons) 7589 13101 17084 25185 231
Coal (100 million tons) 11.1 10.5 13.8 19.6 77
Crude Oil (10000 tons) 14210 16300 16700 17500 23
Natural Gas (100 million m3) 158 272 326 415 163
Electricity (100 million kwh) 7539 13556 16540 21870 190
Cloth (100 million m) 191 277 322 420 120
Foods (10000 tons) 44266 46218 45706 48400* 9
Meat (10000 tons) 3431 6125 6587 7245 111
Milk (10000 tons) 564 1123 1400 2368 319
Aquatic Products (10000 tons) 1557 4279 4565 4901 214
* The 2005 data
e. Increased international trade and foreign exchange reserve, a new situation of international economic cooperation shaped
The 1992 total import-export volume was 165.5 billion USD, which reached 1422.1 billion USD in 2005, an increase of 8.5 times. Over the same period, the number of trade partners increased from some 100 to over 220 countries and regions. More than 180 countries and regions started to invest in China. Of the 500 largest companies in the world, more than 400 have investments in China. Over this period, the actually utilized foreign investment rose from 19.2 billion USD to 64 billion USD, an increase of 2.3 times.
With its steadily accumulated foreign exchange reserve of appropriate size, Chinese government has enhanced its ability of international financing and financial risk resistance. Starting with merely 0.17 billion USD in 1978, through the 19.4 billion USD in 1992, China’s foreign exchange reserve mounted to 818.9 billion USD by 2005 (See Table 4). To the 1997 Asian Crises, the Chinese government made calm response and employed macrocontrol measures, showing the world China’s ability to combat international financial crises.
Table 4 Growth in Foreign Exchange Reserve of China
Year 1978 1992 1997 2000 2002 2005
Foreign Exchange Reserve (100 million USD) 1.7 194 1399 1656 2864 8189
1.2.3 Remarkable Achievements in Social Development
The previous fifteen years has witnessed China’s remarkable achievements in social development.
a. Successful control of population growth
Since the initiation of the family planning policy, China has avoided 0.3 billion births otherwise provided the population growth had run blindly and unplanned, which is a tremendous contribution to reducing resource and environment pressures. It is evident that the Chinese people are generally supportive for the policy that has proved to be a success;
b. Problems with feeding and clothing 1.3 billion people basically solved. Moreover, more than 0.3 billion Chinese people have been elevated out of poverty;
c. Fertility rate and natural growth rate effectively reduced
The fertility rate of Chinese population was reduced from 18.24‰ in 1992 to 12.29‰ in 2004. Over the same period, the Chinese life expectancy increased from 68.55 years to 71.40 years;
d. Urban and rural per capita incomes have been largely increased and the people’s living environment well improved. See Table 5 and 6.
Table 5 Changes in Fertility Rate, Growth Rate and Life Expectancy of Chinese Population
Year 1978 1992 2000 2002 2005
Total Population (10000) 96259 117171 126743 128453 130756
Fertility Rate (‰) 18.25 18.24 14.03 12.86 12.29
Death Rate (‰) 6.25 6.64 6.45 6.41 6.42
Natural Growth Rate (‰) 12.00 11.60 11.45 6.45 5.89*
Life Expectancy (Year) 68.55 71.40
Table 6 Changes in Living Standards of Chinese People
Year 1978 1992 1997 2002 2005
Urban Per Capita Disposable Income (Yuan) 343 1510 5160 7703 10483
Rural Per Capita Disposable Income (Yuan) 134 686 2090 2476 3255
Engel’s Coefficient for Urban Family 58 54 46 37 37
Engel’s Coefficient for Rural Family 68 59 55 46 46
Urban Per Capita Dwelling Area (m2) — — 18 23 25
Rural Per Capita Dwelling Area (m2) — 17 23 27 28
e. Accelerated urbanization
While it was only 27% in 1992, the rate of urbanization had risen to 42% by 2005. Infrastructure construction and public utility development have been strengthened in cities, especially the larger- and medium-sized ones. See Table 7.
Table 7 Changes in Infrastructure Construction and Public Utility Development in Cities of China
Year 1990 1995 2000 2002 2005
Annual Water Supply (100 million tons) 382 481 469 467 502
Availability of Water Supply (%) 48 59 64 78 91
Availability of Fuel Gas (%) 19 34 45 67 82
Area with Central Heating Supply (100 million m2) 2.1 6.5 11.1 15.6 25.2
No. of Public Vehicles Per 10000 Persons 2.2 3.6 5.3 6.7 8.6
Green Public Space (m2/person) 1.8 2.5 3.7 5.4 7.9
Over the last fifteen years, a system covering the three levels of province, city and county for disease control and prevention has been basically established in this country, and the medical care system for outbreak of public health emergency has also been strengthened. The Chinese medical care conditions have been well improved. See Table 8.
Table 8 Medical and Health Care Conditions in China
Year 1978 1992 2000 2002 2005
No. of Hospitals, Health Stations, Nursing Homes 169732 204787 324771 306038 298997
No. of Medical Technical Professionals (10000 persons) 246 407 449 427 446
No. of Physicians/1000 Persons (Person) 1.1 1.5 1.7 1.5 1.5
No. of Beds in Hospitals, Health Stations, Nursing Homes 204 305 318 314 339
No. of Beds/1000 Persons 1.93 2.34 2.38 2.32 2.45
Basic education, higher education and education facilities have been improved. The coverage of compulsory education among Chinese population exceeds 95%. And the national investments in education continue to increase. See Table 9.
Table 9 Development of Education in China
Year 1978 1992 2000 2002 2005
No. of Students in Regular Primary Schools (10000) 14624 12201 13013 12156 10864
No. of Students in Regular High Schools (10000) 6548 4771 7369 8288 8581
No. of Students in Regular Higher Education Institutions (10000) 86 2`18 556 903 1562
No. of Postgraduate Students (No. of enrolled student) 10934 94164 301239 500980 978610
No. of Students Studying Overseas (Persons) 860 6540 38989 125179 118515
Education Investment (100 million Yuan) — 8671.1 3849.1 4637.7 7242.6*
* The 2004 data
Basic scientific research and the relevant infrastructure continue to improve and technical development has been considerably advanced. See Table 10. In particular, a number of new achievements are gained, such as the successful mission of Shenzhou-6 Manned Spaceflight and the hybrid rice. The share of contribution generated by sciences and technologies to the national economy has kept rising.
