Strategies for Green Jobs Creation and Promotion (Financed by the Technical Assistance Special Fund)

Technical Assistance Consultant’s Report

Project Number: 45510 January 2014

People’s Republic of China: Strategies for Green Jobs Creation and Promotion (Financed by the Technical Assistance Special Fund)

Prepared by Zheng Dongliang Beijing, People’s Republic of China

For Ministry of Human Resources and Social Security

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Strategies for Green Jobs Creation and promotion

The final report

Strategies for Green Jobs Creation and promotion research group

January 2014

Contents

1.The background, the significance, target and method ...... 1 1.1 The background and the significance ...... 1 1.2 The target, content and method ...... 4 1.2.1 The target ...... 4 1.2.2 The content ...... 4 1.2.3The method ...... 6 1.3 The definition of Green jobs ...... 8 2. The policy and the implementation of Green Jobs Creation and promotion ... 12 2.1 The strategy, planning and policy of central government ...... 12 2.1.1 Twelfth Five Year Plan for National Economic and Social Development for the positive interactive between the economy and employment ...... 12 2.1.2 The Employment Promotion Plan 2011-2015 Comprehensively promote the green jobs ...... 13 2.2 Other Policies ...... 17 2.2.1 Regulations and policies stimulating purely green job ...... 17 2.2.2 Regulations and policies promoting processing green job ...... 19 2.2.3 Policies and regulations promoting the end of pipe green job ...... 20 2.3 Direct Policies related to Green Jobs in China on Other level ...... 20 2.3.1 Vocational Trainings ...... 21 2.3.2 A More Active Employment Policy System ...... 25 2.3.3 To Ensure the Placement of Workers in the Process of Economic Restructuring ...... 28 2.3.4 To Encourage Green Business and Promote Green Jobs ...... 29 3. International experience and case analysis of Green Jobs Creation and promotion ...... 33 3.1 Smart city management and planning ...... 33 3.2 Waste management ...... 35 3.3 New energy industries ...... 36

3.4 Environmental protection industries ...... 37 3.5 Green agriculture ...... 39 3.6 Green manufacturing – clothing and textiles ...... 40 4. The Labour market supply and demand analysis...... 42 4.1 The Labour market supply analysis ...... 42 4.1.1 Decreasing Working Age Population in Future ...... 42 4.1.2 Status of Labor Supply in Hunan and Fujian ...... 43 4.1.3 Education Composition of Labor Force ...... 44 4.2 The Labour market demand analysis ...... 46 4.2.1 The overall analysis of labor demand ...... 46 4.2.2 Labor Demands Analysis for Green Job Industries ...... 49 5. Forecast analysis of Green Jobs ...... 54 5.1 Forecast analysis method ...... 54 5.2 Overall analysis and prediction of green jobs demand ...... 54 5.3 Analysis and prediction of green jobs demand in different provinces ...... 57 5.3.1 Estimation of Hunan demand of green jobs and green work positions ..... 57 5.3.2 Estimation of Fujian demand of green jobs and green work positions ...... 59 5.3.3 Analysis and prediction of key industries of green jobs ...... 61 5.3.4 Case analysis of various industries ...... 67 5.4 The Analysis of the Questionnaires on Green Employment Development Strategies ...... 86 5.4.1 Sample Selection and Survey Objects ...... 86 5.4.2 Basic Information of Enterprises’ Green Job Development ...... 87 5.4.3 Future development prospect ...... 95 5.4.4 Existing problems ...... 98 6. The development of green jobs and green skills ...... 100 6.1 Green jobs and green skills ...... 100 6.1.1 Green TVET ...... 100 6.1.2 Green jobs and green skills ...... 101 6.1.3 ESD and green TVET complements each other ...... 101 6.2 Green skills needed in “skill upgrading” and “skill transformation” of different

industries ...... 102 6.2.1 Agriculture ...... 102 6.2.2 Manufacturing ...... 103 6.2.3 Service Industry ...... 104 6.3 The development of green skills ...... 106 6.3.1 The technology demand analysis for green employment...... 106 6.3.2 The development chances and opportunities for green skills ...... 110 6.3.3 Factors that hinder the green skills development ...... 116 7. Green jobs and vulnerable groups ...... 121 7.1 Green Employment and Vulnerable Groups ...... 121 7.1.1 Overall Situation of Employment of Vulnerable Groups in China ...... 122 7.1.2 Green Employment and Vulnerable Groups ...... 124 7.1.3 Policy Measures for Promoting Green Employment of Vulnerable Groups in China ...... 129 7.2 Characteristics of Employment of Vulnerable Groups Based on Questionnaire Survey on Enterprises Developing Green Employment ...... 131 7.2.1 Female Employment ...... 132 7.2.2 Employment of Rural Migrant Workers ...... 133 7.2.3 In terms of skills, green industry development contributes to facilitating employment of vulnerable groups, but low employment ability of vulnerable groups constitutes main obstruction to their green employment ...... 135 7.2.4 In terms of industrial development and labor remuneration, green industry development contributes to facilitating employment of vulnerable groups ...... 135 7.2.5 Analytical Conclusion of Questionnaire Survey on Enterprises Developing Green Employment ...... 138 7.3 Employment of Vulnerable Groups Based on Field Research in Four Cities of Hunan and Fujian Provinces as well as Jiangsu Province ...... 138 7.3.1 General Situation of Employment of Vulnerable Groups in Researched Areas ...... 138 7.3.2 Employment Opportunities Suitable for Vulnerable Groups ...... 139 7.3.3 Summary of Experience of the Provinces in Promoting Green Employment

of Vulnerable Groups ...... 146 7.3.4 Problems of and Challenges to Promoting Green Employment of Vulnerable Groups in Researched Areas ...... 149 7.3.5 Problems of and Challenges to Promoting Skill Enhancement of Vulnerable Groups ...... 151 7.4 Gender Dimensions of Expanding Green Jobs ...... 154 7.4.1 Gender in the PRC’s Economy and Labor Force ...... 154 7.4.2 Agriculture Sector Case Study: Smallholder Agriculture ...... 156 7.4.3 Manufacturing Sector Case Study: Green Energy Research and Production ...... 160 7.4.4 Service Sector Case Study: Senior Care ...... 164 7.4.5 Conclusions ...... 170 8. Policy suggestions ...... 172 8.1 Boost people’s awareness of strategic significance to green jobs ...... 172 8.2 Speed up definition of green job ...... 172 8.3 Proactive employment policy shifts to quantitative green policy system ...... 173 8.4 Perfect talent policies that push green jobs ...... 174 8.5 Establishing development plan for education and training of green skills, strengthening publicize of green skills development ...... 174 8.6 Establishing and improving the assessment system for the training of talent with green skills ...... 175 8.7 Giving preferential policies to skills beneficial for the employment of vulnerable groups ...... 175 8.8 Integrating green skills development into green occupational education and training，Establishing a system to stimulate enterprise, training organizations and individuals to get green skills promoted ...... 176 8.9 Other social policies ...... 176 8.10 Strengthen organizational leadership and coordination and enhance performance assessment on creation of green jobs ...... 177

