Wednesday, November 30, 2011

Energy colonialism in the Congo

Energy colonialism in the Congo


by Andreas Sp├Ąth

The Congo River embodies an immense amount of energy – enough to supply a significant portion of Africa's electricity requirements. The river is being touted as a perpetual source of clean, green power that could "light up Africa" and solve many of the continent's problems. But if its power is harnessed, who will benefit – the DRC's millions of poor or a wealthy regional and international elite?

Congo power

The most strategic site to tap the Congo's strength is at the Inga Rapids, some 150km upstream from the mouth and about 225km downstream of Kinshasa. As long ago as the 1920s, locals were forcibly removed from the area by the Belgian colonial rulers to make way for a hydroelectric scheme, but the 351 megawatt (MW) Inga 1 and 1424 MW Inga 2 dams were only commissioned in 1972 and 1982 respectively under the country's post-independence dictator Mobutu Sese Seko. Part of a failed industrial development programme, Inga 1 and 2 turned out to be white elephants and by 2002 they were only operating at 40% capacity.

More recently a 3500-5000 MW Inga 3 project and a gigantic Grand Inga hydropower scheme have been proposed with backing from the Southern African Development Community and potential financial support from the World Bank, the African Development Bank and a number of private investor. Inga 3, which is considered a first stepping stone towards the realisation of Grand Inga, is a presidential priority project of both the DRC and South Africa and on the 12th of November the two countries signed a Grand Inga memorandum of understanding.

Green giant

Grand Inga alone could generate over 40 000 MW of electricity - approximately equivalent to South Africa's total installed capacity and more than a third of all of the electric power currently produced in Africa. It would dwarf China's 20 300 MW Three Gorges Dam, the largest single power plant ever built.

Proponents of the $80bn mega project argue that it would fuel economic growth by attracting energy-intensive industries and help to provide renewable, eco-friendly and "zero carbon" electricity for many African countries far into the future.

Grand illusion?

There are several problems with the Grand Inga scheme. For starters, it may not be as green as its supporters would have us believe. If it were to involve the construction of a giant dam, blocking or diverting much of the river, there would be considerable impacts on the river's ecology and on the large ecosystem it supports. In addition, mega-dams are known to generate large quantities of methane, a potent greenhouse gas.

Even if more modern run-of-river technology were to be used, Grand Inga wouldn't be environmentally benign. Multiple turbine installations, minor dams and diversion canals would have a considerable cumulative influence on the river's flow, fisheries, the adjacent riverine forests and even on parts of the equatorial Atlantic, where the "plume" of the Congo River can be detected as far as 800 kilometres offshore.

There are also major concerns over the viability of such a large and expensive project in a country as wrecked by poverty, internal strife, political instability and corruption as the DRC. Opponents question the lack of transparency and public consultation – much of the planning and negotiating has happened in secretive behind-closed-doors meetings with very limited input from civil society.

Thousands of people have been relocated without compensation and the DRC's state power utility, SNEL, has long been characterised by unaccountability. In 2008, for instance, two of its directors were investigated after $6.5m earmarked for rehabilitating Inga 2 disappeared.

Civil society organisations are worried that ordinary Congolese, only 6% of whom have access to electricity, will remain in the dark, while their river's power is transmitted to mines and industrial facilities in South Africa, elsewhere in Africa or even Europe, or to power-hungry installations such as a massive aluminium smelter proposed for the coast by BHP Billiton.

For Grand Inga to live up to its potential, it's crucial that all environmental and social impacts are carefully investigated, the local population is fully consulted, displaced communities are compensated and fiscal accountability is ensured.

Supplying the impoverished inhabitants of the DRC with renewable energy should be the top priority. Whether or not an $80bn centralised mega-project is capable of doing that remains to be seen.

- Andreas has a PhD in geochemistry and manages Lobby Books, the independent book shop at Idasa's Cape Town Democracy Centre. Follow him on Twitter: @Andreas_Spath

News24 encourages freedom of speech and the expression of diverse views. The views of columnists published on News24 are therefore their own and do not necessarily represent the views of News24.

- News24

Monday, November 28, 2011

New Google Earth Animation Shows How Damming Rivers Will Worsen Climate Crisis

New Google Earth Animation Shows How Damming Rivers Will Worsen Climate

November 28, 2011

International Rivers and Friends of the Earth International have teamed
up to create a state-of-the-art Google Earth 3-D tour and video narrated
by Nigerian activist Nnimmo Bassey, winner of the prestigious Right
Livelihood Award. The production was launched today at the COP17 climate
meeting in Durban. The video and tour allow viewers to explore why dams
are not the answer to climate change, by learning about topics such as
reservoir emissions, dam safety, and adaptation while visiting real case
studies in the Amazon, Africa, and the Himalayas.

For example, the tour illustrates how melting glaciers in the Himalayas
� an effect of climate change � may lead to higher flood and safety
risks for communities living downstream of dams. The tour plunges the
viewer deep inside one of Brazil's dirtiest reservoirs, at the Tucuru�
Dam, to visualize how rotting organic material creates methane gas,
which bubbles up from dam reservoirs to emit greenhouse gases in the
tropics. The tour visualizes what smaller, decentralized projects would
look like that could more efficiently eradicate energy poverty in Africa
than large dams, while also reducing the economic risks of
drought-crippled dams.

The Durban climate meeting is themed "saving tomorrow today." Yet a
global dam boom being promoted by dam proponents � which includes dozens
of megadams proposed for Africa�s major rivers � could make a mockery of
this vision. Says Jason Rainey, Executive Director of International Rivers:

"Healthy rivers are becoming an endangered species because of the
impacts of large dams. There is no �tomorrow� without rivers � we can�t
adapt to a changing climate without them."

Nnimmo Bassey, chair of Friends of the Earth International and narrator
of the Google Earth video, says:

"Many African nations are dangerously dependent on hydropower, yet new
dams are being built without any analysis of how climate change could
affect their economic viability or their safety. Africa cannot afford
dried-up reservoirs or dam collapses on top of the already high costs of
adapting to a changing climate. We must develop climate-safe energy
systems that improve lives, share the development wealth, and help us
all weather the coming storm."

Using state of the art animation, the Google Earth production
illustrates three key reasons that large dams are the wrong response to
climate change:

River flows are increasingly unpredictable. Large dams have always been
based on the assumption that future stream-flow patterns will mirror
those of the past, but this is no longer true. Climate change has begun
to significantly and unpredictably change precipitation patterns. More
frequent droughts will make many hydropower projects uneconomic. More
extreme rainfall will increase the risk of dam failures and catastrophic
flood releases.

Healthy rivers are critical for supporting life on Earth. Big dams make
it harder for people and ecosystems downstream of dams to adapt to
climate change by reducing water quality and quantity, drying up forests
and wetlands, flooding productive land, and destroying fisheries.

Dam reservoirs emit greenhouse gases. In the tropics, dam reservoirs are
a globally significant source of one of the most potent gases, methane.
Meanwhile, free-flowing rivers play a crucial role in helping trap carbon.

Users may watch the video through YouTube, and download the interactive
tour to explore inside Google Earth. The video and interactive tour were
created with technical assistance from Google Earth Outreach, drawing
from diverse scientific data sources.

Google Earth Tour - Wrong Climate for Daming Rivers at

A supporting fact sheet is available at

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Conversing on conserving rivers

Conversing on conserving rivers
November 25, 2011
By Kelly Chung Dawson (China Daily)

Andy Bartels, a fish component specialist for Wisconsin DNR's Long Term
Resource Monitoring Program, holds a Golden Red Horse during a fish
sampling near LaCrosse, Wisconsin. Provided by the Nature Conservacy

NEW YORK - Large rivers are vital to agriculture, health and animal
life, so understanding them can be essential to a nation's progress. To
that end, an initiative called The Great Rivers Partnership (GRP)
connects scientists from China and the United States in an effort to
share information and learn best practices about how to manage a river's

Launched in 2005 by The Nature Conservancy, a leading conservation
organization with projects around the world, GRP aims to support
sustainable management of the world's great rivers. Those rivers include
the US' Mississippi River, China's Yangtze River and Brazil's
Paraguay-Parana River. The organization's stated global priorities
include conservation of all the great rivers, with plans to expand its
work to other great rivers in the future.

As part of the initiative, scientists in the US and China have
cooperated on several observation trips to each country, supported by a
large grant from the construction firm Caterpillar Inc and funding from
the Chinese government.

"The partnership grew out of the realization that there are significant
dilemmas that people who manage rivers are facing at the same time,"
said Michael Reuter, director of the Great Rivers Partnership. "Those
dilemmas have to do with how we find balance in managing our large
rivers, between energy conservation and river conservation, and how we
address those issues collectively."

Yao Yin, an overseas Chinese scientist living and working in the US,
became involved with the partnership in 2005. He has worked to
facilitate exchanges between Chinese and US scientists from the American

"Scientifically, we learn so much from each other because each river
system is so unique," Yao said in an interview with China Daily. "We
always gain perspective in looking outside our own box. Because
scientists often do things locally, and because our methodology is
different, if we initiate this conversation and build a global
partnership, we can share data and figure out the greater significance
of the data we've collected."

On exchange trips, scientists have studied monitoring equipment,
accompanied their hosts on observation trips, and have met people who
depend on the rivers, Reuter said. This might include flood control
communities, recreational organizations and fisheries communities.

"There's a lot of conversation about what questions are most important
to be asked and answered in monitoring and studying the rivers," he
said. "How do you ask the right questions so you're monitoring the right
aspects of the river. And how do you use good science to test hypotheses
and assumptions?"

The GRP identified the Yangtze River as a primary location of interest
early because of the significant challenges it faced, Reuter said.
Chinese work on hydropower dam technology was of particular interest, he
said. Initially working with the Yangtze Water Resources Commission and
then the Yangtze Fisheries Commission, the project developed from there,
he said.

"One of the things that immediately surfaced as an area of collaboration
between China and the Mississippi was a desire for the development of a
system to help predict and track changes in the quality of the health of
the fisheries community and river," Reuter said. "And the reason the
Mississippi was identified by the Chinese as a river of interest was the
Chinese need for better monitoring systems. They identified monitoring
as a key area that they wanted to work with us to develop. They were
very interested in work that had gone on with the Mississippi, and as a
result a series of exchanges took place where we shared information
about what had gone on in both countries."

The partnership has been mutually beneficial, Yao said.