Table 10 Development of Sciences and Technologies in China
Year 1992 1995 2000 2002 2005
No. of Scientists & Engineers (10000 persons) 134 155 205 218 256
Proportion of Research Funding in GDP (%) 0.7 0.6 1.0 1.2 1.4
No. of Registered Scien. & Tech. Achievements 33384 31099 32858 26697 32359
Business Volume in Technology Market (100 million Yuan) —— 268 651 884 1551
No. of Patent Applications Granted —— 45064 105345 132399 214003
1.2.4 Notable Progress in Environmental Protection
In this period, the high level of the Chinese government implemented a series of major decisions, policies and measures regarding environmental protection. From its previous ‘marginal’ status in development decision-making, environmental protection is raised to a strategic position and has made notable advances.
a. Environmental legislation completed step by step
The period since 1992 has been the most fruitful for the environmental legislation and mechanism and standard development. Five new laws were made, including the Law on Promotion of Cleaner Production and the Law on Evaluation of Environmental Effects, three laws were modified, including the Law on Prevention and Management of Atmospheric Pollution and the Law on Prevention and Control of Water Pollution, and some new laws such as the Law on Natural Reserves are in process.
Related Information: Environmental legislative efforts since 1992
1995: Making of the Law on Prevention and Control of Pollution by Solid Waste, first modified in 2004;
1995: First modification of the Law on Prevention and Control of Atmospheric Pollution, second modified in 2000;
1996: Making of the Law on Prevention and Control of Environmental Noise Pollution, promulgated for enforcement;
1996: First modification of the Law on Prevention and Control of Water Pollution, promulgated for enforcement;
1999: First modification of the Law on Protection of Marine Environment, promulgated for enforcement;
2002: Making of the Law on Promotion of Cleaner Production, promulgated for enforcement;
2002: Making of the Law on Evaluation of Environmental Effects, promulgated for enforcement;
2003: Making of the Law on Prevention and Control of Radioactive Pollution, promulgated for enforcement;
2003: The Law on Natural Reserves, in process.
Over the period, the State Council made or modified more than 20 environmental legal and regulatory codes, including the Regulations on Natural Reserves, the Regulations on Administration of Environmental Protection in Construction Project, and the Rules on Administration of Levying of Pollution Charges, along with other over 50 environmental regulations and nearly 1000 local environmental legal and regulatory codes. China joined more than ten international environmental treaties and signed mutual cooperation agreements on environment issues with over 40 countries.
Innovations in environmental administration mechanisms are effective. Through legislation, four new mechanisms were established, including the mechanisms for ruling out of a pollution source within a given period, commissioned disposal of hazardous wastes, control of total discharge of pollutant, and extension of environmental accountability of producer. In addition to the existing mechanisms for the evaluation of environmental effects, ‘3-meantimes’, charged pollutant discharge, discharge declaration and registration, and pollution to be managed within a given period, they have formed a relatively complete system.
Marked progress has been made in environmental standardization. A total of more than 200 relevant standards have been developed or modified, which are playing a crucial role in scientific decision-making for environment and development and have strengthened the environmental law enforcement.
b. Implementation of four major transformations, continued advances in pollution prevention and control
- Transformation from management of site of pollution source to combined management of the pollution source site, river basin and region;
- Transformation from concentration control to the ‘dual control’ of both concentration and total amount of pollutant discharge;
- Transformation from end management to source management combined with full-process control;
- Transformation from sole management to management combined with restructuring and layout adjustment.
The four transformations potently advanced Chinese pollution prevention and control. 90% of the country’s pollutant-discharging enterprises have brought their major pollutants up to the relevant standards successfully. The volume of utilized industrial wastes was raised from 12 billion Yuan in 1992 to 57.3 billion Yuan in 2004. A number of ‘environment-friendly enterprises’ have emerged;
c. Further strengthened urban environmental protection
Since the early 1990s, China has been carrying out two measures for urban environmental protection:
- Carrying out continuous integrated urban environment management, strengthening infrastructure construction, and enhancing the capacity and level of urban pollution prevention and control;
- Implementing the ‘dual-control’ system to control the concentration and total amount of pollutant discharge, and enhancing the performance and efficacy of industrial pollution prevention and control.
With these systems and measures in place, quality of air and surface water has been raised to meet the functional standards in many cities. The environment quality in some cities is clearly improved. Zhangjiagang, Dalian and Tianjin, along with other 53 cities are entitled as National Model Cities for Environmental Protection, where good economic, social and environmental benefits have been gained.
Related Information: Comprehensive benefits for model environmental protection cities
The economy of the 56 entitled cities has continued to increase at higher rates. The pre capita GDP has increased by over 33%. The energy consumption per unit GDP has dropped by 6.5% on average, and the average decrease in water consumption is 9.9%. The investment environment increases by 18% on average. The rate of sewage processing has more than tripled and the garbage processing rate has increased by more than 5%. The cities are bringing on new images of a civilized prosperous society, advancing economy, well-established infrastructure, and a comfortable living environment.
d. New achievements in ecological conservation and development
- Active development of natural reserves
While China had only 708 natural reserves covering some 5.5% of total land area in 1992, the number of natural reserves has increased to 2349 by 2005, holding 15.0% of the country’s land. See Table 11;
- Biodiversity conservation strengthened step by step
China has identified suspended hunting areas and built up a number of breeding centers for rare animals and introduction and planting centers for rare plants. 80% of the country’s wild animals, 60% of the higher plants, and 70% of the ecosystems are under protection to various extents;
- Progress in ecological rehabilitation
From the 1992 coverage of 13.92%, Chinese forests have grown to 18.21% in coverage by 2005. Measures are taken each year, including returning farmlands to forestry, returning pasture lands to grassland, forestation of waste mountains, and sealing mountains for forestation, along with soil erosion management and mine ecological rehabilitation;
- Steady advances in development of model ecological areas and ecological provinces, cities and counties
By the end of 2005, the number of national model ecological areas had reached 233. Construction for ecological provinces is in process in 11 Chinese provinces such as Hainan, Shandong, Jiangsu, Zejiang, Hebei and Sichuan, covering 1/3 of the total population, 1/2 of the national GDP and 1/4 of the country’s natural reserves. The construction of ecological provinces, cities and counties has fueled the sustainable development of regional economy, society and environment, and is becoming an effective vector for promoting harmonious development between man and nature and for creating a resource-saving and environment-friendly society.