Contents of figure and table

Figure 4-1 Changes of Working Age Population of Rural and Urban China ...... 42 Figure 4-2 The Elderly Dependency Ratio by region (%) ...... 43 Table 4-1 Age Structure by Region in 2010 ...... 43 Table 4-2 Education composition of employment by region (% year) ...... 44 Table 4-3 Employment Elasticity of Manufacturing Industries ...... 46 Table 4-4 Production Function by Industry ...... 47 Figure 4-3 Education Composition of Employee in Secondary Industries ...... 49 Table 4-5 Labor Demands Function for China, Hunan and Fujian ...... 49 Table 4-6 Labor Demands Function for 3 Kinds of Green Job Industries ...... 50 Table 4-7 Labor Demands Function for Green Job Industries in Hunan and Fujian . 51 Table 4-8 The Composition of Education of Employee by Industry ...... 53 Table 5-1 the classification of 19 sectors and their social, environmental and economic impact ...... 54 Table 5-2 the conservative forecast of national green jobs and green industries demand ...... 55 Table 5-3 the positive forecast of national green jobs and green industries demand. 56 Table 5-4 the conservative forecast of Hunan green jobs and green industries demand ...... 57

Table 5-5 the positive forecast of Hunan green jobs and green industries demand ... 58 Table 5-6 the conservative forecast of Fujian green jobs and green industries demand ...... 60

Table 5-7 the positive forecast of Fujian green jobs and green industries demand ... 60 Table 5-8 Rate of change of the energy and environmental targets set in the 12th five year plan ...... 63 Table 5-9 Renewable Energy Development: 2005 and 2010 actual, and targets for

2015...... 65 Table 5-10 Post Structure of Employees in TRS Group in 2013 ...... 68 Table 5-11 Education Structure of Employees in TRS Group in 2013 ...... 68 Table 5-12 Age Structure of Employees in TRS Group in 2013 ...... 68 Table 5-13 Personnel Composition (Person) ...... 73 Table 5-14 Personnel Composition of Quanzhou Bright Solar Energy Co., Ltd...... 81 Table 5-15 Employee composition (%) ...... 88 Diagram 5-1 Percentage of enterprises’ energy saving green products have standards (%)...... 93 Diagram 5-2 Whether the enterprises’ energy saving green products were listed in the government procurement list (%) ...... 94 Table 5-3 percentage of different industries finding opportunities for green investment ...... 96 Table 5-4 percentage of enterprises finding opportunities to improve the operational environment and performance ...... 97 Table 6-1 Illustrate for the technical ability upgrade or transform of Green Employment ...... 105 Table 6-2 lists training needs, difficulty level and trainer for different green skills. 110 Table7-1 Proportions of Female Workers in Sample Enterprises in 2010 and 2012 ...... 132 Table7- 2 Proportions of Female Workers in Sample Enterprises of Various Industries ...... 133 Table 7-3 Proportions of Rural Migrant Workers in Sample Enterprises in 2010 and 2012...... 134 Table 7-4 Proportions of Rural Migrant Workers in Sample Enterprises of Various Industries ...... 134 Table 7-5 Proportions of Average Monthly Pay in Sample Enterprises of Various Industries ...... 136 Table7- 6 Examples of Development Opportunities/Obstacles of/to Green Skills of Vulnerable Groups ...... 153

Diagram7-1 PRC’s working–age population ...... 165 Diagram7-2 Rising No. of elderly & shrinking workforce ...... 166

Diagram7-3 Proportion of elderly population in urban and rural PRC, 2000-2050 169

Noun explanation

This noun explanation is mainly for some professional terms and phrases used in this report. The detail explanation is as follows: Green: particular in the green jobs, with the non-green relatively. Mainly some of the energy conservation and environmental protection, promote energy conservation and emissions reduction, ecological restoration, and strengthen environmental infrastructure construction, decent jobs, which can let a person have dignity , etc. Primarily Green Job: means friendly to the environment in the original, saving energy, with zero potential environmental impact, or repair features for environment. Progressive Green Job means those employments in the process of production that can improve energy efficiency and reduce carbon emissions, covering the majority of manufacturing jobs. End of Pipe Green Job refers to employment that is related to waste recycling, ecological restoration and remedies for environmental degradation.

Green TVET :consists of pre-vocational education and training, on-the-job learning and the further training for sustainable environmental, economic and social issues. At the same time, Green TVET should meet the needs of the industry and the individual learner. Green skills: Develop a wide range of related skills for green jobs.

Strategies for Green Jobs Creation and promotion

111.1...TheThe background, the significance, target and methodmethod

1.1 ①he background and the significance

As a rapidly developing country with a large population and a fragile eco- environment, the PRC is vulnerable to the adverse effects of climate change. In just three decades from 1978, the PRC has become the world’s second-largest economy, and such growth and expansion have had a significant impact on the country’s eco-environment. The government has emphasized the need to build an environmentally sustainable and energy-efficient society, transitioning to a low-carbon economy and promoting green jobs2. under its Twelfth Five-Year Plan (2011–2015). The government has taken significant steps in this direction. The government’s spending on research and development increased from 1.25% of gross domestic product in 2004 to 1.5% of a bigger gross domestic product in 2008.The solar industry in the PRC is gaining importance in the “clean-tech” global marketplace, with its investment across the clean technology sector reaching $13.5 billion in the third quarter of 2010. The PRC is engaged in carbon trading through the Clean Development Mechanism, a carbon emission credit system under the Kyoto Protocol. Local initiatives, from green growth incubators to eco- villages and to development of green cities are gaining traction in the PRC. The central government has emphasized the importance of promoting green jobs, including introducing the concept and raising awareness of green jobs among the government and the public through advocacy initiatives; conducting strategic research on green jobs to inform policies and strategies, including issues of unemployment and redeployment; strengthening skills training for green jobs; and encouraging innovation in green and clean sectors to spur green employment. The government targets to create 2.2 million