"It's definitely beneficial to all parties," he said. "There's so much
to be gained, to be shared if we talk to each other about the things
we've each learned, both good and bad. If we try something similar, can
we have success? That's the motto that guided us on our GRP adventure."

Reuter pointed to certain areas in which the US and China could learn
from each other.

"Both sides have had a lot to learn from each other," he said. "There
are some aspects of US scientific methodology that have been more
formalized, but the depth of experience on Chinese rivers and the long
history with various management decisions on the Yangtze River have been
really enlightening to US scientists. One project we did on the
Mississippi in the late 1990s, that methodology was vastly improved when
it was done in China in 2006. We've been able to share things back and
forth and learn from each other, and each side has had pieces to

One subject which the Chinese and US have shared information on is in
managing Asian carp populations, Reuter said.

"We learned a lot from the Chinese about carp, a very important species
on the Yangtze which was recently introduced in the US and has developed
an overpopulation problem here. There is research in China that we have
found very useful in the US: migration patterns of carp, and what the
species needs to function."

While universities and other government agencies have organized
information exchanges of this nature before, Reuter believes that the
difference with GRP is that the long-term goal is to create a larger
understanding of river systems globally.

"We're looking at these river systems as a whole. I think that's what's
really different and unique here is that we have an opportunity to look
at the entire global network over time, rather than through one-off

Other rivers that GRP is considering are Colombia's Magdalena River in
South America, the Zambezi River in Africa and China's Mekong River,
Reuter said.

Ultimately, Yao believes that the GRP is building trust, he said.

"There are barriers between cultures because each culture has its own
unique values, and these exchanges bridge these gaps so we understand
each other more and make progress in other areas," he said.

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China can help west build economic growth - Lou Jiwei

China can help west build economic growth
Opinion published in the Financial Times, 27 November 2011

By Lou Jiwei (Chairman and chief executive officer of China Investment

Central to international efforts towards promoting strong and balanced
growth is the need to generate demand, not only in developing countries
but, more importantly, in developed countries. The imperative poses a
critical question: where is new demand to come from? The answer lies in
boosting investment in infrastructure - and China is keen to get involved.

The narrative of infrastructure development in places such as the US
indicates how such investment powers an economy forward. China�s growth
story in recent years provides further proof. Now, infrastructure in
Europe and the US badly needs more investment.

Traditionally, Chinese involvement in overseas infrastructure projects
has been as a contractor only. Now, Chinese investors also see a need to
invest in, develop and operate projects. In a sign of this
determination, the China Investment Corporation, the sovereign wealth
fund, is now keen to team up with fund managers or participate in
public-private-partnerships (PPP) in the UK infrastructure sector as an
equity investor.

Infrastructure spending is an important way to boost consumption and it
also acts as a spur to economic growth. One need only look at China to
see what can be achieved. Between 1979 and 2007, China committed vast
resources to infrastructure development. In the wake of the 2008
financial crisis, the government introduced a Rmb4,000bn economic
stimulus package, with a large part of the money directed into
infrastructure. As a result, China's annual economic growth rose from
6.8 per cent to more than 10 per cent from late 2008 to the end of 2009.

Infrastructure is underinvested in European countries and the US. The
British Treasury has estimated that by 2015, �200bn will be needed to
invest in energy, water, transport, digital communications, waste
disposal and other related projects. Meanwhile, the American Society of
Civil Engineers estimated that the US needs to spend at least $2,200bn
on infrastructure repairs or rebuilding. Free of the inflationary
pressure that afflicts many emerging economies, the US and Europe should
make substantial investment.

We cannot count on developing countries to deliver a stable economic
recovery on their own. China has taken a set of ambitious and effective
measures to stimulate domestic demand and consumption. Yet Chinese
consumption is still small as a share of the global total. If the world
stakes too much on the export-led growth strategy, it may turn out to be
a "zero-sum" game to the detriment of the global economy.

Long-term investment in infrastructure is still inadequate. Governments
should introduce pro-investment policies to create an attractive
environment. This should include making fiscal adjustments, reducing
taxes and offering bank loans at discounted rates. These measures will
generate demand for equipment manufacturing, put more people on the
payroll and cut back on unemployment benefit spending.

For commercially viable projects with potential high returns, the
government could invest with local or overseas institutional investors
in a PPP arrangement that would allow the sharing of risks and returns.

The UK is one of the most open economies in the world, a position
bolstered by its sound legal system. PPP is a regular form of investment
in infrastructure development that should be encouraged and replicated
in other developed countries.

Governments seeking external investment in infrastructure should relax
regulatory restrictions where necessary, and promote transparency and
predictability for investors.

Infrastructure projects normally involve an investor, developer,
operator and contractor. Chinese involvement has traditionally been in
the fourth. Now we also see a need to get involved in the other three.

Local knowledge is essential. Foreign investors without this expertise
cannot lead a project. Local co-investors and operators can fill this
gap. Governments should encourage domestic players to take the lead in
infrastructure projects, and attract foreign investment.

Sovereign wealth funds invest on a diversified and balanced basis, with
a proportion of portfolio geared towards stable returns over the long
run. Infrastructure represents a suitable choice for sovereign wealth
funds to invest directly or through fund managers, with the aim of
seeking stable and sound financial returns. CIC believes that such an
investment, guided by commercial principles, offers the chance of a
"win-win" solution for all.


China eyes western infrastructure

By Jamil Anderlini in Beijing and George Parker in London
Financial Times, 27 November 2011

China Investment Corporation, the country's main sovereign wealth fund,
plans to invest in the dilapidated infrastructure of developed
countries, starting with the UK, according to Lou Jiwei, the fund�s

The $410bn Chinese fund "is keen to team up with fund managers or
participate through a public-private partnership in the UK
infrastructure sector as an equity investor", Mr Lou writes in an
opinion article in Monday�s Financial Times.

"We at CIC believe that such an investment, guided by commercial
principles, offers the chance of a 'win-win' solution for all."

Mr Lou recently returned from a visit to the UK where he discussed
details of potential Chinese investment in UK infrastructure. British
officials say one project attracting interest in Beijing is the proposed
high-speed rail line between London and the north of England.

The British government is looking to UK pension funds and sovereign
wealth funds in the Middle East and Asia to help finance upgrades of
roads, railways, ports and social housing.

George Osborne, Britain�s chancellor of the exchequer, wants to find
funding for �30bn of new infrastructure projects to boost the UK's
flagging economy. The drive is a key part of his growth review, to be
announced on Tuesday as part of his autumn economic statement.

In his article, Mr Lou suggested Chinese companies and investors wanted
to own and operate infrastructure in the west as well as help build it.

"Now infrastructure in Europe and the US badly needs more investment,"
Mr Lou wrote. "Traditionally, Chinese involvement in overseas
infrastructure projects has just been as contractors. Now Chinese
investors also see a need to invest in, develop and operate projects."

Many Chinese officials and academics have been calling for a
diversification of the country's $3,200bn foreign exchange reserves into
real overseas assets, including infrastructure.

Although the reserves' composition is a state secret, the vast bulk is
invested in highly-rated sovereign debt, particularly US Treasury bonds.

CIC was set up in 2007 with a small portion of the reserves and given
the task of making riskier offshore investments and earning higher returns.

At first, most of its offshore investments were in the financial sector
but more recently the fund has invested in natural resource-related
companies and dabbled in real estate.

The fund has invested nearly all of its available funds already but is
expected to receive a long-awaited fresh injection of capital in the
coming months.

Many senior Chinese officials complain that western politicians often
discriminate against investors from China, because of fears about the
country�s rise and the intentions of its state-controlled companies,
which are the most active abroad.

Mr Lou did not mention those concerns in his article but did say that
"governments seeking external investment in infrastructure should relax
regulatory restrictions where necessary, and promote transparency and
predictability for investors".

But he praised the UK as "one of the most open economies in the world"
with a "sound legal system", and said CIC has already built up
"considerable positions in the UK market."

UK-based equity analysts say public equity investments in London by
China�s State Administration of Foreign Exchange, which manages the bulk
of the $3,200bn reserves, now account for roughly 3 per cent of the
combined equity of companies in the FTSE 100 index.

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Tuesday, November 22, 2011

Full text: China’s Policies and Actions for Addressing Climate Change

Full text: China's Policies and Actions for Addressing Climate Change
November 22nd, 2011 | China Daily

The Information Office of the State Council, China's Cabinet, on Tuesday
published a white paper titled "China's Policies and Actions for
Addressing Climate Change". Following is the full text:

China's Policies and Actions for Addressing Climate Change

Information Office of the State Council

The People's Republic of China

November 2011, Beijing



I. Mitigating Climate Change

II. Adapting to Climate Change

III. Enhancing Basic Capability

IV. Participation of the Whole Society

V. Participation in International Negotiations

VI. Strengthening International Cooperation

VII. Objectives, Policies and Actions during the 12th Five-Year Plan Period

VIII. China's Basic Position in International Climate Change Negotiations

Concluding Remarks


Climate change is a global issue of common concern to the international
community. In recent years, worldwide heat waves, droughts, floods and
other extreme climate events have occurred frequently, making the impact
of climate change increasingly prominent. It has become a main world
trend that all countries join hands to respond to climate change and
promote green and low-carbon development.

China is the world's largest developing country, with a large
population, insufficient energy resources, complex climate and fragile
eco-environment. It has not yet completed the historical task of
industrialization and urbanization and its development is unbalanced.
China's per-capita GDP in 2010 was only a little more than RMB29,000. By
the UN standard for poverty, China still has a poverty-stricken
population of over 100 million, thus it faces an extremely arduous task
in developing its economy, eliminating poverty and improving the
people's livelihood. In the meantime, China is one of the countries most
vulnerable to the adverse effects of climate change. Climate change
generates many negative effects on China's economic and social
development, posing a major challenge to the country's sustainable

The Chinese government constantly sets great store by the issue of
climate change and has included addressing climate change into its mid-
and long-term planning for economic and social development as a major
issue concerning its overall economic and social development. In 2006,
China set forth the compulsive goal of reducing its per-unit GDP energy
consumption in 2010 by 20 percent from that of 2005. In 2007, China
became the first developing country to formulate and implement a
national program to address climate change. In 2009, China put forward
the goal of action to reduce the per-unit GDP greenhouse gas emission in
2020 by 40-45 percent as compared to that of 2005.