Table 11 Development of Natural Reserves in China
Year 1978 1992 2000 2002 2005
No. of Natural Reserves 34 708 1227 1757 2349
No. of National Natural Reserves — 77 155 171 243
Total Area of Natural Reserves (10000 ha) 127 5606 9821 13295 14995
Proportion in Total Land Area (%) 0.1 5.5 9.9 13.2 15.0
- Strengthened nuclear safety and environmental radioactive safety
Following the principles of Safety in Priority, Quality in Focus, Ensured Safety and Zero Accident, measures are taken to enhance the safety of the nuclear power plants under construction as well as other nuclear facilities, strengthen emergency response and preparation practice for nuclear accident, and to carry out constant environment monitoring and supervision management for radiation. Nuclear safety and environmental radioactive safety are under control throughout the country.
1.3 Environment & Development in China: Great Challenges
Despite the sizable achievements, Chinese environment and development are still presented with prominent problems that are worth serious attention and effective measures for active, steady solutions.
1.3.1 Economic and Social Development Remaining at Low Level
Although breakthroughs continue to take place to the total volume of economy, the Chinese productivity is still less than developed, with the per capita GDP left behind the top 100 countries in the world. Currently, China has solved the problem of feeding and clothing the people, but 23 million of the Chinese population are still living in poverty and 2/3 of the Chinese people living in the backward rural areas. China has a long way to march before its industrialization, urbanization and modernization;
1.3.2 Industrial Structure Remaining Unchanged by Essence, Total Pollutant Discharge Exceeding the Capacity of Environment
Agriculture continues to occupy a large share in China’s industrial composition. Energy structure has not been fundamentally changed to this day, where coal still makes up to 70% in energy consumption with material and energy consumptions per unit GDP still high; and the discharge of such major pollutants as SO2, particle matters and COD are far higher than the environment capacity.
Commonly Lagging Urban Infrastructure Construction
Across the country, 150 cities still have zero rate of hazardous waste processing, 190 cities zero rate of urban sewage processing, and 160 zero rate of urban garbage processing. Urban environment enhancement is and will remain a serious problem;
1.3.3 Uncontained Trend of Ecological Deterioration
Ecological deterioration poses a threat to national environmental security and constrains socioeconomic development. At present, 1/3 of Chinese land suffers soil erosion to some extent, 1/5 is being damaged by desertification, 90% of the grassland is degrading, and biodiversity in this country is likely to suffer damage and to decrease. Ecological conservation will stay as a difficult task;
1.3.4 Severely Inadequate Rural Infrastructure Construction, Poor Environmental Management of Pesticides and Chemical Fertilizers
Severely inadequate infrastructure and lagging construction, along with pollution caused by use of pesticides, chemical fertilizers and by industrial pollutants, have resulted in complicated pollution upon the agricultural and rural ecological environment, and subsequently in hazardous effects on the quality of the overall ecological environment as well as the agricultural and sideline products, which stands a potential threat to population health;
1.3.5 Unstopped Marginalization of Environment and Illegal Activities
The phenomenon of ‘marginalizing’ environment in the process of development decision-making continues to exist in some places and sectors. The passive attitude and practice that leave environmental protection ‘in talking other than in action’ are common. Poor social and legal awareness and unfavorable circumstances for law enforcement have led to common illegal activities against the environment in certain places.
Related Information: Education on environment alert should be strengthened
We should tell people about the deterioration of the environment. Don’t be afraid. There is nothing we need to keep in secret, and don’t hide our problems. This is not meant to deny what have been achieved in environmental protection, but to remind everybody to pay attention to environmental protection. The problems have gone so serious. What will happen if we go on refraining from giving the alert?
Zhu Rongji: Remarks on Hearing the Report on Environmental Protection Work, 2001.9.3
In summery, the achievements China has made in development are preliminary and progress in the field of environment is still highly inadequate. The conflict between environment and development will continue to exist for a long period to accompany such processes as industrialization and urbanization, which, in certain places, may be particularly prominent. With the coming development phases, serious challenges are approaching.
2. CCICED: Research Achievements & Policy Recommendations
As stated in its working outlines and rules of procedure when CCICED was established in April 1992, CCICED is a senior advisory institution to the Chinese government, which is to offer to the government constructive recommendations for reference regarding the coordinated development of environment and economy. The primary objective of CCICED is to assist China in seeking an approach to coordinate such aspects as environmental protection, socioeconomic development and science and technology.
During the past one and a half decades, more than 20 working groups or task forces have been formed based on Chinese environment and development needs during the three phases of CCICED. Their specialized fields range from environmental economics, energy strategies, pollution control, resource assessment, biodiversity, environment and trade, cleaner production, sustainable agriculture, forest and grassland, sustainable urbanization, sustainable transportation, to recycling economy. More than 220 Chinese and foreign experts and over 2000 support researchers have been organized to carry out fruitful studies on Chinese environment and development.
For its research, CCICED has established an efficient working mechanism with well-defined procedures and accountabilities:
- All task forces shall carry out their research activities via such ways as seminar, symposium and field work;
- All task forces shall report their research results and progress to CCICED during the annual meetings;
- On the basis of the research results of each task force, all members of CCICED should discuss the results by following the principle of democratic consultation, and offer his or her advice on modification or improvement;
- CCICED shall hold meetings of the Presidium, which shall summarize the consensus achieved via democratic consultation and form the final recommendations to be proposed to the Government of China.
Over fifteen years, CCICED has completed research reports of more than 8,000,000 Chinese characters (calculated in Chinese character, the same thereinafter), and provided the Chinese government with written policy recommendations of over 120,000 characters.
Fifteen years’ dedication and intellectual input, the large scale and depth of research, along with the achievements, have made CCICED a rare example among all the international advisory services in China.