Strategies for Green Jobs Creation and promotion

111.1...TheThe background, the significance, target and methodmethod

1.1 ①he background and the significance

green jobs by 2020. The recent global recession has emphasized the need for policy interventions aimed at encouraging recovery and renewed growth on more environmentally and socially sustainable grounds. There is a growing need to promote job creation in new sectors and increase productivity levels across all sectors, which will be the key driver of growth. This requires greater cohesion between industrial, environmental protection, and employment promotion policies. There is a need for a broad, integrated mix of policies in order to achieve strong green growth and promote a green economy, including a focus on market-based approaches and regulations, encouraging investment in green technologies, fostering innovation, and investment in research and development. Achieving greener growth and a greener economy will involve not only seizing opportunities to develop new green industries, jobs, and technologies, but also managing the transition for greening the more traditional sectors with the associated employment and distributional effects. While there is a prospect of additional green jobs, the long-term impact on employment is uncertain across most green growth scenarios. The costs associated with green growth may include job displacement or job destruction in some traditional industries. Some jobs will be substituted or redefined. Therefore, one of the main challenges will be to facilitate reallocation of capital and labor across sectors while minimizing the resulting adjustment costs. Adjustment risks entailed in the PRC’s transition to a low carbon economy, particularly on job losses and re-employment due to market failures and skill mismatches, will need to be analyzed. Inclusive green growth and green pathways out of poverty. In light of the government’s goal of building a harmonious society and given the nexus between climate change, environmental factors, and poverty, it is important to assess how green jobs can serve as “green pathways out of poverty.” This involves seeing green growth within the national poverty reduction policy framework, assessing positive and negative impacts of green growth scenarios on poverty reduction, and stimulating participation of poor and vulnerable populations in the green economy. Anticipating and adapting to the social and economic effects of climate change can involve widening employment opportunities, including for the poor, on a sustainable basis. For instance, migrant workers in the PRC are among the most vulnerable to economic changes and their job opportunities were

affected by the global recession in 2009. Green jobs could provide new opportunities for migrants. A pro-poor green jobs strategy needs to address the issue of decent work (i.e good jobs which offer adequate wages, safe working conditions, job security, reasonable career prospects, social security benefits, and promotion of workers’ rights) and the sustainability of job creation for lower-income groups and the poor, as well as its systemic impact on the labor market. Furthermore, climate change has gender dimensions in both urban and rural areas. Women, while accounting for less than 50% of all migrant workers nationwide, tend to concentrate in a narrow range of jobs and industries. For example, young women workers from other provinces dominate large manufacturing and processing plants in coastal urban areas. Issues specific to women migrant workers must be systematically reviewed, and green jobs strategies must be tailored to their special needs. Further, monitoring of employment data by gender needs to be strengthened. Training for green skills. There is a growing recognition that almost all jobs will require green skills to some degree and that these may be developed incrementally. While the development of green technologies will require scientific technological engineering and mathematic skills, many of the changes within jobs will require not novel or special skills but better generic competencies, such as environmental awareness; entrepreneurship; adaptability; and strategic, innovation, and marketing skills. This requires the strengthening of training and skills development at both the industry and public sector levels. Greater policy coherence will ensure that both economic and environmental policy objectives are supported by skills development. The skills development strategy should also look at the low-skilled workers’ inclusion in the changing labor market, mainly migrant workers who represent a large part of the labor force. Some emphasis should also be placed on retraining versus new training needs and on a tailored approach to retraining various target groups (e.g. by gender, age), given that local governments are attempting to shift their local economies and regular technical and vocational education and training approaches often do not adequately address the emerging needs.

1.2 ①he target, content and method

1.2.1 The target

In 2012, the Asian Development Bank and the PRC Ministry of Human Resources and Social Security(MOHRSS) initiated a project on creation and promotion of green jobs in China. To illustrate the opportunities and challenges, the project investigated one inland province Hunan and one coastal province in detail, Fujian, as well as some case studies from Jiangsu, including analysis of economic structure and labor markets in both Hunan and Fujian. This involved detailed consultations with key stakeholders, including government officials, industry representatives, and training providers in the PRC. Under the guidance of MOHRSS the team successfully surveyed 389 enterprises in targeted green industries in the pilot provinces, prepared forecasts of green jobs, and reviewed national policies and good practices in green jobs creation in the PRC. The study also gave attention to the nexus between green growth and poverty reduction, and set out recommendations for green jobs strategies. The study makes recommendations on how vocational schools and colleges in the PRC can adjust their training programs to support an environmentally sustainable economy. This is an emerging area in the PRC, and the present study is one of few empirical studies that look at green jobs and green skills in the PRC.

1.2.2 The content

The TA outputs will include one main report and three subreports. Main technical assistance report on green jobs creation and promotion. This main report involves (i) an analysis of the PRC’s current policies and regulations intended to achieve green growth and a transition to a low-carbon economy, including market-based approaches and regulations; encouraging investment in green technologies; and fostering innovation, investment in research and development, and skills development polices; (ii) a working definition of green jobs, green growth, and green economy based on stakeholder consultations during the TA workshops and seminars; (iii) an analysis of

the long-term impact of green growth policies on employment, including job displacement and job destruction in traditional industries; (iv) an analysis of current and future employment patterns and skills profiles in selected green industries and the restructuring of brown industries in the PRC; (v) an analysis of potential job creation in selected industries and subsectors, such as modern service industries; advanced manufacturing industries; strategic, high-tech, and emerging industries; traditional industries; and agriculture in pilot provinces; (vi) a discussion of the policy conditions that are needed for the development of green employment, including for the poor population; and (vii) recommendations for ways to achieve greater cohesion between the industrial, environmental protection, and employment promotion policies. The main report should also provide recommendations for policy, legal, regulatory, and administrative reforms. The main report will review international experiences in green jobs creation and promotion. The three sub reports are: (i) Pro-poor green jobs policies. Topics covered include (a) an analysis of green jobs creation as “pathways out of poverty” for migrant workers, poor women, underemployed youth, and low-skilled workers’ inclusion in the changing labor market, (b) identifying priority sectors where green jobs for the poor population can be created, (c) recommendations for policies supportive of pro-poor green jobs. The subreport will also include a gender analysis of job opportunities and training needs in the green economy, focusing on women migrant workers. (ii) Skills training and capacity building. Topics covered include an assessment of implications for skills training and retraining and capacity building, including identifying the required level of “skills upgrade” or “skills shift”; and identifying the training needs of disadvantaged groups, including low-income migrant labor. Recommendations for skills development policies and management of training providers are included. (iii) Green jobs creation in the two pilot provinces. This subreport is based on case studies of green jobs creation in pilot areas (one in central and one in coastal PRC). Case studies involved visits to and surveys of key enterprises in selected industries and organizations and interviews with officials in relevant government agencies in the pilot provinces. The subreport provides labor market projections of green jobs in selected industries, using relevant methodologies. The project team has submitted (a) the main TA

report, (b) three subreports, (c) a policy note for decision makers, (d) a summary report on the green jobs forum, and (e) an executive summary of the main TA report. The policy note for decision makers, which presents key findings and major policy recommendations of the TA, will be shared with decision makers at the national and local levels.

