BBROWNFIELDROWNFIELD RREMEDIATIONEMEDIATION ANDAND RREDEVELOPMENTEDEVELOPMENT ININCCHINAHINA

AANN OOVERVIEWVERVIEW ANDAND PPOLICYOLICY RRECOMMENDATIONECOMMENDATION

By Jian Xie, EASER

ContentsContentsContentsContents

The Problem and ChallengesThe Problem and Challenges Government Plans and TargetsGovernment Plans and Targets Regulatory Framework, Organizational Regulatory Framework, Organizational g y , gg y , g

Setup and StakeholdersSetup and Stakeholders Case studiesCase studies –– Beijing and ChongqingBeijing and Chongqing Case studies Case studies Beijing and ChongqingBeijing and Chongqing Recommendations and conclusionsRecommendations and conclusions

The ProblemThe Problem and Challengesand ChallengesThe ProblemThe Problem and Challengesand Challenges

Historical Roots and TrendHistorical Roots and Trend

China’s industrialization and modernization process has left China’s industrialization and modernization process has left a legacy of vast polluted industrial and commercial areas in a legacy of vast polluted industrial and commercial areas in urban areasurban areas BrownfieldsBrownfields in China often date back somein China often date back someurban areas. urban areas. BrownfieldsBrownfields in China often date back some in China often date back some 50 years to the era of highly polluting industries built during 50 years to the era of highly polluting industries built during the Great Leap Forward. the Great Leap Forward.

Most of these industrial factories were stateMost of these industrial factories were state--owned and owned and initially located on the perimeter of Chinese cities. They initially located on the perimeter of Chinese cities. They often have a long history of using antiquated equipmentoften have a long history of using antiquated equipmentoften have a long history of using antiquated equipment often have a long history of using antiquated equipment and a legacy of poor management and inadequate and a legacy of poor management and inadequate environmental services. Soil pollution is often serious at environmental services. Soil pollution is often serious at th itth itthese sites.these sites.

Historical Roots and TrendHistorical Roots and Trend

In recent years, the process of relocating old and In recent years, the process of relocating old and polluting industrial enterprises away from urban areas polluting industrial enterprises away from urban areas has been accelerated due to the pressure of rapidhas been accelerated due to the pressure of rapidhas been accelerated due to the pressure of rapid has been accelerated due to the pressure of rapid urbanization and redevelopment and created a lot of urbanization and redevelopment and created a lot of brownfieldbrownfield sites to be cleaned up and redeveloped.sites to be cleaned up and redeveloped.

Current Trend of Industrial Enterprise

Beijing Over one hundred polluting enterprises inside the Fourth Ring Road have

Relocation in Major Chinese Cities

Beijing  Over one hundred polluting enterprises inside the Fourth Ring Road have been relocated, leaving eight million square meters of industrial land to be redeveloped

Chongqing Over one hundred polluting enterprises from the city center will be relocated by 2010

Guangzhou Over one hundred large industrial enterprises have been shut down, suspended, or relocated since 2007

Shanghai Several dozens of old industrial enterprises were relocated from downtown g pareas

Shenyang  Several dozens of polluting enterprises were relocated in 2008; all the heavily polluting enterprises in the city centre would be relocated from 2009 onward2009 onward

Cities in Jiangsu Province

Over one hundred chemical enterprises have been relocated, and many small chemical companies were closed

Cities in Zhejiang Province

Several dozens of large industrial enterprises have been relocated or closed since 2005

Types of Brownfield SitesTypes of Brownfield Sites

Heavy metal contaminated sitesHeavy metal contaminated sites POP contaminated sitesPOP contaminated sites Organic contaminated sitesOrganic contaminated sites Electronic waste sitesElectronic waste sites

EnvironmentalEnvironmental and Social and Social ConcernsConcernsConcernsConcerns

E i t l i t f l d t i ti il dE i t l i t f l d t i ti il d Environmental impacts of land contamination on soil and Environmental impacts of land contamination on soil and groundwater are serious. 1/5 of farmlands are polluted to groundwater are serious. 1/5 of farmlands are polluted to some extent.some extent.