The scope of the CCICED studies is wide-ranging and the achievements magnificent. The main research achievements and policy recommendations of CCICED cover the following fields:
2.1 Environmental Economics
（1） The accounting and pricing mechanisms for national economy should be improved;
（2） The Chinese government should increase investments in environment issues in multiplied forms. The items for environment issues should be listed in national and local budgets, and an environment investment mechanism should be built up;
（3） Policies in relevant fields should be coordinated and considered along with the environment policies. Such policies as on energy, transportation, industry and agriculture should be constantly coordinated with the environment policies;
（4） Environment taxation should be used as an approach of regulation and control;
（5） Sustainable production modes and consumption patterns should be introduced and promoted. A sustainable national economy system should be established via environment-friendly approaches of lower resource consumption;
（6） The environment administration structure with effective government administration, industry self-regulation, and public participation should be created, and ‘good governance’ should be practiced.
2.2 Energy & Environment
（1） 2.2.1 Energy structure should be transformed to change the unreasonable means of exploitation and to enhance the efficiency of energy consumption;
（2） 2.2.2 A multiplied energy consumption pattern should be instituted, a reasonable energy structure be established, and renewable energies developed, including such alternative energy sources as biomass and wind energies;
（3） 2.2.3 Policies regarding energy sources for sustainable development should be developed and enforced. Solar energy, hydrogen energy, tidal energy and energy converted from waste should be explored;
（4） 2.2.4 Western Energy Development & Sustainable Use of Energy
（5） Wind energy sources in Western China is more than 50% of the national total, which should be made a significant port in the transmission of electricity from the Western to the Eastern region;
（6） 2.2.5 It is recommended that China should issue the Renewable Portfolio Standard;
（7） 2.2.6 Foreign investments in the field of energy sources should be encouraged.
2.3 Pollution Control
（1） Environment monitoring should be strengthened, an indicator system and databases for environment monitoring should be created;
（2） Plans for urban pollution control should be made (including plans for pollution of water domain and atmosphere, and programs on energy structure, energy policy and transportation);
（3） Prevention and control of river basin and regional pollution should be strengthened, the integrated river basin management should be included in the national five-year plans, and environmental protection included as part of the overall program on river basin development;
（4） Cleaner production should be promoted, and recycling economy developed;
（5） The evaluation system for environmental effects should continue to be exercised, and the evaluation should cover biodiversity conservation.
2.4 Ecological Conservation
（1） Biodiversity should be conserved, construction and management of water domain and land natural reserves should be strengthened, and trading of threatened species must be prohibited. The national and local governments should take joint efforts to manage land deterioration and grassland deterioration;
（2） Investments in ecological conservation should be increased;
（3） Ecological conservation in key regions should be strengthened;
（4） A national coordinating body of authority should be established for biodiversity conservation to enhance coordination between sectors and implementation of international treaties;
（5） Following scientific rules, ecological conservation should be combined with poverty relief, and migration work should be carried out with caution;
（6） Urban ecological conservation and environmental protection should be strengthened;
（7） Ecological safety should be protected. Provisions of the Biodiversity Convention should be implemented to conserve the rich biological resources in China;
（8） Forests and grassland should be protected. Holistic, flexible, cross-sectoral and systematic measures should be adopted for ecological recovery.
2.5 Environment & Trade
（1） Environment factors should be considered in trade policies. An environment labeling system should be instituted for the development of green food and organic food;
（2） Measures should be taken to meet the new challenges with international trading, and policies and measures should be developed to solve the problems with environment barriers after China’s WTO entry;
（3） A trade alarm mechanism should be established;
（4） Dialogues with trading partners should be increased;
（5） Studies of trade policies should be strengthened. A resource-saving and environment-friendly society should be built;
（6） Plans for the green trade campaign should be developed. Active participation in international trade negotiations should be attempted, and China’s standpoint on green trade policy should be reflected in trade and environment negotiations.
2.6 Agriculture & Rural Environment
（1） Agricultural ecological environmental protection should be strengthened. Efforts should be taken to prevent and control land deterioration and to promote ecological agriculture;
（2） Soil erosion and desertification should be managed. Proper practice should be made for sealing mountains for forestation and soil maintenance, for which artificial rehabilitation should be combined with national recovery. Persistent efforts should be made to plant trees, recover forests and grow grass, so as to prevent and control desertification;
（3） Partnerships should be built up with farmers and farmers’ organizations;
（4） Infrastructure construction and technical services should be strengthened in rural China.
2.7 Public Participation & Environmental Legality Building
（1） The Chinese public awareness regarding environment, sustainable development and public participation should be enhanced;
（2） A public participation mechanism should be created, and the public should be encouraged to monitor behaviors causing damage to the environment;
（3） Legislative efforts regarding biodiversity conservation, cleaner production, recycling economy, renewable energies, and environment administration of pesticide use should be strengthened, and the system of environment laws should be improved;
（4） Enforcement inspection should be carried out for the environment laws and regulations, and the law enforcement should be strengthened;
（5） Publishing of environment information by the government to the general public should be increased.
2.8 Western Development & Environmental Protection
（1） Attention should be focused on local characteristics and advantages the Western Development, rather than copying the patterns of the development of Eastern China;
（2） In managing the relationship between the Western Development and environment issues, the guidelines of prevention in focus and protection in priority should be followed;
（3） With the ideas of sustainable exploitation of biodiversity and cautious use of non-renewable resources in mind, efforts should be made to minimize input of resource and energy as well as discharge of waste;
（4） Functions and capacity of ecosystem should be considered when making plans for urban and industrial development, and attentions should also be paid to the maintenance of historic and cultural relics and natural landscapes;
（5） The functions of government regulation and market mechanism should be exploited, and the guiding model effect of core regions and cities should be properly utilized;
（6） Continued practice of protection, sustainable exploitation and comprehensive management of water resource should be performed.
3. CCICED: Assessment of Contributions & Impact
In the past fifteen years, CCICED has been devoted to the research of policies on environment and development in China. The efforts have resulted in valuable achievements, many of which are provided to the Chinese government as policy recommendations. As is evident in practice, through the unique approach of policy recommendation, CCICED has contributed experience and wisdom to Chinese modernization, offering support to and taking part in the magnificent changes in the environment and development for the 1.3 billion Chinese people. It is an unprecedented example not only in modern China but throughout the international community. Therefore, a review and assessment of its contributions and impact from the historic and development perspectives are of essential value.
