China Environmental Law

We all knew a shakeup of the National Development and Reform Commission (NDRC) was coming, and it appears the shoe dropped on Thursday.

Here’s how China Daily reported the reorganization:

China’s top economic planner will see the focus of its work shifted to ensuring balanced economic growth and the number of its leading officials more than halfed, according to a plan approved by the central government Thursday.

The National Development and Reform Commission will have one minister and four vice-ministers whose remit will be ensuring stable growth.

The commission, which currently has one minister and 10 vice-ministers, will also lose some of its responsibilities for energy, industry management and price regulation.

I’ll leave it to others to discuss the general policy implications and impacts of this move and stick only to its effects on environmental and energy policy and regulation.

Energy

The news report states that

Its powers over energy production, international cooperation and scientific research have been handed to the newly established National Energy Administration

Quite frankly I don’t get the sense much new happened yesterday on the energy front.  I think the  energy “powers” the above report refers to had already been shifted to the National Energy Administration (NEA).

Significantly, China Daily notes that

While the prices of most commodities are now determined by the market, the commission remains responsible for supervising the pricing of water, electricity, oil and gas.

Thus, the NDRC seems to kept its important energy price control function.

Bottom line: some power has been siphoned off to NEA, but that happened pre-Thursday shakeup.  Keeps pricing power.  No significant change here.

Environment

The NDRC has had some significant environmental responsibilities, particularly in the area of increasing energy efficiency (and thus reducing the need for additional coal fired generation).

Given the fact that the NDRC is supposed to shift its concern to ensuring “balanced economic growth,” which usually includes increasing environmental protection and moving economic growth away from fixed asset, energy-hogging, high polluting industries toward the high tech and service sectors, I would predict it will have at least as much role in environmental affairs as it has had in the past. 

China Daily notes that

Meanwhile, a department has been created in the commission to deal with climate change and handle international negotiations and cooperation on this issue.

The NDRC has always handled climate change issues so I do not see this as a big change, but the fact that its “climate change” brief was retained also tends to support the notion that it has retained its environmental powers.  Of course, this area, particularly in the arena of “international negotiations” is going to be of increasing importance to China over the next couple of years.

Bottom line: Probably no change, but could even be a slight increase in its involvement in environmental affairs.  One telling sign on this score will be whether Xie Zhenhua was one of the surviving Vice Ministers.  I haven’t seen the list yet, but I’d put my money on him.