To accomplish the above goals, China adopted a range of major policy
measures to mitigate and adapt to climate change during the Eleventh
Five-Year Plan (2006-2010) period, and has achieved remarkable results.
The Outline of the Twelfth Five-Year Plan for National Economic and
Social Development released in 2011 established the policy orientation
of promoting green and low-carbon development, and expressly set out the
objectives and tasks of addressing climate change for the next five
years. China has been playing a constructive role in international
negotiations on climate change, actively pushing forward the negotiation
process, thereby making a significant contribution to addressing global
climate change. This white paper is hereby issued to enable the
international community to fully understand China's policies and actions
for addressing climate change, and the positive results achieved in this
regard during the Eleventh Five-Year Plan period, as well as China's
overall arrangements to address climate change and its related
negotiating position during the Twelfth Five-Year Plan period (2011-2015).

I. Mitigating Climate Change

During the Eleventh Five-Year Plan period, China accelerated the
transformation of its economic development mode, and achieved remarkable
results in controlling greenhouse gas emission by promoting industrial
restructuring, energy restructuring and energy conservation, improving
energy efficiency, and increasing carbon sink.

1. Optimizing Industrial Structure

Reforming and upgrading traditional industries. China has formulated and
released plans for restructuring and rejuvenating ten major industries,
including automobiles, and iron and steel, revised the Guideline
Catalogue for Industrial Restructuring, and issued the Opinions on
Curbing Overcapacity and Redundant Construction in Some Industries and
Guiding the Sound Development of Industries. China has raised the market
entry threshold for high-energy-consuming industries, conducted energy
conservation evaluation and examination of fixed asset investment
projects, enhanced technology transformation and upgrading in
traditional industries, promoted corporate merger and restructuring,
adjusted export tax rebate policies, imposed export duties on coal, some
nonferrous metals, steel billets and chemical fertilizers, and
restrained the export of high-energy-consuming, high-emission and
high-resource-consuming products. Efforts have been made to accelerate
the pace of eliminating backward production capacity. By implementing
the policy of "replacing small thermal power generating units with
larger ones," China shut down small thermal power generating units with
a total generating capacity of 76.82 million kw, and eliminated backward
steel production capacity to the tune of 72 million tons; iron
production capacity, 120 million tons; cement production capacity, 370
million tons; coke production capacity, 107 million tons; paper
production capacity, 11.3 million tons; and glass production capacity,
45 million cases. The proportion of thermal power generating units with
a generation capacity above 300,000 kw each in China's thermal power
installed capacity increased from 47 percent in 2005 to 71 percent in
2010; the proportion of large iron production blast furnaces with an
capacity above 1,000 cu m each increased from 48 percent to 61 percent;
and the proportion of the output of large aluminum electrolysis
prebaking tanks increased from 80 percent to above 90 percent. The
industry concentration in the iron, steel, cement, nonferrous metals,
machinery and automobile sectors among other key industries was
remarkably improved, while energy consumption in major industries was
dramatically reduced. From 2005 to 2010, coal consumption in thermal
power supply dropped 10 percent from 370 to 333 g/kwh; comprehensive
energy consumption per ton of steel decreased 12.8 percent from 694 to
605 kg of standard coal; that in cement production, down by 24.6
percent; that of ethylene production, down by 11.6 percent; and that of
synthetic ammonia production, 14.3 percent.

Fostering and strengthening strategic and newly emerging industries.
China has issued the Decision on Accelerating the Fostering and
Development of Strategic and Newly Emerging Industries, which defines
the overall principles, key tasks and policy measures for fostering and
developing strategic and newly emerging industries. The Chinese
government has selected key fields of these industries, implemented a
number of major projects and built a range of related programs. China
has accelerated the pace of building a national innovation system,
implemented knowledge- and technology-innovation projects, and
intensified efforts on tackling key technological problems. The
government has initiated a venture capital investment program in newly
emerging industries, established 20 venture capital investment funds,
and supported the growth of innovative enterprises in energy
conservation, environmental protection, new energy development and other
sectors in strategic new industries. In 2010, the output value of
China's high-tech manufacturing industries reached RMB7.6 trillion,
ranking the second in the world, and more than twice the figure for 2005.

Accelerating the development of the service industry. China has
formulated and implemented the Opinions Concerning Accelerating the
Development of the Service Industry, Opinions on the Implementation of
Some Policies and Measures for Accelerating the Development of the
Service Industry, and other important documents, vigorously promoting
the development of production- and life-related service trades. The
government has also issued the Guidelines for Accelerating the
Development of High-tech Service Industry. From 2005 to 2010, the added
value of China's service sector increased 11.9 percent per year on
average, with an average annual growth rate of 0.7 of a percentage point
higher than that of GDP, and with its proportion in GDP rising from 40.3
percent to 43 percent.

2. Energy Conservation

Enhancing target responsibility assessment. China has resolved and
assigned responsibilities to fulfill set targets in energy conservation,
and established a statistical monitoring and evaluation system to
regularly evaluate the completion of energy conservation targets and the
implementation of energy conservation measures by 31 provincial
governments and 1,000 key enterprises. In 2010, China launched special
supervision over energy conservation and emission reduction in 18 key
regions. Strict target responsibility evaluation and accountability
contributed to achieving the national energy conservation targets.

Promoting energy conservation in key fields. The Chinese government has
carried out ten key energy conservation projects, including upgrading of
industrial boilers and kilns, combined heat and power generation,
electromechanical system energy conservation and residual heat and
pressure utilization, conducted energy conservation in 1,000
enterprises, enhanced energy conservation management of key
energy-consuming enterprises, and promoted energy audit and energy
efficiency benchmarking activities. It has launched the low-carbon
transportation action for automobiles, ships, roads and harbors in 1,000
enterprises, vigorously developed urban public transport. It has also
improved the implementation rate of mandatory energy conservation
standards of new buildings, quickened the energy conservation
transformation of existing buildings, promoted the use of renewable
energy resources in buildings, and conducted energy conservation
transformation of government office buildings. By the end of 2010, the
implementation rate of mandatory energy efficiency standards for new
urban buildings reached 99.5 percent in the design stage and 95.4
percent in the construction stage. During the Eleventh Five-Year Plan
period, the accumulated total energy-efficient floor space constructed
was 4.857 billion sq m, with energy-saving capacity of 46 million tons
of standard coal. The government has taken energy conservation actions
in the retail sector by restraining the production, marketing and use of
plastic shopping bags, and curbing over-packaging.

Promoting energy-saving technology and products. China has released a
total of 115 state key energy-efficient technology promotion catalogues
in three batches, and specially promoted seven energy-efficient
technologies in the iron and steel, building material and chemical
industries. The government has launched a project to promote
energy-efficient products for the benefit of the people, and promoted
high-efficiency illumination products and air-conditioners,
energy-efficient motors and other energy-efficient products by way of
government subsidies. The central treasury has appropriated subsidies to
support the production of and promote the use of some 360 million
high-efficiency illumination products, 30 million high-efficiency air
conditioners and one million energy-efficient motor vehicles, which have
realized an annual energy-saving capacity of 20 billion kwh. China has
carried out energy conservation and new-energy vehicle demonstration and
promotion, and taken the lead in using mixed-power vehicles, electric
vehicles and fuel cell vehicles. The government has established a
preferential procurement system for energy-efficient products, released
a government procurement list of energy-efficient products, and ordered
mandatory procurement of nine kinds of energy-efficient products,
including air-conditioners, computers and illumination products. During
the Eleventh Five-Year Plan period, a large variety of high-efficiency
energy technologies were widely applied, including low-temperature waste
heat power generation, new type cathode aluminum reduction cells,
high-voltage frequency conversion, rare earth permanent magnet motors
and plasma oil-less ignition. Meanwhile, the market share of
high-efficiency illumination products reached 67 percent, and that of
high-efficiency air-conditioners, 70 percent.

Developing a circular economy. National "city mine" demonstration bases
have been built to promote the concentrated, circular and
high-added-value utilization of obsolete electromechanical equipment,
waste household appliances, plastic and rubber, and other waste
resources in key cities, and efforts are being made to promote the
comprehensive utilization of major industrial solid waste. During the
Eleventh Five-Year Plan period, China comprehensively utilized about one
billion tons of fly ash, 1.1 billion tons of coal slag, and 500 million
tons of metallurgical slag. The central government funded the
industrialization of remanufacturing projects. By the end of 2010, China
had formed a remanufacturing capacity of automobile engines, gearboxes,
steering engines and electric generators, totaling 250,000 pieces (sets).

Promoting energy conservation market mechanism. The government is
proactively pushing forward energy management through contract
management, power demand side management, voluntary energy conservation
agreements and other market mechanisms. In 2010, China issued the
Opinions on Accelerating the Implementation of Contract Energy
Management and Promoting the Development of the Energy Conservation
Service Industry, increased financial support, adopted policy of
taxation support and improved related accounting systems and financial
services to strengthen support for the energy conservation service
industry. From 2005 to 2010, the number of energy conservation service
companies increased from 80 to over 800, the number of employees in this
sector increased from 16,000 to 180,000, the industry scale was enlarged
from RMB4.7 billion-worth to RMB84 billion-worth, and the annual
energy-saving capacity rose from some 600,000 to more than 13 million
tons of standard coal.

Improving related standards. The government has improved the
energy-efficient design standards for residential buildings in three
climate zones (freezing cold and cold, hot in summer and cold in winter,
and hot in summer and warm in winter); improved energy-efficient design
standards for public buildings and the code of acceptance inspection of
energy-efficient building construction; issued 27 mandatory national
standards for energy consumption quotas of high energy-consuming
products and 19 mandatory national energy efficiency standards for major
terminal energy-using products; formulated 15 national standards for the
discharge of major pollutants; promulgated 71 environmental labeling
standards; and released an energy efficiency labeling product catalogue.

Incentive policies. China has quickened the reform of the energy pricing
mechanism, reformed the taxes and fees of refined petroleum products,
adopted a differential electricity pricing policy for
high-energy-consuming industries, imposed electricity pricing penalties
on products with super-high energy consumption, and promoted the metered
charging of heat supply by actual consumption of each household. The
government has earmarked special funds for energy conservation and
emission reduction. During the Eleventh Five-Year Plan period, the
central treasury invested an accumulative total of RMB225 billion to
support energy-efficient technology upgrading and the popularization of
energy-efficient products, forming an energy conservation capacity of
340 million tons of standard coal. The government meanwhile has been
steadily pushing forward the reform of the resource taxation system,
improving the export tax rebate system, adjusting the policy on vehicle
purchase, and vehicle and vessel tax, using preferential taxation
policies to promote energy and water conservation, the comprehensive
utilization of resources, and the import of energy-efficient and
low-carbon products.

