High Light

Excerpt of the 2007 Report on the Work of the Government by Premier Wen Jiabao

On March 5 of 2007, Chinese Premier Wen Jiabao of the State Council delivered the 2007 Report on the Work of the Government at the Fifth Session of the Tenth National People’s Congress. An excerpt follows:

We are clearly aware that there are still many difficulties and challenges in China’s economic and social development and some shortcomings and inadequacies in the work of the government.

…The pattern of economic growth is inefficient. This can be seen most clearly in excessive energy consumption and serious environmental pollution. The compulsory targets for saving energy and reducing pollutant emissions were set forth in the Eleventh Five-Year Plan. This is of vital importance in efforts to promote the change in the pattern of economic growth and increase energy conservation and environmental protection. All local governments and government offices did a great deal of work and made much headway in these areas over the past year. While energy consumption per unit of GDP for the previous three years rose by 4.9%, 5.5% and 0.2% respectively, it dropped by 1.2% in 2006. Growth in total emission of major pollutants declined, chemical oxygen demand rose 1.2%, down from an increase of 5.6% the year before, and discharge of sulfur dioxide rose 1.8%, down from a 13.1% gain in the previous year. However, we fell short of the targets set at the beginning of last year for cutting energy consumption per unit of GDP by about 4% and total discharge of major pollutants by 2%. The main reasons were: Industrial restructuring proceeded slowly, while growth in heavy industry, especially in sectors that are high in energy consumption or are highly polluting, was still overheated. Many backward production facilities that should have been closed down are still in operation. Finally, some local governments and enterprises failed to strictly comply with laws, regulations and standards for energy saving and environmental protection, and it will take time for relevant policies and measures to produce the desired results. Meeting these two mandatory targets in the Eleventh Five-Year Plan is very important. The targets cannot be revised, so we must work resolutely to reach them. The State Council will make annual reports on the progress made in saving energy and reducing emissions to the NPC starting this year, and at the end of the Eleventh Five-Year Plan period it will report on the overall progress made over the five years….

…Looking at the overall situation, we need to concentrate on the following areas in promoting this year’s economic development:

…We will take strong measures to save energy, lower energy consumption, protect the environment and use land economically and intensively. We must make conserving energy, decreasing energy consumption, protecting the environment and using land economically and intensively the breakthrough point and main fulcrum for changing the pattern of economic growth. The focuses of energy-saving and environmental protection efforts are the following eight tasks: 1) improve and tighten enforcement of energy consumption and environmental protection standards. Potential new projects must be assessed for energy consumption and environmental impact, and projects that do not meet the standards will not be allowed to proceed. Enterprises that still do not meet these standards after taking corrective steps must shut down in accordance with the law. 2) resolutely close down backward production facilities. We plan to close down small thermal power plants with total power generating capacity of 50 million kilowatts during the Eleventh Five-Year Plan period. The target for this year is to close down small plants with a total capacity of 10 million kilowatts. In addition, we plan to phase out 100 million tons backward iron productivity and 55 million tons out-of-date steel productivity during the same five-year period, with the targets for this year of 30 million and 35 million tons respectively. We will shut down more backward production facilities in the cement, electrolytic aluminum, ferrous alloy, coke and calcium carbide industries. 3) concentrate on key industries and enterprises. We will step up energy conservation and pollution reduction efforts in key industries such as steel, nonferrous metals, coal, chemicals, building materials and construction and in key enterprises that use more than 10,000 tons of standard coal annually. We will carry out a full range of key energy-saving projects, including upgrading of low-efficiency coal-fired industrial boilers and furnaces and combined heat and power facilities. We will continue giving priority to the development of urban public transport systems. 4) improve energy saving and environmental protection policy system. We will bring market mechanism into full play and employ comprehensive economic tools such as pricing, finance, taxation and credit to facilitate energy saving and environmental protection work. We will deepen the reforms on product price and the collection of pollutant discharge fee, improve resource tax system and the system for compensated use of mineral resources. 5) accelerate the development of energy-saving and environmentally friendly technologies. We will promote upgrading of equipment and technology designed mainly to save energy and reduce pollution, and encourage enterprises to adopt new equipment, new processes and new techniques that help save energy and protect the environment. We will attach more importance to comprehensive utilization of resources and clean production, and vigorously work to develop a circular economy and energy-saving and environmentally friendly industries. 6) bring pollution under control and protect the environment. We will increase funding from bond sales and central budgetary allocations to support construction of facilities for treating urban sewage and household wastes and disposing of hazardous waste. We will continue to work to control pollution in key regions and the key watersheds of the Huaihe, Haihe, Liaohe and Songhua rivers, Taihu, Chaohu and Dianchi lakes, the Bohai Sea, the Three Gorges Reservoir area and the upper reaches of the Yangtze River, and at the sources and along the routes of the South-to-North Water Diversion Project. We will prohibit the relocation of urban polluting enterprises and dispersal of urban polluting materials in the countryside, and control non-point source pollution in rural areas. 7) strengthen oversight and management of compliance with the law. We will set up a more effective system for overseeing and managing energy conservation and environmental protection and resolutely punish in accordance with the law all types of actions that violate laws and regulations. 8) fully implement a responsibility system for fulfilling energy-saving and environmental protection targets. We will promptly set up a sound scientific, integrated and unified system of targets, a monitoring system and an assessment system for saving energy and reducing pollution, and adhere to a rigorous accountability system.