The great achievements in environment and development in China count on many reasons. Domestically, the correct decisions and leadership of the Chinese Communist Party and the Central Government are undoubtedly credited as well as the persistent hard labor of the intelligent Chinese people of various ethnicities. Internationally, the achievements are attributed to the mainstream backing of peace and development in the international community and to the support and assistance offered by the countries and people friendly to China. And also, as mentioned above, the quality results of policy studies and constructive recommendations provided by CCICED are significant contributors.
3.1 Contributions & Impact: Realms & Mechanisms
The contributions and impact CCICED has in China mostly concentrate in the two realms of environment and development.
Its contributions and impact in the realm of environment range from ideas, policies, laws and mechanisms for environmental protection to policies and measures regarding pollution prevention and control, ecological protection and environment and trade.
And those in the realm of development include that: environmental protection should be planned when making programs on economic and social development; relevant policies, laws and regulations should be made in favor of the coordinated development of environment and economy; adjustment of industrial structure and the function of market to allocate resources should be strengthened to make use of resources more efficient; and economic methods should be employed for regulation and control to allow sustainable development of economy, society and environment.
3.2 Contributions & Impact: Forms & Effects
3.2.1 Forms of Contributions & Impact
The sound contributions and impact of CCICED are seen in direct and indirect forms.
Those in the direct form mostly refer to the recommendations CCICED provides regarding relevant professional and industrial development as well as dissemination of pilot programs, which have been adopted by related departments of the Chinese State Council or local governments and are effective in practice.
Those indirect contributions and impact are the subtle effects CCICED has caused to policy adjustment and decision-making. Environment and development decision-making is an integral, scientific and democratic process, where the government has to integrate multiple perspectives, channels and ideas. It is difficult to distinguish such immediate cause-effect relation as between the CCICED recommendations and government decisions in the process, and it is even harder when one attempts to decide the ‘weight’ of such contributions. Yet the fact that has been objectively demonstrated is: the Chinese government and relevant sectors have paid high attention to the ideas and policy recommendations advocated by CCICED, which are widespread among the sectors and are forwarded to local governments via documents, remarks of government leaders, and other routes; and the subsequent policies, laws, development patterns and goals are reflective of the ideas and recommendations in various ways. As a result, the research achievements and decision-making recommendations have produced their contributions and impact through a process of awareness penetration and idea infiltration, rather than an obvious ‘linear’ process, to provide ultimate influences on and support for the high-level decision makers to reach correct scientific decisions. Even though the CCICED recommendations are accepted and used for decision making by the high level, swift transformation of the decisions in to action cannot be expected with the local governments at various levels, since in this country of a vast area and a 1.3-billion population development is imbalanced from one region to another and the levels of environment and development vary considerably in different places. Continued policy adjustments and dissemination are demanded of the high-level and local government. Therefore, the contributions and impact of CCICED are practically an indirect process;
3.2.2 Unique Effects of Contributions & Impact
The CCICED contributions and impact have produced unique effects in both China and the international community, i.e. facilitating the ‘mutual sharing’ of experiences between China and the international community and other concerned countries. Firstly, CCICED introduces and spreads novel ideas, thoughts, perspectives and advanced experiences from the international community and related countries, to provide the Chinese government and concerned decision makers with an open and forward-looking mind, in which case CCICED helps the decision makers broaden their minds and attain information. Secondly, CCICED reports the Chinese achievements and experiences in environment and development truthfully to the international community and foreign countries, allowing them to learn about the reality in China, who, in turn, further their understanding of and support for environmental protection and sustainable development of China. In this way, CCICED has built a bridge of communication, cooperation and friendship to connect the Chinese government and people with the international community and foreign nations.
3.3 Assessment of Major Contributions & Impact
When assessed in terms of time, the CCICED contributions and impact are both felt nowadays and to be seen in the future. In terms of the fields affected, they are reflected in theory as well as in practice. Theoretically, CCICED has promoted updating of mind and ideas, improved scientific decision-making mechanisms, prompted transformation of development patterns, enhanced environmental legality and public participation, and taken advantage of market mechanism to protect the environment. And practically, its contributions and impact are shown by providing specific operable measures and recommendations for pollution prevention and control, ecological conservation and environmental protection.
3.3.1 Contributing Experiences & Wisdom, Acting as Think Tank for Decision Making
CCICED integrates the success stories in environment and development of the international community and related countries with the national conditions of China, providing policy options and recommendations to the high-level decision makers, where it is playing a unique role as a senior think tank for successful scientific decision making.
CCICED has believed that environmental protection is equally as important as economic development. In its recommendations submitted to the Chinese government in 1992, CCICED proposed with a sharp viewpoint that ‘coordination in policies regarding environment and development should be strengthened, a macro administration mechanism should be created to coordinate development, and the initiative of concerned sectors in environmental protection should be further exploited’. In the later years, it continued to recommend that: environmental protection should be included in the core decision-making agendas at all levels, and the essential effects of environmental protection and reduced resource consumption in practical sustainable development should be emphasized.
Related Information: Environmental protection should be included in the core of decision making at all levels
Environmental protection should be included in the core of decision making at all levels ranging from the central, provincial or local government to the industry, business, school and family. It matters for the success of China’s current plan of reforms, particularly in the area of industry. Industrial restructuring is turning from textile and other light industries in majority to energy and heavy industries taking the lead. Environmental protection must be given adequate consideration in every type of industry.
Policy Recommendations Submitted by CCICED to Chinese Government, 1998
In its later recommendations, CCICED placed environmental protection and reduced resource consumption in even more prominent positions in sustainable development. Twice in its 2002 policy recommendations, CCICED posed the recommendation of building ‘a resource-saving and environment-friendly society’ clearly.
Related Information: Build an environment-friendly society of lower resource consumption
During the enforcement of the newly issued Law on Evaluation of Environmental Effects, China should further its efforts to evaluate the environmental effects of sustainable development as well as the WTO entry, which will help China expand the positive effects and minimize the negative effects of WTO entry through restructuring and build up an environment-friendly society of lower resource consumption and sustainable development.