Through the efforts of all sectors, China accomplished its energy
conservation goals listed in the Eleventh Five-Year Plan. China's energy
consumption per unit of GDP dropped 19.1 percent from that of 2005
accumulatively, or a reduction of 1.46 billion tons of carbon dioxide
emissions. During the same period, China's national economy expanded at
an average annual rate of 11.2 percent, while its energy consumption
grew only 6.6 percent annually on average. The energy consumption
elasticity coefficient dropped from 1.04 in the Tenth Five-Year Plan
period (2001-2005) to 0.59, which eased the contradiction between energy
supply and demand.

3. Developing Low-carbon Energy

Accelerating the development of natural gas and other clean resources.
The government is vigorously developing natural gas, encouraging the
development and utilization of coal-bed methane, shale gas and other
unconventional oil and gas resources, and has enacted a number of
policies in this regard, such as financial subsidies, preferential
taxation, connecting generated power to grid and electricity price
subsidies. China has formulated and implemented an overall plan of
management and utilization of coal mine methane, and is forcefully
pushing forward the clean utilization of coal, guiding and encouraging
the utilization of coal mine methane and the development of ground
coal-bed methane. Natural gas production increased from 49.3 billion cu
m in 2005 to 94.8 billion cu m in 2010, an average annual increase of 14
percent. In that period, China's natural gas consumption accounted for
4.3 percent of its total energy consumption, and the extraction of
coal-bed methane reached 30.55 billion cu m, with the amount utilized
reaching 11.45 billion cu m, equivalent to a reduction of 170 million
tons of carbon dioxide emissions.

Proactively developing and utilizing non-fossil energy. China has
enhanced the development and utilization of hydropower, nuclear energy
and other low-carbon energy sources through policy guidance and fund
input. By the end of 2010, China's installed hydropower capacity had
reached 213 million kw, doubling the figure for 2005; and installed
nuclear power capacity had reached 10.82 million kw, with another 30.97
million kw under construction. China supports the development of wind
power, solar power, geothermal, biomass energy and other new types of
renewable energy. It has improved the pricing policy for on-grid power
generated by wind, and launched the "Golden Sun Demonstration Project"
to promote the franchise bidding for large-scale photovoltaic power
stations. It has improved the pricing policy for power generated by
agricultural and forestry biomass energy, increased financial support
for the development of biomass energy and enhanced methane development
in rural areas. China's installed wind power capacity grew from 1.26
million kw in 2005 to 31.07 million kw in 2010, and installed
photovoltaic power capacity increased from less than 100,000 kw in 2005
to 600,000 kw; the number of solar water heaters in use reached 168
million sq m; and installed biomass energy capacity was about 5 million
kw. With an annual utilization of methane of about 14 billion cu m, the
total number of methane users in China reached 40 million households;
utilized ethanol bio-fuel was 1.8 million tons; and the contribution
made by all types of biomass energy totaled 15 million tons of standard

4. Controlling Non-energy-related Greenhouse Gas Emission

The government has enhanced control over greenhouse gas emission in
industrial and agricultural production, waste disposal and other fields.
China has applied the raw material substitution technology such as
replacing limestone with carbide slag in the cement clinker production
process, applied the technique of producing cement with blast furnace
slag and fly ash as added mixed materials, applied secondary- and
tertiary-stage treatment to address the discharge of nitrous oxide
during the nitric acid production process, applied catalytic
decomposition and thermal oxidative decomposition to address the
discharge of nitrous oxide during the adipic acid production process,
and thermal oxidative decomposition to capture and remove HFC-23. China
has quickened transformation in the mode of animal husbandry production,
and reduced the emission of methane and nitrous oxide in cropland, and
poultry and livestock farming. The government has launched the soil
organic matter advancement subsidy project, and promoted returning straw
to farmland, green manure growing, adding organic fertilizer and other
technologies to an accumulated total area of about 30 million mu (a
Chinese unit of area equal to 1/15 of a hectare). The government has
improved urban waste disposal standards, adopted a household garbage
charging system, promoted advanced waste incineration technology, and
formulated incentive policies for landfill gas recovery. China also
carries out research and demonstration for carbon capture, utilization
and sequestration technologies. Statistics showed that by the end of
2010 China's nitrous oxide emission in industrial production generally
remained at the level of 2005, and the growth of methane emission was
basically brought under control.

5. Increasing Carbon Sink

Increasing forest carbon sink. China is continuously carrying out
ecological protection projects, such as the key shelterbelt construction
project in northwest, northeast and north China and along the Yangtze
River, and projects to return farmland to forest, natural forest
protection project, the program to control sandstorms in the Beijing and
Tianjin area. It has carried out a pilot afforestation project with an
aim to expand carbon sinks, enhanced sustainable forest management, and
increased the forest stock volume. The central finance has raised the
standard for afforestation investment subsidy from RMB100 to 200 per mu,
and established the China Green Carbon Fund. Currently, China's man-made
forest reserve has reached 62 million ha; its national forest coverage
has reached 195 million ha, with the forest coverage rate rising from
18.21 percent in 2005 to 20.36 percent in 2010, with a forest stock
volume of 13.721 billion cu m. China's total carbon storage in forest
vegetation has reached 7.811 billion tons.

Improving farmland and grassland carbon sinks. China is implementing the
systems to promote grass-livestock balance, prohibiting or temporarily
banning pasturing in certain areas, and regionally rotating pasturing,
so as to control the livestock-carrying capacity of pastures and curb
pasture degeneration. It is expanding the project of returning grazing
land to grassland, strengthening the construction of man-made forage
meadows and irrigated pastures, enhancing the prevention and control of
grassland natural disasters, and increasing the grassland coverage rate
and grassland carbon sinks. By 2010, protective farming technology had
been applied to an area of 64.75 million mu; the no-tillage mechanical
seeding area had reached 167 million mu; and mechanically-crushed straw
had been returned to farmland in a total area of 428 million mu.

6. Promoting Low-carbon Development in Localities

Promoting low-carbon pilot projects in selected provinces and cities. In
2010, China launched a national "low-carbon province and low-carbon
city" experimental project. The first batch of selected localities
included five provinces, namely, Guangdong, Hubei, Liaoning, Shaanxi and
Yunnan, and eight cities, namely, Tianjin, Chongqing, Hangzhou, Xiamen,
Shenzhen, Guiyang, Nanchang and Baoding. Currently, all the pilot
provinces and cities have established leading work teams, formulated
implementation schemes, and promulgated their respective goals for
carbon intensity reduction in the Twelfth Five-Year Plan period — and
2020. They have also vigorously promoted the transformation of the local
economic development mode, took major actions to advance the
construction of key low-carbon development projects, and vigorously
developed low-carbon industries to promote green and low-carbon development.

Actively drawing on low-carbon development experience. To build a
"culture-enriched, technology-empowered and environmentally-friendly
Beijing," Beijing, the capital city of China, has accelerated the
development of the green, low-carbon and circular economy, vigorously
developed strategic newly emerging industries and modern service
industries, quickened the low-carbon transformation of existing
buildings and transport systems, and advocated low-carbon consumption
and a low-carbon lifestyle. Shanghai has sped up the pace of optimizing
its energy structure, launched low-carbon development pilot projects in
Hongqiao CBD and Chongming Island, implemented the concept of low-carbon
development in the design, construction and operation of the Shanghai
World Expo Park, and carried out "voluntary emission reduction
activities to achieve a low-carbon World Expo." Jiangsu Province has
selected four cities, ten industrial parks and ten enterprises for pilot
experiments in developing a low-carbon economy.

II. Adapting to Climate Change

During the 11th Five-Year Plan period, China strengthened scientific
research in and impact evaluation of climate change, improved relevant
laws and policies, and enhanced the capability of key sectors to adapt
to climate change, so as to reduce the negative impact of climate change
on economic and social development and people's lives.

1. Agriculture

China strives to consolidate farmland and water conservancy
infrastructure, raise the overall production capacity of agriculture,
encourage large-scale construction of standard farmland with stable
yields despite drought or flood, support major irrigation areas to
continue building supporting and big irrigation and drainage pump
stations, expand the irrigation area, improve the irrigation efficiency
and spread water-conservation technology, and carry out agricultural
water pricing reform and pilot water-conservation renovations of
farmland ditches, and enhance the nation's capacity to resist disasters.
It has built and improved agricultural meteorological monitoring and
early-warning systems. China also carries out research into and
cultivates stress-resistant varieties of seeds with high yield potential
and high quality and resistance to drought, waterlogging, high
temperature, diseases and pests, and expands the growing areas of super
strains of crops. It has further increased subsidies for superior
strains of crops, and accelerated integration of the cultivation,
reproduction and spreading of such superior strains. Currently, more
than 95 percent of the farmland nationwide is sown with superior strains
of major crops, which contributes 40 percent to the grain output increase.

2. Water Resources

China has formulated National Comprehensive Plan for Water Resources,
Seven Major River Basins' Flood Control Plan, National Mountain Torrent
Disaster Prevention and Control Plan, National Plan to Guarantee the
Safe Supply of Drinking Water to Urban Dwellers, and National Plan for
the Eco-protection of Major Rivers and Lakes. It has strengthened river
basin management and water resources allocation, and organized and
implemented the work of diverting water from the Yellow River to Tianjin
and Hebei Province, from the Qiantang River to Lake Taihu at time of
urgent need, and ecological water re-charge to the Heihe and Tarim
rivers. It has quickened the implementation of the strictest water
resources control, and improved the policy system concerning the
development, utilization, conservation and protection of water
resources. It has started constructing a batch of water-shed flood
control projects, while accelerating the pace of some key water
conservancy projects and major water resource projects. It has tightened
soil erosion control, and has completed the comprehensive improvement of
230,000 sq km of land suffering from water and soil erosion. It has
completed the reinforcement of large and medium-sized reservoirs as well
as key small ones in danger. More efforts have been made to guarantee
the safe supply of drinking water to 210 million rural residents,
meeting the relevant target set in the UN Millennium Development Goals
six years in advance.

