China Environmental Law

I applaud China’s willingness to publish the results of environmental and energy audits when the results do not paint a pretty picture.  The National Audit Office (NAO) yesterday released a report containing the results of its audit of the compliance efforts of 41 major state-owned enterprises (SOE) in 2007.  It found that a number of the audited firms “ignored energy saving and pollution regulation.”

Some of the highlights (for 2007):

• Some enterprises failed to fulfill energy-saving targets on time;
  • Zhangjiaokou coal-fired power plants owned by China Datang Corp achieved only 19.3 percent of their energy saving goals;
  • Energy consumption for producing electrolytic aluminum at Baotou Aluminium Co increased by 1.83 percent, instead of decreasing;
• The emissions of sulfur dioxide (SO2) from 10 of the 41 SOEs failed to reach standards;
  • One enterprise’s SO2 emissions in 2007 were 1.41 times higher than the national standard, but it did not give the name of the business;
• Nine enterprises recorded a higher level of emissions of other major pollutants, such as chemical oxygen demand (COD), than permitted;
  • The concentration of COD from one enterprise (not named) was five times higher than the standard set by local government;
• The improper treatment of industrial waste also resulted in potential environmental risks;
  • A total of 209,800 tons of hazardous wastes were handed to unlicensed recycling companies, while another 108,000 tons were simply buried or stored without proper treatment; and
  • The solid wastes from two aluminum-producing firms led to soil pollution following a lack of effective prevention measures.

When there are significant compliance problems with important national energy saving and pollution reduction initiatives (including initiatives that are often hailed as part of China’s carbon reduction program) at major state-owned enterprises this should be a cause for concern.  These enterprises are subject to the highest level of scrutiny and control by the national government.  If they have compliance issues, one can only imagine the level of non-compliance at smaller enterprises.

I have just three words in response: measurable, reportable, and verifiable!