In pollution first have to understand the concept of credit as it was set up through the Kyoto Protocol. There is a Clean Development Mechanism (CDM) Fund and you earn points by cutting down on emissions; the more noxious, the more points.

This, as it were, puts China in the catbird seat.

First it is the factory of the world and, almost by definition, must therefore produce more pollutants than anyone else.

Second China is deadly serious in cutting down on these pollutants, Kyoto Protocol or not.

There is no doubt that China has a dominant position in the CDM market — good points for cutting down on bad pollutants — which the World Bank estimates was worth about $5.5 billion in 2006.

If some of that money is released, and this seems possible, China could have as much as $3 billion coming to a state-owned fund that supports emissions-reducing ventures. The Finance Ministry these projects need approval from the U.N. but, given that, 885 projects will go ahead, which would prevent emissions equivalent to 1.5 billion metric tons of carbon dioxide.

(Coincidentally you then find yourself in the odd position of creating more credits worth $15 billion. Beijing has said it will use the cash to support activities to tackle climate change, from raising public awareness to mitigation and adaptation projects.)

Clearing up, because there is a lot of pollution in the factory of the world, may be a monster job but relatively small efforts bring big dividends.

The International Energy Agency has said China is set to overtake the United States as the top emitter of carbon dioxide as early this year which is true but is the gross way of looking at it.

Compute it on a per capita basis and it is positively squeaky clean compared to most Western countries.

Beijing has tended to reject binding caps on emissions, which it fears could dent growth, and instead has been touting greater efficiency and more renewable energy. China’s position, which it has repeated yet again, is that rich countries responsible for most of the greenhouse gases already in the atmosphere must do more.

Vice Foreign Minister Zhang Yesui is quoted as saying, ‘Only if developed countries continue to take the lead to practically fulfill their emissions obligations can the Clean Development Mechanism gradually mature and continuously develop.’

Chen Xian, an economist with the Shandong Provincial Academy of Social Sciences, said technological and systematic innovation plays a leading role in motivating fast economic growth.

In past years, many places in China achieved economic growth driven by increase in investment and resources consumption, which caused great pressure on the environment.

China has made it a strategic task to build a resource-conserving and environment-friendly society to achieve economic and social development.

East China’s Shandong Province has given priority to the development and manufacturing of 100 kinds of products. If you live near Mt. Taishan in Shandong Province as shown in our illustration how could you do otherwise?
Guangdong Province, known for fast economic growth driven by labor-intensive and light industries in the early 1990s, has entered a new round of development, with auto making, petro-chemical, ship-building, iron and steel, and information technology industries becoming new forces driving local economic development.
Jiangsu Province expenditure on science and technology development rose by 63.7% in the first half of this year, and currently more than 50% of its economy benefit from technology progress.

China has set a goal of raising the contribution to economic growth by science and technology advancement from 39% to more than 60% in 2020.
Source: China Daily

Chinese firms guilty of poor environmental records may be banned from the stock markets. This could send a strong message as the benchmark Shanghai share index has just recorded its third straight record high — closing just short of 5,000.

But if you are a dirty company you cannot have a share of the bikkies.

China’s State Environmental Protection Association (SEPA) is tightening rules on the listings of companies involved in heavy industries or, if you prefer, the big time polluters.

China was embarrassed earlier by an admission from members of the International Olympic Committee that some endurance events could be delayed if Beijing’s notoriously poor air quality prevents athletes from competing at optimal levels.

Now the SEPA will co-operate with the China Securities Regulatory Commission to decide on initial public offerings for companies with questionable track records on green issues.

The move reflects the huge demand among mainland Chinese companies to raise money on the public markets at a time when the valuations of quoted companies continue to defy gravity.
Source: Daily Telegraph

An official with the Ministry of Commerce (MOC) said the Chinese government will annually revise the list of restrained products to establish a transparent regulatory system to address its trade imbalance.

In 1999 it made a move to put labor-intensive, high polluting and high energy-consuming industries under some sort of restraint. It would be fair to say that move was something less than totally successful.

Now the MOC and Customs have issued a policy to curb the development of labor-intensive industries and this will cover 1,853 products in the plastics, furniture and textiles and other labor-intensive industries.

The move targets high polluting and high-energy-consuming industries which are mainly in eastern regions. Companies engaged in the sectors will be required to lodge guarantee deposits in the Bank of China, while registering process trade contracts with the Customs.

Traders with reasonable Customs records must deposit equivalent to half the sum of customs duties and value-added tax, while those with records of law violations must deposit 100%. The deposits plus interest will be refunded after they prove to Customs that they have fulfilled the contracts by exporting qualified finished products before contracted deadlines.

If the firms fail to meet contract requirements, they could lose their deposits and interest.

Wang Qinhua, director of the MOC’s Department of Electromechanical Products and Science and Technology Industry, said the moves would pressure manufacturing companies to add more value to their products and shift industries from eastern to central and western areas where the costs of production and labor are lower.

The theory is this would encourage large enterprises that maintained healthy growth to expand their business An official with the State Information Center has predicted that the nation’s trade surplus will soar 55% year-on-year to $275 billion this year despite the appreciating yuan and the scrapping and reduction of export rebates.

Whether the proposed restrictions will have any effect on this whatsoever is open to debate.
Source: China View