联合国开发计划署 Innovation of New Mechanism for Smog Control in Beijing City Minutes of the Project Appraisal Committee (PAC) Meeting 09:00-10:30 29 October, 2014 UNDP China Office 2 Liangmahe Nanlu Beijing 100600, P.R. China Chair: Mr. Patrick Haverman Background: The “Smog” Project is implemented by UNDP in collaboration with China International Center for Technology and Exchanges (CICETE) of MOFCOM, Beijing Municipal Environment Protection Bureau and China Beijing Environment Exchange (CBEEX). While China has been committed to air pollution prevention and control and achieved progress in recent years, the total amount of air pollutants still exceeds the environment capacity. There still exists a huge gap between the air quality in China and international standards, as well as public expectation. Meanwhile, the nature of air pollution is complex and pollutants from city operation and daily life including vehicle emissions comprise an increasingly large proportion. Regional air environment problems are becoming more imminent, especially with regard to PM 2.5 and PM 10. The overall objective of the project is to control air pollution and promote the residents’ living quality through above measures, thus ameliorate the environmental, economic and social development benefits. This project aims to expedite the elimination of old vehicles and to promote the use of new energy vehicles in Beijing city through a serious of studies, policy recommendation and platform construction and accelerate the construction of pollution rights trading system under the guidance of the “Government-led, Market Promotion, Enterprises Participation” principle. Highlights and actions: 1. The meeting highlighted the great significance of the projection Chinese government commitment to air pollution prevention and control. 2. Comments and suggestions had been made about the Smog Project Design. I. Welcome and Introductions As Chair of the PAC meeting, Mr. Patrick Haverman, Deputy Country Director of UNDP China, firstly thanked the participation of all representatives to the meeting. He briefly introduced the purpose of the PAC Meeting and the agenda. By outlining the project background and objectives, Mr. Haverman highlighted the contribution the Smog project would promote the residents’ living quality through control air pollution, thus ameliorate the environmental, economic and social development benefits. Besides, he analyzed the sources for the recent heavy smog in Beijing and hoped that UNDP-CICETE Smog Project could expedite the elimination of old vehicles and to promote the use of new energy vehicles in Beijing city through a serious of pollution rights trading system. II. Remarks by Madame Wang Weili, Deputy Director General of CICETE, MOFCOM On behalf of the CICETE, Madame Wang Weili, Deputy Director General of CICETE, expressed her appreciation to UNDP, Beijing Environment Exchange, all consultants and all stakeholders for their expertise and cooperation that helped push the project from formulation to execution. Madame Wang recalled the cooperation between UNDP and China in tackle with air pollution. Between 1996 and 2000, UNDP had worked with China on the project to control the traffic pollution in Beijing. Also relevant projects had been implemented in other cities to deal with the air pollutants. She thanked all the participants for the preparation has been done to facilitate this project and putted that, the fast increasing of vehicles in Beijing during the past 17 years made it difficult to solve the air pollution. The previous project in Beijing was mainly focusing on government surveillance. She hoped this project can help solve the air pollution with a higher strategic point of view and collaboration among different governmental agencies. III. Remarks by Ms. Ming Dengli, Division in Chief of International Corporation Department, Beijing Environment Protection Bureau. Ms. Ming commented that the project is well-timed considering the heavy smog happening in Beijing. She said BEPB had taken emergency measures to deal with it. However, with the complexity of the issue, the effects were limited. Ms. Ming said that BEPB has been working on mitigating air pollution for many years and had helped reducing certain pollutants in the air. Unfortunately, since the composition of the air pollutant became more complex, the situation became more difficult to deal with. As the tail gas/emissions was identified as an important source for pollution, this project would provide chance for Beijing to gain international support and experience in tacking this problem. She mentioned that in order to mitigate the air pollution, administrative measures had been taken in the past, and this project initiated market mechanism to promote elimination of old automobiles and involve private sector participation, which opens up a new direction for air pollution reduction. Ms. Ming appreciate UNDP’s support in addressing Beijing’s air pollution and hope that through UNDP network, the efforts by the Beijing Municipal Government can be made known to other international organization and even other countries. IV. Remarks by Mr. Zhou Cheng, Vice President of CBEEX Mr. Zhou first thanked about the opportunity to present at today’s meeting as the implementing partner of this project. He said that despite the efforts of Beijing municipal government had taken to mitigate pollution, the amount of pollutants is far beyond the international safety standard as well as failed the public expectation. Tail gas/emissions, one of the key sources for the pollution, contributed to one third of the total PM 2.5. 