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China Canada Cooperation Project in Cleaner Production

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Newsletter 10 - Winter 2003

Contents

China approves world's first Cleaner Production Promotion Law 
Cleaner Production, pollution control and the circular economy 
Ready, set, go! 
Beijing Municipality to lead the way in implementing CP Promotion Law 
The evolution of CP in China 
Foreign delegation learns from China's experience in Cleaner Production 
Government initiatives under CP Promotion Law 
Contacts 

China approves world's first Cleaner Production Promotion Law 

On June 29, 2002 the National People's Congress of the People's Republic of China promulgated the world's first Cleaner Production legislation. This legislation, the Cleaner Production Promotion Law came into effect on January 1, 2003. Companion legislation relating to small and medium enterprises also was passed.

Definitions, Roles and Responsibilities

The Law defines Cleaner Production as, "The continuous application of measures for design improvement, utilisation of clean energy and raw materials, the implementation of advanced processes, technologies and equipment, improvement of management and comprehensive utilisation of resources to reduce pollution at source, enhance the rates of resource utilisation efficiency, reduce or avoid pollution generation and discharge in the course of production, provision of services and product use, so as to decrease harm to the health of human beings and the environment."

The primary responsibilities for promoting the implementation of CP fall to the State Planning and Development Council and the State Economic and Trade Commission (SETC) and its provincial counterparts. The law also specifies roles and responsibilities for other government departments such as the State Environmental Protection Administration, and other levels of authority, in keeping with their respective mandates.

Promotion

As the name suggests, the role of government under the new law is to create an environment conducive to Cleaner Production through "promotion" of CP. This will include planning; fiscal and tax incentives; special funds; coordination; creating standards, inventories, directories and guidebooks; organising information systems; and supporting research, as well as a number of specific initiatives, such as "brown" lists, and "green" purchasing. In all a total of 19 government policies, initiatives or systems are identified in the legislation (see Government Initiatives for details).

CP Implementation

Under the new law, all enterprises are required to monitor consumption and waste, and conduct a CP audit "if necessary." Enterprises using or generating toxic or harmful materials must conduct a CP audit and report the results. Serious polluters must publish their discharge status regularly. Enterprises may be required to substitute less toxic materials, or adopt pollution prevention technologies that could enable them to comply with the national or local pollution discharge standards or control the total amount of pollutant discharge.

Other features of the law are requirements for life cycle assessment when designing products and packaging; and rating systems for energy and water consumption, and pollution associated with large equipment, motor vehicles, and other designated products. It encourages on-site reuse and recycling.

While focusing on industrial enterprises, the requirement to implement CP also extends to agricultural producers, service enterprises, construction, and mineral exploration.

Incentives and Legal liabilities

The new law establishes incentives, tax benefits, as well as legal liabilities, including fines up to 100,000 RMB.

Mary Ellen MacCallum

See the full text of the law (English version or Chinese version

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Cleaner Production, pollution control and the circular (recycling) economy 

What is the difference among Cleaner Production, pollution control and the circular economy? This question was the subject of extensive late night discussion at a CP workshop in Beijing. The seminar was co-sponsored by SETC and CCCP-CP. Mr Wang, head expert of the WBS 100 CP Working Group and a key organizer for the seminar, explained to all the participants how the concepts are being used in China. His explanation is summarised in the figure below.

Based on original by Mr. Wang Hanchen

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Ready, set, go! 

SETC has prepared for the new CP Promotion legislation with activity in four priority areas.

A document of 100 Question and Answers is being prepared to enable SETC to respond quickly to queries about the law and to provide widespread information. These Q and As will be posted on the Chinese website as soon as they are available.

SETC is preparing to launch its voluntary action program with demonstrations in three sectors: electroplating, steel, and fertiliser. Draft Performance Indicators are being developed and initial discussions with the sectors are underway. The Canadian and Chinese CP offices are assisting in the preparation of indicators.

CP Audit protocols are being prepared by SETC, to be followed by training in these protocols.

