The Environment and Climate Change

To increase public awareness of the importance of water conservation, the National Development and Reform Commission (NDRC) announced plans to raise the price of water again in Beijing, from 3.7 to 4.5 yuan per cubic meter, according to Chinese news reports (1, 2). The government has kept the price of water in China artificially low, likely because of fears that higher prices will lead to social unrest, according to some Western experts.

Chinese authorities have established the All China Environment Federation (ACEF), a state-run alliance of environmental NGOs, according to an April 24 Xinhua article. The ACEF's leadership is primarily current and former government officials; vice-directors include the current head of the State Environmental Protection Agency (SEPA), former directors and deputy directors of ministries such as Construction, Forestry, and Agriculture, and other officials with responsibilities touching on environmental issues.

The State Environmental Protection Administration (SEPA) has halted six aluminum projects in Henan and Shanxi provinces, according to these two late May reports (1, 2). SEPA officials charge that the project sponsors have violated the EIA law by failing to submit the required environmental impact assessment (EIA) reports for SEPA’s approval.

Ma Kai, Chairman of the National Development and Reform Commission (NDRC) and Chairman of the National Coordination Committee for Climate Change of China, was named Director of a new energy department under the State Council to which other ministries will report, according to Chinese news media reports (1, 2). Ma’s new post will have vice-ministerial rank.

Central government authorities have increased the influence of NDRC with Ma’s appointment, and have consolidated under a single authority control over renewable resources, climate change policy, and development policy. The Renewable Resources Law stipulates that the State Council department in charge of energy is responsible for implementing unified development of renewable resources.

The State Environmental Protection Administration (SEPA) recently held its first public hearing since the 2003 Environmental Impact Assessment (EIA) Law became effective, according to a number of news accounts (see, e.g., 1, 2, 3, 4). SEPA officials sought to address controversy over plans to line the lake at the Old Summer Palace in Beijing with a impermeable plastic liner, which could have a negative impact on the local environment.

On April 10, thousands of villagers in Huashui town, Zhejiang province, began rioting after government authorities sent police in to disperse a group that was peacefully protesting the operation of chemical plants that have polluted the area for the past three years, according to news reports (South China Morning Post (subscription only), Reuters, Times Online, AFP, Duowei News Agency, Singapore Straits Times). The incidence of birth defects, illness, and poor crop yields has increased significantly since the plants were built, according to the reports.

During its March 2005 session, the National People's Congress (NPC) passed a new Renewable Resources Law, which will come into effect on January 1, 2006, according to an article in the 21st Century Business Herald. The law incorporates tax breaks, loan discounts, and special funding to encourage the use of energy from renewable resources and the development of independent renewable energy sources in rural and remote areas.

The Chinese news media has highlighted official support for “green energy” projects that focus on increased energy conservation and projects to use renewable resources to reduce emissions. Chinese officials have begun to take steps that could encourage emissions reduction, such as passing the Renewable Resources Law and drafting suggestions for revisions to environmental protection laws that punish violations of environmental protection laws more severely. In addition, the State Environmental Protection Agency has demanded that thermal power plants operating without desulphurization equipment obtain the required equipment by the end of 2005, according to a January 2005 article in the China Daily.