…We need to strongly advocate conservation-oriented, environmentally friendly and civilized patterns of production and consumption throughout society so that conserving resources and protecting the environment become second nature for every enterprise, village, organization and individual member of society. We need to work hard to build a resource-conserving and environmentally friendly society.                                          (from www.news.cn)

Top News

Minister Zhou Shengxian Met Mr. Hau Sing Tse, Vice President of CIDA

Mr. Zhou Shengxian, Minister of State Environmental Protection Administration (SEPA) and Chinese Executive Vice Chairman of CCICED met Mr. Hau Sing Tse, visiting Vice President of Canadian International Development Agency (CIDA) on April 2, 2007. The two exchanged views on the cooperation between China and Canada under the framework of CCICED. Minister Zhou expressed his appreciation of the Canadian Government for its continued support to CCICED Phase IV and related efforts in this regard. He further underscored the active role CCICED has played ever since its foundation for the promotion of the environment and development undertaking of China, and added that the environmental protection cause of China has gone global in full scale from this very platform and SEPA will support the work of CCICED as before and is expecting deepened cooperation between China and Canada. Mr. Zhu Guangyao, Secretary General of CCICED and Mr. Xu Qinghua, Director General of the Department of International Cooperation of SEPA and Deputy Secretary-General of CCICED accompanied Minister Zhou at the meeting.

CCICED Secretary General Zhu Guangyao Met Mr. Hau Sing Tse, Vice President of CIDA

Mr. Zhu Guangyao, Secretary General of CCICED had a meeting on cooperation issues with Mr. Hau Sing Tse, visiting Vice President of CIDA on April 2, 2007. The two fully exchanged views on issues in relation to the working mechanism, future development and publicity of achievement of CCICED Phase IV. Mr. Xu Qinghua, Director General of the Department of International Cooperation of SEPA and Deputy Secretary-General of CCICED was at the meeting.

Sino-Canada MOU Inked regarding CCICED Project

On April 3 of 2007, Mr. Yi Xiaozhun, Vice Minister of the Ministry of Commerce of China and Mr. Hau Sing Tse, Vice President of CIDA inked the Sino-Canada MOU regarding CCICED Project on behalf of each country. The Canadian Government will continue to fund the activities of CCICED Phase IV while the Chinese Government will provide supporting capitals. The Secretary General of CCICED Mr. Zhu Guangyao attended and witnessed the signing ceremony.

Australian Foreign Minister Alexander Downer Announced Support to CCICED

On April 5 of 2007, visiting Australian Foreign Minister Alexander Downer held a news conference in Beijing, formally announcing that Australia will provide fund to CCICED Phase IV during the next five years. In this connection, Australia becomes a new donor country of CCICED.

CCICED and US Environmental Defense Signed An Agreement on Cooperation

On February 13 of 2007, Secretary General of CCICED Mr. Zhu Guangyao met Dr. Daniel J. Dudek, chief economist of Environmental Defense. The two held discussions over the cooperation under the framework of the CCICED and signed an agreement on cooperation. Mr. Zhu expressed his appreciation of Environmental Defense for its willingness to fund CCICED Phase IV and wished that the two sides could further explore fields and mode for cooperation to jointly promoting the progress of the environmental protection cause of China. Mr. Yue Ruisheng, Deputy Director General of the Department of International Cooperation of SEPA was at the meeting.

CCICED Secretary General Zhu Guangyao Met Mr. Lim Haw Kuang, Executive Chairman of Shell China

CCICED Secretary General Mr. Zhu Guangyao met Mr. Lim Haw Kuang, Executive Chairman of Shell China on February 16 of 2007. Mr. Zhu extended his appreciation of the company for its long-lasting support to CCICED and hoped to have further cooperation with the company on the platform of CCICED Phase IV. Mr. Lim Haw Kuang noted that Shell China is willing to participate in and support to the work of CCICED. Mr. Xu Qinghua, Director General of the Department of International Cooperation of SEPA and Deputy Secretary-General of CCICED was at the meeting.

