While preparing for my trip to HK, or more accurately my target list of groups to meet, I was introduced to Civic Exchange by a friend of mine. Based in HK, Civic Exchange is a think tank that focused on a wide range of policies and issues, and while rummaging around through their publications section I came across the report A New Vision of Industrial Transformation. A report that I highly recommend (download here).
A thoughtful response to The National Development and Reform Commission Outline of the Plan for the Reform and Development of the Pearl River Delta 2008 – 2020, Christine Loh and her cohorts picked through “the plan” to see where an environmental lens would improve their plans. Plans that would have a direct impact on the environmental conditions in region:
1. articulate a compelling common vision for the PRD region.
The Outline Plan already includes the concept of ‘green living’, but it should be explicit about two specific aspects of this transformation critical to its success:
(a) Producing clean energy and becoming highly efficient in the use of energy, and (b) Ensuring that the environment continues to provide vital ecosystem services.
Lacking transparency is something that should come as no surprise to anyone who had followed China, and its path the greenness, and these two requests are ones that from a environmental/ sustainability standpoint are reasonable in that they are simply looking for a commitment (clarity of commitment)
2. Provide metrics and guidelines for transformation.
Working with metrics within China can often be a sticky venture at best, yet sometimes even the most simply calculation can be done in such a way that can open one’s eyes up:
Per capita GDP is expected to climb to RMB 135,000 in 2020 from RMB 38,000 today, which requires a sustained real growth rate of 12% annually, or a doubling of the economy about every six years. The impact of this level of growth without significant improvements in energy efficiency means the PRD’s energy usage will also double every six years, putting already constrained energy resources and fragile ecosystems at risk.
This simple fact alone is one that concerns many, however, where the EC offered some suggestions was that some measurements of the environment and economic efficiency also needed to be included:
• Energy efficiency and energy intensity
• Resource productivity
• Greenhouse gas emissions and air quality
• Water efficiency and water intensity
• Human health and safety
• Land use
• Job expansion and the types of jobs
That without these measurements, it would be difficult to judge if the econimioc expansion was occuring with the environment in mind.. or with the environment as a path to growth.
3. Practice integrated planning for transformation.
Stepping back into addressing the need for solid planning before execution, this section deals with what filters the government and its planners will use to develop their plan. mentioned in the plan itself are 2 methods based on relocating certain industries while retooling others, however the EC believes a third option exists – climate adaption:
We recommend that climate change adaptation concepts, objectives and metrics be included into the Outline Plan as part of the development framework.
This recommendation, although I know where it is coming from is one that I think is a bit misplaced as it uses the widest possible term.. and had the focus been more on energy efficiency or resource efficiency, etc I would have been more in tune. However, where they started strong laying out the impacts, this recommendation fell a little flat for me as it was not “actionable”.
4. Involve the people’s creativity.
Sustainability needs to become a part of the habit and culture of people, and this requires a bottom-up
approach to complement the top-down elements of planning, policy and law. Thus, expanding policies to include public education and capacity building will be needed, as will the vision given in the first recommendation of this response.Programmes at schools, universities, business and management institutions, vocational
and technical training bodies should all teach the core elements of resource conservation, energy efficiency, basic ecosystems functions, circular economy, co-control benefits and sustainable development.
I could not agree more!
5. Reform barriers in financing ‘green’ growth.
The challenges China faces in financing energy efficiency and a path to renewable energy are not addressed in the Outline Plan. The stated goals face systemic barriers for financing that the authorities must address. These barriers include restrictions on debt financing, foreign equity investments, tax policy and asymmetrical policies at the central and local levels. Until these barriers are removed, transformation to renewable energy and energy efficiency will be slow, leaving China at a competitive disadvantage to the rest of the world.
Some of their recommended steps:
- Reduce bureaucratic red tape to clean energy projects.
- Provide VAT and income tax holidays or exemptions for clean energy companies and services.
- Make it worthwhile for banks to do risk-based clean energy lending and look at replicating successful loan guarantees systems for energy efficiency projects.
- Ease restrictions on foreign investment in projects that qualify for Certified Emission Reductions under the Clean Development Mechanism.
- Consider whether exempting clean energy investments from foreign exchange, foreign-invested enterprise and industrial policy controls make sense
6. Collaborate across multiple jurisdictions.
To start, the region as a whole
could conduct research on its ecological carry capacities, identify its many assets and create a roadmap involving all stakeholders, so that a regional prosperity agenda can be articulated and discussion can begin on how to deliver tangible results.
Talking is always good, but let’s not talk just to talk…. it will end up like the run up to Copenhagen