Eco-Industrial Park in China: Policy Initiatives and Achievements

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1 Eco-Industrial Park in China: Policy Initiatives and Achievements Geng Yong School of Environmental Science and Engineering Shanghai Jiao Tong University Industrial Park Development l By the end of 2010, 6900 industrial parks existed in China State Council Provincial government Municipal, county, township government & departments l National High-tech Development Zones (NHTDZ): 83 l National Economic and Technology Development Zones (NETDZ): 215 l East China: 104; Central China: 63; West China:

2 Increasing environmental challenges Air pollution, water pollution, solid wastes, noise, etc. Resource consumption in China Ø 2015 年, 中国钢铁产量约占全球的 49.54%, 泥占 57.3%, 铜占 34.65%, 油占 5.51%, 铝占 55%, 煤炭占 47% Ø 2015 年, 中国 GDP 总量仅占全球的 15.5% 2

3 GHG emissions in the world From Cradle to Cradle Seek substitute resources from urban wastes. 3

4 National Legal and Regulatory Framework Cleaner Production Promotion Law of P.R.C u Approved on June 29, 2002 u Came into effect on January 1st 2003 u Amended on Feb. 29, 2012 u Put into effect on July 1, 2012 This law was enacted to promote cleaner production, which means to reduce pollution at its source, increase the efficiency of the utilization rate of resources, reduce and avoid the generation of pollutants, protect and improve environments, ensure the health of human beings and promote the sustainable development of the economy and society. 7 National Legal and Regulatory Framework Circular Economy Promotion Law of P.R.C u Approved on August 29, 2008 u Came into force on January 1, 2009 This law is formulated for facilitating circular economy, raising resources utilization rate, protecting and improving environment and realizing sustainable development. In Article 29 of Chapter 4, it stipulated requirements on industrial parks 8 4

5 1.Background Promotion of EIP in China 1) National Demonstrative Eco-industrial Parks (NDEIP) ü MEP (Ministry of Environmental Protection) ü MOFCOM (Ministry of Commence) ü MOST (Ministry of Science and Technology) 2) National Circular Economy Parks (NCEP) ü NDRC (National Development and Reform Commission) ü MOF (Ministry of Finance) 3) Low-carbon Parks (LCP) ü MOFCOM 9 National Institutional Framework National Demonstrative Eco-industrial Parks (NDEIP) Agencies Individual Responsibilities Joint Responsibilities MEP MOFCOM MOST Take charge of daily work of the promotion of NDEIP construction; organize experts to examine parks that have passed the first trail; be responsible f o r t e c h n i c a l g u i d a n c e a n d environmental supervision etc. in the process of parks construction. Be responsible for application acceptance, examination and approval of National Economic and Technological Development Zones that apply to be a NDEIP. Be responsible for application acceptance, examination and approval of National High-tech Development Zones that apply to establish NDEIP. To formulate and publish planning guideline, application and naming procedure, checking and accepting methods, evaluation standards and management methods etc.; authorize the construction of parks; check and accept to the established parks, award NDEIP to the parks that have passed the check and evaluations. 10 5

6 National Institutional Framework Circular Economy Parks (CEP) Charged by NDRC and MOF jointly: Ø Compile and issue guideline of circular reconstruction of the industrial parks; Ø Promote and organize the demonstration projects for the park circular reconstruction and give necessary financial support; Ø Supervise and guide local governments in promotion of park circular reconstruction and evaluate the performance; Ø Confirm, identify and disseminate the National Demonstrative Circular Economy Parks. 11 National Policy Framework Specific policies for Demonstrative Eco-industrial Parks In 2003, MEP, MOFCOM and MOST: u issued a Guideline for Planning of Demonstrative Eco-industrial Parks jointly, and proposed the requirements of ecological construction in the exiting National High-tech Development Zones (NHTDZ) and National Economic and Technology Development Zones (NETDZ). u issued Application, naming and management of National Demonstrative Eco-industrial Parks 12 6

