OVERVIEW 

　　On November 10-12, 2006 the CCICED Annual General Meeting was held in Beijing. It discussed the theme of "Scientific Development and a better-off Ssociety" and put forward policy recommendations on the basis of the work of four Task Forces and one special research^[1]_.

　　Since the beginning of the reform and opening-up in 1978, China's rapid economic and social development yielded remarkable progress, which not only has brought a strong boost to China's national strength and people's living conditions, but also had a definite impact at the global level. China's rapid economic development comes at the cost of tremendous pressure and sometimes adverse impacts on resources and the environment.

　　The Chinese government and public have gone through a gradual process of recognition of the relationship between development and environmental protection. After the current administration took office in 2003, China's economic and social development has entered into a new stage, along with intensifying environmental protection measures.　 The Chinese government has put forward a series of new development concepts, development goals and guiding principles, the most recent of which were the "three transformations"^[2] emphasized by Premier Wen Jiabao during the Sixth National Conference on Environmental Protection. 　　　

　　The "three transformations" represent the new strategic approach to environmental problems by the Chinese government, and a higher degree of integration of environmental and economic concerns.　 It manifests the continuous exploration of the new alternative environment and development path that will help China relieve the massive resource and environmental pressures it wouldill face, should it stay with the conventional economic growth mode.　

　　It is at this crucial juncture that CCICED completes its work of the third phase, the output of which was highly praised and supported by Premier Wen Jiabao during his meeting with CCICED representatives, as well as by SEPA Minister Zhou Shengxian who was present during the entire course of the meeting. The meeting output was also applauded by both international as well as nd domestic CCICED council members.

　　I.　 Reform of the government's environmental management capacity

　　The successful achievement of China's environmental and scientific development targets and the integrity of environmental management systems in China depend on a strong environmental governance capacity. In order to achieve this CCICED recommends to:

　　--Elevate SEPA to full cabinet rank in the government. Enhance the capacity of the environmental administrative system of China's central government by increasing the budget and capacity of SEPA in order for it to adequately meet its responsibilities of regulation, enforcement， analysis, monitoring, regulation, and technical and professional training and enforcement. 　

　　--Establish a leading group on national environmental issues chaired by the Premier, with membership comprised of the Ministers of all relevant agencies with the Secretariat provided by SEPA. Establish environmental accountabilities for all ministries involved and enforce them.

　　--Reinforce compliance by establishing stronger penalties for non-compliance with environmental laws and regulations. Use the penalty structure to create a deterrent to pollution. Strengthen civil penalties for pollution damage and criminal penalties for the most severe violations.

　　--Improve multi-level governance by realigning local environmental management to create a direct line of authority to provincial environmental protection bureaus (EPBs). Equip SEPA with more human and financial resources to be provided to local EPBs to enhance their performance; charge new regional SEPA offices with the responsibility to coordinate, guide, supervise, and when necessary enforce local implementation efforts.

　　--Charge SEPA, together with other related ministries and authorities, to conduct environmental assessment of local development plans to make sure local economic development is they are in line with local and national environmental targets.

　　--Special attention should be given to the particular roles that the government on the one hand, and the private sector (business and industry) as well as civil society (NGOs) on the other can play.

　　II. Improvement of efficiency and industrial structure to realize sustainable growth

　　In the new 11th 5- year plan, plan period, China has set an anticipated target of yearly growth of 7.58%, which could be easily surpassed if no strong control measures are adopted. A, wthile at the same time China imposeding challenging mandatory targets for reduction of energy consumption(per GDP) by 20% and emissions by 10%. Because of the intensive specific industrialization and urbanization that China is going through, development stage of China and the increased globalization of the market, a better equilibrium needs to be sought ifwhen GDP growth, industrial restructuringe and environmental performance efficiency improvement are all to be met at the same time. More efforts need to be made on industrial restructuring, efficiency improvement and adjustment of the current production mode.

　　Through the introduction of effective market-based instruments, the Circular Economy, the increase of flexibility and innovation, as well as the testing and adoption of existing and new environmental technologies, China can move towards much greater resource efficiency and lower emissions, thus avoiding expensive pollution control measures. Technological innovations and theirits application 　as well as the deployment of existing environmentally friendly technologies, should be promoted through management as well as institutional reforms. These should include:

　　--Expansion of the financial channels to a combination of government, domestic and international funding sources, such as the GEF (Global Environmental Facility) and the CDM (Clean Development Mechanism).

