Conference in Shanghai, China on May 26-27, 2013 Collaboration Among Government, Market, and Society: Forging Partnerships and Encouraging Competition Organizers: Fudan University School of International Relations and Public Affairs (SIRPA), Shanghai, University of Maryland School of Public Policy (UMD), Association for Public Policy Analysis and Management (APPAM) Target Group: worldwide audience, including academics and professionals from universities, think tanks, government agencies, nonprofits, and the private sector. * Paper ID 4438 Prof. Dr. Berthold Kuhn, Xiamen University, School of Public Policy, P.R. China * State-Market-Civil Society Collaboration in Promoting Low Carbon Policies and Lifestyles in China Abstract: This paper argues that climate protection and the promotion of low carbon policies and lifestyles require collaboration between state, market and civil society. The aggravation of the pollution problem in many big cities and the growing media attention makes it likely that the political authorities will formulate more policies, set incentives for the private sector and become more responsive to initiatives of civil society organizations (CSO). Social media facilitate awareness raising and monitoring by civil society and citizens. However, there is also a risk of unrest and conflicts in the context of rising environmental concerns of citizens. Reflections on an appropriate institutional mix to address climate protection may guide policy makers to identify further actions including command-and-control, market-based and awareness raising initiatives. Key words: climate protection, collaborative governance, cooperation, co-production, civil society, NGO, low carbon policies, low carbon lifestyles 1 1. Introduction The issue of combatting pollution and protecting the climate is of high relevance for the political authorities in the P.R. China at both the national and international level. Climate protection is a complex and abstract issue but pollution problems are felt by a growing number of people living in China. Many Chinese cities are exposed to serious environmental risks due to industrial pollution, vehicle exhaust and lack of recycling of hazardous waste. Media interest on the subject has increased. Reports on the pollution levels in Beijing made world headlines in January 2013. The levels of greenhouse gas emissions reached record high in 2011 measuring 392.2 parts per million (China Meteorological Administration 2012). The rapid growth of Internet use and social media in China leads to much faster spread of information and concerns among citizens. The political leadership in the P.R China has recognized that combatting pollution requires a degree of mobilization and commitment of political, social and economic forces and institutions. The Central Government authorities and state agencies cannot achieve it without participation of social forces and citizens. In China, like in other countries, the climate protection discourse is still an elite-driven discourse. Sociological analysis may help to understand and, perhaps, overcome limitations of elite-based approaches as Beck suggests in its theses on green modernity (2012). The rich and the poor, the centre and the periphery are all concerned by climate change and the consequences of climate change will further aggravate the rich-poor divide (Beck 2012). Climate protection, thus, is not only an environmental policy issue but also a challenge for the preservation of “social harmony”, the omnipresent term in Chinese political and social discourse in the past decade. China’s commitment to address environmental problems and climate protection issues is of major global concern. China is the largest emitter of carbon-dioxide. Its emissions amounted to more than 28 percent in the year 2011 (Spiegel Online 13.04.2013, CDIC 2013). The prospects for binding agreements at the international levels are not very promising. Global summits have not met the expectations. Climate governance at the global level is in a crisis situation. Brunnengräber (2012: 21) writes on the “failure” (“Scheitern”) of international climate negotiations. National interests dominate the agenda, the political will for financial transfers is low and the scope of international agreements is limited (Brunnengräber 2012: 26). Glaeden predicts that the management of promising expectations on global climate protection summits by the United Nations may peter out (Bojanowski 2012). The growing complexity and difficulty of international negotiations has met academic interest across disciplines. Game theory has been applied to explain the failure of cooperative behavior of states: “Game theory suggests current climate negotiations won’t avert catastrophe” (Rehmeyer 2012). Experts and media observers voice their frustrations and argue in favor of more emphasis on climate protection policies and action at local, national and regional level 2 (Bojanowski 2012). Game theorist Barret argues that “a more promising approach is to negotiate smaller agreements including only some countries or some greenhouse gases, and to use the threat of trade sanctions to enforce the agreements.” (Rehmeyer 2012). Schreurs (2010) argues that cities and provinces may play a more important role in future climate policies and linking their climate action plans to global initiatives. The Chinese Government is carefully observing citizens’ and experts’ concern on pollution. Worries have increased about possible trade sanctions linked to the non-participation in international agreements on climate protection. China has passed a series of regulations, formulated new policies and targets and designated low carbon pilot provinces and cities. The private sector and non-governmental organizations are making their contributions in terms of technology development, green investments, public private partnerships and CSR reporting. Civil society organizations have built networks and are engaged in campaigns and projects at various levels. Urban planning takes place with an increased focus on ecological issues. “Think globally, act locally”; this famous phrase of grassroots activists and town planners is now resounding among Chinese experts. What are the potentials and limitations of different types of institutions and their cooperation in the field of climate protection in China? This paper describes the roles and contribution of the state, the private sector and civil society organizations and reflects on two questions of relevance for the further transition path of China’s economic and social development. First, will climate protection become a new area of growing government-private sector-civil society cooperation or rather an area of potential conflicts of different stakeholders and Government-citizen interaction? Second, will the new policies and green model projects lead to a coherent multi-stakeholder approach in addressing climate protection or will there be an increasing gap between different regions and between some green show-case policies and dirty mainstream business as usual? The prospects for progress and collaboration among different actors may look good at the first glance. The Central Government pays increased attention to the topic. However, priorities of regions and stakeholders may greatly vary across the country and the implementation record of environmental policies has been mixed in the past decades. The magnitude of the problem seems to require a new level of commitment of multiple stakeholders. Reflections and analysis are based on literature review and on case studies. Theoretical considerations refer to E. Ostrom, the pioneer of co-production concepts, and recent papers of Pestoff, Meijer and Verschure/Brandsen/Pestoff. Reference is also paid to my previous works on comparative advantages of state, market and civil society actors in development cooperation (Kuhn 2005/2009).The case studies draw on experiences and results of three recent initiatives of Xiamen University's new School of Public Policy. The empirical evidence is gathered from the German-Chinese conference in climate protection which addressed resource efficiency and waste policies from different disciplinary perspectives in December 2012, one research project supported by Friedrich Ebert Foundation on climate change awareness, role of NGOs and citizens participation and one research project on the 3 competence and role of different stakeholders in the field of climate protection in Xiamen supported by Konrad Adenauer Foundation. 