1.2.3 The method

In the stage of economic upgrading, China has been improving industry and occupation classifications. However, limited data for industry and occupation classification restricts time series analysis. Thus, considering various factors, the research group, adopting pragmatic research methods, defines green employment and analyzes green employment situation by combining quantitative analysis, investigation and negotiation, and discusses limitations to and promotion methods for green employment via case analysis, and gives consideration to development and equity.

1.2.3.1 Literature review

This method is mainly by its own master data and information, and from the related cooperation unit, media access to relevant information and data for analysis. The literature review pays special attention to fully access to existing research results at home and abroad, and utilizes the existing practice of narrative literature.

1.2.3.2 On-the-spot investigation

The objective of the research was aimed at Hunan and Fujian provinces to develop green jobs in the process of representative regions, industry, and enterprises. Research included comprehensive symposium, enterprise visits and in the implementation of a questionnaire. In terms of selection of provinces and industries to be investigated, to better understand green employment in various industries of areas with different economic development levels, the research group selected Fujian and Hunan Province as the provinces to be investigated for the project of creating and promoting green employment,

for the following reasons: First, representative economic development. As an important province on the southeast coast of China, Fujian is relatively developed with the per capita GDP being far higher than the national average level, ranking ninth domestically. Secondary industry is the pillar industry of Fujian, and in 2011, the structure proportion of three industries (primary, secondary and tertiary industries) was 9:53:38. In contrast, Hunan is a relatively underdeveloped province in Central China with the per capita GDS ranking only 20 among 31 provinces. As a significant agricultural province of China, Hunan has a great proportion of agriculture, and in 2011, the structure proportion of three industries was 14:47:39. Overall, both provinces are in the stage of economic catching-up with the economic growth rate being approximately 3%-4% higher than the national average level. Second, characteristic industrial development. During economic development, the two provinces have developed both traditional industries and emerging industries. Examples include traditional agriculture and emerging intelligent urban management of Hunan as well as traditional textile industry and emerging new energy industry of Fujian. Third, optimizable employment structure. In 2011, the structural proportions of three sectors in Hunan and Fujian were 42:23:35 and 29:31:40 respectively. As a province with large labor export, there is still a surplus rural labor force in Hunan that can transfer to other industries via technical training, etc; while in Fujian, export enterprises take up a big proportion and it is favorable to optimize the structure of employment in the secondary and tertiary industries via industrial upgrading and transformation. According to different characteristics, three industries were selected for each province respectively for key investigation. The key industries selected in Hunan were agriculture, intelligent urban management and waste recycling industry. These industries were chosen because: Firstly, Hunan is a traditional agricultural province and a large proportion of people engage in agriculture, besides, over recent years, the provincial government has attached great importance to agro-ecological environment protection and rural energies, thus agriculture is developing towards further greening. Secondly, intelligent urban management constitutes significant part of “Green Hunan Construction”, which contributes to environmental protection by improving urban transport system.Thirdly, the waste recycling industry is important in green urban construction, and

at present, in Hunan, quite a number of people are engaged in urban waste product purchasing, urban waste recycling and urban garbage disposal. In Fujian, the key industries selected involved manufacturing industry (mainly textile industry), new energy industry (mainly photovoltaic industry) and environmental protection industry (including environmental protection product and environmental protection service industries). This was because: Firstly, in Fujian, textile and light industries are traditional industries with a lot of employees, and currently, Fujian is enhancing traditional industries actively and comprehensively to promote their transformation and upgrading, during which the green employment will be definitely promoted. Secondly, as a strategic and leading industry of national economy, new energy industry plays a very significant role in economic growth, industrial structure adjustment and development model transformation, and in the period of the “12th Five-Year Plan”, the new energy industry in Fujian will further develop, and photovoltaic industry, etc. will take the lead in green employment of Fujian to some extent. Thirdly, the environmental protection industry of Fujian is relatively developed with great development prospect.

1.2.3.3 Quantitative analysis

This method is mainly applied to forecast demand for the labour market growth. On the basis of existing data, and using certain proportional relationship as China shifts to a less energy intensive economy, the study looks at jobs growth and change and makes assumptions about the potential for green jobs demand. To make the result more reasonable, the study looks at conservative and optimistic forecasts.

111.31.3 ①he definition of Green jobs

Green job has narrow and broad definition, and usually we understand it from the broad definition. The narrow definition refers to jobs that are economically viable from market sense, with social dignity and have zero environmental impact or positive (i.e., environmental remediation) effects, also known as deep green jobs. The broad definition refers to jobs that are economically viable from social sense, with social dignity, although

have negative environmental impacts, but the impacts can be mitigated (relative to comparing to baseline the impacts declined or are reduced slightly). The latter are also known as the medium green, light green employment jobs. In the long term, narrow or strict definition is more accurate and scientific. However, from the perspective of the actual process of industrialization and urbanization, green job is a process that covers various forms of light green, medium green and deep green, and also a process that can accelerate the transition from light green to deep green. We need to understand this definition from three dimensions: the environmental dimension, social dimension and economic dimension. In the environmental dimension, green jobs must be environmental friendly, environmental sustainable, and resource-saving employment. In the social dimension, green jobs must be decent jobs, and can provide dignity and guaranteed jobs for its workforce. In economic dimension, green jobs must be high value-added, and can create gainful employment. The issue closely related to the definition is how to identify green job, or how to measure green job. The measurement of green job requires comprehensive grasp the following four criteria: ⁑ direct measure, namely low pollutant load of per unit output. The index of ecological agriculture, domestic service and other industry are low, so they are belong to green job. ⁒ full life cycle perspective. To determine whether a job belongs to a green job category from the full life cycle perspective to measure their pollutant load per unit output, rather than just intercept a certain stage. For example, the manufacturing process of fans has high pollutant load per unit output, but if we measure from full life-cycle perspective, their pollutant load per unit of output is low, promoting environmental improvements and reducing carbon emissions, so they are belong to green jobs. ⁓ marginal measure, which is helpful to reduce the pollutant load of marginal product, such as adding insulation outside the building, fans waste heat utilization, and etc. ⁔ nature measure, with the above mentioned quantitative characteristics, green jobs must also be decent work, which has guaranteed income, no hazardous to workforce’s health and dignity, safe working conditions. There are a lot of "green" but not decent jobs, such as solar panels assembly work with low-wage, child labor, unloading work with occupational safety hazards and electronic waste recycling work. Green jobs not only determine the content of the work, but also an improvement on