Policy Recommendations Submitted by CCICED to Chinese Government,2002
Modern China has shown the building of such a society with a good theoretical basis and urgent practical needs. At the 4th National Environmental Protection Conference in 1996, Jiang Zemin, then General Secretary of the Central Committee of the Communist Party and President of China, pointed out in his speech: ‘Continue to save water, land, energy, wood, food and other resources’, and ‘continue to regard positive circulation of ecological environment as the foundation’. The two ‘continues’ are by essence the primary idea of the environment-friendly society of reduced resource consumption and a strategic design for the Chinese sustainable development. In its 2002 recommendations, CCICED first proposed the concept of a environment-friendly society of lower resource consumption, which seems to match vision of strategic goals for sustainable development of China, which provides a scientific reference and international background for China to decide its strategic goals.
Subsequently, this concept started to appear in china’s documents related with environment and development as well as speeches of Chinese leaders. In particular, the Central Committee of the Chinese Communist Party put the building of a resource-saving and environment-friendly society in its recommendations to the 11th Five-year Plan in 2005. And the Chinese National People’s Congress adopted this Plan, in which building such a society is identified as a national development goal;
3.3.2 Disseminating New Concepts, Prompting Updating of Environment & Development Ideas
For years, CCICED has been playing an important part in spreading the advanced concepts and ideas related with environment and development. Beginning with advocating sustainable development, public participation and some other new concepts in the early 1990s, until the dawn of the new century when it continues to uphold the building of a resource-saving and environment-friendly society as a key recommendation, CCICED has been working persistently to update the ideas of decision makers and open up their minds by introducing advanced concepts and thoughts and to promote the scientific decision making for modern Chinese environment and development.
CCICED’s efforts to introduce the advanced environment and development ideas and concepts from the international community and relevant countries into China has been helpful for updating the ideas and concepts, keeping the decision makers’ minds forward-looking and open, and providing ideas and theories to support the forming and implementing of sustainable development strategies and scientific development ideas.
In 1992, the 1st Meeting of the 1st Phase of CCICED presented the Chinese government with its first recommendation, in which it posed that a new idea should be established that environmental protection and sustainable development can be realized at the same time.
Related Information: Establishing a new idea
A new idea should be established that environmental protection should not become the burden over economic development, and it can be realized at the same time as sustainable development as long as correct guidelines, policies and measures are in place and the roles of policy and science and technology are fully played.
Policy Recommendations Submitted by CCICED to Chinese Government, 1992
The new idea that CCICED proposed in the recommendation was later to become the commonly recognized ‘win-win’ idea and concept in environment and economy. This recommendation was consistent with the requirements of conducting integrated decision making for environment and development as provided in the Ten Responses to Environment and Development. Therefore, it is evident that the CCICED recommendations are of great value.
3.3.3 Supporting Cleaner Production & Developing Recycling Economy, Promoting Transformation of Grow Mode
Since the first phase, CCICED has placed the promotion of transformation of economic growth mode in a essential position in policy research and continued to recommend to the Chinese government: sustainable cleaner production should be instituted, competition in cleaner production in related areas should be encouraged, and transformation of economic growth mode should be promoted. Along with its support for sustainable production, CCICED recommended ‘sustainable consumption’ in 2002, believing that ‘a growth-oriented mode will not lead to sustainable national economy, which requires more attention to be paid to the sustainable modes of production and consumption, and the sustainable mode of consumption should be established’.
Related Information: Promoting cleaner production and competition
Competition in cleaner production should be encouraged in the following fields: steel making, commodity manufacturing, construction, fuel battery bus, coal, methane and sugarcane bagasse power generation.
Policy Recommendations Submitted by CCICED to Chinese Government, 1994
In the early 1990s, even in the international community, cleaner production was a ‘latest’ concept. Only a few departments and academic experts were starting to discuss and advise on pilot sites. The CCICED recommendations on enhancing awareness of cleaner production, building pilot zones and a transfer network, making incentive policies, and modifying relevant laws and regulations were timely and potent support for promoting the idea.
Related Information: Use cleaner production as a key method to sustainable development
The period of the 10th Five-year Plan should be crucial for expanding and furthering the practice of cleaner production in China. Cleaner production should be clearly made a key method to sustainable development. In addition to industrial enterprises, the concept and methods should be spread to such sectors as urban planning, agriculture, transportation, construction and the tertiary industry. The urgent issues should be noted and solved in cleaner production, including industrial restructuring, improving of the energy structure and reform of the pricing system.
Policy Recommendations Submitted by CCICED to Chinese Government, 1999
In its later policy studies and recommendations, CCICED went further to pose the operable recommendations regarding cleaner production. The pilot project on cleaner production carried out in Shanxi province resulted in positive outcomes. The recommendations, along with the pilot results, strongly catalyzed the prevalence of cleaner production in China, and urged the making of the Law on Cleaner Production Promotion.
At the beginning of the 21st century when the legislation and measures in some developed countries related with recycling economy are imported into China, CCICED raised the idea that ‘materials should be maximally exploited and recycled’ in 2001, advising China to adopt recycling economy. The high level of the Chinese government paid great attention to this recommendation. Jiang Zemin and Hu Jintao launched their speeches on recycling economy in October 2002 and March 2003, respectively, after which recycling economy became a priority in the CCICED policy studies. To its 2003 Annual Meeting, CCICED invited the leaders of Anshan Steel Corp. of Jiangsu province to give a report on the experiences in developing recycling economy. Based on the discussion among local authorities and corporation leaders, CCICED provided the Chinese government with comprehensive operable recommendations on the development of recycling economy.
Related Information: Recycling economy and sustainable development
Only by taking the path of recycling economy that uses resources most effectively and protects the environment, can sustainable development be possible.
Jiang Zemin: Remarks at Party Conference of Global Environment Facility, 2002.10.16
The pace of economic growth mode transformation should be quickened. The idea of recycling economy should be integrated in regional economic development, urban and rural construction and commodity production so that resources can be used in the most effective fashion.
Hu Jintao: Speech at Central Population, Resources and Environment Forum
Efforts should be made to develop the recycling economy. Pilot sites should be opened in key professions, industrial zones, and urban and rural areas. Preferential tax policies should be improved for comprehensive use of resources and recycling of reproductive resources, and comprehensive use of waste materials and recycling and recovery of used resources should be promoted.
Wen Jiabao: Government Work Report, 2006.3.5
The CCICED recommendations were noted and accepted by the Chinese government. Prime Minister Wen Jiabao states in the 2006 Government Work Report that recycling economy has been included in the work plan of the Chinese government and the 11th Five-year Plan Outlines. Thus far, legislation on recycling economy has been made part of the national legislative plan and the initial work has been started.
