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ENV GLOBAL FORUM OCT 2016 - Session 2 - Bing ZHU

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ENV GLOBAL FORUM OCT 2016 - Session 2 - Bing ZHU
"Policies for the circular economy in China"

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ENV GLOBAL FORUM OCT 2016 - Session 2 - Bing ZHU

  1. 1. Policies for the Circular Economy in China Dr. Bing Zhu Professor and Executive Deputy Director Institute of Circular Economy, Tsinghua University, China Guest Research Scholar Energy Program, IIASA, Austria bingzhu@tsinghua.edu.cn 1 Global Forum on Environment Towards quantifying the links between environment and economic growth 24-25 October 2016, OECD Paris
  2. 2. Circular Economy is defined as the ‘the reducing, reusing and recycling activities conducted in the process of production, circulation and consumption,’ according to Circular Economy Promotion Law of the People's Republic of China (2009) Reducing Reusing Recycling Start of Government Efforts on Circular Economy in China 2Source: Worldbank GDP 2004 2015 DMC (Domestic Material Consumption) 2004 2015 Relative Decoupling No. 6 No. 2  In 2004, the 1st national meeting on Circular Economy was organized by National Development and Reform Commission of China (NDRC)  China’s economic growth and resource consumption since 2004 Source: Tsinghua University
  3. 3. • Resource Utilization prior to end-of-life and Waste Management are equivalently important • Still in the middle stage of industrialization • Encountered the complex economic and environmental problems • Increasing resource efficiency in terms of full life cycle • A comprehensive policy instrument: not only for the governance measures but also for economic reconstructuring and transition Input Reducing the consumption of resources In the process of production Increasing efficiency Output Reducing the production of wastes and increasing circulation Connotation of China’s Circular Economy 3
  4. 4. China’s Action: Promoting Circular Economy in a Comprehensive and Systematic Way 4 Promotion of green consumption Promotion of demonstration pilots Marco guidance Improvement of policy mechanism Implementation of circular economy assessment Construction of institutional system Technology innovation and support Reinforcement of supports from laws and regulations Promotion of industrial layout optimization and cluster development Integration of circular economy and regional development Optimization of top-level design and overall plan Give full play of the role of market
  5. 5. China’s Practice (1): Legislation and Institutions System Construction 5 Circular Economy Promotion Law (2008) Administrative Measures for Pilot Remanufacturing of Automobile Parts & Accessories (2008) Administrative Measures for the Determination of Resources Comprehensive Utilization Encouraged by the State (2006) … Local Measures of Shanxi, Shaanxi, Guangdong, Guizhou, Shandong Provinces and Dalian, Wuhan, Changchun Cities etc. the 11th ,12th and 13th Five -Year Plans for National Economic and Social Development of P.R.C. • Including specific chapters, columns and sections for Circular Economy Circular Economy Development Strategy and Near-Term Action Plan (2013) The Leading Plan for Circular Economy (2016) … Most provinces have specific circular economy development plans Laws & Regulations Development Plans National Level Specific Measures & Plans Local Level • Extended Producer Responsibility • Promotion of Renewable Products and Raw Materials • Restrictions on the use of disposable goods • Assessment of Circular Economy • Standard Certification for Circular economy • Credit Rating … Institutional Support & Promotion
  6. 6.  178 pilot units: including 11 provinces, 16 cities and 33 industrial parks, covering 11 key industries (iron and steel, nonferrous metals, coal, electricity, chemicals, building materials, light industry, textile, machinery manufacturing, agricultural products processing and agriculture) China’s Practice (2): Pilot and Demonstration 6 2005-2010 Pilot Exploration Stage Industry Agriculture Services ① Pilot Projects for Circular Transformation of Industrial Parks (100 parks) ② Remanufacturing Pilots (42 enterprises) ③ Pilot Projects for Comprehensive Utilization of Resources (34 bases and 38 enterprises) ④ Recycling Technology Industrialization (about 60 cases) ⑤ Synergic Recycling Wastes in the Production Process Pilots (about 60 enterprises) ⑦ Urban Mine Demonstration Bases (49 bases) ⑧ Pilot Cities for Recycling Harmless Treatment of Restaurant Waste (100 cities) ⑨ Demonstration Project of Recycling System of Renewable Resources (about 80 cities, 100 waste products recycling sorting gathering areas, 100 enterprises) ⑩ Circular Service Industry Demonstration (about 100 catering and accommodation enterprises, 1000 retail enterprises) ⑥ Demonstration Project of Agricultural Circular Economy (all 13 main grain producing areas) Ten-Hundred-Thousand Demonstrative Action (10 key projects, 101 key cities, over 1000 key enterprises or parks) 2011-2015 Demonstration Guiding Stage