understanding the nature of work. Therefore, green jobs are not necessarily new work. They exist both in traditional industries covering manufacturing and construction sectors that are in need of green technologies, but also in the emerging green industries. But not all positions of green industries belong to narrowly defined green jobs. The same position in different industries, according to its nature, sometimes can be considered as a green job, and sometimes do not belong to a green job. For example, a casting job itself does not belong to green job, but if it is used for desulfurization equipment production, the production of wind turbine equipment, and etc., then it should be classified as a green job. According to industry attributes and different development stages, green jobs can be classified into Primarily Green Job, Progressive Green Job, and the End of Pipe Green Job. Primarily Green Job means friendly to the environment in the original, saving energy, with zero potential environmental impact, or repair features for environment, such as employment in traditional agriculture, urban greening, renewable energy utilization, and clean energy technology. Progressive Green Job means those jobs in the processof production that can improve energy efficiency and reduce carbon emissions, covering the majority of manufacturing jobs. End of Pipe Green Job refers to employment that is related to waste recycling, ecological restoration and remedies for environmental degradation. Green jobs in any industry can be classified into the above three categories. In agriculture, those engaged in organic agriculture, ecological agriculture and green agriculture can be classified as Primarily Green Job, but those engaged in facility agricultural should be included in the Process Green Job, because there is still a great green space in its production process. Construction process itself is a Process Green Job, but if there are some sessions using solar energy, then the green job belongs to Primarily Green Job. Therefore, Primarily Green Job can be grafted into ProcessGreen Job, and the key element depends on whether these positions use natural energy sources sustainably. In the transport sector, the transformation from high energy to low energy-building construction generates a lot of employment, which can be classified as Process Green Job. In the area of services, such as productive services (industrial design), intermediary services (legal consulting, financial services, etc.), consumer services (catering, accommodation, etc.) and public services (education, health, etc.), there exists large space

to be greener; hence they belong to Progressive Green Job. Garbage collection, waste disposal and ecological restoration belong to End of Pipe Green Jobs, which mainly relate to terminal processing of waste generated in the process of Process Green Job. The relationship between these three categories of green job is that, Primarily Green Job can be grafted onto Process Green Job, and the terminal products of End of Pipe Green Job can be recycled into Process Green Job. Some jobs are seemingly belonging to End of Pipe Green Job, such as the utilization of livestock manure, but essentially belong to Primarily Green Job category.

2.2.2. The ppolicyolicy and the implementation of Green Jobs Creation

and promotion

This part mainly discusses the environment in China for creating and promoting green employment in terms of strategies, plans and policies at the level of the central government, other relevant regulations and policies for creating and promoting green employment, as well as directly relevant policies for creating and promoting green employment in China at provincial and local levels.

2.1 ①he strategy, planning and policy of central ggovernmentovernment

2.1.1 Twelfth Five Year Plan for National Economic and Social Development for the positive interaction between the economy and employment

To develop the Twelfth Five Year Plan for National Economic and Social Development, the central authorities put forward propositions “to establish a green, low- carbon development concept”, and “to accelerate the construction of resource-saving and environment-friendly production and consumption patterns, and enhance capacity for sustainable development ”. At the Central Economic Work Conference, the then General Secretary Hu Jintao stated: "to strengthen energy conservation and climate change, and develop green economy"; Premier Wen Jiabao also stressed in his speech: "We should do a good job on energy-saving, environmental protection, ecological construction, and the response to climate change". The State Council issued the Notice on the Twelfth Five Year Work Program for Comprehensive Energy Conservation and Reduction of Carbon Emission (GF [2011] NO.26), to do a comprehensive deployment and arrangement for energy saving goals, tasks, responsibilities and implement measures during the Twelfth Five-Year period.

Therefore, the development of the green economy has become an important strategic component of China's economic and social development, and it has already made substantial progress. In order to meet the development of the green economy, the acceleration and promotion of green jobs has become an important task for China. The Twelth Five-Year Plan has established the prioritizing strategy for the implementation of employment and the full employment strategy; oriented by the green and low-carbon development concept, to build a resource-saving and environment- friendly society; to promote green employment as a transition of economic development patterns and an important task of green economic development; to pay big effort to expand green jobs, and to achieve positive interaction with green economy and mutual growth.

2.1.2 The Employment Promotion Plan 2011-2015 to comprehensively promote green jobs

In January this year the State Council forwarded the Ministry of Human Resources and Social Security, Development and Reform Commission, Ministry of Education, Ministry of Industry and Information, Ministry of Finance, Ministry of Agriculture, Ministry of Commerce, the Employment Promotion Plan (2011-2015) a circular which pointed out the need to thoroughly implement the scientific concept of development, to adapt to the requirements of accelerating the transformation of economic development, to ensure the employment as a fundamental issue and a priority objective of economic and social development, to practice more positive employment policy and pay efforts to achieve full employment. The employment development goal is to scale up employment and make the employment structure more reasonable. This requires: Firstly, to increase the capacity of economic development for stimulating employment. To implement the priority strategies of employment all levels of government should take employment as a priority objective of socio-economic development in the formulation of national economic plans and the major adjustments of industrial structure

and layout; and establish a long-term mechanism for the benign interaction of economic development, industrial structure adjustment and employment expansion. To strengthen efforts to develop industries and enterprises with strong ability to absorb employment. To constantly explore new areas of employment and increase intelligence-intensive job opportunities in the development of strategic emerging industries. To accelerate the implementation of technological progress with comparative advantage in labor and industrial upgrading strategy in the economic transition and structural adjustment. To strengthen the development of tertiary industry, broaden the employment channels for service industry, pay attention to the development of productive services like financial, logistics etc. and life services like catering industry; to speed up the development of high- tech service industry and service trade, strengthen policy support, improve employment ratio of service industry; to steadily achieve industrial upgrading, develop manufacturing industries of capital- intensive and high-tech while taking into account the development of labor-intensive enterprises, especially high-value-added and labor-intensive enterprises; to develop small and medium enterprises with focus on supporting small and micro enterprises, and keep steady growth ratio of employment in secondary industry; to emphasize the development of modern agriculture and precision agriculture, explore the employment potential of primary industry, promote the industrialization of agriculture and increase employment opportunities in rural areas. To promote entrepreneurship to create job opportunities, and promote the development of domestic service industry for job creation.

