env global forum oct 2016 - session 2 - bing zhu
TRANSCRIPT
Policies for the Circular Economy in China
Dr. Bing Zhu
Professor and Executive Deputy DirectorInstitute of Circular Economy, Tsinghua University, ChinaGuest Research ScholarEnergy Program, IIASA, [email protected]
1
Global Forum on EnvironmentTowards quantifying the links between environment and economic growth
24-25 October 2016, OECD Paris
Circular Economy is defined as the ‘the reducing, reusing and recycling activities conducted in the process of production, circulation and consumption,’ according to Circular Economy Promotion Law of the People's Republic of China (2009)
Reducing
Reusing
Recycling
Start of Government Efforts on Circular Economy in China
2Source: Worldbank
GDP2004 2015
DMC(Domestic Material Consumption)
2004 2015
Relative Decoupling
No. 6
No. 2
In 2004, the 1st national meeting on Circular Economy was organized by National Development and Reform Commission of China (NDRC)
China’s economic growth and resource consumption since 2004
Source: Tsinghua University
• Resource Utilization prior to end-of-life and Waste Management are equivalently important
• Still in the middle stage of industrialization
• Encountered the complex economic and environmental problems
• Increasing resource efficiency in terms of full life cycle
• A comprehensive policy instrument: not only for the governance measures but also for economic reconstructuring and transition
Input
Reducing the consumption of
resources
In the process of production
Increasing efficiency
Output
Reducing the production of wastes
and increasing circulation
Connotation of China’s Circular Economy
3
China’s Action: Promoting Circular Economy in a Comprehensive and Systematic Way
4
Promotion of green
consumption
Promotion of demonstration
pilots
Marcoguidance
Improvementof policy
mechanism
Implementation of circular economy
assessment
Constructionof institutional
system
Technology innovation and
support
Reinforcementof supports
from laws and regulations
Promotion of industrial layout
optimization and cluster
development
Integration of circular economy
and regional development
Optimization of top-level design and overall plan
Give full play of the role of
market
China’s Practice (1): Legislation and Institutions System Construction
5
Circular Economy Promotion Law (2008)
Administrative Measures for Pilot Remanufacturing
of Automobile Parts &
Accessories (2008)
Administrative Measures for the Determination of
Resources Comprehensive
Utilization Encouraged by the
State (2006)
…
Local Measures of Shanxi, Shaanxi, Guangdong, Guizhou, Shandong Provinces and Dalian, Wuhan, Changchun Cities etc.
the 11th ,12th and 13th Five -Year Plans for National Economic and Social Development of P.R.C.• Including specific chapters, columns
and sections for Circular Economy
Circular Economy Development Strategy and Near-Term Action Plan (2013)
The Leading Plan for Circular Economy (2016)
…
Most provinces have specific circular economy development plans
Laws & Regulations Development Plans
National Level
Specific Measures &
Plans
Local Level
• Extended Producer Responsibility• Promotion of Renewable Products and Raw Materials• Restrictions on the use of disposable goods
• Assessment of Circular Economy• Standard Certification for Circular economy• Credit Rating …
Institutional Support & Promotion
178 pilot units: including 11 provinces, 16 cities and 33 industrial parks, covering 11 key industries (iron and steel, nonferrous metals, coal, electricity, chemicals, building materials, light industry, textile, machinery manufacturing, agricultural products processing and agriculture)
China’s Practice (2): Pilot and Demonstration
6
2005-2010 Pilot Exploration Stage
Industry
Agriculture
Services
① Pilot Projects for Circular Transformation of Industrial Parks (100 parks)② Remanufacturing Pilots (42 enterprises)③ Pilot Projects for Comprehensive Utilization of Resources (34 bases and 38 enterprises)④ Recycling Technology Industrialization (about 60 cases)⑤ Synergic Recycling Wastes in the Production Process Pilots (about 60 enterprises)
⑦ Urban Mine Demonstration Bases (49 bases)⑧ Pilot Cities for Recycling Harmless Treatment of Restaurant Waste (100 cities) ⑨ Demonstration Project of Recycling System of Renewable Resources (about 80 cities, 100
waste products recycling sorting gathering areas, 100 enterprises)⑩ Circular Service Industry Demonstration (about 100 catering and accommodation enterprises,
1000 retail enterprises)
⑥ Demonstration Project of Agricultural Circular Economy (all 13 main grain producing areas)
Ten-Hundred-Thousand Demonstrative Action(10 key projects, 101 key cities, over 1000 key enterprises or parks)
2011-2015 Demonstration Guiding Stage
China’s Practice (3): Construction of Circular Economy Friendly Market System
7
Improving the market system continuously and enabling the incentive effect of market mechanism to achieve full potentials
• Addressing market externalities led by governments (by monetary policy), and supporting the market system of circular economy (e.g. Green Credit)
• Using fiscal policies (e.g. price, tax etc.) to promote long-term development of circular economy.