　　--Leapfrogging in technological research, development and deployment through expanded international cooperation and appropriate legislation, institutional structures and investment. 　

　　III. 　Introduction of a Ccomprehensive fiscal reform that addresses pricing, taxes and incentive structures in favor of "resource saving, environmentally friendly, harmonious and sustainable development"

　　A reform of the existing taxation and pricing system should reflect the scarcity of resources and address the internalization of environmental costs as well as encourage technological innovation and lower implementation costs, through:

　　--The establishment of inter-ministerial evaluation mechanisms in environmental fiscal reform to guarantee they are in accordance with the implementation of environmental targets.

　　--The reduction and lifting of subsidies that have significant adverse impacts on resources and the environment.

　　--An eco-compensation mechanism that should be created to adjust the relations between stakeholders with regard to the distribution of environmental interests and economic benefits. Laws and policies should be established to encourage environmental protection behavior.

　　--The overall promotion of sustainable production, consumption and trade at the national provincial and municipal level, through possible means like tax deduction,; a gradual shift from production to consumption taxes to avoid wasteful consumption,; and the establishment of government procurement procedure to encourage green consumption.

　　IV.　 Information disclosure and public participation

　　China should improve the quality, reliability and usefulness of environment data and development indicators. Key actions should include:

　　--Establishment of Development of an eEnvironmental and economic data collection and analysis center within 2020 Monitoring and Analytical Center within the government, with possible participation from civil society.

　　--Initiation of a centrally-funded program to upgrade local and provincial capacity and willingness to improve environmental data gathering and analysis.

　　--Establishment of reporting requirements for data to assure comparability of data across facilities and over time. Provide funding for the establishment and maintenance of an internet-based reporting system, with source by source data publicly available to all stakeholders. Public access to and analysis of environmental, and natural resources and social data will enhance data quality and source accountability, e.g. through a "Green GDP"..

　　--Outreach and education of the public about the chances and opportunities to participate in environmental decision-making. Improve public access to environmental information concerning emissions and their consequences in order to empower meaningful public participation. Widely publish advance notice of proposed regulations or permit proceedings for industrial and natural resource projects to facilitate public participation.　

　　V. 　Enhance environmental management in the country-side

　　The fast growth of intensive development patterns and the transformation of lifestyles in rural areas have accelerated the deterioration of the rural ecology and the environment. This has consequences for people's health and quality of life and is thus an obstacle to building a new countryside. Practical solutions should be considered to:

　　--Establish environmental management system in the country-side.

　　--Improve the access to clean drinking water; promotion of highly effective and efficient water treatment equipment.

　　--Manage non-point source pollution in the country-side and promote low-cost technologies and solutions.

　　--Promote the development of methane digesters, as well as solar and renewable energy sources when applicable. 　

　　--Study and explore potential carbon sequestration potential of altered agricultural practice to achieve social, environmental and, global benefits.

　　Successful implementation of such solutions will extend the concept of Circular Economy to agriculture, reduce greenhouse gas emissions from agriculture and reduce long-range air pollution.

　　Improve the efficiency and comprehensive benefits from biomass and realizing the integrated utilization of solid, liquid and gaseous organic matter.

　　VI. 　China's role in global environmental governance

　　China is gradually evolving into a world economic power in terms of production, consumption and trade. The challenge is how to create a harmonious world in which China and the international community join forces in the fields of environment and development. China should prepare to take a more active role and international responsibilities in global environment governance and sustainable development. This will increase China's positive global image and China's influence to ensure the peaceful development of the country and the world society. Among other measures this should include:

　　--Active participation in establishing international environment institutions; providing scientific evidence of potential impacts; promoting global sustainable development; making continued efforts in implementing international environmental agreements.

　　--The introductioning of production standards for Chinese enterprises in terms of environment, health, and safety, and ; accelerating the pace of innovations in sustainable development.

　　Note:

　　[1] TF on Economic Growth and Environment; TF on Eco-compensation; TF on Environmental Governance; TF on China's Environment and Development Review & Prospect; and special research on the development of the new countryside initiative.

　　[2] The first "transformation" concerns the change from economy-centered development to equal attention on both environmental protection and economic development. The second is the change from delayed environmental protection after economic development to simultaneous environmental protection and economic development. The third is the change from sole administrative measures to an integrated approach of legal, economic, technical and necessary administrative measures.