Second, to implement more positive employment policies. This includes: Implementing more favorable financial policies to promote employment. Implement preferential tax policies to support and promote employment. Implement more supportive policies to promote employment. Implement more conducive policies for foreign trade to promote employment. Implement supportive policies to encourage workers to achieve employment through

multi-channels and multi-forms. Third, to co-ordinate the employment work between urban and rural areas, and focus groups. This includes: To promote the coordinated development of employment in urban and rural areas. To do a good job with the employment of college graduates and other youth groups. To promote transferring employment for surplus labor force in rural areas. To do a good job on the resettlement of workers from enterprises with backward production capacity. To strengthen the employment assistance to disadvantaged groups. Fourth, to strengthen the exploration of human resources. This includes: To strengthen the development of professional and technical personnel. To perfect the vocational training system for all urban and rural workers. To accelerate the training of skilled personnel for the urgent need of industrial development. To further improve the training system for highly skilled personnel based on vocational schools and enterprises as mainstay, combining school education and corporate training, government promotion and social support closely. To implement the national revitalization plan for highly skilled personnel; to accelerate the training of highly skilled personnel for occupations (jobs) of urgent need in key sectors (areas), relying on large-scale backbone enterprises, key vocational schools, training institutions, and highly skilled leading talents. To improve the certificate system of vocational qualification, accelerate the establishment of skilled personnel evaluation system based on professional competence- oriented and job performance, with focus on professional ethics and professional knowledge; to explore the evaluation mechanism for multi-skilled personnel, and provide unimpeded growth passage for skilled personnel. Fifth, to strengthen the building of human resources market. This includes: To accelerate the formation of a standardized and flexible human resources market. To strengthen public employment and personnel services. To develop human resources services. Sixth, to strengthen the prevention and control of unemployment. This includes:

To establish the unemployment statistics system and early warning mechanisms. To establish and improve the unemployment prevention and control mechanism.

Seventh, to improve the coordination mechanism of labor relations and the corporate wage distribution system. This includes: To improve labor standards and coordination mechanism of labor relations. To further promote the system reform of wage and income distribution.

Eighth, to strengthen the inspection of labor security and the mediation, arbitration of labor dispute. To strengthen the institutional construction of labor security inspection. To strengthen the performance construction of the labor and personnel dispute.

In addition to the strategic plans above, the central government has other policy measures to promote green jobs. For example, on March 5, 2011, then Premier Wen Jiabao stated in the government work report that unit GDP energy consumption and carbon dioxide emissions will be reduced by 16% and 17% between 2011 and 2015. China's future goal is to reduce the reliance on coal from 74% to 54% in 2020 . Government will invest 2.7 trillion RMB between 2006 and 2020 in alternative energy, with a focus on improving the urban environmental infrastructure, creating the infrastructure that can generate green jobs, expanding, designing, and installing the renewable energy, increasing energy efficiency, improving existing building energy systems, building new energy-efficient buildings, as well as waste management and recycling and reuse. By the latest Government Report at March 5, 2012, clean energy generation installed capacity reached 290 million kilowatts in China. On August 31, 2011, the State Council issued the Notice on the Comprehensive Energy Conservation Program in the Twelfth Five-Year (Guo Fa [2011] No. 26), which provides a full deployment and arrangements for the Twelfth Five-Year including work objectives of energy saving and emission reduction, tasks, responsibilities and implement measures. Thus, the development of green economy has become an important economic and social development component of the strategic plan and the substantial initiation and progress

has been made.

2.2 Other Policies

China has no direct policy to promote green jobs, but there are some policies committed to energy conservation and energy efficiency that indirectly promote the development of green jobs. We tried to induce policy measures of different sectors, and summarize the incentive policy of three different types of green job, with a view to support the introduction of specific policies on green job. Previously this report classifies green jobs into purely green job, processing green job, and end of pipe green job.

2.2.1 Regulations and policies stimulating purely green job

Since January 1st in 2006, “Renewable Energy Law of Republic of China” came into force, which aims to promote the development and utilization of renewable energy, increase energy supply, improve the energy structure, ensure energy security, protect the environment, and achieve sustainable development of social and economy. In the fourth chapter “Promotion and Applications”, article 13 states: “The state encourages and supports renewable energy and power generation”, article 15 “The state supports the grid construction of renewable energy independent power systems to provide electricity service for local production and life”, article 16 “The state encourages clean and efficient development and utilization of biomass fuels, encourages the development of energy crops”, article 17 “The state encourages units and individuals to install and use solar water heating systems, solar heating-cooling system, solar photovoltaic system and solar energy system”, article 18 “The state encourages and supports the development and utilization of renewable energy in rural areas”, including household solar utilization, small wind, small hydro and other technologies. These provisions has brought new jobs in new energy industry, as renewable energy itself is clean energy, these new jobs are all purely green job. In “China Renewable Energy Law”, the chapter 5 “price management and expense compensation”, the article 20 mentions that “the acquisition costs incurred for buying renewable energy electricity, when the difference is higher than conventional energy

generation, then the country should compensate the renewable energy tariff”. This article compensates the companies which purchase the renewable energy electricity, and thus bringing a strong impetus to the sale of the renewable energy electricity and its growth. Such subsidies bring employment stability and growth in the field of renewable energy area, indirectly promoting the development of green jobs. Article 24 refers to “grid companies that cannot recover connection costs and other related costs by selling electricity, but can apply for subsidies for renewable energy development fund”. Fund subsidies further makes up the costs that tariff subsidies cannot cover, as a strong guarantee for the development of renewable energy development, and lay the foundation for the growth of green jobs. Article 25 states, “financial institutions can provide financial discount deals and loans for those renewable energy development programs which are on the list of renewable industry development guidance catalogue and in line with the credit conditions”. Article 26 mentions “the state should give tax incentives for renewable energy projects in the industry development guidance catalogue”. The subsidies, renewable energy fund subsidy, preferential loans with financial discount, and tax incentives together demonstrate the strong support for renewable energy industries, and lay a good foundation for China’s enormous potential of green job development. Since then there are enacted 12 administrative regulations and technical standards around “Renewable Energy Law”, which also to some extent promote green job in related sectors. ‚National program on addressing climate change” refers to gradually establishing the system of laws and regulations on the basis of “Agriculture Law of Republic of China”, “Grassland of Republic of China” and “Land Management Law of Republic of China”, which can be compatible with a number of various administrative regulations, improve agricultural productivity and increase agriculture ecosystem carbon storage. The aim of legislation is to protect arable land and land use, strengthen the high degree of intensification of ecological agriculture targets, and protect and promote the purely green job of agriculture area. In addition, NDRC, Ministry of Finance, Ministry of construction have formed a number of specialized departmental rules or guidance documents, such as NDRC and Ministry of Finance jointly issued “implementation views on promoting the development of wind power industry”, “Notice on strengthening bio-fuel ethanol projects construction

and health development”. Ministry of Finance and four other ministries have jointly issued “implementation views on taxation policies for the development of bio-energy and bio-chemical industries”. The Ministry of Finance and Ministry of Construction jointly issued “Interim measures on management of special fund for renewable energy construction projects” and “Evaluation approach of renewable energy demonstration”. Regulations and policies of these sectors have played an important role in promoting special technology of renewable energy development, but also created a large number of new green jobs.