Xu Qinghua Met Mr. Roger Goudiard, Director General of the Department of Asia of AFD

Mr. Xu Qinghua, Director General of the Department of International Cooperation of SEPA and Deputy Secretary-General of CCICED met with Mr. Roger Goudiard, visiting Director General of the Department of Asia of French Development Agency (AFD) on February 14 of 2007, they discussed cooperation between the two sides under the framework of CCICED. Mr. Xu briefed Mr. Roger Goudiard on the general situation of CCICED and expected AFD to provide support to and participate in the activities of CCICED and carry out specific cooperation programs in areas of common interests. The French side expressed their willingness to provide fund to the policy research work and related activities of CCICED. Mr. Guo Jing, Director of CCICED Secretariat, Mr. Olivier Richard, Chief Representative of AFD China Office and others attended the meeting.

Secretariat

Brainstorming Meeting of CCICED

The CCICED Secretariat hosted a CCICED Brainstorming Meeting in January 9~11 of 2007. More than 30 officials from major departments of SEPA including the Department of Pollution Control, the Department of Nature and Ecology Conservation and the Department of Science, Technology and Standards attended the meeting. CCICED Secretariat briefed the work considerations for the next five years and listened to the suggestions and policy research demands to CCICED of various departments. Mr. Xu Qinghua, Director General of the Department of International Cooperation of SEPA and Deputy Secretary-General of CCICED was also at the meeting.

Information Briefing Held for the Donor Countries

The CCICED Secretariat held a CCICED Information Briefing participated by representatives of a range of foreign representations in China including Canada, Norway, Sweden, Germany, Italy, Australia, France and the EU at invitation on December 15 of 2006. The Secretariat introduced the related progress in the preparation for CCICED Phase IV and its 2007 Work Plan and listened to the suggestions and comments regarding the work of CCICED Phase IV of all the donor countries. Mr. Guo Jing, Director of CCICED Secretariat, chaired the meeting.

CCICED Secretariat Had Work Exchanges meetings with Major Partners

The CCICED Secretariat held many meetings with a string of foreign representations in China such as Canada, Norway, Sweden and United Kingdom as well as GTZ, Japan, Italy, Australia, the Netherlands and WWF from January to March of 2007 to brief relevant information and exchange views regarding the work of CCICED.

Policy Study

CCICED Secretariat Held Work Meetings with the Chief Advisors

On December 8 of 2006 and also in January 22~23 of 2007, the CCICED Secretariat organized and held two Joint Work Meetings of Chief Advisors and the Secretariat to discuss the policy research work of CCICED in 2007. The Chinese Chief Advisor Shen Guofang, and International Chief Advisor Arthur Hanson, Director of CCICED Secretariat Guo Jing and Director of the Secretariat Canadian Office Earl Drake attended the meetings. Both the meetings reviewed the Project Proposal on Setting up New Task Forces and Research Subject in 2007 which included the Task Force on the Policy Mechanism towards Successful Achievement of the 11th “Five-Year” Plan Environment Targets, the Task Force on the Innovation for China’s Environmentally-friendly Society and the Special Policy Study on Environmentally Sound Management of Chemicals in China. In addition, both the meetings discussed the work arrangements for the Task Forces to be established in 2008-2009 including the TF on Environment and Health, TF on Energy and Environment, etc.

A Brainstorming Meeting for TF on Environment and Health

On April 6 of 2007, CCICED Secretary General Mr. Zhu Guangyao presided over the meeting for the proposed TF on Environment and Health, listening to the recommendations from domestic experts and relevant departments on policy requirements in relation to environment and health issues, the research direction and focus of the TF and problems demanding solutions in an effort to provide reference to CCICED Task Force on Environment and Health to be set up soon. Officials from the Ministry of Health and SEPA as well as other experts and scholars in the field of environment and health attended the meeting.

Meetings and Events

●          The CCICED Secretariat will convene the Seminar on Low-carbon Economy and China’s Energy and Environmental Policy in Beijing during April 23~24, 2007. The Seminar is organized by CCICED with the co-organizers from Norway, Sweden, United Kingdom, European Commission and US-based Environmental Defense.

●          The CCICED Secretariat and the Chief Advisors are to hold a Joint Work Meeting in Beijing on April 30.