2. Cooperation and Co-production in the Field of Climate Protection Elinor Ostrom, the pioneer of co-production theories, was an environmental economist. She is known for her works on common resources and was awarded the Nobel Prize in 2009. Academic research on co-production and the role of NGOs, however, has so far largely focused on social sectors. The recently published special section on “Co-production – The State of the Art” in Voluntas (Vol. 23, Nr. 4, Dec. 2012) covers mainly case studies in social services (Pestoff 2012, Brandsen/ Heldermann 2012, Vamstad 2012, Meijer 2012). Which lessons can be learned from theoretical considerations and empirical analysis of co-production in social sectors? Pestoff (2012: 1107) provides a useful analysis of the difference between co-governance and co-management. Co-governance takes place at the decision making and input level while co-production and co-management take place at the output level which is of relevance to the Chinese context. The Chinese political leadership has largely recognized that some NGOs provide valuable services in line with Government policy priorities, especially in the social sectors. The role of NGOs as agenda setters and advocacy networks at the input level is much less recognized. The focus of Government-NGO interaction in China has been on the output level for a long time, at least from the perspective of the Government. The growing concern on environmental issues may enlarge the space for NGOs in advocacy work and agenda setting. The Chinese authorities may find it easier to embrace the co-production discourse than the co-governance discourse. The latter may be seen as a challenge to the leadership role of the party and the competence of the state administration. Co-production with its focus on the output level and on citizens’ participation – as reflected in the dominant discourses in the US and continental Europe (Pestoff 2012: 1107) – comes across as an opportunity for increasing the effectiveness and efficiency of policy implementation. Thus, it seems more acceptable. Pestoff (2012: 1112) also dwells on the issue of co-operative gambits: individuals sacrifice their short-term personal interests for the sake of the long-term individual and group-benefits. With reference to Ostrom (2000) he stresses that “rational egoist” are not the only players in real world settings and people seem to be prone to pursue the cooperative gambit if certain institutions exist (Pestoff 2012: 1112). Further analysis of case studies in the social sector (Vamstadt 2012) provides evidence for the lack of capacity by the public and the private for profit sector of childcare to promote greater citizens participation and client-co-production. They encounter lower ceilings of co-production levels by citizens than nonprofits. Such analysis support the crowding out argument These empirical findings underscore E. Ostrom’s (1999/2000) analysis on how external incentives may crowd out or crowd in behaviors that are based on intrinsic preferences. Civil society organizations may be viewed as agents who harvest the intrinsic motivation of citizens to volunteer, to engage and to co-produce public goods. The proposition of specific 4 comparative advantages, disadvantages and trade-offs of civil society organizations (Kuhn 2005/2009) is essential to identify the right institutional arrangements for mobilizing resources. In China, the crowd in argument may be easier to accept for the political leadership than the crowd out theory when reasoning about the level, the depth and breadth of government engagement in social and environmental policies. Meijer (2012) highlights that social media are a facilitator of co-production because the costs of connecting to citizens have been reduced drastically and the new technologies create opportunities to interact 24/7. The media hold the promise of strengthening co-production in an information age. Meijer’s findings are relevant to the promotion of climate protection and low carbon lifestyles, too. Climate protection is an abstract and complex issue. However, citizens are exposed to problems of pollution, quality of food, water and waste issues. Social media may play a significant role in facilitating quick information sharing on risks, good practices and lifestyles. Blogs and tweets are also expressions of lifestyles. Many environmental and climate protection activists are active bloggers. Social media provide opportunities for organizations and experts to educate their peers and other citizens on policies, incentives and projects. Such bottom-up approaches based on personal interactions of people build social capital and contribute to altering perceptions of climate change from a global to a local problem (Adger 2010: 342). Linking individual and global responsibilities, consumption and production are ways to more sustainable and climate friendly livelihoods Climate protection through the promotion of low carbon policies and lifestyles requires linkages between production, the supply side of goods and services, and consumption, the demand side of goods and services. The recycling and upcycling discourse (Kay 1994 with reference to Pilz, Pauli 1999) and the sustainable consumption and production discourse (Tukker et al. 2008) have made valuable contribution to understanding the transformative power of citizens’ consumption priorities on environmental friendly and low carbon lifestyles. “All economic activity, and hence the related environmental impacts, are driven by consumption…. Mobility (car and air transport, including for holidays), food (meat and dairy followed by the other types of food) and energy use in and around the home (heating, cooling and energy using products) plus house building and demolition, cause, on most environmental impact categories, together 70 to percent of the life-cycle environmental impacts in society.” (Tukker et. el. Al. 2008: 1219) Sustainable consumption and production is the theme of many policy frameworks and programs stressing the multiple responsibilities of stakeholders in climate protection engagement. The concept involves business, government, communities and households. “The major innovation and strength of SCP is to provide a holistic approach that integrates the whole life cycle of products and services, combines production and consumption related practices… (United Nations ESCAP, www.greengrowth.org, n.d.)”. The United Nations have promulgated the concept and are support by many regional and transnational organizations and programs, such as the SWITCH Asia program of the European Union (Tukker et. Al. 2008). SWITCH-Asia is promoting Sustainable Consumption and 5 Production across the Asia region by addressing the policy level and working with producers and consumers at the ground. Sixty-six projects in 16 Asian countries have been funded by the end of 2012. An EU co-financed project in China aims to assist Chinese small and medium size enterprises (SMEs) in their management of eco-efficiency, occupational health and corporate social responsibility (CSR) measures (www.switch-china-sme.eu) Nemeskeri/Mont (2008: 3) brought up relevant questions for future research on sustainable production and consumption: “Who are the key actors of the production and consumption system? What roles do they assume? What drives their decisions and behaviors? What kind of systemic conflicts arise amongst them?” The playing field of the complex issues of sustainable consumption and production consist of many institutional and individual actors. “All institutional actors are also individuals in their different social and economic roles, expertise and disciplines. Designers and engineers, people hooked on creative ”games” and technology, mesmerised by the beauty and power they can generate through technological answers to certain challenges,themselves drive development to specific paths.” (Nemeskeri/Mont 2008:19) While acknowledging that actors and individuals