3. Marine Resources

China has strengthened the construction of a marine meteorological
observation network. With such a network in place, the country has been
able to observe the key climate factors in its offshore regions and some
oceans, and basically built up a typical monitoring system in the
eco-sensitive marine areas, thereby effectively enhancing its ability to
monitor the sea-air carbon dioxide exchange flux. China has started
redefining the national and provincial marine functional zoning, has
started marine ecosystem restoration projects in the coastal areas and
on key islands, and launched eco-restoration demonstration projects such
as cultivating and replanting mangroves, protecting coral reefs by way
of relocation, and returning coastal wetlands to beaches. The
observation and early warning work related to storm surge, sea wave,
tsunami, sea ice and other marine disasters have effectively reduced the
casualties and property losses caused by such marine disasters.
Observation, investigation and evaluation have been conducted of sea
level rise, coastal erosion, seawater intrusion and saline tide, and the
datum tide marks of 94 tidal gauging stations have been re-verified.
Through comprehensive offshore investigation and evaluation, it has
obtained systematic knowledge of the distribution, both spatially and
temporally, of marine disasters. In addition, annual gazettes have been
released on marine conditions, sea levels and marine disasters to
provide information for preventing and combating various marine disasters.

4. Public Health

China has worked out and promulgated the National Health Emergency
Response Plan against Natural Disasters (Trial) which has clearly
defined the health-related goals and principles in case of floods and
droughts, meteorological and biological disasters, and other natural
disasters, established the natural disaster emergency response work
system, the levels and measures of such response, and formulated
emergency response work plans against different types of natural
disasters. The Emergency Response Plan against High-temperature
Heat-stroke (Trial) and National Environment and Health Action Plan
(2007-2015) have also been enacted. Researches have been carried out in
the monitoring of the quality of drinking water, the impact of air
pollution on health, infectious diseases caused by climatic factors, the
impacts of climate change on vector-borne parasitic diseases and
water-borne communicable diseases, and other diseases caused by impacts
of climate change on environment, so as to provide technical support for
the formulation of policies and measures to adapt to climate change.

5. Meteorology

The meteorological departments have released and implemented the Weather
Research Plan (2009-2014), Climate Research Plan (2009-2014), Applied
Meteorology Research Plan (2009-2014) and Comprehensive Meteorological
Observation Research Plan (2009-2014), and distributed the China
Implementation Plan of the Climate Observation Systems, in an effort to
promote the observation, pre-evaluation and evaluation of climate
change. China has set up the first-generation operational system based
on a dynamical climate model for short-term climate prediction,
developed the new-generation dynamical climate model system, and
conducted various evaluations regarding the impact of climate change on
the safety of national grain supply, water supply, ecology and human health.

III. Enhancing Basic Capability

To build up its basic capability in this regard, during the 11th
Five-Year Plan period China continued to improve relevant legislation,
management system and working mechanism for addressing concerning
climate change, strengthened statistical and calculation research and
institutional construction, raised the level of scientific research and
policy study, and further strengthened relevant education and training.

1. Formulating Relevant Laws and Regulations and Important Policies

Improving relevant laws and regulations. China has formulated or amended
the Renewable Energy Law, Circular Economy Promotion Law, Energy
Conservation Law, Clean Production Promotion Law, Water and Soil
Conservation Law and Islands Protection Law, promulgated the Regulations
on Civil Buildings Energy Conservation, Regulations on Public
Organizations Energy Conservation and Regulations on Drought Control,
and issued the Interim Measures for Energy Conservation Evaluation and
Review of Fixed Assets Investment, Measures for Energy Conservation
Supervision of High-Energy-Consuming Special Equipment and Interim
Measures for Supervision of Energy Conservation and Emission Reduction
of National Enterprises. It has also conducted pre-legislation study on
climate change.

Formulating and implementing China's National Climate Change Program.
This Program defines the guiding principles, main fields and key tasks
concerning the work of addressing climate change. As required by this
document, 31 provinces, autonomous regions and municipalities directly
under the central government have all worked out their own programs to
address climate change, and have put them into practice. The work to
address climate change has been gradually incorporated into the plans of
economic and social development of each locality, and placed on the
priority agendas of local governments. Relevant departments have also
worked out action plans and working programs in such fields as marine
resources, meteorology and environmental protection.

Promulgating a series of important policy documents. China has
promulgated the Mid- and Long-term Plan for the Development of Renewable
Energy, Mid- and Long-term Plan for the Development of Nuclear Energy,
the 11th Five-Year Plan for Renewable Energy Development, Decision on
Energy Conservation Work, Opinions on Accelerating the Development of
Circular Economy and other important documents. The Comprehensive
Working Plan for Energy Conservation and Emission Reduction in the 11th
Five-Year Plan Period, released in 2007, stated the goals, key fields,
and policy measures regarding energy conservation and emission
reduction, and played a significant role in promoting energy
conservation and emission reduction work in the period 2006-2010.

2. Improving Management Systems and Working Mechanism

China has built and constantly improved its management system and
working mechanism to address climate change, which features the unified
leadership of the National Leading Group to Address Climate Change,
administration by the National Development and Reform Commission (NDRC),
division of work with separate responsibilities among relevant
departments and wide participation of various localities and industries.
In 2007, the National Leading Group to Address Climate Change was set
up, with premier of the State Council as its head and 20 ministers as
its members. The NDRC was assigned the specific work by the leading
group, and in 2008 the NDRC set up a department to coordinate and
supervise the relevant work. Following that, relevant government
departments established functional organs and working mechanisms to
address climate change work in their own fields. To coordinate the
inter-ministry work, a liaison office was set up within the framework of
the National Leading Group to Address Climate Change in 2010, and the
National Panel on Climate Change was adjusted and strengthened to ensure
scientific decision-making. All provinces, autonomous regions and
municipalities directly under the central government have established
their own leading groups and working organs to address climate change,
and some sub-provincial or prefectural cities have also set up offices
to address climate change. Relevant departments under the State Council
have founded supportive organs such as the National Center for Climate
Strategy and International Cooperation of China, and the Research Center
for Climate Change, and some universities and scientific institutions
have opened their own climate change research organizations.

3. Enhancing Statistical and Accounting Capabilities

Improving energy and related statistical systems. China has issued the
Implementation Plan and Methods for Statistical Monitoring and Reviewing
of Energy Conservation and Emission Reduction, further improved the
energy-consumption accounting calculation system, and worked out ten new
energy statistical systems, which basically cover energy consumption by
all sectors of society. The various localities have improved their
energy statistical setups and personnel placement to spur statistical
work in this field. All provinces, autonomous regions and municipalities
directly under the central government have set up energy statistics
organizations, and key energy consumption units have boosted their
energy statistical and accounting work. A reporting system has been in
place for key energy consumption units to report their energy
utilization, and standardize their submission of such reports. Technical
guidance for forest carbon sink metering and monitoring has been
formulated to promote the construction of such metering and monitoring

Reinforcing greenhouse gas emission accounting. In the wake of its
submission of the Initial National Communication on Climate Change of
the People's Republic of China to United Nations Framework Convention on
Climate Change (UNFCCC) at the tenth session of the Conference of the
Parties in 2004, China organized the compilation of a greenhouse gas
emission list and the second national communication report in 2005. It
has built a national databank of greenhouse gas lists, issued the
Guidance for Compiling Provincial Greenhouse Gas Emission Lists (Trial),
and started the compilation work at provincial level and held a series
of training courses in this regard.

4. Fueling Support from Scientific and Policy Research

Augmenting fundamental research. China has compiled its first and second
National Evaluation Reports on Climate Change. It has conducted research
into the relations between climatic change and environment quality,
coordinated control of greenhouse gas and pollutants, climate change and
the water cycle mechanism, and climate change and forestry response
measures. It has built a data set on climate change trend, and released
a data set on Asian climate change prediction. It has opened several
special laboratories in sea-air interaction and climate change, and has
conducted large amounts of work in fundamental research.

Promoting climate-friendly technological R&D. With the support of the
National Hi-tech R&D Program ("863 Program") and the National Key
Technologies R&D Program, China has started R&D into clean and efficient
utilization of energies, energy-saving technology and equipment in
certain key industries, key energy-saving technology and materials for
buildings, key technology and equipment of clean production for key
industries, and pattern of a low-carbon economic development and
integrated application of key technologies, and has made significant
progress with a number of invention patents of its own intellectual
property rights. China also pushes forward the R&D of technology for the
development and application of renewable and new energies, and key
technology for the smart grids. It has made evaluations of the practice
of using greenhouse gas as a resource to enhance the petroleum recovery
ratio, and of the capacity of underground storage and storage of carbon
dioxide in underground saline water, and has carried out R&D in the
preparation and sifting of new, safe and efficient absorption materials.
Included in the National Key Technologies R&D Program through the 11th
Five-Year Plan are special programs to study the impacts caused by and
adaption to climate change and corresponding key technologies to address
them, and to demonstrate the technologies used to adapt to climate
change in typical fragile zones. In terms of carbon emission monitoring,
China has begun its research in Orbiting Carbon Observatory. With the
support of the "863 Program" and the National Key Technologies R&D
Program, China has started to research in and demonstrate carbon capture
and emission reduction technologies applied in major agricultural and
forestry ecosystems, and key technologies in forestry eco-construction,
and research into the technologies for monitoring, early warning and
addressing major agriculture-related climatic disasters. It has carried
out evaluation and applied research into technologies of energy
conservation and emission reduction for key industries, which is a
project of the National Key Technologies R&D Program. By 2010, the
country had built 288 state engineering research (technological) centers
and 91 state engineering laboratories.

Strengthening strategy and policy study. Centering on the major tasks in
addressing climate change during the 12th Five-Year Plan period, China
is studying a long-term strategy to cope with the issue of climate
change, a strategy of low-carbon development, and a national overall
strategy to address climate change and carbon trading mechanism, as well
as relevant laws and regulations at home and abroad related to climate
change. It has started a special scientific action, with a total
investment of 110 million yuan, to deal with climate change, and begun
studying major strategies and technical issues to promote its own green

5. Strengthening Education and Training

Gradually including climate change into the national education system.
Education on environmental protection and climate change has been given
more attention in secondary schools and universities, and relevant
courses, teaching and research bases have been set up. All these have
played an important role in fostering professionals in this regard.