3.3.4 Supporting Market to Allocate Resources, Promoting Economic Methods to Protect Environment
CCICED has insisted on the recommendations for years that economic methods should be employed to regulation and control the coordinated development of environment and economy; ‘environment pricing’ measures should be instituted and a pricing mechanism covering the environmental costs should be created, to raise the prices for water supply and wood in particular; and attention should be paid to establishing a green accounting mechanism for the national economy and using taxation policies to cut down the consumption of scarce resources. The Chinese government has regarded the recommendations with care, some of which have been accepted and practiced in places and professions;
3.3.5 Supporting Legality Development & Mechanism Innovation, Fueling Environmental Legalization & Institutionalization
Environmental legality and mechanism development is never less than important in the CCICED policy studies and recommendations. In the making of the Law on Promotion of Cleaner Production, CCICED advised the government to ‘encourage’ the practice of cleaner production through good mechanisms, rather than interfering with the production activities of the enterprise. In developing the Law on Evaluation of Environmental Effects, it proposed soundly that the mechanism for environmental effect evaluation should be instituted for development programs, and development of cities, industrial zones, public infrastructure and land. The recommendations catalyzed the improvement of the environmental effect evaluation mechanism and the establishment of the mechanism for eliminating a pollution source within a given time. The four innovative mechanisms for eliminating a pollution source in a given time, commissioned disposal of hazardous wastes, control of total waste discharge, and accountability extension of producer are all closely associated with the recommendations of CCICED;
3.3.6 Advocating Public Participation, Driving Process of Transparent & Democratic Decision Making
While it is regarded as a common sense of society nowadays, public participation was a total ‘stranger’ for most Chinese citizens in the early 1990s. In its 1993 policy recommendations, CCICED posed the idea of public participation environment. In the recommendations during the later years, it continued to submit truthful advice to the Chinese government, providing more operable recommendations on the measures for public participation. When making the Law on Valuation of Environmental Effects, the law-makers incorporated ideas from various perspectives, including CCICED. The provisions range from entity content to enforcement procedures, which are legal support and mechanism assurance for public participation environment;
3.3.7 Upholding Guideline of ‘Protection in Priority’ Strongly, Protecting & Improving Ecological Environment in Western China
In order to support the Western Development Strategy of the Chinese government, CCICED dedicated relevant task forces to study western development and environmental protection from different fields and perspectives, and identified Western Development as the theme of the 2000 Annual Meeting. It proposed to the Chinese government such policy recommendations as ‘protection in priority’, strengthening biodiversity conservation, and realizing win-win of development and environment, which are valuable practice directions for the present and the future;
3.3.8 Promoting Unified Planning for Prevention & Control of River Basin Water Pollution, Conducting Integrated Management
Based on the successful methods and experiences of the international community and related countries in dealing with water pollution of river basins, CCICED has recommended to the Chinese government that active efforts should be made to create a unified plan for the prevention and control of river basin water pollution and to conduct integrated pollution management, which have been noted and accepted by the concerned authorities and turned out as effective support for the prevention and control strategy for river basin water pollution implemented in China;
3.3.9 Driving Energy Restructuring & Policy Adjustment, Preventing & Controlling Atmospheric Pollution Fundamentally
CCICED has been recommending that attention should be paid to disseminating the technology of clean coal and increasing coal utilization. It also recommends that clean alternative energy sources should be developed to reduce the dependence on coal, pricing reform should be carried out, and the government should apply interventions to prevent market failure. These recommendations are attended by Chinese development and reform authorities;
3.4 Assessment of CCICED Forms of Organization
3.4.1 Innovative Organization for Advisory Services
As a senior international advisory institution to the Chinese government regarding issues of environment and development, CCICED has its three chairs from the Chinese State Council Leadership, along with the vice chairs of ministers in environment and development fields from China and other concerned countries. Members of CCICED are renowned experts from both developing and developed countries, international organizations and China. This composition is reflective of the ideas of combined Chinese and foreign expertise and complementary efforts. CCICED, as a unique advisory entity, has made the contributions and impact incomparable for any other international advisory organization in China;
3.4.2 Innovative Mechanism for Advisory Services
Besides its efficient working mechanisms with clear procedures and accountabilities, CCICED has also built up an ‘express mechanism’ for providing recommendations directly to the high level of Chinese decision making through its annual meetings. Immediate, fast and effective policy recommendations of CCICED are unmatchable among all Chinese senior advisory services;
3.4.3 Unique Effects of Mutual Sharing
CCICED is a bridge that connects the international community and other concerned countries with China. While introducing information, experiences and wisdom into this country, it also shows the international community and people across the world an energetic China full of vitality, allowing the world to see the facts that despite her admirable achievements in development, China is still a developing country, and despite the many challenges, China will insist in protecting the environment while continuing to develop.
It must be admitted that besides the contributions and impact, CCICED also experiences certain drawbacks in its policy studies and recommendations, which need correcting. Firstly, the coverage of studies is not adequate, in which case specificity of some special should be enhanced, and efforts should be regarding the applicability of recommendations to improve the operability and avoid empty talks. Secondly, more active effects should be expected with certain members and experts. In particular, the Chinese members in charge of relevant government departments, who are in the position of dual advantages of participating government decision making as well as CCICED policy research, should be expected to play greater roles that match their positions and advantages. Finally, the Secretariat should be more effective in strengthening the connections with relevant authorities in the Chinese government. By staying in close contact, the Secretariat should attain their active cooperation and support, which is crucial for the utilization of the experiences and intelligence CCICED offers and the implementation of the high-level decisions on Chinese environment and development. Improvements in the above problems, which must not shade the success of CCICED, should be helpful for elevating the efficiency and quality of CCICED works.
The review and assessments above are far from adequate to cover all that China has achieved in environment and development, or the research achievements and policy recommendations CCICED has generated. Chinese environment and development is an essential part of the environment and development of the humanity. It is a belief of the Task Force that the Chinese government will continue to dedicate itself to the sustainable development of Chinese economy, society and environment, utilize the unique advantages and valuable effects of CCICED, hear the fabulous ideas of CCICED with sincerity, communicate and cooperate with the international community and other concerned countries, and to contribute further to the environment and development enterprise of China and the human race.