possess multiple identities and assume various roles in society, the state-market-civil society model of distinguishing groups of stakeholders shall provide the theoretical framework for the following further analysis. The role of the state and the market are subject to many political, economic and social science theories. Research efforts have also established ample evidence that it is possible and relevant to develop theories of typical roles of civil society organizations and their comparative advantages and dilemmas in partnerships with other organizations (Kuhn 2005/2009). The role of the Government typically consists of introducing green policies, legislation, regulations and setting different kinds of incentives for the private sector and civil society organizations. Incentives may comprise tax policies, subsidies, preferential loans, procurement rules, awards and project funding. The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) recommends the introduction of green taxes and budget reforms (GTBR) as a fiscal policy instrument for improving eco-efficiency, public health and environmental quality. Almost all businesses, including small and medium sized industries, have the potential for contributions to climate protection and promotion of low carbon lifestyle by creating new products and services and by responding to new demand and consumption patterns. Industrial and business associations can promote and disseminate best practices in cooperation with policy makers at national and international level. Civil society is the space where discourses on new trends, practices and lifestyles are spread through the work of community based groups, associations and foundations dedicated to protect the climate. Non-Governmental Organizations (NGO) are playing the role of agenda setters, peddlers of information (Jakimow 2012) and service providers. They enter into many 6 partnerships with government departments and companies to support them in program design and implementation and in CSR related activities Citizens contribute resources to climate protection in form of knowledge generation and application (best practices, how to save energy?), time (extra time needed for garbage separation and use of low carbon transport means) and money (investments in household energy saving, purchase of low carbon products, participation in carbon-offset programmes). The behavior of citizens is influenced by regulations, incentives and voluntary commitment. Their lifestyle and choices of consumption make a difference at the personal, the community and the society level. In a society with diversity of income levels, education levels, cultural backgrounds and motivations it is easy to understand that command-and-control, market based and awareness based mechanisms need to be combined to appeal to different people and sections of society. Dissemination of information has become much easier in the age of information. 3. State-Market-Civil Society Collaboration in China China has enacted comprehensive environmental laws, formulated ambitious policies, set up emission trading systems, created and mandated an array of institutions dealing with climate protection issues and is one of the world’s biggest investors in renewable energies. It also hosts a number of well recognized NGOs, some of which united in the China Civil Climate Action Network (CCCAN). The country has an enormous potential for fruitful interaction to benefit climate protection. It also faces major obstacles given the growth oriented paradigm of economic policies in the past decades, the dependency on coal for its primary energy supply and the disparity in income and density of population different regions. Understanding and conceptualizing state-market-civil society collaboration in China is a challenging venture. Francis (2001) observed that unorthodox interactions between the state and the market are ubiquitous in China’s emerging market system. The situation may have changed in some areas in the context of further transformation to a market economy. However, the proliferation of ‘hybrid institutional forms’ is still high [Francis 2001: 279]. Striking a balance between the trap of the great divide (E. Ostrom) and overstretching boundaries of institutions is one of today’s obvious challenges in Chinese economic and social policies. The role of big state owned enterprises and the many emerging social enterprises need to be taken into consideration when discussing the framework for collaboration and co-production in China. However, the dominant political discourse on collaboration and co-production in China seems one of pragmatism and adaptation to specific circumstances. The number of policies, organizations, projects and initiatives to deal with climate protection has risen in China in the past years. Strategies to address climate change mitigation include command and control mechanism, market-based mechanism, research, educational and awareness raising projects. 3.1 The Role of the State In China, the political system may be associated with strong regulatory and governance powers by the state, but there are great variations across different policy areas and sector. 7 “While China, for example, is able to control most parts of its vast territory, its government lacks the capacity to enforce its own laws, particularly with regard to environmental protection (Boerzel/Risse 2010: 119 with reference to Thauer 2009). While China’s environmental legislation is generally appreciated considering the country’s short environmental law history, it has also received criticism by legal experts. Beyer (2006) refers to vague statutory language, overlapping and sometimes contradicting legislation administered by agencies with varying commitments and experiences with formal legal process, local protectionism, week courts, and week public participation. Tan Zhu/Kon-Che (2009) identify plenty of scope to improve and refine the existing framework of Environmental Impact Assessments (EIA) and recommend to encourage and summon more social organizations and general public to participate in the management of EIA. The issue of climate change has received growing attention over the past decades. China signed the United Nations Framework Conventions on Climate Change in 1992, established a National Climate Centre (1995), joined the Kyoto Protocol (1998), passed a National Renewable Energy Law (2006), established a National Leading Group on Climate Change and approved a National Climate Change Action Plan (2007), upgraded the State Environmental Protection Agency (SEPA) to the rank of a full Ministry of Environmental Protection in 2008 and designated low carbon-cities and provinces (2010). Carbon emission trading systems were started in 2009 and led by the China Beijing Environmental Exchange, Shanghai Environmental Energy Exchange and Tianjin Climate Exchange. China’s new 12th Five-Year Plan (2011–2015) includes new elements for a low-carbon development pathway. China has made long term pledges to reduce greenhouse gas (GH) emissions and issued emission reduction targets at both provincial and sector levels. The 12th Five-Year-Plan aims to reduce the amount of carbon emitted per GDP unit by 17 percent by 2015 compared to 2010 levels. The State Council published a new edition of a White Paper on China’s energy policy in October 2012 outlining efforts to move toward clean energy and climate protection. The Government has also addressed the problem of toxic and hazardous chemicals and will introduce a management system to control the use of these chemicals by 2015. The State Council plays the key role in policy formulation which is under the framework of the national Five Year Plans. The National Development and Reform Commission with branches at provinces and city level is the core policy coordinating body. The Ministry of Environmental Protection and the Ministry of Sciences and Technology are the key players at the level of the Ministries. However, the Ministry of Foreign Affairs still exercises influence at the international level. It has a Special Representative for Climate Change Negotiations. Influential actors at the local level are the Environmental Protection Bureaus and various departments in the field of Economic Development, Construction, Transport, Sanitation, Sciences, Education, Agriculture, Gardens, Forestry and Maritime Affairs. 