China Environmental Law

There continue to be mixed signals about how the environment will be treated in China’s economic stimulus efforts. Xinhua reports that

A message from the ongoing annual session of the National People’s Congress (NPC), or the parliament, says that ”saving energy and protecting environment is a big government agenda, though keeping a ’steady and relatively fast’ economic growth is a paramount task amid the global economic crisis.”

I think the message that sends to environmental regulatory personnel is pretty clear, and not particularly encouraging.

The article also notes that

[A]nalysts also admit great pressure in realizing the reduction target as companies are less likely to invest in green facilities amid the financial pains. It also presents a test to the government to balance growth with industrial restructuring and upgrading.

Zhang Lijun, Ministry of Environmental Protection Vice Minister was reported to have said that China would continue government support for car purchases.

“Certainly there is an impact upon the environment from the increase in vehicles, that’s without a doubt. But we cannot not develop the auto industry just because of its effect on the environment,” Zhang said.

“If people can’t drive cars, they’ll have to go back to the time of everyone riding bicycles. I don’t think this is realistic, and it is not possible.”

There are a number of options between private car ownership and riding bicycles (such as mass transit or even electric bikes).  This isn’t very progressive thinking.

On the other hand, we are also reminded by Zhang Ping, Minister of the National Development and Reform Commission, at a press conference during the NPC session that

4-trillion yuan spending list also included a 210 billion yuan investment in environmental protection and energy conservation [this is the amount devoted to "Sustainable Environment" on the pie charts we previously posted].

That sounds like a lot of money, and it is (although less than origianlly earmarked). It also is presumably additional money; that is, it is on top of the amount already budgeted for “environmental protection and energy conservation.” Let’s put it into perspective, however; 210 billion yuan equals 24 billion Euro’s. The new McKinsey “China’s Green Revolution” study concludes that “from now until 2030, up to 150 billion to 200 billion euros on average would be needed in additional investment each year to effectively deploy the green technologies needed to achieve the substantial improvements.” Less investment is required in the early years. “Only” 35 billion Euros are estimated to be required in the period 2011-2015, but that is 50% more than the entire “Sustainable Environment” stimulus amount. Nobody said this was going to be cheap.

 A couple of other good takes on the stimulus and environment can be found in “An Upside to China’s Slump: Cleaner Air“  by Time’s Austin Ramzy, and China Greenspace’s post, “Mixed messages on environment as National People’s Congress convenes.”