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Achieving National Emission Reduction TargetChina’s New Challenge and Opportunity Yong Geng†,* and Joseph Sarkis† †

Circular Economy and Industrial Ecology Research Group, Key Lab on Pollution Ecology and Environmental Engineering, Institute of Applied Ecology, Chinese Academy of Sciences, Shenyang, Liaoning Province, P.R. China 110016 † Graduate School of Management, Clark University, Worcester, Massachusetts, United States reduction targets were not met, some actually increased. Nitrogen oxide emissions increased by 6.17%.4 The reasons are multiple and complicated. First, the 11th five-year emission reduction target was achieved mainly through an engineering approach, namely, establishing wastewater treatment plants and desulfurization facilities in coal-burning power plants. This approach was effective, and relatively efficient, during 2006−2010 because of China’s immature environmental control infrastructure, but provided smaller potential for further reduction through engineering efforts. Second, the emission reduction policies expanded from manufacturing, services and residential sectors to include agricultural (ammonium nitrogen) and transportation sectors (nitrogen oxide), requiring new knowledge development and investigation to identify effective techniques. However, to meet the soaring demand on food production, fertilizer use has continuously increased. Also, to support rapid domestic auto industry development, the national government has continued a policy to encourage consumer motor vehicle purchase. In addition, nitrogen oxide is also generated from coal-burning power plants and cement factories. These two sectors have seen unprecedented growth due to increasing energy demand. Third, China faces imbalanced development across different regions. While it is easier for n order to realize sustainable economic development, the more prosperous eastern China regions to achieve these targets, Chinese government developed a national emission the much less prosperous western China regions are still reduction policy within its 11th five-year plan (2006−2010), struggling to achieve basic economic development goals. The targeting energy consumption reduction per unit GDP by 20% national government recognized such a fact and has and main pollutants reduction (COD and SO2) per unit GDP by implemented different provincial targets. This form of target 1 10%. The National Development and Reform Commission setting, although socially understandable from an economic monitors progress at the midyear and evaluates results at year’s development perspective, is not scientifically rational from an end. A local official failing to meet the targets for three environmental perspective. Finally, current quantitative targets consecutive years will be ineligible for promotion during the next are relative and not absolute indicators. Relative, ratio-based, five years. Thus, strong political incentives exist for local officials indicators provide only a partial picture of environmental to execute national environmental policy within their jurisperformance. Absolute indicators need to be included to show dictions. Such a policy was successfully implemented during a more complete impact of activities and outcomes because a 2006−2010, with a result of significant COD (from 25.49 to relative reduction in emissions does not necessarily mean a net 22.95 million tons) and SO2 (from 14.14 to 12.73 million tons) absolute reduction in environmentally detrimental emissions. reduction.2 Given these previous successes, the national governRelative environmental emissions improvement may still occur ment sought to continue the pollutant emissions reduction even when a net emission increase occurs if a region’s annual policy in its 12th five-year plan (2011−2015) and added two economic growth rate is significant, especially in China. new indicators, ammonium nitrogen and nitrogen oxide polluIn order to overcome these challenges an integrated approach should be adopted. First, the focus should move to production tants. It also stipulates that the total emission of heavy metals, efficiency and industrial structural change, such as circular total phosphorus (TP) and total nitrogen (TN) will be economy policy (the realization of a closed loop of materials flow controlled in sensitive watersheds, coastal areas, and regions, 3 although without a detailed quantitative target. However, on October 11, 2011 the Ministry of Environmental Protection Received: November 30, 2011 announced that the newly released national emissions reduction Accepted: December 5, 2011 Published: December 19, 2011 targets were not completely achieved, whereas some emissions

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in the whole economic system).5 Second, economic, marketbased, policy instruments should be adopted to help alter industrial and consumer behaviors, such as tradable permits (granting specific pollution allowance to an organization with freedom to sell these allowances) and price reform (increasing natural resources prices incorporating consideration of their availability, supply, and final treatment). Third, encouraging services sectors is an effective way to reduce the dependence on natural resource-intensive industries. Substantial investment should be made to promote scientific and technological innovation to fuel the next phase of green growth and facilitate emission intensity reduction. Fourth, for the newly introduced indicators an engineering approach is still effective due to immature infrastructural development such as installing de-NOx technologies in coal-burning power plants and improving clinker burning technologies (conversion to multistage preheating, optimization of heat recovery, kiln shell heat loss reduction and use of waste fuels) in the cement sector. Fifth, phase out environmentally obsolete production capacity and replace with environmentally sound capacities for various sensitive industries, such as promoting development and dissemination of clean vehicles (compressed natural gas, electric and hybrid electric vehicles, fuel cell vehicles), and alternative fuels (ethanol, methanol, dimethylether, biodiesel, and coal-to-liquids); strengthening vehicle fuel economy and control of emissions (imposition of strict emission standards, implementation of passenger vehicle fuel economy standard); improving traffic management systems and facilitating urban public transport development (public transport infrastructure constructing, lower public transportation fare), and enhancing management of private vehicles (license bidding, purchase rate, fuel tax, small displacement). Sixth, indicator goals and target development need to consider regional and industrial contingencies. Many of the targets are based upon provincial GDP valuation without resource stock, industrial structure, and culture perspective considerations. A careful examination and revision of targets is needed because unfair emission reduction requirements will dampen localized governmental agency and officials’ motivation toward any focused improvements. Conducting a thoughtful scientific analysis considering variations in resource endowment and region specific development is necessary for provincial emission targets establishment. Seventh, developing supplementary absolute value national emission reduction targets is necessary. Such a target should be rationally developed and disseminated to every province so that each region can more effectively and flexibly execute their environmental plans. Absolute emission reduction values provide motivation for implementation of eco-design, green chemistry, cleaner production, and green engineering, due to clearer and concrete valuations.

(2) Price, D. M.; Levine, N; Zhou, D; Fridley, N; Aden, H. Y.; Lu, M; McNeil, N. N.; Zheng, Y; Qin, N; Yowargana, P. Assessment of China’s energy-saving and emission-reduction accomplishments and opportunities during the 11th Five Year Plan. Energy Policy 2011, 39 (4), 2165−2178. (3) National Development and Reform Commission (NDRC). 2011. Energy Conservation and Emissions Reduction Comprehensive Work Plan for the 12th Five-Year Plan (2011−2015) Period. http://www. gov.cn/zwgk/2011-09/07/content_1941731.htm (in Chinese, accessed November 18, 2011). (4) Ministry of Environmental Protection (MEP). 2011. The announcement of national pollutants emission in the first half year of 2011. http://www.zhb.gov.cn/gkml/hbb/qt/201110/t20111011_ 218176.htm (in Chinese, accessed November 18 2011. (5) Geng, Y; Doberstein, B. Developing the circular economy in china: challenges and opportunities for achieving leapfrog development. Int. J. Sustainable Dev. World Ecol. 2008, 3 (15), 231− 239.

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AUTHOR INFORMATION Corresponding Author *E-mail: [email protected]. ACKNOWLEDGMENTS This study was supported by Natural Science Foundation of China (71033004), Chinese Academy of Sciences (2008-318), and Ministry of Science and technology (2011BAJ06B01).



REFERENCES

(1) Wang, Q; Chen, Y. Energy saving and emission reduction revolutionizing China’s environmental protection. Renewable Sustainable Energy Rev. 2010, 14, 535−539. 108

dx.doi.org/10.1021/es204293x | Environ. Sci. Technol. 2012, 46, 107−108