China’s development challenges
and climate policy:
CDM projects, energy and health
Gørild Heggelund
Mitigation of air pollution
and climate change in China
Oslo 17-19 October, 2004
Fridtjof Nansen Institute
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Fridtjof Nansen Institute
• is an independent foundation engaged in
research on international environmental,
energy, and resource management politics.
• seeks to maintain a multi-disciplinary
approach, with main emphasis on political
science, economics, and international law.
• 4 programmes
– Global, Europe, Russian and Polar, Maritime
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Outline
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China’s climate change policy...
...and development issue
Clean Development Mechanism in China
CDM and biomass?
Environment and health
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China’s climate policy - global
• 14% of GHG emissions in 2000 (CAIT db)
– increase of 40% since 1990
• Foreign policy matter
– affected by spillover from other policy areas
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Sovereignty
Developing country
Historically not responsible
Claim that per capita emissions are low
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China’s climate policy - domestic
• Global climate change not a priority
• Domestic policy not oriented towards
global climate change….
• …..however, measures to reduce domestic
air pollution carried out.
• Energy conservation, energy efficiency,
central heating, etc.
• Concern in China - soon surpass the US
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Development issue
• Climate change is one area where the
conflict between poverty and sustainable
development is most apparent, as it is
closely linked to economic development,
resource management, poverty alleviation
and energy use
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Poverty alleviation
• Reduced the number of poor from 230
million in 1978 to 30 million in 2000
• WB: 400 million survive on less than 2
USD per day
• Rural poor:
– a per capita income below USD78 (RMB625)
– income disparity
• China’s economic growth has come at
great costs-7 per cent of GDP in the 1990s
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The Clean Development Mechanism
• Companies in countries that must reduce
greenhouse gas emissions (e.g. Nordics)…
• ...invest in projects reducing emissions in
countries that do not need to reduce emissions
(e.g. China)
• Benefits:
– Companies: emissions reductions
– Host country: technology transfer, project funding
for sustainable development
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CDM in China (1)
• Initially very sceptical to CDM
– indust. countries run away from responsibility
• China now participates in CDM
– see benefits from particpation
• Designated National Authority notified in
May, after 2,5 years of preparations
– National Development and Reform
Commission
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CDM in China (2)
• "Interim Measures for the Management of
CDM Project Activities" published July 1
2004
– Still: uncertainties regarding ownership
• Project types that will be given priority in
line with China’s technological priorities
– New renewable energy development
– Energy efficiency improvements
– Recovery and use of methane from landfills
– Recovery and use of methane from coalbeds
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CDM projects in China
• CERUPT
– Inner Mongolia Huitengxile Wind Farm
Development Project (CREIA)
• PCF (under development)
– a run of river hydro project
– coal-bed methane capture
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Rural indoor pollution
• WB: Indoor air pollution
• 1 of 4 most critical global env. problems
• China: cook stoves
– for cooking and heating
– fueled by crop residue, biomass,coal
• China’s National Improved Stoves
Program
– succesful, but not for health/environment purp.
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Biomass CDM projects possible?
Examples from other countries
• Japan
– biomass power plants planned
• Thailand
– biomass fired power generation project
activities displacing grid electricity
– The CDM EB approved baseline and
monitoring methodologies for this projects.
• Malaysia
– energy policy includes biomass
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CDM projects:
Biomass in rural area China?
• Not mentioned by Ch. Authorities yet....
• …..but, learn from Thailand?
• WB:government should actively boost
biomass projects becoming CDM projects
• Cleaner energy and Reduce emissions
• CDM centres and training programmes at
provincial level (especially poor inland
provinces) are being prepared
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Environment and health
• Global trend: health in focus
– WB invests in health programmes
– Environmental programmes receive less
– Developmental/poverty alleviation in focus
• SEPA official on China’s environmental
crisis
– lack of natural resources restrict economic
growth
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Rural health becomes an issue?
• Rural health an issue?
• Less than a third of China's health
spending goes to the countryside (2002)
• Report on problems that may derail
China’s development issued in 2003
– agricultural issues, income gaps,
unemployment, environment, etc
– reported to the State Council
– 11th 5-year plan (2006-2010)
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Future
• With Hu an Wen: renewed focus on rural
poor
• Focus on rural health problems (sars, aids)
• National Improved Stoves program:
– ended in 1995
• Past ten years:
– increased awareness of env. problems
– increasing awarness of health problems?
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Comments or questions?
• Gørild Heggelund:
goerild.heggelund@fni.no
+47 67 11 19 04
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