More training on climate change for officials. Collective studies,
lectures and reports have been organized to help officials enhance their
awareness of climate change and scientific management. The training
classes organized by relevant departments under the central government
cover such subjects as climate change, sustainable development and
environmental management, capability building of provincial
decision-makers in charge of climate change work, capability building of
local officials in charge of clean development mechanism,
climate-change-adaptation capability building, and capability building
of provincial greenhouse gas lists compilation. Local governments have
also organized various training courses on climate change.

IV. Participation of the Whole Society

China proactively publicizes relevant scientific knowledge in addressing
climate change, enhances public awareness of low-carbon development,
gives full play to the initiatives of non-governmental organizations,
the media and other outlets, and uses various channels and measures to
guide the whole society to participate in actions addressing climate change.

1. Proactive Government Guidance

Since 2008, China has published an annual report titled "China's
Policies and Actions for Addressing Climate Change" to give
comprehensive introductions to China's policies and progress in
addressing climate change. It organizes an "energy-saving publicity
week" every year to publicize knowledge of energy conservation and
emission reduction, and knowledge of climate change among the people. It
also proactively popularizes the scientific knowledge of climate change
on World Environment Day, World Meteorological Day, the Earth Day, World
Oceans Day, World Car-free Day, National Day of Disaster Prevention and
Reduction, National Day of Science Popularization and other theme days.
The local governments of Beijing, Tianjin, Guiyang and other cities have
held large international seminars, forums and exhibitions on climate
change, energy conservation and environmental protection to enhance
exchanges on low-carbon development with other countries and public
awareness on addressing climate change, energy conservation and
low-carbon development. The government also has given full play to the
roles of newspapers, radios, televisions, magazines and other
traditional media as well as the Internet, mobile phones and other new
media to strengthen publicity and education on addressing climate
change, energy conservation and low-carbon development.

2. Proactive Actions by Non-governmental Organizations

The China Society of Territorial Economics has opened low-carbon
territory experimental areas, the All-China Environment Federation and
China Tourism Association have carried out the nation's first low-carbon
tourism experiments at 48 tourist resorts, and the China Iron and Steel
Industry Association and All-China Federation of Trade Unions have
organized benchmarking contests on energy conservation and consumption
of large-scale energy-consuming steel production equipment. The China
Energy Conservation Association and other organizations have held summit
media forums on climate change and low-carbon economic development. The
China National Coal Association, China Nonferrous Metals Association,
China Petroleum and Chemical Industry Association, China Building
Materials Federation, China Electricity Council and other organizations
have also played important roles in the planning of industry energy
conservation, formulation and implementation of energy conservation
standards, promotion of energy conservation technology, energy
consumption statistics, and energy conservation publicity and training,
information and inquiry, and related areas. Some non-profit
organizations have also held publicity and education campaigns to boost
public awareness on addressing climate change.`

3. Vigorous Media Publicity

The Chinese media organs constantly strengthen publicity and news
coverage on climate change, energy conservation and low-carbon
development. The media have compiled and published a series of
introductory and publicity picture books on climate change and the
prevention of meteorological disasters, produced films and TV series,
including Facing Climate Change, Warming Earth, Focusing on Climate
Change, and Same Hot, Same Cool, the World Over, actively introducing
China's policies, actions and achievements in addressing climate change,
advocating a low-carbon lifestyle, increasing the public's knowledge and
understanding of climate change and presenting China's efforts and
achievements in combating climate change.

4. Public Participation

The Chinese public proactively responds to climate change with action:
taking their own shopping bags, using both sides of paper, limiting the
temperature of air-conditioners, refusing to use disposable chopsticks,
purchasing energy-saving products, choosing low-carbon means of
transport, preferring low-carbon food, leading low-carbon lifestyles and
practicing low-carbon life and consumption in every aspect of daily
life, including clothing, food, residence and travel. People all around
China actively participate in the Earth Hour program and turn off their
lights on the last Saturday of March each year to express their mutual
aspiration for the protection of the global climate. The 1,000-youth
environment-friendly ambassador program and other activities are held to
publicize the concept of environmental protection, advocate a low-carbon
lifestyle and practice green consumption at state organs, schools,
communities, barracks, enterprises, parks and public squares. In some
big and medium-sized cities, a low-carbon life has become a trend sought
after by people who pursue a simple and low-carbon lifestyle. Shanghai,
Chongqing, Tianjin and other cities have carried out the "Cool China —
National Low-carbon Action" to survey and analyze family carbon
emissions. Harbin and other cities have initiated energy-saving and
emission-reduction programs in communities, mobilizing families,
schools, businesses and services, and state organs in communities to
take part in energy conservation and emission reduction. Universities,
high schools and primary schools all around the country have actively
publicized the low-carbon lifestyle and environmental protection, and
the goal of building a "green campus" set by some universities has
aroused wide-spread attention.

V. Participation in International Negotiations

The Chinese government attaches great importance to the issue of global
climate change. With a high sense of responsibility, it has proactively
and constructively participated in international negotiations to address
climate change, strengthened multi-level negotiations and dialogues with
other countries in the area of climate change, striving to promote
consensus among all parties on the issue of climate change and make
positive contributions to building a fair and reasonable international
mechanism for addressing climate change.

1. Proactive Participation in International Negotiations within the UN

China adheres to the double-track negotiation mechanism defined in the
UNFCCC and the Kyoto Protocol, abides by the principles of signatory
leadership, openness and transparency, extensive participation and
consensus through consultations, gives active play to the main channel
of international climate change negotiations within the UN framework,
sticks to the principle of "common but differentiated responsibility,"
proactively and constructively participates in negotiations, strengthens
communication and exchanges with various parties, and promotes consensus
among all parties.

In 2007, China proactively and constructively attended the United
Nations climate change talks in Bali, Indonesia, and made a substantial
contribution to the development of the Bali Road Map. China's three
suggestions at the talks — that the emission-reduction goals of
developed countries shall be negotiated and decided before the end of
2009 at the latest, that fund and technology transfer for developing
nations be provided as stipulated in the UNFCCC and Kyoto Protocol — and
other advice received extensive acknowledgement, and were finally
adopted and included in the road map.

In 2009, China proactively participated in the Copenhagen Climate Change
Conference, and played a key role in breaking the negotiation deadlock
and promoting consensus among all parties. The Chinese government
delivered a statement titled "Implementation of the Bali Road Map —
China's Position at the Copenhagen Climate Change Conference," in which
the Chinese government put forward China's principles, goals and
position on the conference, including further strengthening the
comprehensive, effective and continuous implementation of the UNFCCC and
quantifying emission-reduction targets for developed countries for the
second commitment period. At the meeting of state leaders, Chinese
Premier Wen Jiabao called on all parties to reach a consensus,
strengthen cooperation and jointly promote global cooperation to address
the climate change problem. During the conference, Premier Wen had
intensive consultations with various state leaders, and promoted the
adoption of the Copenhagen Accord, making outstanding contributions to
the promotion of international talks on climate change.

In 2010, China took an active part in the negotiations and consultations
at the Cancun Conference, adhered to the principles of maintaining
openness and transparency, extensive participation and consensus through
consultations, proposed constructive plans on various issues and made
important contributions to help the conference achieve practical results
and put the talks back on track. During the negotiations on issues with
greater disparity in particular, such as the long-term global goal, the
second commitment period of the Kyoto Protocol, the system of
"international consultation and analysis" to reduce the burden on
developing countries and reach the emission-reduction goals of developed
countries, China actively communicated and coordinated with the engaged
parties, candidly exchanged in-depth opinions with all parties at all
levels, enhanced mutual understanding and converged political impetus.
Before the Cancun Conference was summoned, China enhanced exchanges and
coordination with developing countries through the "G77 and China" and
the "BASIC" (Brazil, South Africa, India and China) mechanisms, and
strengthened dialogue with developed countries through various channels
for the preparation of the conference. China also maintained close
communication and exchanges with the host nation, Mexico, and provided
beneficial suggestions and full support. In October 2010, prior to the
opening of the Cancun Conference, China hosted a UN climate change
meeting in Tianjin, which laid the basis for the Cancun Conference to
achieve positive results.

2. Proactive Participation in Relevant International Dialogues and Exchanges

Promoting negotiations with exchanges of high-level visits and important
meetings. At the G20 Summit, dialogue meetings of state leaders of the
G8 and developing countries, Major Economies Meeting on Energy Safety
and Climate Change, APEC meetings and other important multi-lateral
diplomatic occasions, Chinese President Hu Jintao made important
speeches to promote consensus in the international community to address
the climate change issue, and jointly promote global cooperation to
address the climate change process. On September 22, 2009, President Hu
attended the United Nations Summit on Climate Change, and delivered a
speech titled "Join Hands to Address Climate Change," in which he set
forth China's goals, position and opinions on addressing climate change,
and expressed China's wish for strengthening international cooperation.
At the East Asia Summit, EU-China Business Summit, Asia-Europe Meeting
and other important international conferences, Chinese Premier Wen
Jiabao repeatedly stated China's position and actions adopted on issues
including the deepening of international cooperation and exchanges to
address climate change and the development of a green economy, calling
for further international cooperation on climate change technology and
management, and deepening mutual understanding among the involved parties.

Proactively participating in relevant international processes on climate
change talks. China took part in the informal ministerial-level
consultation meeting held by the host nation of the UN Climate Change
Conference, the energy and climate forum of major economy leaders, the
ministerial-level dialogue meeting on climate change in Petersburg, the
ministerial-level meeting on climate change of small island states, the
ministerial-level dialogue meeting of climate technology mechanism, the
high-level consultation team meeting on climate change financing of the
general secretary of the UN, meetings of the International Civil
Aviation Organization, the International Maritime Organization and the
Global Agricultural Greenhouse Gas Research Alliance, and many other
international consultation and exchanges. China proactively participated
in the activities of the Intergovernmental Panel on Climate Change and
its working groups, and Chinese scientists took part in the drafting of
each assessment report.

Strengthening consultation and dialogue with various countries. China is
strengthening ministerial-level consultation with the United States, the
European Union, Denmark, Japan and other developed countries and
regions; and enhancing communication with other developing countries,
promoting the establishment of a consultation mechanism among the BASIC
countries, and coordinating and promoting the process of climate change
talks by adopting the "BASIC plus" framework. It is also beefing up
communication with the African countries, the least-developed nations
and small island states. China National Panel on Climate Change actively
holds academic exchanges and dialogues with relevant think tanks of
other nations to promote international cooperation in the scientific
research in climate change, technology transfer, public education,
information sharing and other areas.