8 Conrad describes China’s administrative battles, competing claims and growing mandates in the arena of climate change policies as “bureaucratic land rush” (Conrad 2010). “The example of China’s climate change policy vividly illustrates how bureaucratic actors venture into new territories of bureaucratic turf, trying to build specific expertise that allows them to take on additional responsibilities and thereby to broaden their sphere of influence.” (Conrad 2010: 63) In China, the role of the state is politically powerful in terms of agenda setting and policy development. The Government uses command-and-control, market-based and other incentives to address the issue of pollution and climate protection. Market based instruments include trade-emission schemes, incentives through tax policies, subsidies, and preferential access to loans and punitive measures. Hu developed a set of recommendations for the Chinese Government on environmental policies. What he calls “synoptic policies” is a rationale for introducing new government policies based on market-based mechanisms (HU Wei 2009: 11) “First, China’s government should harness the market to work for the environment, not against it. Market forces have provided the foundation for the economic growth of the past two decades. Properly harnessed, they can be major allies for a cleaner future. Synoptic policy-making is different from market decision, but it can utilize market mechanisms for sustainable development. This will require, for example, adjusting prices to cover economic costs and incorporating social costs of pollution through taxing environmental externalities. Cao (2010) discussed different climate policy options and elaborated on the advantages of market-based instruments: “Market based instruments, in general, are more cost effective, more flexible, and may provide consistent stimulus for firms to invest in low carbon technologies, and for households to change their lifestyles with less reliance on energy use.” (Cao 2010: 126) The subsidies and incentives provided by the Chinese central and local governments are sometimes criticized as unfair competition by other countries. The solar industry has suffered from punitive duties and exports dropped 35 percent year-on-year in 2102. SunTech Power Holdings Co., the first and world largest solar panel manufacturer, has undergone bankruptcy reorganisation (Li Jiabao/China Daily: 26.03.2013: 13). Nevertheless, Chinas rapid growth of the renewable energy sector has set an encouraging example and national and international level (Liguang Liu 2013). Jänicke (2010) included China’s climate policy, in particular the promotion of wind energy, in his best practice analysis. China introduced pollution liability insurance in the coal industry and subsequently extended it to other industries. Special guidelines were issued for the petro-chemical and heavy metal industries in March 2013. Those enterprises which operations are not covered by the insurance scheme encounter restrictions and difficulties in the approval of their projects’ environmental impact assessment. Implementation and monitoring of policies, especially in economically backward provinces, is relatively weak and prone to corruption. The large 9 territory, the economic and cultural diversity of the regions and the decentralized economy make policy implementation and evaluation difficult. However, Chinese authorities have used various methods to persuade companies to disclose, including laws, regulations, indexes and ratings, as well as ‘naming and shaming’ polluters (Loh 2012: 61) Provinces have made green development commitments following the annual sessions of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) including the reduction of cutting carbon emissions, planting more trees and raising public awareness about environmental protection. The enormous challenges of climate protection are also supposed to be addressed in the context of the proposed quality urbanization process and the realization of compact city models. Pilot provinces and cities are supposed to set examples for processes of modernization with focus on green technologies and life styles. The concept of environmental model cities is now firmly established (Schroers 2010: 98). NDRC launched a national low-carbon province and low carbon city experimental project in 2010 covering the provinces of Guangdong, Liaoning, Hubei, Shaanxi and Yunnan and the eight cities of Tianjin, Chongqing, Shenzhen, Xiamen, Hangzhou, Nanchang, Guiyang and Baoding. Activities are supposed to include the development of a low carbon development plan, low carbon industrial and transport projects and promotion of low carbon lifestyles. 3.2 The Role of the Private Sector China is extensively involved in global supply chains and the world’s major manufacturer for many products. It hosts some of the most polluting enterprises in the world. China ranks first in chemical industrial output value. The production levels of pesticides, dyestuff, methanol and chemical fertilizers are all the highest in the world (Wu Wencong/China Daily; Guideline uses market approach to curb pollution, 22.02.2013: p. 3) China’s private sector has grown enormously following the reform and open-door policies after 1978. Private companies now account for three fourth of Chinese companies. Investments in research and development are high and most major multinational companies are represented in mainland China and Hong Kong. The private sector is under constant pressure to meet the high expectations and cope with new regulations set by the political leadership in terms of technological improvement, environmental standards and insurance schemes. It also faces the challenge to avoid rows over environmental standards and copyright issues at the international level and to deal with fierce competition of other emerging economies in the region. In sum, the private sector in China experiences a high paced development. In terms of technology development and marketing, the Chinese private sector may benefit from research done by manufacturers in countries that adopted regulations earlier and possess experience with marketing of low carbon products. Mehdi (2009: 26) has drawn such conclusions with regard to regulations in the car manufacturing industry. The political leadership has meanwhile adopted a clear vision of technological upgrade and greener growth. However, regional visions and policies on development vary greatly. Economically backward provinces still attract environmentally harmful industries while prosperous regions and pilot cities showcase low carbon projects, especially in the field of industrial production, transport and construction. 10 The traditional view of the private sector in China is that environmentalism and economic development are opposing forces (Ward/People’s Daily Online: 14 .03.2013). Like in other economies increased regulations and taxes are perceived as a burden by the private sector. The traditional view has been challenged by project factoring the costs of environmental degradation into economic growth projections. According to assessments by the World Bank (2012: An Analytical Framework for inclusive Growth: p. 29), the costs to China’s economy incurred due to environmental degradation account for about 9 percent of the country’s total GDP, with a growing tendency. Some experts estimate it to be much higher. Today there is growing evidence that the views are changing and top level industries are prepared to address the issues of climate protection, especially consumer-facing companies. The motivation comes from investors, NGOs and consumers who inquire about environmental standards and carbon footprints (Loh 2012: 54). China’s first voluntary carbon trade took place in 2009. Tianping Auto Insurance purchased credits generated by a green commuting campaign during the Beijing Olympics (Qin Tianbao 2012: 77). Voluntary emission trading has received approval and support by the Government and leading companies. Multinational consulting companies have addressed the issue of climate change in cooperation with business leaders in China and worldwide. The annual Global Chief Executive (CEO) Survey of PriceWaterhouseCoopers (PwC) finds that among China/HK CEOs 33 percent cite climate change as one of their key global risks, ahead of 27 percent of CEOs in the global sample. 