• Setting up special funds (e.g. Industrial Policy Fund) to guide and encourage the industries to formulate the regulated development and to promote the best practices.
Green Credit
21 main banks and financial agencies
involved
Up to 7.26 trillion RMB (till June 2016)
Pricing tools
Differential electricity price
Punitive electricity price
Ladder water pricing
Tax Preference Policy
Environmental friendly projects & equipment
Cogeneration projects
…
Circular Economy in China: Effectiveness
Resource efficiency has been significantly improved
Energy structure have been continuously optimized
Resource utilization structures have been continuously effective
Play a positive role in environmental improvement and climate change issue
8
The Effects of Recycled Resources
in 2014
is equivalent to the reduction of
=
2.89hundred
million tonsstandard coal
90.3hundred
million tonswaste water
6.94hundred
million tonsCO2 emissions
15.58hundred
million tonssolid wastes
11.3hundred million tons Raw Materials Saved
Energy consumption has increased by 18.1%, and led GDP increased by 36.3%
From 2010 to 2015, resource productivity raised by more than 20%
Output value of resource recycling industry exceeds 1.5 trillion RMB
The Leading Plan for Circular Economy (2016-2020)
9
• Following and requested by 13th Five -Year Plans for National Economic and Social Development of China
• Drafted by NDRC
• Now this Plan just finished its consultation stage and expected to be implemented at the end of 2016 to lead the circular development in the following half-decade
Chapter 43: Promoting Resource conservation and intensive use
Section V: Vigorously Develop the Circular Economy - To implement The Leading Plan for Circular Economy
The Leading Plan for Circular Economy (2016-2020)
13th Five -Year Plans for National Economic and Social Development of China
Indicator System for The Leading Plan for Circular Economy (2016-2020)
The Leading Plan for Circular Economy (2016-2020)
11
2 Core Indicators
•Resource productivity•Recycling rates of wastes
3 Recycling Developments
•Industrial recycling system•Urban recycling system•Resource recycling industry
Industrial symbiosis
Industry and agriculture
combination
Recourse Recycling and
Utilization Base
Comprehensive Utilization Base of Industrial Wastes
Internet Plus
Beijing-Tianjin-Hebei Region CE
Projects
Renewable products and
Remanufacturing
Recycling technology &
innovation
Pilot institutional innovation
Best Practices Promotion
10 Special Action Projects
FactsheetExtended Producer
ResponsibilityPromotion of
Renewable Products and
Raw Materials
Restrictions on the Use of Disposable
GoodsAssessment of
Circular Economy
Standard Certification for
Circular economy
Credit Rating
6 Institutional Supports
Concluding Remarks
• China’s circular economy is relatively unique due to its specific stage of socio-economic development
• China’s top administration heightened attention on and highly propelled the policies for circular economy
• Pilot programme is a significant feature of China’s policy implementation
• The Leading Plan for Circular Development (2016-2020) is expected to achieve further accomplishments of China
• International exchange and cooperation on circular economy is crucial for improving global resource efficiency
12
Thanks for your attention!
Special thanks to Mr. Xin Yao from NDRC, and Dingjiang, Meng, Tao and Bomin from our Tsinghua team