Awareness-raising is also a priority. A full slate of activities is scheduled. Materials are being prepared: posters are being distributed and a video is under production, to be shown on State television. SETC officials are also raising awareness of government officials and industry through a series of workshops throughout the country.

These are just some of the activities being undertaken by SETC to prepare for the law coming into effect.

SETC staff

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Beijing Municipality to lead the way in implementing CP Promotion Law 

Beijing Municipal Economic Commission is giving high priority to drafting Beijing's plan for CP implementation, with discussions already underway for a demonstration in the electroplating sector. This announcement came at the conclusion of a one and a half-day seminar, The seminar was co-sponsored by SETC and CCCP-CP to raise awareness about the new CP Promotion Law. The CCCP-CP Resident Project Manager describes the seminar for municipal authorities and representatives of industry as "unprecedented" in the number and high level of officials and Canadian experts making presentations.

High-level Chinese authorities and Canadian experts participated in CP seminar launching new CP Promotion Law in Beijing. Photo by Beijing Service Center for Energy Saving and Environmental Protection, Beijing Municipal Economic Commission

The workshop had the privilege to invite some of the best-known Chinese authorities in CP. Speakers included Professor Qian Yi, Department of Environmental Engineering, currently a member of the Chinese Academy of Engineering, Deputy of the People's National Congress (PNC) and Chairman of the CP/Circulation Economy Task Force of the CCIECD; Dr Y. Sun, Director of the Legal Affairs Office of the PNC; and Mr H. Liu, Director of the Pollution Control Division, SETC. They provided information about the evolution of CP in China, its relationship to China's commitment to sustainable development, and key features of the new law. Canadian advisors from the CCCP-CP provided insight into Canadian experience. Mr Peter Higgins spoke about implementing Canada's environmental legislation; Ms. Mary Ellen MacCallum summarised approaches to CP awareness-raising, especially some used to promote the Canadian Environmental Protection Act. Mr Arthur Fitzgerald of Export Development Canada provided information about international financing of CP. All the speakers fielded a large number of questions.

Day 2 focused on practical aspects of implementation. An academic discussion was presented by Prof. H. Wang of the Beijing University of Political Sciences and Law on the legal implications for implementation, while representatives from three industrial sectors outlined the current status of CP in their sectors and plans for implementation.

Dr. Bob Lao

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The evolution of CP in China 

The evolution of CP in China was outlined by speakers at a recent CP seminar in Beijing. The seminar was co-sponsored by SETC and CCCP-CP.

Technological modification and improvement began in about 1983 and continued through 1992. It was referred to variously as Good Management and Three R's (reduce, reuse, recycle). 1992 saw the first use of the term CP in China: it was identified as a strategy at a UN Conference in Brazil, and UNEP provided the definition of CP that is now widely adopted.

The following decade, 1993-2002, was one of rapid spread of the concept, and growing experience with CP in China. It included many CP demonstrations, awareness raising and training, and policy development. International cooperation played an important role in supporting the emergence of CP. Landmark events included the designation in 1997 of Taiyuan City as the first CP demonstration city. The city produced the country's first CP regulations. This was followed in 2000 by China's 10 Cities 5 sectors CP Policy, which set priorities for the dissemination of CP across China. Training and awareness-raising were conducted nationwide. Information was accessed and shared via the new SETC website. A number of successful technical demonstrations were completed and sector-specific technical support developed. By this time China had accumulated sufficient experience that it was possible to analyse that experience and consolidate the lessons learned. With this basis in practical experience, policy development progressed rapidly. The contribution of international CP experts, and CCCP-CP in particular was noted. Finally, with increased national emphasis on sustainable development, the bid for the Beijing Olympics, and admission to WTO, CP caught the attention of the country's leaders. The National People's Congress decided to develop CP legislation. The world's first CP law was passed in June 2002.

From speakers' notes

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Foreign delegation learns from China's experience in Cleaner Production 

China's CP Promotion Law was only a week old when SETC received its first delegation eager to learn about the world's first CP law. A 13 member delegation from Vietnam spent ten days in the People's Republic of China learning from China's experience.