2 CBEEX has a platform of issuing governmental subsidies on eliminating old vehicles in Beijing. However, as Mr. Zhou put it, the system is not sustainable for merely relying on governmental efforts. This project will promote the elimination of old vehicles and promote the utilization of new energy car through research, optimize platform and system construction, to achieve a winwin situation. Related research suggested that with market mechanism, such as raising standards in automobile purchasing, can help reducing the gas emission. This project will also implement governmental policies to promote the use of new energy car. Mr Zhou concluded his remark by restating his expectation about this project’s contribution in improving air quality in Beijing. V.Presentation by Mr. Wang Huijun, Executive Vice President of CBEEX. Mr. Wang gave a brief presentation on the entire project. In the presentation, he introduced project background, baseline situation, project outcomes and activities. In addition, the management arrangement for the project was introduced. VI. Exchange of idea, questions and comments Q&A and Discussion After the presentation, the floor was open for Q&A, and the discussion was summarized as follows: Mr Li Kunsheng, Division in Chief, Department of Motor Vehicle Emissions Management, Beijing Environment Protection Bureau commented that the works on tail gas/emissions emission control have been conducted for many years and measures like market mechanisms and new vehicle regulations would be difficult to implement since they require related policies to be issued. In addition, there are a lot of infrastructural works need to be done before introducing new energy vehicles into the market. He also concerned about the outcomes of the project and suggested the project should also focus on public awareness advocacy. It was not enough to merely relying on the governmental efforts to protect the environment, the public should aware their daily life’s impact on the environment and join the initiative to deal with air pollutants. Mr. Wang Huijun commented that this project can be a good initiative to explore whether a good market mechanism can be incorporated in reducing the air pollution. It is also a good platform to utilize the strength of UNDP as well as CBEEX. Due to the requirement of the funding sources on this project, it will be specifically targeting at the issues in this area. Mr. Lv Shijie, Chairman of the Board of Puhui Internet Financing, thought there are three sources of the air pollution in Beijing. First and for most was the gas emission. To deal with issue requires not merely focusing on introducing new energy car, which has limited impact but to strengthen the public transportation system and to reduce the usage of private cars. For example, the environment-friendly electronic motorcycles are ban from Beijing. He suggested that new regulations need to be made to facilitate such usage. In addition, he commented that government should be stricter in issuing new license plate for cars to back up the promotion of new energy car. Second, the industrial and human actives contributed a lot to the air pollutant. To target at this issue, there need to have innovative techniques applied on tail gas/emissions conversion as well as control the pollutant emitted from kitchens and restaurants. He also suggested that since Beijing is closely connected with Tianjin, Hebei and Henan province, 3 therefore a joint initiative should be reached with those neighbors to deal with the pollutants in a more effective way. Mr Wang Weili said due to the limited funding for this project, this project can only target at the particular issue in this project. This project will try to deal this big issue with a specific topic to start, and related measures can be taken during its implementation process. UNDP’s participation opens up a great platform to view the environment issues in Beijing with progressive points of view. Ms Ming Dengli suggested that the title of this project should be more detailed to coherent with its outcomes. She also thought that many key activities of the project are related to the system that CBEEX already has. Therefore while optimizing this system, the effort should also be put on promoting this system through the other channels like UNDP and BEPB etc. The policy innovation on promoting new energy vehicles can be broader and easier to apply than providing subsidies. In addition, she thought that UNDP is great platform for Beijing to learn international experiences in dealing with air pollution as well as promoting the achievement Beijing has made. The strength of UNDP in influencing policy changing as well as raising public awareness should also be utilized during the project implementation. Mr Wang Huijun putted that the title of the projects had been revised to be more coherent with the project. Further revisions will be made in the project document based on the suggestion from Beijing Environment Protection Bureau. Currently they are working on constructing the platform to promote the new energy vehicles. Mr. Mao Boyang, Staff of International Cooperation Department, Beijing Environment Protection Bureau said that UNDP has strength in policy influence therefore this project with focus on policies change to promote new energy vehicles. The problem of air pollution is a common issue during the developing process of one country and to deal with it requires joint collaboration from different parties, especially from the public. UN agencies in China has cooperated