28 percent factored climate change risks explicitly into strategic planning against 26 percent of CEO globally. According to the survey four in ten companies plan to increase their investment in addressing the risks of climate change and protecting biodiversity over the coming three years. Chinese/HK CEOs are starting to move towards global leadership in climate change mitigation. (Loh 2012 with reference to PwC’s 2011. The Sustainability Maturity Curve (SMC) developed by PwC (Loh 2012: 78) illustrates different phases of development of companies, from compliance, to operational effectiveness, to leverage and to leadership and from risk management to managing for value to strategic advantage. The model serves as an analytical framework for consulting services to major corporations in China. The potential and costs to reduce emissions vary across business sectors. KPMG developed a chart showing relatively high emission intensity and low cost reduction costs in in mining, utilities, property and the automotive sector (KPMG China 2011/ KPMG Australia). Columbia University, Tsinghua University and McKinsey developed an “Urban Sustainability Index: A New Tool for Measuring China’s Cities” in 2010 which is designed to measure relative performance of Chinese cities across a set of sustainability categories and indicators (www.urbanchinainitiative.org). The role of the private sector in protecting the environment involves many aspects. One key aspect is technological development, marketing and sales of renewable energy sources and clean technologies. The policy environment in China provides many stimuli for the private sector to invest in green technologies. China aims to generate 15 percent of energy supply from renewable sources by 2020. The source of energy supply is an important factor. While electric forms of transportation such as electric cars, bikes and railways may make more 11 efficient use of electricity and reduce vehicle emissions, their overall impact on carbon dioxide depends on how clean the source of electricity is (Loh 2012). The private sector is involved in up-grading infrastructure, phasing out polluting low technology plants, retrofitting and weatherizing old buildings. Companies operating in China are expected to become more and more transparent and accountable. The Ministry of Environment issued guidelines to Environmental Information Disclosure of listed companies, targeting 16 pollution sectors (Loh 2012: 64). The number of CSR reports in China has increased over the years and reached 1000 CSR reports in 2000, an increase by 30 percent compared to 2010. 58 percent are state owned enterprises. Standards have been developed but the quality of many reports needs improvement according to expert opinion by Guo Peiyuan of SynTao, a Chinese CSR consulting firm. Reporting formats in the context of Corporate Social Responsibility include environmental and social compliance issues and inventories of toxic substance release (Peiyuan 2005). At the local level, social enterprises may lead community level ventures to showcase environmental concerns following the slogan Planet before Profit. The Global Reporting Initiative (GRI), a multi-stakeholder initiative, has developed a framework on environmental, social and governance aspects, the ESG standard. Indicators for ESG reporting include energy efficiency, carbon emissions, biodiversity targets, water usage, natural resource use, recycling practices and waste to energy. ESG reporting has spread in China and the first ESG index was launched in September 2010. Another reporting system which related directly to climate protection is the Carbon Disclosure Project (CDP) which requires companies to disclose data and information on greenhouse gas emissions, water management and climate change strategies. The climate disclosure standards board acts as a forum or collaboration on how existing standards and practices can be linked to financial and climate change related reporting and respond to regulatory developments. The United Nations Global Compact is another high level initiative which seeks to increase the commitment of the private sector to address environmental and social issues. The Dow Jones Sustainability Index based on a best-in-class approach is another stimulus for companies to engage more in sustainable development. International rankings complement the stimuli for Chinese companies. Newsweek published a Green Ranking of Chinese companies in 2011. Certifications and green audits (Loh 2012: 65). Dow Jones launched a new sustainability index targeting emerging markets in February 2013 (www.greenbiz.com). There are many initiatives worth noting in China but it would be too early to say that climate protection has been mainstreamed into strategy development and operational management of Chinese companies. Low quality reporting, outsourcing of dirty production and even corruption still seem to be widespread. 3.3 The Role of Civil Society and NGOs Civil society, the sphere between the state and the market, comprises initiatives and organizations that engage in activities of mutual or public benefit through delivery of services or advocacy work (Kuhn 2005, Kuhn 2006, www.civicus.org). The concept of civil society has gained importance in China over the past decade, in particular in the area of social and 12 environmental work. The term civil society organizations (CSO) with its broader focus on initiatives and organizations within the realm of civil society is now widely used in European Union policy dialogue. However, in China the term civil society is still somewhat sensitive outside the academic sphere. This paper refers to civil society organizations (CSO) in reference to concepts relating to initiatives from the wider arena of civil society. It uses the term NGO in describing the role of non-state and not-for-profit organizations, including shehui tuanti or shetuan (associations), minban fei qiye danwei, also known as min fei (non-profit enterprises) and jijinhui (foundations). The number of registered NGOs increased in China over the past decade in a significant way – approximately ten percent per year – amounting to close to 500 000 registered non-profit organizations (shehui tuanti, jijinhui, minfei). Civil society in China is still curtailed by an unfavorable political and regulatory environment (inherited from an authoritarian old-fashioned-style communist regime suspicious of economic and social initiatives outside the realm of the party and the state). The successful introduction and scaling up of reform policies from 1978 onwards under the political leadership of Deng Xiaoping have transformed China into a modern and more open society. However, trust between political authorities and NGOs is still relatively low and public opinion’s skepticism seems to have grown after the recent charity scandal involving the Red Cross in 2011. The scandal has sparked new debates on NGO regulation and certification as means to build trust. Economic development has brought new opportunities and challenges for which the state administration seeks support of experts and citizens initiatives. Many NGOs have benefited from cooperation with Government departments, partnerships with business and international cooperation in terms of financial support, project cooperation and networking. Reform measures to ease registration for grassroots NGOs and to step up funding and project cooperation at the municipal level are under way in some cities, especially in Shenzhen, but are not yet implemented across the country. Political authorities still shy away from passing more liberal legislation. Associations, foundations and non-profit enterprises are still governed by provisional regulations and are relatively closely supervised. Fundraising is more restricted than in many other countries. The number of registered NGOs is still growing and cumulative figures of different legal types of organizations have almost reached 500 000 by the end of 