Both environmental and liability concerns have made Both environmental and liability concerns have made some some brownfieldbrownfield sites a barrier in the process of land sites a barrier in the process of land redevelopmentredevelopmentredevelopment.redevelopment.

The abandoned or delayed redevelopment of The abandoned or delayed redevelopment of brownfieldbrownfieldsites in urban areas also has a profound social impact on sites in urban areas also has a profound social impact on p pp plocal communities such as poor living conditions, lack of local communities such as poor living conditions, lack of employment opportunities, and even social instabilityemployment opportunities, and even social instability..

Major Problems and Major Problems and Challenges AheadChallenges AheadChallenges AheadChallenges Ahead

(According to MEP in an official document in 2008)(According to MEP in an official document in 2008)(According to MEP in an official document in 2008)(According to MEP in an official document in 2008) Serious land pollution in some urban and rural areas of ChinaSerious land pollution in some urban and rural areas of China Various types of land contamination existVarious types of land contamination existypyp Safety incidents have increased rapidlySafety incidents have increased rapidly The causes are often complex and hard to controlThe causes are often complex and hard to control

Th i f i k d “ ” i ill l d iTh i f i k d “ ” i ill l d i The question of risk and “exposure” is still an unresolved issueThe question of risk and “exposure” is still an unresolved issue This question of liabilityThis question of liability——both to past polluters and future both to past polluters and future

developers of developers of brownfieldbrownfield sitessites——needs to be clarified and needs to be clarified and ppresolvedresolved

A supervision and management system for land pollution is not A supervision and management system for land pollution is not fully formedfully formedfully formedfully formed

Government Plans and Government Plans and TargetsTargets

Beginning of Government Efforts Beginning of Government Efforts in Bro nfield Clean pin Bro nfield Clean p

• A series of land contamination incidents has occurred in recent

in Brownfield Cleanupin Brownfield Cleanup

years during the process of rapid urban sprawl and redevelopment, for example, Songjiazhuang Subway Station in Beijing in 2004. They mark the beginning of brownfield acknowledgement andThey mark the beginning of brownfield acknowledgement and remediation by the Chinese government. • Immediately following the incident, the State Environmental Protection Administration (now MEP) issued the “Notice on Effective Prevention and Control of Environmental Pollution for Industrial Enterprise Relocations” (2004). The notice requires that p ( ) qall local environmental protection bureaus satisfactorily carry out pollution prevention and control during the relocation process. As soon as a case of soil pollution is found it should immediately besoon as a case of soil pollution is found, it should immediately be reported to SEPA, and pollution control countermeasures must be implemented.

National LevelNational LevelNational LevelNational Level

National survey on the environmental National survey on the environmental conditions of soil and pollution preventionconditions of soil and pollution prevention

Official document “Recommendations on Official document “Recommendations on Strengthening Soil Contamination Prevention Strengthening Soil Contamination Prevention and Remediation”and Remediation”and Remediationand Remediation

Targets for 2015: Management system, Targets for 2015: Management system, policies laws emergency response systempolicies laws emergency response systempolicies, laws, emergency response system, policies, laws, emergency response system, prevention planning…… prevention planning…… Soil Pollution Prevention Law has been draftedSoil Pollution Prevention Law has been drafted Soil Pollution Prevention Law has been drafted Soil Pollution Prevention Law has been drafted and under review of the Congressand under review of the Congress

Local Level ExamplesLocal Level ExamplesLocal Level ExamplesLocal Level Examples

ShanghaiShanghai soil clean p standardssoil clean p standards ShanghaiShanghai------ soil cleanup standards;soil cleanup standards; BeijingBeijing------ “Guidelines on Site Environment “Guidelines on Site Environment

Assessment (SEA)”;Assessment (SEA)”;Assessment (SEA) ;Assessment (SEA) ; ChongqingChongqing------ an initial SEA;an initial SEA;