with Beijing to launch many projects to deal with the environment related issues, which allows the world to see the efforts that Beijing has put into this. Mr. Guo Tao, Regional Manager in charge of used cars, Northern Section, FAW-Volkswagen, said that they have cooperated with CBEEX in elimination of old cars and became the NO.1 contributors in 2014. He suggested that the new policy should encourage “using scrap cars in exchange for new cars”. The facts that the nearby cities have raised the bars to against old vehicles to enter their cities and the huge gap between government subsidies and the cost for car relocation, made the old cars in Beijing hard to get relocated. The old cars, which didn’t meet the first or second stages of emission standard in China, were sold to black market in the surrounding cities of Beijing like Miyun and Changping, which lead to another risk. Therefore, he suggested that more funding should be put to support scraping those vehicles and related policies should be issued. Mr Wang Qi, Division in Chief of Operation Department, BAIC Group said that he agreed that government, car manufactures as well as the public should jointly share the responsibility of air pollution. The “carbon exchange” is good model to replicate in order to engage people to reduce using private cars and rely more on public transportation. Mr. Xiong Wei, Assistant Director of Operation Department for Group Customers, Changan Automobile, questioned about tail gas/emissions as the major source for the air pollutants. To deal with this issue, the sources need to be clarified. 4 Mr Yao Haining, Assistant to the President, PuHui Internet Financing, commented on more innovative ways can be utilized in dealing with the air pollution in Beijing, especially can utilize the mobile apps. He gave the example of “Didi Taxi”, a mobile app for people to contact the taxi drivers, which help increase the efficiency of taxi drivers and reduce the daily mileage. He also suggested future exploration on car sharing app, biking and sustainable traffic exploration. IX. Concluding remarks by Mr. Patrick Haverman Mr. Patrick Haverman thanked the participants for their valuable inputs, comments and urged the formulation team to make every effort in consolidating all these comments and suggestions which would be reflected in the finalization of the Project Document. Mr. Haverman also proposed that a joint publication about sustainable transportation should be issued with corporation between UNDP and CBEEX. The publication could focus on the topics of bicycle and electronic cars in smog reduction, car sharing issues, public transportation as well as subsidies for new energy vehicles and electric motorcycles. Finally, Mr. Haverman announced there was no obvious objection to the Project Document and therefore a consensus was reached among all parties involved to approve the project. X. Agreement & To-do List Any remaining uncertainties can be discussed at the inception workshop and further minor amendments can be made during project’s execution. Prepared by: Ms. Ruoqi Zhu Communication Assistant Energy & Environment Team Cleared by: Mr. Zhang Weidong Programme Manager Energy & Environment Team Approved by: Mr. Patrick Haverman Deputy Country Director UNDP China 5 Annex I Agenda - PAC Meeting on Innovation of New Mechanism Smoke Control in Beijing Project Venue: UN Large Conference Room 2 Liangmahe Nanlu Beijing 100600, P. R. China Time: 9:00 – 10:00, Oct 11 2014 9:00-9:05 Self-introduction of the Participants Welcome and Opening Remarks by Mr. Patrick Haverman, Deputy Country Director, UNDP China 9:05- 9:10 Opening Remarks by Ms. Wang Weili Deputy Director-General, CICETE 9:10-9:15 Opening Remarks by Ms. Ming Dengli Division in Chief, International Cooperation Department, BEPB 9:15-9:20 Opening Remarks by Mr Wang Huijun Executive Vice President, CBEEX 9:20-9:35 Overview of the Project by Mr Yue Peng Project Manager, CBEEX 9:35-9:55 Discussion and Comments 9:55-10:00 Concluding Remarks by Mr. Patrick Haverman, Deputy Country Director, UNDP China 6 Annex II List of Participants Ms. Wang Weili, Deputy Director General China International Centre for Economic & Technical Exchanges (CICETE) Mr. Zhang Ning, Division in Chief China International Centre for Economic & Technical Exchanges (CICETE) Ms. Ming Dengli, Division in Chief International Cooperation Department, Beijing Environment Protection Bureau Mr. Li Kunsheng, Division in Chief Department of Motor Vehicle Emissions Management, Beijing Environment Protection Bureau Mr. Zhou Cheng, Vice President China Beijing Environment Exchange (CBEEX) Mr. Wang Huijun, Executive Vice President China Beijing Environment Exchange (CBEEX) Mr. Yue Peng, Director Emission Trading Center, China Beijing Environment Exchange (CBEEX) Mr. Tao Lan, Director International Programme Office, China Beijing Environment Exchange (CBEEX) Mr. Yan Lei, Operation Manager National Programme Office, China Beijing Environment Exchange (CBEEX) Mr. Wang Qi, Division in Chief Operation Department, BAIC Group Mr. Guo Tao, Regional Manager in charge of used cars Northern Section, FAW-VOLKSWAGEN Mr. Xiong Wei, Assistant to Director Operation Department for Group Customers, CHANGAN Mr. Lv Shijie, Chairman of the Board PUHUI Finance, www.phjr.roboo.com Mr. Yao Haining, Assistant to President PUHUI Finance, www.phjr.roboo.com Mr. Patrick Haverman, Deputy Country Director UNDP China 7 Mr. Zhang Weidong, Programme Manager Energy and Environment Team, UNDP China Ms. Ruoqi Zhu, Interpreter Energy and Environment Team, UNDP China 8