2012. Many environmental NGOs have made their voices heard beyond the neighborhood and community level. Their expertise is recognized by political authorities at different levels. They have participated in international conferences and engage in exchange and cooperation with the state administration at different levels. More Chinese civil society organizations participated in the Rio+20 conference than on previous world summits. “In 2012, Chinese civil society went to Rio to show to the world what is happening in terms of sustainable development initiatives implemented by civil society in China.” (Schroeder 2012). Some of Chinese environmental NGOs have included climate protection in their agenda and set up joint initiatives to address the issue and network at transnational level. The China Climate Change Action Network (CCCAN) includes some renowned NGOs such as the 13 Chinese Association for NGO Cooperation (CANGO), Friends of Nature, Environmental and Development Institute, Global Village Beijing, Green Earth Volunteers, Xiamen Green Cross Association and Chinese Youth Climate Action Network. Chinese NGOs have been involved in many projects related to awareness raising and education in the field of sustainable consumption. NGO networks also seek to influence government policies. The Zero Waste Alliance, a partnership of NGOs focuses on urban waste issues and is led by Friends of Nature, Beijing. Through a network of NGOs – the nationwide “Zero Waste Alliance” (ZWA) – aims to promote zero waste policies for the national circular economy and to promote local actions to avoid and reduce waste by involving relevant stakeholders, including NGOs, research institutions and Universities, government departments, as well as citizens. It is just one example of a civil society initiative aiming at influencing policy making. Civil society organizations have also voiced their opinion on the Renewable Energy Law. The Chinese Renewable Energy Society has been actively involved in the research and drafting of the renewable energy laws, regulations, technical norms and standards. There are growing signs for successful advocacy work of NGOs in China. NGOs played a role in successfully lobbying for disclosures of air pollutants by Chinese cities (Loh 2012). NGO networks have also criticized Multi-National Companies (MNC) through a naming-and-shaming initiative of Chinese NGOs. “A recent high-profile example of name-and-shame tactics is that of Chinese NGOs that banded together in April 2012 to accuse 46 Multinational Companies and Chinese brand owners and retailers of sourcing from suppliers that have violated Chinese environmental laws by discharging polluted water. The brands included Adidas, Armani, Calvin Klein, Carrefour, Nike and Zara (Loh 2012: 40). Furthermore, civil society organizations play a role in influencing technology development and lifestyles. One of the best known and successful campaigns is GreenFreeze, Greenpeance’s campaign to transform the refrigeration and cooling industries by eliminating the use of fluorine gases which were developed a replacements for Chloroflourocarbons but are strong greenhouse gases. Led by Greenpeace Germany, the organizations has transformed the refrigeration industry in Europe and Asia. The campaign has become a huge success of Greenpeace and for the protection of the climate though the small size company in the former Democratic Republic of Germany which produced the first fluorine free fridges in co-operation with Greenpeace has not been able to survive in market. The story of success (of the campaign) and the failure (of the company) illustrates the potentials and limitations of civil society initiatives in exemplary manner and underscores the theory of typical strengths, weaknesses, potentials and problems of state, market and civil society organizations (Kuhn 2005/2009). Many civil society organizations are led by charismatic leaders outside the political and economic realm of power and money, and carry a good influence on lifestyles. There are many examples in China. Two of them are Hao Xin, founder and chief executive of Green Zhejiang, Hangzhou and Ma Tiannan, founder of Green Cross, Xiamen. Both are relatively young and 14 very active social media communicators and have spread their ideas across the boundaries of their cities and provinces. Bourdieu (1984) taught us that consumption patterns do not only reflect need and greed but also affirm social and cultural norms. Barthes (1990) elaborated on the social and cultural meanings of consumption in the context of the fashion system. Schuetzenmeister (2010: 272) points out that the mainstream marketing industry in developed countries is already targeting well-off and middle income consumers with products reflecting a Lifestyle of Health and Sustainability (LOHAS). The symbolic power of consumption patterns as concept of social distinction is currently receiving renewed attention by sociologists. Studies on consumption have long been influenced by the works of Adorno and Horkheimer (1947/2002) on the cultural industry (“Dialectic of Enlightment”) who regarded it chiefly as an easy pleasure of popular culture. Bourdieu’s works on habitus and distinction have laid the ground for a differentiated analysis of consumption patterns. Ulrich (2013) views consumption as a cultural technique emphasizing conscious choice of consumers even for products of daily life. While lifestyles are influenced by multiple factors, including financial means, social status and education, we shall not assume that higher education or awareness on climate protection issues correspond with a low carbon lifestyle. Diekmann/Preisendoerfer (1992, 1999) have conducted several social experiments to show discrepancies between aspirations and reality in environmental behavior. Findings of a survey by Green Beagle (2012) among households in China confirm that higher income level correspond with higher carbon footprints. One of the major discrepancy between environmental and climate protection discourse in China and richer Western countries is the almost non-existence of the voluntary simplicity discourse in China. Given the many decades of deprivation and the still predominant economic catch-up mentality in China and many developing and transition countries, it seems still far away that movements like the voluntary simplicity movement (Maniates 2002) appeal to the mainstream Chinese consumer. However, even if it may not reach “the mainstream consumer”, the diversification of life styles may still have some positive environmental consequences as observed in the trendy low carbon city of Xiamen where riding the bicycle, consuming healthy food and keeping the environment clean seems popular. On the one hand, a growing number of citizens seem to reflect more about their lifestyles. On the other hand, citizens are also voicing their concerns and engage in protest movement. The number of environmental protests has significantly grown over the past years. Serious protests and clashes occurred in Dongyang in 2005. In Xiamen, protests forced the relocation of a chemical plant in 2007. In Guanxi Zhuang autonomous region, more than 1000 villagers marched on the streets to protest against pollution caused by an aluminum plant in 2010. The year 2012 saw protests in Shifang in Sichuan province, Qidong in Jiangsu province and Ningbo in Zhejiang province. Over 300,000 petitions were received on environmental matters during the 11th Five Year Plan period prompting 2614 administrative decisions to be re-examined (Feng Jie/Wang Tao/China Dialogue: 6.12.2012). One of the hottest issues in China is the existences of so-called “cancer villages”. The term has been readily used by the media and the 15 Ministry of Environment acknowledged the problem (Mosbergen/The Huffington Post 23.02.2013). It is difficult for Chinese NGOs to strike a balance between supporting environmental concern of citizens and maintaining good relations and cooperation with the government. Recent NGO history in China demonstrates the pitfalls of successfully aligning with protest movement. Yunnan province has once been considered to be among the most progressive provinces in China in terms of freedom and scope for NGO activity (Kuhn 