  7. 7. China’s Practice (3): Construction of Circular Economy Friendly Market System 7 Improving the market system continuously and enabling the incentive effect of market mechanism to achieve full potentials • Addressing market externalities led by governments (by monetary policy), and supporting the market system of circular economy (e.g. Green Credit) • Using fiscal policies (e.g. price, tax etc.) to promote long-term development of circular economy. • Setting up special funds (e.g. Industrial Policy Fund) to guide and encourage the industries to formulate the regulated development and to promote the best practices. Green Credit 21 main banks and financial agencies involved Up to 7.26 trillion RMB (till June 2016) Pricing tools Differential electricity price Punitive electricity price Ladder water pricing Tax Preference Policy Environmental friendly projects & equipment Cogeneration projects …
  8. 8. Circular Economy in China: Effectiveness Resource efficiency has been significantly improved Energy structure have been continuously optimized Resource utilization structures have been continuously effective Play a positive role in environmental improvement and climate change issue 8 The Effects of Recycled Resources in 2014 is equivalent to the reduction of = 2.89 hundred million tons standard coal 90.3 hundred million tons waste water 6.94 hundred million tons CO2 emissions 15.58 hundred million tons solid wastes 11.3 hundred million tons Raw Materials Saved Energy consumption has increased by 18.1%, and led GDP increased by 36.3% From 2010 to 2015, resource productivity raised by more than 20% Output value of resource recycling industry exceeds 1.5 trillion RMB
  9. 9. The Leading Plan for Circular Economy (2016-2020) 9 • Following and requested by 13th Five - Year Plans for National Economic and Social Development of China • Drafted by NDRC • Now this Plan just finished its consultation stage and expected to be implemented at the end of 2016 to lead the circular development in the following half-decade Chapter 43: Promoting Resource conservation and intensive use Section V: Vigorously Develop the Circular Economy - To implement The Leading Plan for Circular Economy The Leading Plan for Circular Economy (2016-2020) 13th Five -Year Plans for National Economic and Social Development of China
  10. 10. Indicator System for The Leading Plan for Circular Economy (2016-2020)
  11. 11. The Leading Plan for Circular Economy (2016-2020) 11 2 Core Indicators •Resource productivity •Recycling rates of wastes 3 Recycling Developments •Industrial recycling system •Urban recycling system •Resource recycling industry Industrial symbiosis Industry and agriculture combination Recourse Recycling and Utilization Base Comprehensive Utilization Base of Industrial Wastes Internet Plus Beijing-Tianjin- Hebei Region CE Projects Renewable products and Remanufacturing Recycling technology & innovation Pilot institutional innovation Best Practices Promotion 10 Special Action Projects Factsheet Extended Producer Responsibility Promotion of Renewable Products and Raw Materials Restrictions on the Use of Disposable Goods Assessment of Circular Economy Standard Certification for Circular economy Credit Rating 6 Institutional Supports
  12. 12. Concluding Remarks • China’s circular economy is relatively unique due to its specific stage of socio-economic development • China’s top administration heightened attention on and highly propelled the policies for circular economy • Pilot programme is a significant feature of China’s policy implementation • The Leading Plan for Circular Development (2016- 2020) is expected to achieve further accomplishments of China • International exchange and cooperation on circular economy is crucial for improving global resource efficiency 12
  13. 13. Thanks for your attention! Special thanks to Mr. Xin Yao from NDRC, and Dingjiang, Meng, Tao and Bomin from our Tsinghua team

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