VI. Strengthening International Cooperation

China proactively participates in and promotes practical cooperation
with governments, international organizations and institutions based on
the principles of "mutual benefit and win-win cooperation, being
practical and effective," and is playing a positive and constructive
role in promoting cooperation of the global community in addressing
climate change. In March 2010, China issued the Interim Measures on the
Administration of External Cooperation to Address Climate Change, which
further standardized and promoted international cooperation on climate

1. Expanding cooperation with international organizations

China strengthens communication and exchanges, resource sharing and
practical cooperation with relevant international organizations and
institutions, and has signed a series of cooperative research agreements
and implemented a batch of research projects on the scientific study,
mitigation, adaptation, policies and measures to respond to climate
change, including project cooperation with the United Nations
Development Program, World Bank and European Investment Bank; carbon
capture, utilization and sequestration cooperation with the Asian
Development Bank, Carbon Sequestration Leadership Forum and Global
Carbon Capture and Sequestration Research Institute; cooperation on the
assessment of China' s technological needs with the Global Environment
Facility; and cooperation with the Energy Foundation on the greenhouse
gas inventory preparation capability, research into related policies and
technical road maps, and legislation concerning climate change. China
proactively joins relevant international scientific cooperation
programs, such as the World Climate Research Program within the
framework of the Earth System Science Partnership, International
Geosphere-Biosphere Program, International Human Dimensions Program,
Intergovernmental Group on Earth Observation Satellites, Global Climate
Observation System and other programs, and the results of relevant
researches have provided a useful reference to China in formulating its
policies to address climate change.

2. Strengthening practical cooperation with developed countries

China has established a dialogue and cooperation mechanism on climate
change with the United States, European Union, Italy, Germany, Norway,
Britain, France, Australia, Canada, Japan and other countries and
regions, and has signed relevant joint communiques, memorandums of
understanding and cooperation agreements with climate change as the
focus of cooperation. China has promoted cooperation on energy
conservation and environmental protection with Japan; carried out joint
research on the three prioritized areas of building energy conservation,
clean coal/carbon capture and sequestration, and clean energy
automobiles with the United States; boosted scientific cooperation on
electric vehicles with Germany; and pursued cooperation on the
geological sequestration of carbon dioxide with Australia, cooperation
on clean energy/carbon capture and sequestration technology with Italy,
cooperation on building energy conservation and quality with the
European Union, cooperation on green buildings and ecological urban
development with Britain, cooperation on the adoption of modern wooden
structures to address climate change with Canada, and cooperation on
urban and rural sustainable development with Sweden.

3. Deepening practical cooperation with developing countries

China has signed relevant joint communiques, memorandums of
understanding and cooperation agreements with South Africa, India,
Brazil, Republic of Korea and other countries, established a cooperation
mechanism on climate change, strengthened cooperation on meteorological
satellite monitoring, new energy development and utilization and other
areas, and aided the construction of 200 clean energy and environmental
protection projects in developing countries. China is strengthening its
cooperation on science and technology, and has implemented 100
China-Africa joint scientific and technical research demonstration
projects. It also bolsters agricultural cooperation and aids the
construction of agricultural demonstration centers. It has dispatched
agricultural technical experts, trained agricultural technical personnel
and improved Africa's ability to realize food security. It attaches
importance to cooperation in human resource development, and has carried
out 85 foreign aid training programs. China held a training session on
clean development mechanism and renewable energy resources in Djibouti
in December 2008; held a seminar on addressing climate change for
officials of developing countries in Beijing in June 2009; opened an
advanced seminar on climate and climate change in developing countries
for officials and scholars from African nations in Beijing in July the
same year; and arranged a total of 19 international seminars addressing
climate change and clean energy in 2010, which offered training to 548
officials and professionals of the recipient countries. China has also
offered support and assistance to small island states in the South
Pacific, the Caribbean and other regions, and aided the construction of
over 130 projects in the island countries of the Pacific, providing
assistance within its ability to developing countries to improve their
capability to mitigate and adapt to climate change.

4. Proactively carrying out cooperation on clean development mechanism

In order to promote the orderly implementation of clean development
mechanism (CDM) projects, China formulated and promulgated the Measures
on the Operation and Management of Clean Development Mechanism Projects
in 2005, which was amended in 2010 to increase the efficiency of CDM
program development and validation and verification. China vigorously
carries out relevant capacity building to improve its capacity to
promote CDM project development, and organizes experts to calculate
baseline emission factors for power grids each year which are timely
published and shared by others. By July 2011, China had approved 3,154
CDM projects, mainly focusing on new energy and renewable energy, energy
conservation and the enhancement of energy efficiency, methane recycling
and reutilization and other areas. A total of 1,560 Chinese projects
have been successfully registered with the United Nations Clean
Development Mechanism Executive Board, accounting for 45.67 percent of
the world's total registered programs, and their estimated certified
emission reduction (CER) has reached an annual issuance volume of 328
million tons of carbon dioxide equivalent, accounting for 63.84 percent
of the world's total, providing valuable support for the implementation
of the Kyoto Protocol.

VII. Objectives, Policies and Actions during the 12th Five-Year Plan Period

During the 12th Five-Year Plan period, China will take addressing global
climate change as an important task in its economic and social
development. With scientific development as the theme and accelerating
the transformation of the country' s economic development pattern as the
main focus, China will foster the concept of green and low-carbon
development, and take addressing climate change as an important strategy
for its economic and social development as well as an important
opportunity for economic restructuring and the transformation of its
economic development pattern. It will adhere to the new road of
industrialization, rationally control total energy consumption, take
various measures such as comprehensively optimizing the industrial
structure and energy mix, practicing energy conservation and raising
energy efficiency, and increasing the capacity of carbon sinks to ,
effectively control greenhouse gas emissions, improve the capacity to
cope with climate change, conduct extensive international cooperation on
climate change, and promote sustainable economic and social development.

1. Main Objectives

Before the Copenhagen Climate Change Conference was held in 2009, the
Chinese government had announced the objective of reducing greenhouse
gas emissions per-unit GDP by 40-45 percent by 2020 as compared with
that in 2005, and had it included as a compulsory indicator in its
medium- and long-term program for national economic and social
development. In March 2011, the Outline of the 12th Five-Year Plan for
National Economic and Social Development of the People' s Republic of
China adopted by the National People's Congress stated the following
compulsive objectives to address climate change during the 12th
Five-Year Plan period: By 2015, carbon dioxide emission per-unit GDP
would be reduced by 17 percent and energy consumption per-unit GDP by 16
percent as compared with that in 2010; the proportion of consumption of
non-fossil energy to the consumption of primary energy would be
increased to 11.4 percent; and the acreage of new forests would increase
by 12.5 million ha, with the forest coverage rate raised to 21.66
percent and the forest growing stock increased by 600 million cu m. This
fully demonstrates Chinese government' s determination to promote
low-carbon development and address climate change.

2. Policies and Actions

Centering on the aforesaid objectives, China will cope with climate
change in the following 11 major aspects during the 12th Five-Year Plan

First, strengthening the legal system building and strategic planning.
In accordance with the requirements set in the Resolution of the
Standing Committee of the National People' s Congress on Making Active
Responses to Climate Change, China will study and enact special laws in
addressing climate change, and revise relevant laws, regulations, rules
and standards in line with the requirements of the work on climate
change. China will also conduct research in low-carbon development
strategy and study of the overall strategy to adapt to climate change,
put forward China' s road map for technological development to respond
to climate change and control greenhouse gas emission, and compile the
National Plan to Address Climate Change (2011-2020) to guide the work in
the coming ten years.

Second, accelerating economic restructuring. Through policy readjustment
and institutional innovation, China will promote industrial upgrading
and optimization, and accelerate the transformation of the economic
development pattern. It will limit the excessively rapid expansion of
energy-hungry and high-emission industries, accelerate the pace of
eliminating backward production capacity, vigorously develop modern
services, foster newly emerging industries with strategic significance,
and speed up R&D of low-carbon technology and product promotion, with a
view to gradually establishing energy, industry, transportation and
construction systems featuring low-carbon development..

Third, optimizing energy mix and developing clean energy. China will
rationally control its total energy consumption, formulate energy
development plans, and define the total consumption control target and
the mechanism to share out the tasks and responsibilities. It will
accelerate the development of clean coal technology, push forward the
production and use of clean coal, promote the rapid growth of natural
gas output, speed up the development and utilization of such
unconventional oil-gas resources as coal-bed gas and shale gas, safely
and efficiently develop nuclear energy, and accelerate the development
of renewable water, wind, solar, geothermal and biomass energy in
accordance with local conditions.

Fourth, continuing to implement key energy-conservation projects. China
will carry out various energy–conservation renovation, including the
remodeling of boiler and kiln systems, motor system energy saving,
energy system optimization, utilization of residual heat and pressure,
economical use and substitution of oil, energy conservation in buildings
and green lighting. It will also carry out key energy-conservation
projects such as demonstration projects in the industrialization of
energy-saving technology, energy-saving product promotion,
popularization of energy performance contracting and energy-saving
capacity building, promote energy conservation in the key fields and
sectors of industry, construction and transport, and endeavor to raise
overall energy efficiency.

Fifth, vigorously developing a circular economy. China will continue to
coordinate low-carbon development strategies, and other resources- and
environment-related policies, support technological R&D, demonstration
and popularization, and capacity building for the development of a
circular economy, and make efforts to increase the productivity of
resources. China will compile an overall national circular economic
development plan, intensify demonstration pilot projects, speed up the
establishment of an evaluation index and statistical systems that can
reflect the development of the circular economy, and make key
enterprises, industrial parks and cities ecology friendly through
application of recycling technologies and the market mechanism.

Sixth, steadily launching low-carbon pilot projects. China will organize
provinces, autonomous regions and municipalities chosen to undertake
pilot projects to compile low-carbon development plans, actively explore
low-carbon development modes with local characteristics, take the lead
in formulating policies, systems and mechanisms conducive to low-carbon
development, and speed up the establishment of industrial systems and
consumption patterns characterized by low-carbon development. China will
also organize low-carbon pilot projects in industrial parks, communities
and commerce.

Seventh, gradually establishing a carbon emissions trading market. China
will, drawing on the experience of the international carbon emissions
trading market while taking into consideration its actual conditions,
gradually promote the establishment of a carbon emissions trading
market. The country will further reform the price formation mechanism of
carbon emissions trading by standardizing voluntary trading in emission
reduction and discharge rights, gradually establish trans-provincial and
trans-regional emissions trading systems, so as to give full play to the
fundamental role of the market mechanism in optimizing the allocation of
resources, and realize the objective of controlling greenhouse gas
emission at minimum cost.