Zh jiZh ji “M t F k L d“M t F k L d ZhejiangZhejiang------“Management Framework on Land “Management Framework on Land Contamination Prevention and Remediation”;Contamination Prevention and Remediation”;ShenyangShenyang “Administrative Methods for Cleanup“Administrative Methods for Cleanup ShenyangShenyang------ Administrative Methods for Cleanup Administrative Methods for Cleanup and Remediation of Contaminated Lands”and Remediation of Contaminated Lands”

Regulatory Framework, Regulatory Framework, Organizational Setup, and Organizational Setup, and

StakeholdersStakeholdersStakeholdersStakeholders

Regulatory FrameworkRegulatory FrameworkRegulatory FrameworkRegulatory Framework

Related laws: Constitution, Criminal Law, Solid Related laws: Constitution, Criminal Law, Solid Waste Pollution Prevention Law, Land Waste Pollution Prevention Law, Land Management LawManagement Law

None of the relevant legal provisions are None of the relevant legal provisions are f d l d t i tif d l d t i tifocused on land contaminationfocused on land contamination

Brownfield management in China is guided by Brownfield management in China is guided by dd h t f d t ith th t f d t ith tan adan ad--hoc set of documents, without a hoc set of documents, without a

comprehensive legal and regulatory systemcomprehensive legal and regulatory systemThe Congress begin to review the draft SoilThe Congress begin to review the draft Soil The Congress begin to review the draft Soil The Congress begin to review the draft Soil Pollution Prevention LawPollution Prevention Law

Regulatory FrameworkRegulatory Framework

Technical standardsTechnical standards Provisional site management standardsProvisional site management standardsgg Testing StandardsTesting Standards Monitoring StandardsMonitoring Standardsgg Local standardsLocal standards

Organizational SetupOrganizational SetupOrganizational SetupOrganizational Setup

Relevant agencies at the national levelRelevant agencies at the national level Ministry of Environmental Protection (MEP)Ministry of Environmental Protection (MEP) Ministry of Environmental Protection (MEP)Ministry of Environmental Protection (MEP) National Development and Reform National Development and Reform

Commission (NDRC)Commission (NDRC)( )( ) Ministry of Housing and UrbanMinistry of Housing and Urban--Rural Rural

Development (MOHURD)Development (MOHURD)( )( ) Local governments have a major role in Local governments have a major role in

land management and developmentland management and developmentland management and development land management and development decisiondecision

Management ProcedureManagement Procedure

L d R d l t P i B iji

Management ProcedureManagement Procedure

Land Redevelopment Phase Content

Land Redevelopment Process in Beijing

Land Purchase Property Transfer, Relocation of Residents

Land Consolidation

Land Reservation

Dismantling of Housing,Site Leveling

Work Out Land Use and T f Pl

Land bidding to transfer

Transfer Plan

Developers bid

Redevelopment Developer wins bid and starts construction 

StakeholdersStakeholdersStakeholdersStakeholdersGovernment

Resolve problemLocal developmentTreatmentResponsibility Ownership

Exploitation Involve in managementBrown

FieldDeveloper Local 

residents

RelocationCompensation

ProfitHealth, Employment Opportunities

Responsibility Ownership Pollutionp y pResponsibility and compensation

Original enterprise

City Case Studies:City Case Studies:B iji d Ch iB iji d Ch iBeijing and ChongqingBeijing and Chongqing

Case Study One: BeijingCase Study One: BeijingCase Study One: BeijingCase Study One: Beijing

• Over hundred major polluting factories, including Capital Iron and Beijing Coking Chemical Plant, were relocated, making over eight million m2 of land available for reusemaking over eight million m of land available for reuse

• Urban land use efficiency and industrial structure improved• Relocated industries recover capital from land transfers