The delegation from Vietnam's National Environment Agency, seven provincial environment agencies, and Ministry of Industry met with SETC, Beijing Municipal Economic Commission, Anhui Province ETC and Environmental Protection Bureau, numerous technical support centres, an industrial association, and four industries to learn more about the world's first CP Law and how industry is implementing CP.

In almost every case presenters included people who had participated in similar technical missions to Canada; they have become catalysts for change within their organisation, and sources of information about CP in China. The delegation was particularly interested to note the leading role taken by SETC, to learn how the State Environmental Protection Administration interacts with SETC in implementing CP, and to hear from industry about reasons for implementing CP.

The CP Technical Mission was supported by the CIDA-funded Vietnam Environment Project, executed by ESSA Technologies and SNC-Lavalin Consortium. The Technical Mission was undertaken with the cooperation of the CIDA-funded CCCP-CP, and serves as an example of cross-fertilization between CIDA-funded projects.

Mary Ellen MacCallum

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Government initiatives under CP Promotion Law 

The following list identifies policies, initiatives or systems that the government will use to promote CP under the new law. (See full text of CP Law)

  1. Fiscal and tax policies (Article 7)

  2. Industrial development policies, and technology development and popularisation policies (Article 7)

  3. Plans for popularisation of CP (Article 8)

  4. Regional economic blueprints and readjusted industrial structures (Article 9)

  5. Support for CP information system and technical consulting services (Article 10)

  6. Guidance catalogues, CP guidelines and technical manuals (Article 11)

  7. Directory of obsolete technologies, techniques, equipment, and products, and timetable for their elimination (Article 12)

  8. Product labelling system (Article 13)

  9. Guidance and support for research and demonstrations (Article 14)

  10. CP awareness- raising and training (Article 15)

  11. "Green" purchasing (Article 16)

  12. List of heavily polluting enterprises (Article 17)

  13. Enforcement (Article 21, 24, 27, 28, 31)

  14. National standards for toxic contents (implied ) (Article 24)

  15. Recycling directory and methods (Article 27)

  16. Voluntary action program for industry (Article 29, 30)

  17. Commendation and reward system (Article 32)

  18. Technological Development Funds (Article 33)

  19. Small Medium Enterprises Development Fund (Article 34)

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CP on the Web

Hosted in China

Hosted in Canada

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Contacts 

Chinese Project Office
Contact: Mr. Qi Hongwei
Environmental Protection Research Institute
Beijing Research Inst. of Chemical Industry
China Petroleum and Chemical Corporation
P.O. Box 1442
Beisanhuan Donglu, Chaoyang District
Beijing, P.R. China 100013
Ph:   86 10 6428-7757
         86 10 6421-6131 ext. 2203 
Fax:  86 10 6428-7757 
          86 10 6422-8661
cccpcp@public.bta.net.cn

China-Canada Cooperation Project in Cleaner Production Office
Contact: Dr. Robert Lao
(new address, phone and fax numbers)
C712/C713 Beijing Lufthansa Center 
50 Liangmaqiao Road, Chaoyang District
Beijing, P.R. China 100016
Ph: 86 10 6465-1520 
Fax: 86 10 6465-1573 
cleanpro@cloudnet.com.cn

IBM Business Consulting Services
(new company name and numbers) 
Contact: Ken Parent, Project Director
Suite 800, 99 Bank St.
Ottawa, ON Canada K1P 1E4
Ph: 1 613 783-4830
Fax: 1 613 237-4025 
kenneth.r.parent@ca.ibm.com
  

ESSA Technologies Ltd.
Contact: Mary Ellen MacCallum
Suite 300, 1765 West 8th Avenue
Vancouver, BC Canada 
V6J 5C6
Ph: 1 604 904-9618
Fax: 1 604 904-9619
beveritt@essa.com
SNC-Lavalin
Contacts: Mark Osterman or 
Dr. Marcel Pineau
2 Place Felix-Martin
Montreal, PQ Canada H2Z 1Z3
Ph: 1 514 393-1000
Fax: 1 514 393-9540
mark.osterman@snclavalin.com 
marcel.pineau@snclavalin.com 

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