7 National Policy Framework Specific policies for Demonstrative Eco-industrial Parks In 2006, MEP, MOFCOM and MOST: Jointly issued EIP standards for three categories of EIPs: ü Sector-specific Eco-industrial Park ü Venous Industry Based Eco-industrial Parks ü Sector-integrated Eco-industrial Parks 13 National Policy Framework Specific policies for Demonstrative Eco-industrial Parks In 2007, MEP, MOFCOM and MOST jointly : Ø Issued a governmental document to officially initiate the construction of National Demonstrative Eco-industrial Parks (NDEIP), whilst established a leading team for coordinating the construction of NDEIP. Ø Updated the Administrative measures of National Demonstrative Eco-industrial Parks 14 7

8 National Policy Framework Specific policies for Circular Economy Parks u In 2005, NDRC issued Notice on development of Circular Economy Pilot (first batch) to initiate the pilot circular economy parks. u In 2007, NDRC, MEP & National Bureau of Statistics (NBS) issued the Evaluation indicator system of circular economy, covering an evaluating indicator system of circular economy for an industrial park. u In 2012, NDRC issued Advices on the promotion of circular reconstruction of industrial parks, officially initiated the constr uction of circular economy parks. 15 National Policy Framework Specific policies for Circular Economy u In 2005, the State Council (SC) issued Advices on speeding up the development of circular economy, launched CE pilot among industrial parks u In 2010, NDRC published a Guideline for compiling the Circular Economy Development Planning for: ü New parks ü Existing parks ü Parks mainly on renewable resources industry 16 8

9 National Policy Framework Specific policies for regions and industrial sectors u From 2009 to 2013, various national governmental departments encouraged industrial sectors to develop eco-construction of existing industrial parks. ü Old industrial bases in Northeast China ü Energy saving and environmental protection industry ü Steel industry ü Silk industry ü Building materials industry ü Chemical industry park 17 National Policy Framework Financial / fiscal incentive policies for EIPs, CP and RE u In 2010, NDRC issued the investment and financing policies and measures for supporting circular economy development. u In 2012, MOF formulated the Interim measures for the management of special funds for the development of circular economy. Both policies encourage the industrial parks to use various financing sources for its circular reconstruction and provide special funds to support the circular reconstruction of industrial parks. 18 9

10 Indicator standards for sector-integrated eco-industrial parks (EIPs) in China Source from Geng et al., Assessment of the National Eco-Industrial Park Standard, Journal of Industrial Ecology 10

11 Indicator systems for Eco-industrial Park Sector-integrated EIP Sector-specific EIP Venous Industry Based EIP Indicator Economic development (2) Economic development (1) Economic development (2) Reduction and recycling of material (7) Reduction and recycling of material (5) Recycling and utilization of resources (7) Pollution control (8) Pollution control (8) Pollution control (5) Park management (4) Park management (5) Park management (6) number Standard Determination methods for indicator threshold value: Trend extrapolation, Regression Analysis, Analogy prediction, Questionnaire survey Problems of EIPs indicators l Lack of indicators on industrial symbiosis and diversity. Although the standard incorporates the results of many researchers and projects undertaken by many practitioners, there are still some challenges that it will meet as it strives for inter-national acceptance. Such eco-efficiency indicators (No.1~6) are a good start, but they will not be adequate to reduce the overall environmental impact of growing human and industrial production and consumption. l Vague and intricate indicators The criteria for a few indicators are vague and difficult to evaluate. The indicators on waste collection systems and facilities for waste treatment and disposal require that they should both be available but do not describe the breadth in terms of the types of wastes treated. The new regulation of environmental management system just requires industrial park managers to establish their EMS according to the ISO standard, but this standard does not stipulate the rate or level of environmental improvement expected. Additionally, an ISO registration only lasts 3 years (Conway 1996). The effectiveness of an EMS also depends on the degree of commitment of local government and zone managers. 11