Chapter 2
Prospect of China’s Environment and Development in the Future
1. Introduction: the Coordination between Environment and Development in the Future
The year 2006 is the first year of the 11th Five-Year Plan Period as well as the new beginning for the development of the Xiaokang Society (well-off society) in an all-round way. At this critical moment, it becomes extremely important to have an overall prospect of China’s environment and development in the next 15 years or even a longer period.
China will face a series of major internal and external changes in the process of building the Xiaokang Society in the next 15 years or even a longer period, which include increasing population, big changes in economic scale , economic structure and efficiency, continuous rise of the living standards of urban and rural residents, various growing social conflicts, increasingly obvious trend of globalization and stronger contribution of science & technology to economic development. In particular, China will face enormous challenges in resources and environment.
In the year 2020, China will achieve the goal of the Xiaokang Society in an all-round way, reaching world average level in terms of per capita economy and realize the second step of the Three-step Strategy, which will lay a solid foundation for China to become an advanced country in the mid-21st century. By that time, will a variety of pollutants produced by China rank high in the world or will them be basically kept under control? The challenges that China will confront in terms of resources and environment depend on both China’s future economic growth pattern and its environmental governance capacity. Therefore, it’s especially important to choose the path of environment and development in the future and to enhance the environmental governance capacity.
The Chinese Government will adopt more effective measures to facilitate the transformation of growth pattern and improve the quality of economic development since the beginning of the 11th Five-Year Plan period. The transformation of economic growth mode will raise resource efficiency and reduce environmental pollution of per unit output. The focus of this report is not only on arguing for the necessity of adopting the strategy of “resource-efficient, environmental friendly, and social harmonious sustainable development”, but furthermore on analyzing the pre-conditions for implementing this strategy.
This report aims at providing an outlook for environment and development in China towards 2020 starting from now and analyzing the development paths of the environment and economic growth. Looking into the year of 2020, China’s total economic volume will quadruple if it continues the present developmental trend, and it will be only second to that of the USA. But how about the environmental pressure then? Following the current environment and development trend, China will be confronted with more grave environmental challenges such as energy shortage, air pollution, great international pressure for greenhouse gas emission reduction, the exacerbating water crisis, huge amount of household wastes, industrial solid wastes and the hazardous wastes, the seriously degraded ecosystem, the dramatic loss of the biodiversity, deteriorating fragile rural environment, the frequently sounding alarm of the newly emerging environmental issues concerning people’s health such as the indoor environmental pollution, ground ozone pollution, mercury pollution, and also the great international pressure upon China for its global environmental impact arising from its development etc.
Either out of the demand of domestic development or the need for a right international environment for its peaceful development, China has to avoid or abate the environmental contradictions. To meet the future possible grave challenges from the resources and environmental crisis, and realize the synchronized and coordinating development of environment and economy, it has to enable the strategy of “resource-efficient, environmental friendly, and social harmonious sustainable development”, while following the blueprint of the 11th Five Year Plan as guided by the scientific development concept. It has to establish the taxation and pricing system as well as the technological innovation system commensurate with that, and improve the environmental governance capacity, promote the sustainable consumption, production and trade (SCPT), expedite the transformation of the economic growth mode, maintain the total economic volume, adjust industrial structure and improve the production efficiency, so as to ensure the implementation of the strategy of “resource-efficient, environmental friendly, and social harmonious sustainable development”.
2. Overall Xiaokang Society: Prospect of China’s Economy in the Future
After two decades of rapid economic growth since reform and opening up, China’s economy has entered a new important development stage. This stage is a very important strategic opportunity for China’s economic growth. If China can make good use of this opportunity to overcome the difficulties, address the problems during this process and maintain fast economic growth, then China’s economic strength and overall national power will step onto a new platform and so will be the people’s living standard.
The Chinese government has set up the goal of quadrupling the per capita GDP and achieving a Xiaokang society by 2020. By that time, China will have entered a Xiaokang society with a GDP increasing rate of 7.2% totaling USD 4,000 billion and per capita GDP of USD 3,000. And in fact, the development over the last several years has far outstripped the planned indicator. This report tries to model the possible prospective of the future economy in China through the DRCCGE2004. In light of the released statistics, the annual economic increasing rate was 9.5% during the 10th Five-year Planning period. And the calculation from the baseline scenario estimates that the rate in the 11th Five-year Planning period will be 9.1%, a little lower than that of the 10th Five-year Planning period. The rate for 2010-2015 and 2015-2020 will be respectively 8.0% and 6.9%. On the whole, the first twenty years of this century will witness a rapid economic growth in China, at an annual rate of 8.3%. The total economic volume will also increase rapidly. According to the pricing in 2004, the total volume will reach USD 6,700 billion and per capita GDP USD 4,700.
3. Environmental Challenges: Prospect of China’s Environment in the Future
The present economic increase is at the cost of China’s resources and environment. With the rapid economic increase in China, the resources and environment will witness huge changes. Extrapolated on the basis of the current economic increase and the consumption of resources and environment, the resources and environment in China will face numerous challenges by 2020.
This section will analyze the prospect of the environment from now on to 2020 or even for a much longer period. The trend analysis is extrapolated on the basis of the current environmental situation, that is, what will be the future environmental situation if current development trend continues. This report projects the situation of the major resources and environment and shows that China will be confronted with seven severe environmental issues in the future, that is, air pollution, water pollution, solid wastes, eco-system, the future emerging environmental issues, global environmental issues and the external environmental impacts of China’s economic growth. Detailed analysis on environmental challenges in urban as well as rural areas will be elaborated in other reports.
3.1 Challenge 1: China will be faced serious energy security, severe air pollution and increasingly heavier pressure on reduction of emission of greenhouse gases.
3.1.1 the issue of energy security
The next 15 years is the critical period for China to complete the capital-intensive industrialization and the peak time of China’s population. It will be the period when the living standard of all Chinese people approaches to well-off level, too. During this period, there will be a dramatic rise in the total demand for energy in China. The reasons are as follows. First, the economic growth mode of high energy consumption and this industrial structure will inevitably lead to the high consumption of the energy; secondly, with the increase of per capita GDP, the energy consumption will go higher consistently; thirdly, the increase in the demand of energy is highly associated with urbanization; fourthly, the export of products from high energy consump | 