BeijingBeijingBeijingBeijing

Local regulation Local regulation

The poisoning incident of The poisoning incident of SongjiazhuangSongjiazhuang Subway Subway Station in 2004 was aStation in 2004 was aStation in 2004 was a Station in 2004 was a turning point regarding turning point regarding the public opinion andthe public opinion andthe public opinion and the public opinion and environmental environmental management of industrial management of industrial contaminated sitescontaminated sites

Review and Approval Procedure of Industrial Relocation in Beijing 1. BUPC approval for change of use for old factory site;2. Opinion of BUPC on planning for new factory site;3. Company application to BDRC for project establishment approval of enterprise relocation;3. Company application to BDRC for project establishment approval of enterprise relocation;4. Enterprise plan for relocation and construction of new factory.

Project Application (to DRC)

1. BDRC approval of the project application;2. Land transfer agreement of old site signed by both parties, and notarized;3. Company‐submitted application to all four departments for land transfer;4. BUPC issues key planning points for the old and new site; 5. Land value assessment report for old site (by a certified institute);6 Developer’s application to all four departments for use of old site;6. Developer s application to all four departments for use of old site; 7. Developer’s board meeting agreement on old site land use (signed by all directors); 8. Developer’s bank deposit (no less than 1/3 of total land transfer cost);9. City Industrial Technology Center’s assessment report on land use transfer.

Approval on land use transfer(coordinated with four departments led by BMEC)(coordinated with four departments, led by BMEC)

1. BDRC’s approval on project;2. Four departments’ approval of land use transfer;3. Company application to BMEC for feedback on feasibility study of new project;4. Feasibility study report for new project;5. Authority’s comments on the Three Synchronies (i.e., Design, Construction, and Operation).y y ( g p )

Approval of Feasibility Study (by BMEIC)

Approval of preliminary design(by BUPC)

Construction Completion Approval (by BMEIC)

BeijingBeijingBeijingBeijing

Remediation effortsRemediation efforts Remediation effortsRemediation efforts

1.2-1.4

1.0-1.2

0.8-1.0

0.6-0.8

0.4-0.6

0.2-0.4

0.0-0.20 5 10 15 20浓度(mg·kg-1

)

度（m）

1.4-1.61.2-1.41.0-1.20.8-1.00.6-0.80.4-0.60.2-0.40.0-0.2

0 5 10 15浓度(mg·kg-1

)

度（m）

1.4-1.6

1.2-1.41.0-1.20.8-1.00.6-0.80.4-0.6

0.2-0.40.0-0.2

0 5 10浓度(mg·kg-1

)

度（m）

1.4-1.61.2-1.41.0-1.20.8-1.00.6-0.80.4-0.6

0.2-0.40.0-0.2

0 2 4浓度(mg·kg-1

)

度（m）

4.5-4.7

4.0-4.2

3.3-3.5

2.8-3.0

2.3-2.5

1.4-1.6

1#

深 度

DDTs HCHs 4.3-4.5

3.8-4.03.3-3.52.8-3.02.3-2.5

1.8-2.01.6-1.8

深 度

2#

DDTs HCHs 4.5-4.7

4.0-4.23.5-3.7

3.0-3.22.5-2.71.8-2.01.6-1.8

深 度

3#

DDTs HCHs 4.5-4.7

4.0-4.23.5-3.73.0-3.22.5-2.71.8-2.01.6-1.8

深 度

4#

DDTs HCHs

BeijingBeijingBeijingBeijing

Challenges aheadChallenges ahead

Shortage of urban land for development Further develop its institutional and regulatory

frameworkframework Establish an effective brownfield management

system y Use market mechanisms for financing brownfield

remediation

Case Study Two: ChongqingCase Study Two: Chongqing

Since 2002, the city has been relocating old and polluting industries from central urban areas

137 factories on the relocation plan list set forth by the Chongqing Municipal Government in 20102010

ChongqingChongqingChongqingChongqing

Local government strategy Local government strategy and actions plansand actions plans

• Set forth a timetable for developing a city-wide Early Warning and Prevention andwide Early Warning and Prevention and Control (EWPC) system