Eighth, enhancing the capacity of carbon sinks. China will vigorously
promote afforestation, continue to carry out ecological protection
projects, such as the key shelterbelt construction project in Northwest,
Northeast and North China and along the Yangtze River, and projects to
return farmland to forest, natural forest conservation project, the
program to control sandstorms in the Beijing and Tianjin area, and the
comprehensive treatment program of rocky desertification in the karst
areas. China will also make extensive efforts to promote afforestation
in the urban areas and speed up the building of forest eco-barriers for
the cities. At the same time, it will conduct pilot projects in carbon
sink afforestation and promote the healthy and orderly development of
forest carbon sinks. It will continue to carry out projects such as
protective farming and turning grazing area back to grassland, and
increase the areas of farmland and grassland carbon sinks.

Ninth, enhancing the capacity of adaptation to climate change. China
will attach great importance to capability building in addressing
extreme climate events, and enhancing the capacity to respond to climate
change in the key fields of farming, forestry, water resources and
public health, as well as in the coastal and eco-fragile areas. It will
study and formulate policies and measures allowing agriculture and
forestry to respond to climate change, and guaranteeing food and
ecological safety. It will rationally tap and optimize the allocation of
water resources, and strengthen various water-saving policies and
measures. It will enhance monitoring and protection of marine and
coastal ecosystems, and increase the coastal areas' capacity to resist
marine disasters. It will improve the emergency-response system,
starting mechanism and multi-disaster early warning mechanism to tackle
extreme meteorological disasters.

Tenth, continuously strengthening capacity building. China will
establish a basic statistical system for monitoring greenhouse gas
emissions, and intensify statistical work on renewable resources, and
resource supply and consumption. It will strengthen scientific and
technological support, promote independent R&D of key low-carbon
technologies, and expand low-carbon technology demonstration and
popularization. It will further improve systems and mechanisms conducive
to the development of human resources to cope with climate change, and
constantly improve their quality. It will also extensively publicizes
knowledge necessary to respond to climate change and advocate low-carbon
consumption through the mass media.

Eleventh, carrying out all-directional international cooperation on
climate change. China will continue to strengthen dialogues and
exchanges with developed countries, initiate South-South cooperation on
climate change in an all-round way, conduct capacity building and
training in response to climate change, carry out technological
cooperation programs to adapt to climate change, and organize
energy-saving and water-saving activities as well as publicize and give
out new-energy products and facilities. It will provide practical
support to other developing countries in coping with climate change, and
gradually build up a comprehensive system of foreign exchanges and
cooperation under the guidance of a general plan, with the support of
special funds and a contingent of professionals and with effective
coverage of mitigation of and adaptation to climate change, as well as
technology transfer and capacity building in addressing climate change.

In 2011, the Chinese government released the Comprehensive Work Plan for
Energy Conservation and Emission Reduction during the 12th Five-Year
Plan period and the Work Plan for Greenhouse Gas Emission Control during
the 12th Five-Year Plan period, making an overall arrangement for energy
conservation, emission reduction and greenhouse gas emission control
during that period.

VIII. China's Basic Position in International Climate Change Negotiations

China has taken an active part in international climate change
negotiations, playing a constructive role. It insists on the
double-track negotiation mechanism of the UNFCCC and the Kyoto Protocol
and upholds the principle of "common but differentiated
responsibilities" in promoting the progress of international climate
change negotiations. A UN climate change conference is scheduled for
late November to early December, 2011 in the South African city of
Durban. China maintains that the Durban climate change conference should
put into effect the consensus reached at the 2010 Cancun Climate Change
Conference, determine the arrangements of relevant mechanisms, continue
with the negotiations on issues left unresolved at the Cancun
Conference, and strive for positive results on the basis of consensus
already reached.

1. China's Principled Stand in International Climate Change Negotiations

China adheres to the following principled stand in its efforts to
promote progress at the Durban climate change conference in accordance
with the Bali Road Map:

First, China upholds the basic framework of the UNFCCC and Kyoto
Protocol, and strictly follows the Bali Road Map. The UNFCCC and Kyoto
Protocol are the basic framework and legal foundation of international
cooperation for addressing climate change. They represent the
international consensus reached as well as the basis and guide to action
in implementing the Bali Road Map. The Bali Road Map requires that the
UNFCCC and Kyoto Protocol are comprehensively, effectively and
continuously implemented, and the developed countries should undertake
to achieve substantial emission reduction targets for the second
commitment period under the Kyoto Protocol, and corresponding
arrangements are made regarding mitigation of and adaption to climate
change, as well as technology transfer and funding in this regard.

Second, China sticks to the principle of "common but differentiated
responsibilities." Developed countries should be responsible for their
accumulative emissions during their 200-odd years of industrialization,
which is the main reason for the current global warming, and they should
naturally take the lead in shouldering the historical responsibilities
to substantially reduce emissions. With regard to capabilities,
developed countries have substantial economic strength and advanced
low-carbon technologies, while developing countries lack the financial
strength and technologies to address climate change, and face multiple
arduous tasks of developing their economies, fighting poverty and
addressing climate change. Therefore, developed countries should, on the
one hand, take the lead in reducing emissions substantially, and, on the
other, provide financial support and transfer technologies to developing
countries. The developing countries, while developing their economies
and fighting poverty, should actively adopt measures to adapt to and
mitigate climate change in accordance with their actual situations.

Third, China holds fast to the principle of sustainable development. The
present development should not compromise the development capacity of
future generations. Instead, it is necessary to take into overall
consideration economic development, poverty alleviation and climate
protection within the framework of sustainable development, actively
promote green and low-carbon development, and strive for a win-win
situation in both socio-economic development and response to climate change.

Fourth, China upholds a packaged arrangement of mitigation of and
adaption to climate change, and fund and technology supply. Mitigating
and adapting to climate change are two integral components in addressing
climate change, and they should be accorded with equal attention.
Mitigation of climate change is a long and arduous challenge, while
adaptation to it is a more present and imminent task for developing
countries. Funding and technologies are essential for the realization of
mitigation of and adaptation to climate change, and financial support,
technology transfer and capacity building support provided by developed
countries are the fundamental guarantees for developing countries to
effectively cope with climate change.

Fifth, China upholds the principle that the United Nations leads climate
change negotiations as well as the decision-making mechanism of reaching
unanimity through consultation. China does not object to informal or
small-scale consultations on urgent issues outside the negotiations on
the UNFCCC and Kyoto Protocol which are conducive to the negotiation
progress, but these consultations should be supplements to rather than
substitutes for the negotiation process of the UNFCCC and Kyoto
Protocol. The principle of "reaching unanimity through consultation" is
an important part of the spirit of the UN Charter. It conforms to the
general and long-term interests of the United Nations, and plays a
significant role in strengthening democracy, authority and legality of
decision making. Therefore, it is imperative to uphold the
decision-making mechanism of "reaching unanimity through consultation,"
and raise work efficiency through appropriate means under the premise of
guaranteeing an open and transparent negotiation process with wide

2. Prospects of the Durban Conference

China maintains that the Durban climate change conference should yield
tangible results in three aspects:

First, clarifying absolute quantities for developed countries'
substantial emission reduction in the second commitment period under the
Kyoto Protocol. The Kyoto Protocol, the first commitment period of which
is due to expire by the end of 2012, is one of the double tracks of Bali
Road Map negotiation mechanism. The emission-reduction plan for
developed countries in the second commitment period under the Kyoto
Protocol should be made clear as soon as possible so as not to leave a
space between the two commitment periods under the Kyoto Protocol, as is
required by the Cancun Accord. This task, the most urgent at Durban, is
vital to the conference's success.

Second, defining the emission reduction commitment under the UNFCCC for
developed countries outside the protocol, which should be comparable
with that of developed countries inside the protocol. Since developed
countries inside the Kyoto Protocol have assumed their shares of
emission reduction, developed countries out-side the protocol should
also assume comparable emission reduction commitments under the UNFCCC,
in accordance with the Bali Road Map. The commitment should be
comparable in terms of the nature and scope of emission reduction, and
the compliance mechanism. In such circumstances, developing countries
should also actively reduce their emissions within the framework of
sustainable development with funds and technological support from
developed countries. Many developing countries have put forward their
climate change mitigation plans by 2020. In accordance with the
principle of "common but differentiated responsibilities," after
developed countries assume their law-binding emission reduction targets
under the UNFCCC and the second commitment period of the Kyoto Protocol,
developing countries' similar targets should also be clarified in the
form of law, and their efforts for emission reduction should also be

Third, specifying mechanisms and arrangements for adaptation, funding,
technological transfer and capacity building, as well as measures to
make the differences of emission reduction responsibilities transparent,
measurable, reportable and verifiable between developed and developing
countries. Most developing countries have taken active measures within
their capacity to cope with climate change, and made important
contributions. However, the international community still needs to
provide effective support in a funds and technological transfer to
developing countries. The latter will not be able to effectively carry
out actions to mitigate and adapt to climate change without an effective
mechanism, new, additional and abundant funds or technological transfer.
The Cancun Accord specified the "measurable, reportable and verifiable"
mechanisms and the principle of transparency. China maintains that
specific arrangements should be made at the Durban conference regarding
developed countries' emission reduction commitments, their support to
developing countries in funds, technological transfer and capacity
building, various "measurable, reportable and verifiable"
responsibilities between developing and developed countries, as well as
"international negotiation and analysis" of developing countries'
voluntary climate change mitigation. The arrangements should also fully
embody the principle of "common but differentiated responsibilities"
between developing and developed countries.

Concluding Remarks

China is clearly aware of the challenges brought about by climate change
while advancing its modernization and urbanization. As a responsible and
major developing country, China will take into account its basic
national conditions and development stage, unswervingly ad-here to the
path of sustainable development, and make greater contributions to the
cause of addressing global climate change.

China will continue to promote international negotiations on climate
change, take an active part in UN climate change conferences, and
support the coming Durban climate change conference to achieve
comprehensive and balanced results in implementing the Bali Road Map,
and make reasonable, fair and effective arrangements for the full,
effective and continuous implementation of the UNFCCC and Kyoto
Protocol. China is willing to work with the international community to
ensure the success of the Durban conference.

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