2.2.2 Regulations and policies promoting processing green job

On January 1st 2009, “PRC circular economy promotion law” was implemented, aiming to promote the reduction, reuse, and recycling activities in production, circulation and consumption process. This law regulated the detailed requirements on water, energy, electricity and resource one by one during production and consumption, and encourages companies to minimize negative environmental impacts. The focus lies in how to reduce energy consumption, save water and materials in the production process, most of which belongs to the area of processing green job, namely, how to achieve energy saving and environmental friendly in the production process. Circular economy concepts emphasizes that the circular development model should replace the traditional linear growth model, with the performance model of “resources-products-renewable resources” and “production-consumption-recycling” to effectively use resources and protect environment, and ultimately to get much more economic, social and environmental benefits with a smaller development costs. There are vast deposits of green jobs in the intermediate sectors of this two development model, especially in manufacturing. The Circular economy law stipulates that the state should use fiscal fund, tax incentives, credit support, supporting financial services, price policies to support different types of recycling economy. With the related industries encouraged, employment in these industries also increases. Therefore, the implementation of “PRC circular economy promotion law” also indirectly contributes to the development of green job, and laid a good foundation for green economy and social prosperity.

The‚National program on addressing climate change” explicitly mentions the state should develop and promulgate the implementation of “PRC energy law”, and according to the principles and spirit of this law, amend the “PRC coal law”, “PRC electricity law‛, to further strengthen the incentive policies of development and utilization of clean and low-carbon energy. The state should strictly implement the “guiding catalogue of industrial structure adjustment”, further implement the ten key energy conservation projects put forward by “long-term special plan for energy saving”. The state should further implement the “Steel industry development policy” to encourage renewable materials to replace the steel and steel scrap recycling, reducing the amount of steel used. The state should further promote the conservation of building materials, referring to develop architecture saving energy, water, materials, and land.

2.2.3 Policies and regulations promoting the end of pipe green job

The “National program on addressing climate change” proposed that the state should earnestly implement the “PRC Solid waste pollution prevention law”, “management regulations on city appearance and environmental sanitation”, “management practices on.f municipal solid waste” and other laws, so that the management focus can transit from current terminal management to the whole process management. The latter means reducing the waste from source, recycling and safe disposal, regulating the behavior of waste producers and handlers. It also involves taking account of municipal solid waste in the overall urban planning. The state should strictly implement and amend the existing “municipal solid waste classification and evaluation criteria”, “harmless evaluation standards of solid waste landfill” and other industry standards, improve the landfill combustible gas collection and utilization levels, and reduce the landfill methane emissions.

2.3 Direct Policies related to Green Jobs in China ononon Other

level

The impact of transformation from the traditional to the green development model on

employment in China is specifically reflected in several aspects: first, the increase of green employment, such as many job opportunities created by the development of renewable energy in the new energy sector, related manufacturing industries, advisory services industries; and many new jobs that will be created such as urban waste recycling management, CO2 capture in power plants, carbon traders, environmental impact assessment and other positions. Second, some gray jobs shrink, or even disappear. Examples include the elimination of some key industries with backward production capacity which use traditional energy, cement, iron and steel, chemicals and nonferrous metals. This means the disappearance of related jobs when those enterprises with low industry standards are closed or merged, or some production lines are removed. Third, changes of the work content and skill requirements of existing jobs. For example, when the traditional planting and reliance on chemical fertilizers and pesticides transfers to organic planting, farmers need to learn skills and technologies like green manure, biological control of harmful insects etc.; and engineers of urban planning will need to understand and apply more green technologies. Further, when thermal power equipment isupgraded from the split-running into centralized-control running model , the job content and skill requirements of relevant operational and technical personnel will change accordingly. To protect the smooth transition from traditional jobs to green jobs and development of green jobs, there must be a corresponding labor and social security policies to provide support. At present, China's policies in this regard includevocational training policies, employment promotion policies and policies for employees’ laid-off, compensation, resettlement, relocation and retraining in the closed, merged or changing enterprises.

2.3.1 Vocational Trainings

2.3.1.1 Professional Qualification and Vocational Training System

The vocational training system in China includes pre-employment training, job training and re-employment training. In addition, China has established professional standards and accreditation system for professional qualifications. The state develops standards of occupational skills or qualification criteria, the accreditation agencies

recognized by the government evaluate and identify workers’ skill levels or vocational qualifications, and qualifiers will obtain the corresponding certificates of national vocational qualification. The national certificates of vocational qualification is divided into five levels, namely the primary (National Vocational Qualifications Level Five), intermediate (National Vocational Qualification Level Four), Senior (National Vocational Qualification Level Three), Technicians (National Vocational Qualifications Level Two), and Senior Technician (National Vocational Qualification level One). Green jobs related occupations which already have national standards include environmental impact assessment engineer, renewable resources, recycling, sewage disposing workers, and solar energy utilization workers. Some jobs engaged in technical complexity, wide versatility and relate to the security of state property and people's lives and consumer interests. Workers in these jobs must be trained and obtain professional qualification certificates before gaining employment, such as biogas production workers.

2.3.1.2 Encourage the Construction of Training Base and Improve the Skills and Practical Operation Ability of Vocational School Graduates

Beginning in 2004, the special funds from central government for vocational education were used to support vocational schools at all levels to build vocational training bases in order to improve the skills and operational capabilities of students. The central government special funds support two models of vocational training bases including regional integrated training bases and professional training bases. At the start of the project, the central government focuses on supporting the construction of expertise training bases in five areas: numerical control technology, vehicle maintenance technology, computer applications and software technology, electrical and electronic technology; and building technology. Key areas are gradually expanded. In 2009, the Ministry of Education stipulated eight areas as key support areas in which energy and environmental protection have to be taken into account. The central government special funds specifically support the following types of institutions and training schools. First, schools that are employment-oriented and provide training for a large number of skilled personnel of social shortage, and the employment rate of graduates is high. Second, there are schools that have made breakthroughs and innovations in the reform of vocational

education and strengthening school-enterprise cooperation. Third, there are schools that have made outstanding contributions in social training, training of laid-off workers and re-employment training of the rural labor force. The central government fund is mainly used for the purchase of equipment and its update. The local government is required to provide matching funds to the training base construction supported by the central finance.

2.3.1.3 Students Are Encouraged to Participate in Secondary Vocational Education

Students in grades 1-2 in secondary vocational schools in rural household registration and non-agricultural household registration in counties and towns, and urban students from poor families can receive annual subsidy of 1,500 RMB.