2006). Many success stories of government-NO cooperation developed after the 1996 earth quake. However, government-NGO relations have witnessed a period of growing mistrust after the successful protest movement against the Nu river dam project. More recently, waste management issues, in particular incineration plant projects, have become an area of potential conflicts and sparked protests in several cities, including Beijing and Guangzhou. The protests, however, have also led to intensified research and dialogue activities on the issue. Recycling and waste management were the topics of the second Xiamen conference in December 2012 (see 4.1). The Role of the Media Chinese media reporting on environmental and climate protection issues has increased as perceived by experts of different background (Kuhn/Zhang 2012). This corresponds with growing concerns of citizens (Hong 2012, Kuhn/Zhang 2012). Chinese media seldom criticize past or present policies of the Government. The media in China, in particular the big traditional media corporations, have not the same degree of independence as Western media. They have closer ties with political authorities. The growing media interest on environmental and climate protection issues, however, reflects the rising concerns of citizens and is taken seriously by the political leadership. The following excerpt from China Daily illustrates such increased attention: “Journalists usually report social changes, but sometimes they signify the changes themselves. Recently, journalists flocking to a news conference on the environment outnumbered – for the first time – those at the conference about the economy on the sidelines of the ongoing annual meetings that bring together Beijing’s legislators and political advisers. That reflects the growing focus of the public: Beijingers increasingly care about the environment instead of economic growth.” (Cao Yin/JinHaixing/China Daily 25.1.2013: 7) The use of social media is widespread and fast growing due to cheaper costs and high affinity to new technologies. This facilitates peer-to-peer interaction and dissemination of news and scandals, including pollution levels. The website http://aqicn.info/city/ provides frequently updated information on city pollution levels. Air Quality China and China Air Quality Index are popular smart phone applications. “Environment becomes a priority. Public focus has shifted in recent years, especially with heavy smog in the capital (Cao Yin/Jin Haixing/China Daily 25.1.2013: p. 7) reads a headline of China Daily in January 2013. The Ministry of Environment announced stricter standards to improve air 16 quality in March 2013. About 1500 monitoring sites are supposed to set up n all prefecture-level cities by the end of 2015 (Wu Wencong/China Daily 16/17.03.2013: p. 3). New media are an important factor for raising awareness on pollution and other climate related information as they reduce costs of information sharing drastically. Meijer elaborates on their role as facilitator of both individualized and community forms of co-production (Meijer 2012: 1170). He argues that new media also transform practices by making communication more playful (Meijer 2012:1169). However, patronizing of social media by political authorities, Government departments or other expert groups may be counterproductive. Meijer (2012: 1170) refers to arguments of Habermas 1994 when discussing public space 4. Three Examples Climate change awareness, the role of different kinds of institutions and the potential of citizens’ contributions are still under-researched areas but receive growing attention. The following cases provide insights into initiatives by Xiamen University’s School of Public Policy on climate protection issues. The examples of two climate protection conferences and the climate protection network study in Xiamen show that state-market-civil society interaction in climate protection is still at an infant stage. The topic is complex and sensitive and cuts across bureaucratic turf of different agencies. There is, however, a fair degree of openness when it comes to exchange of ideas and good practices. Growing citizens’ concerns of pollution issues and acknowledgment by the political leadership may lead to more state-market-civil society co-operation in the near future. The study on climate change awareness, the role of NGOs and citizens’ participation which was based on an expert survey and dialogue events confirms the growing media attention to climate protection issue and the relevance of social media. This study underscores the dominant role of the Government as change agent for awareness raising, policy formulation and implementation. However, it provides evidence that NGOs also play an important role in raising awareness on the complex and abstract issues of climate protection by relating it to people’s daily life through interaction with citizens. Furthermore, green volunteer work seems to have a good potential in China, especially according to the assessment of younger experts. 4.1 Climate Protection Conferences in Xiamen The title of the first conference organized in the low carbon city of Xiamen in December 2012 was: The way after Rio+20: Sustainable economic development though improved resource efficiency and climate protection. This Chinese-German conference was followed by an exposure visit to the waste management facilities of the city and another conference on waste management in the context of climate protection. The purpose of the two subsequent conferences was to invite academics and practitioners from different academic disciplines and professional background to discuss political-regulatory 17 frameworks in China and Germany, to learn from good practices of sustainable development with focus on resource efficiency in China and Germany and to discuss contributions from society to sustainable economic development and resource efficiency. The second conference focused on sustainable waste management in the context of climate protection. What are the lessons learnt from these conferences? The conference organizers experienced that climate protection is still a sensitive topic, especially in the context of international cooperation. Approval of three Ministries and the National Development and Reform Commission (NDRC) was required and only obtained shortly before the event. The innovative concept of the conference to discuss the issue not only among academics but also with representatives from Government, private sector, NGOs, media, including bloggers proved to be intellectually stimulating and enlarged the horizon of many participants but it was also made clear that this could be classified as an exceptional activity. Exchanges across disciplines, between different types of institutions and experts of different backgrounds are rare, especially in China. This is a limiting factor for developing and spreading new ideas and products of technology development and to increase awareness and coproduction of goods and services. Exceptions are only highest level global conferences and expositions which do not need approvals by national level authorities and attract experts and activists from different backgrounds. Consequently such global summits seem to be evaluated more positively by Chinese than by international experts as the following expert survey project found out. 4.2 Study on Climate Protection Network Xiamen This study aimed at understanding the development of climate protection policies in the city of Xiamen which is today one of eight pilot low carbon cities in China. It was supported by the Konrad Adenauer Foundation, Germany. Xiamen is a relatively wealthy city and was designated special economic zones in the 1980s. The green image of Xiamen fits well with its natural beauty and the promotion of tourism. Following new policies at the central government level from the mid-1990s onwards, the city has passed a series of laws and regulations to curb carbon dioxide emissions. It has launched campaigns and activities in the field of low carbon industrial production, low carbon traffic and green energy construction. Waste prevention and recycling are not yet among the priority areas of low carbon policies. Responsibilities under the city's top leadership spread over a number of departments. The Economic Development Bureau and Xiamen Development and Reform Commission are amongst the key actors. Others include the Construction Office, Garden and Forests, Environment and Sanitation, Science and Technology, Maritime Affairs and Agriculture. The allocation of specific tasks between the departments, the steering process and coordination mechanisms remains opaque. The research indicated that coordination and communication between the various departments and with other stakeholder would need improvement if Xiamen aims to maintain its status as one of the model low carbon cities in China. 