12 Problems of EIP indicators The last two indicators are based on designated questionnaires that are unique (Duan et al. 2006). Understanding the degree of awareness and satisfaction of local stakeholders on such an EIP project could become important in providing park managers with the necessary ammunition to take further action. But the results of such a survey may be questionable given that the value of a questionnaire is dependent on the selection of the informants and the quality of their answers. l Institutional barriers on implementing this standard The implementation of this standard could also be compromised by the relatively weak position of environmental protection bureau. In addition, the park managers formulate and decide EIP-related policies without public consultation. l Lack of indicators on broad collaboration EIP projects aim to develop sustainable industrial communities, but sustainable islands in an unsustainable world are not possible. The eco-efficiency-oriented indicators described here are designed to focus only on the designated industrial parks; they fail to include elements linking the park to the surrounding areas. 12

13 Circular economy evaluation indicator system (at macro level) in China Source from Geng et al., Towards a national circular economy indicator system in China: an evaluation and critical analysis, Journal of Cleaner Production Problems of Circular Economy Park Indicators l Lack of social indicators for the circular economy The practical implementation of CE will involve and have implications on environmental, economic and social dimensions (Feng and Y, 2007). Thus, a systematic evaluation on various aspects should be addressed. This evaluation requires that in addition to environmental and economic indicators, social indicators should also be established. However, the published Chinese national CE standards are absent any social indicators. More indicators are thus needed to portray the social aspects in CE. l Lack of indicators on urban/industrial symbiosis Both urban symbiosis and industrial symbiosis are key activities for CE success. Current national Chinese (and other nation) CE standards do not include such indicators. l Lack of indicators for businesses Chinese CE implementation has three levels. But the published indicators were designed only for macro- and meso-levels. The micro level, namely at the facility or corporate level, is notably absent from the adopted listing of indicators. 13

14 Problems of circular economy park indicators l Lack of absolute material/energy reduction indicators Relative indicators may tell only part of the story, while absolute indicators are useful to show a true full measure of activities and outcomes from CE. However, unlike those indicators used in developed countries, most of the published CE indicators are relative ones, only few are absolute ones. With rapid economic development and growth in China, a relative reduction (ratio-based indicators) may not necessarily mean a net reduction of environmental emissions and material/energy consumption. l Lack of prevention-oriented indicators All the Chinese CE indicators focus on reuse and recycle dimensions. However, 3R principles have typically promoted reduction, namely, prevention, as the most important objective. Given these limited indicators, there is a risk of preferring recycling and reuse based solutions over the more preferable prevention and source reduction solutions integrated into the design of products and in production technology (proper integration often does not enable discrimination between the most desirable source reduction solutions as CE related investments). l Barriers to implementation First, there is no detailed description or standardized process on data collection, calculation and submission. Second, this indicator system is a voluntary one and may be pursued with differing intentions. Third, the NDRC only provides general lists of indicators that should be reported, but they do not provide specific goals and values that may be used as benchmarks. MIIT,NDRC jointly initiated national low carbon industrial parks 14

15 National Policy Framework Local relevant policies u Jiangsu Province: In 2004, established provincial demonstrative eco-industrial parks u Shandong Province: In 2009, promoted the establishment of the provincial eco-industrial parks u Shaanxi Province: In 2011, issued Regulations on the promotion of circular economy in Shaanxi Province 29 Drivers and Success Factors (1) Financial support is available for circular economy park projects, while increased social image is another driver to pursue EIPs (2) National indicators are available and can encourage the practitioners to pursue such targets. (3) Legal foundation is solid, such as circular economy promotion law and cleaner production law. (4) Significant technological progress has been achieved to promote industrial symbiosis, especially in the chemical and metallurgical sectors. (5) Capacity building activities have been regularly organized. (6) International collaboration has been enhanced so that the most advanced experiences can be transferred to China

16 Challenges for EIP development (1) Institutional barriers still exists. Different agencies do not work together, resulting in fragmented management and ineffective and inefficient implementation on relevant policies. (2) National indicators on EIP and CEP should be further revised so that industrial symbiosis level can fairly judged and ecosystem function can be addressed. (3) While those large companies received adequate support, the SMEs still suffer from lack of financial and technological support. (4) Imbalanced development exists. Parks in the east are more aware of pursuing EIPs, while parks in the central part and the west are not eager to join

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