• Build a diverse financing mechanism for site cleanup and remediation on the principles of “Polluter Pays”, “Investor Benefits”, and “L d O T k R ibilit ”“Land Owner Takes Responsibility”

ChongqingChongqingChongqingChongqing

Challenges aheadChallenges ahead

A l 2 billi USD i d d f i l d At least 2 billion USD is needed for site cleanup and remediation of contaminated sites in the city’s current planp

The city is looking for technically suitable and cost-effective remediation technologies and appropriate site remediation standardsite remediation standard

PPO ICYO ICY RRECOMMENDATIONSECOMMENDATIONSPPOLICYOLICY RRECOMMENDATIONSECOMMENDATIONS

PPOLICYOLICY RRECOMMENDATIONSECOMMENDATIONSPPOLICYOLICY RRECOMMENDATIONSECOMMENDATIONS

A comprehensi e legal s stem is desperatel A comprehensive legal system is desperately needed to clearly define the responsibility and liability of land contamination and remediationliability of land contamination and remediation, and provide clear and concise guidance for all stakeholders.

China needs to speed up its work to officially approve, release and implement a system of national standards and technical guidelines for the prevention and treatment of land

t i ticontamination

PPOLICYOLICY RRECOMMENDATIONSECOMMENDATIONSPPOLICYOLICY RRECOMMENDATIONSECOMMENDATIONS

Strengthening coordination and cooperation amongStrengthening coordination and cooperation among Strengthening coordination and cooperation among Strengthening coordination and cooperation among various government agencies various government agencies at both the central and local at both the central and local level. Better cooperation is warranted in such areas as: level. Better cooperation is warranted in such areas as: assessment of contaminated sites land ownership transferassessment of contaminated sites land ownership transferassessment of contaminated sites, land ownership transfer, assessment of contaminated sites, land ownership transfer, remediation design and implementation, planning for reremediation design and implementation, planning for re--use, use, and completion acceptance of the cleanand completion acceptance of the clean--up process. up process.

Adopting a riskAdopting a risk--based approach to developing soil cleanbased approach to developing soil clean--up measures for a up measures for a brownfieldbrownfield sitesite. To do this, remediation . To do this, remediation objectives, measures, and cost estimates need to be developed objectives, measures, and cost estimates need to be developed based on the risks that the site poses to its environment and the based on the risks that the site poses to its environment and the surrounding population, which in turn largely depend on the surrounding population, which in turn largely depend on the proximity of the site to population centers and its intended use. proximity of the site to population centers and its intended use. p y p pp y p p

PPOLICYOLICY RRECOMMENDATIONSECOMMENDATIONS

D l i i d fi i l i t tD l i i d fi i l i t t tt

PPOLICYOLICY RRECOMMENDATIONSECOMMENDATIONS

Developing economic and financial instruments Developing economic and financial instruments to to provide incentives and mobilize funding for remediation provide incentives and mobilize funding for remediation and redevelopment of and redevelopment of brownfieldsbrownfields. These include . These include environmental taxes, cleanup grants, loans, guarantees environmental taxes, cleanup grants, loans, guarantees and market licenses, in line with the “polluter pays” and market licenses, in line with the “polluter pays” principle.principle.

Adopting costAdopting cost--effective remediation technologeffective remediation technologiesies. The . The selection of technologies should take into consideration selection of technologies should take into consideration the intended use and conditions of each the intended use and conditions of each brownfieldbrownfield site. site. t e te ded use a d co d t o s o eact e te ded use a d co d t o s o eac b o e db o e d s tes te

Enhancing public awareness and participationEnhancing public awareness and participation. . Information should be made available to the public to Information should be made available to the public to make them aware of the risks and benefits and to gainmake them aware of the risks and benefits and to gainmake them aware of the risks and benefits, and to gain make them aware of the risks and benefits, and to gain their support and facilitate their participation in their support and facilitate their participation in brownfieldbrownfieldsite management.site management.

Thank you!Thank you!Thank you!Thank you!