4.3 Study on climate change awareness, role of NGOs and citizens’s participation in China 18 This study was based on an expert survey and dialogue sessions with researchers and practitioners from June 2012 to March 2013. It analyzed key factors and institutions that influence citizens’ attitudes and their participation in climate protection in China. The findings are based on a quantitative and qualitative analysis of the survey carried out by the School of Public Affairs and School of Public Policy of the University of Xiamen among different groups of 133 Chinese and foreign environmental and climate protection experts. The survey analysis was complemented by interviews with key experts from different Chinese cities and focus group discussions conducted in December 2012 Beijing and in March 2013 in Chengdu. The findings suggest that the current attention paid to climate change is not as low as initially presumed by the research team. Media attention has contributed most to raise awareness but Government policies and laws follow closely. The fast growing social media communications in China are already seen as an important factor regarding the growing awareness of citizens on environmental and climate protection issues. The factor Government (political system, law, policies) figures – together with the factor Citizens’ Awareness and Education – highest with regard to obstacles to climate change awareness although the more pro-active policies of the Government are recognized. The answers confirm the general trend that the Government is the key reference point for respondents. The differences between the expert categories are pronounced on the question of the impact on the Rio+ 20 summit on the climate change discourse in China. Despite the relatively small n (133), a statistically significant difference occurs between the positive evaluation of the group of Chinese researchers (3.20) and the low level of evaluation of international experts (2.0). All expert groups regard the role of the Government (political freedom, regulations, policies) as most crucial factor for the potential of NGOs role in climate protection. However, the factors “own capacity and competence”, “own image and identity in society” and “citizens support” also rank high among the challenges for NGOs. The 26 degree campaign that advocated not to cooling down the room temperature in summer below 26 degree received the second highest number of nominations, including nominations from international experts. The potential of individual contributions of citizens’ to climate protection in the area of consumption, transport and at household level is assessed between low and medium. The potential for voluntary work receives a higher assessment, especially among young Chinese experts with limited international experience. The cost factor is regarded as a decisive obstacle to citizens’ participation according to all experts (mean 3.98). Experts refer more often to NGO activities than to other factors when asked about the potential of institutions/ organizations to promote citizens’ participation. The findings point generally in the same direction as other research projects, including recent population surveys of Hong (2012) and Green Beagle (2012): Climate change awareness is on the rise in China but it does not yet rank among top concerns. Media attention is growing. The role of institutions matters a lot. Government policies and papers provide evidence for more emphasis on sustainable development issues in the national level policy planning. Climate change, however, is still a contested issue and of more abstract nature than other environmental issues. Experts opinionated that the combination of top down and bottom up 19 initiatives may yield positive results. However, there may be significant local and regional variations regarding the follow up and quality of implementation among different cities and regions. 5. Conclusions Climate Protection requires contributions from the state, from market players and from civil society organizations. The complex and abstract issue of climate protection needs to be tackled with a variety of measures from different angles. China has demonstrated interest and willingness to take a series of actions including command-and-control, market-based and awareness raising initiatives. Some of them, such as the designation of low carbon provinces and cities and the launch of emission trading schemes, are still in an infant stage with regard to standardized bench marking and effective supervision. Cooperation between state, market and civil society has been promoted by some dialogue events but professional and sectoral boundaries are still an obstacle to comprehensive partnerships for climate protection and the effective implementation of low carbon policies. China’s deep involvement in global supply chains and its growing role in world politics may provide incentives for the political leadership to demonstrate political commitment. The potential for social unrest related to pollution issues should not be underestimated. The term “cancer villages” has been spread by media of all kinds. The growing use of social media may play a facilitating role for spreading information as already observed during the air pollution crisis in Beijing in January 2013. The following chart illustrates some essential roles of different types of institutions which may guide decision-makers in identifying an appropriate institutional mix to address climate protection. The different roles and activities need continued refection and assessment, dialogue and exchange in order to adjust the tasks to specific problems, capacities and potentials of actors. The needs and constraints, the potentials and limitations of co-operation and co-production 20 should be assessed in the framework of the co-existing and overlapping spheres of state-market-civil society organizations in China. Hybrids While the government and the state administration are powerful in China, the communist leadership has recognized that market-based approaches and civil society activities have to play an essential role in the process of transformation from the traditional growth model to the green growth model of economic development. Hybrids – state-owned enterprises, social enterprises and government-organised-NGOs (GONGOs) – receive special attention in China, and elsewhere. Blending sectoral boundaries is considered to be an “institutional innovation”. Operational reality of hybrid organisations often looks more sober. Hybrids are sometimes accused of unfair competition, undue tax privileges and political patronage as they seek to capitalize on multiple privileges. The case of the “Treberhilfe” in Berlin discredited the term social enterprise in Germany a few years back. While recognizing the trap of the great state-market divide (Ostrom, E. 1999), theories of comparative advantages and disadvantages of different types of institutions (Kuhn 2005/2009) provide valuable guidance for designing an appropriate climate protection policy mix. The ability of a society to protect the climate is ultimately coupled with changes in life styles, with the prevention, re-use, recycling and upcycling of waste, the use of low carbon transport, energy saving, and more conscious consumption patterns. The creation of new trends and life styles takes place in the process of dialogue, exchange and networking among state actors, market players and civil society organisations. Social media often play an important facilitating role. 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