2.3.1.4 Promotion of Vocational Skills Trainings for Rural Migrant Workers

Strengthening employment training for laborers transferred from rural areas was proposed at the 17th Congress of Chinese Communist Party. Since then, related departments have formulated training programs for migrant workers, which is supported by the financial department with a focus on vocational skills training. Skill training combines regional goals of rural labor transferring and industry, career goals, and supplements the lack of skills of rural labor and provides targeted training. For example, in 2003, the Ministry of Agriculture, the former Ministry of Labor and Social Security and other six ministries jointly developed the 2003-2010 National Training Plan for Migrant Workers. In 2005, the former Ministry of Labor and Social Security developed the Skillful Employment Plan for Rural Labor Force, which put forward that 40 million migrant rural workers will get vocational training in next five years.

2.3.1.5 Encourage Enterprises to Develop Staff Training to Improve Workers’ Vocational Skills

The Eleventh Five-Year (2006-2010) Plan Outline for the Construction of Highly Skilled Personnel Training System encourages enterprises to increase investment in training for skilled workers on production and service lines, particularly highly skilled personnel. According to relevant provisions, enterprises should extract 1.5% - 2.5% of the

total wage as employee education funds to ensure training for highly skilled personnel. Enterprises should extract the required percentage of staff technical training funds from the technological transformation and the introduction of projects, and include it in the project cost. Local governments above the county level may legally co-ordinate the employee education funds for enterprises with no ability to carry out staff training by themselves, as well as for enterprises who have not implemented staff training; and the department of labor and social security organizes unified training. Employees participate in half and full-time training approved by the working unit should enjoy the same wages and benefits in the post. Enterprises can provide certain subsidies for training and appraisal fees to personnel who participate in highly skilled training of local skill-shortage occupations and achieve the appropriate professional qualifications and get employed by the enterprises. Implementing projects of knowledge update for professional and technical personnel is a priority. The aim is to build a batch of national continuing education bases relying on colleges, universities, research institutes and existing training institutions within large enterprises; and to carry out large-scale continuing education of knowledge update to improve the professional level and capabilities of technical personnel. Another priority is to implement the national revitalization plan of high-skilled personnel. To fully play the role of industry, enterprises and vocational schools to accelerate the training of a group of technicians and senior technicians with deep theoretical knowledge and professional skills. To formulate a network of skills transfer and diffusion, basically covering the central areas and key industries; to establish a more comprehensive mechanism of value realization of masterly personnel and the intergenerational transmission.

2.3.1.6 Particular Vocational Training Program in Response to the Financial Crisis

In response to the international financial crisis and to maintain stable employment situation, the Ministry of Human Resources and Social Security, the National Development and Reform Commission, together with the Ministry of Finance decided to implement special vocational training programs from 2009 to 2010. Targeted vocational training was provided to four types of groups. These four groups are:

2.3.2 A More Active Employment Policy System

Key elements of a more active employment policy include: Self-employed workers meeting the required conditions can enjoy policies of tax relief and small secured loans; enterprises recruiting personnel with employment difficulties meet the prescribed conditions, can enjoy policies of tax relief and social insurance subsidy; labor-intensive enterprises newly recruit personnel met certain conditions, can enjoy the microfinance policy; personnel with employment difficulties work in public service sector or flexible employment can enjoy job subsidies and social insurance subsidies; workers can enjoy subsidies for employment introduction, vocational training and occupational identification. College graduates, unemployed and rural workers can enjoy corresponding policies according to these provisions.

2.3.2.1 To Promote Re-employment through Public Employment Services and Re- employment Training

Free employment services are provided by government's public employment service agencies for laid-off workers. Private employment agencies that provide employment services to help laid-off workers back into employment are provided with subsidies. Laid- off workers who participate in training are provided with subsidies for training costs, as well as subsidies for vocational skills appraisal. To establish systems of employment survey, data processing and analysis; to strengthen systems of job information collection and release; to implement the vocational qualification of vocational guides; to strengthen the capacity building of public employment service; to improve the quality and efficiency of recruitment negotiations, employment introduction and career guidance; to build a platform for employees and employers; to strengthen the evaluation and supervision of employment promotion. To strengthen the services for enterprises recruitment. To actively respond to the unemployment in the process of economic development, and extend the government's

25 public employment services, employment assistance and vocational training enterprises are providing effective employment services for workers’ re-employment and reorientation as soon as possible. Another objective is to further strengthen the recruitment services in enterprises and the personnel training to provide human resources support for the economic development. To carry out national special activities for public employment services in "Employment Assistance Month", "Spring Action", "Recruitment Week for Private Enterprises", " Employment Service Month for College Graduates" and " Employment Service Week for College Graduates" etc., to help people with employment difficulties, surplus agricultural labor force and college graduates to get employed. To build the dynamic monitoring system and early warning project. To establish a nationwide information monitoring network of employment and unemployment based on the national e-government network, to improve the statistics of employment information and early warning indicators, to carry out the forecasting of employment demand, and release information of employment and early warning timely. To strengthen the facilities (equipment) construction in counties and towns, implement public services including employment and vocational skill trainings, coordination of labor relations, labor inspection and mediation arbitration, labor export, as well as rural migrant workers related basic public services; to provide processing services such as social insurance registration, payment, approval, and transfer etc..To promote joint construction and sharing of street (township) service stations, administrative village (community) service windows and other public service facilities. To establish standardized system of corporate salary survey and information release. To collect salary information of different positions and information of corporate labor cost, and release these information timely; to strengthen the support to macro-control of wage distribution, and provide public information services for different social parties.

2.3.2.2 Encourage Enterprises to Hire Laid-off Workers

Businesses are encouraged to hire laid-off workers through policy levers such as tax incentives, social insurance subsidies, guaranteed loans and interest subsidies. Service enterprises are given incentives to reduce the amount of tax and provide social insurance

subsidies for trade, service enterprises that recruit laid-off workers, in accordance with the limit of 4,000 RMB per person per year. Further, some labor-intensive small businesses are provided with secured loans and financial discounts. .

2.3.2.3 To Provide Employment Assistance for Disadvantaged groups

Governments are exploring job opportunities in public service, and provide to people with employment difficulties in priority, and provide social insurance subsidies and post subsidies as well. People engaged in flexible employment are provided with social insurance subsidies.

2.3.2.4 To Solve the Placement of Workers in Enterprises of Key Industries

The government has a number of priorities to place workers in productive enterprises: • To set the placement of workers in eliminated enterprises of backward production capacity as the top priority task of human resources and social security departments to promote green jobs, in accordance with the general requirements of the State Council to further strengthen the elimination of backward production capacity. • To minimize the unemployment risk through the combination of internal reorientation, social re-employment and market elimination, and the close combination of living security of enterprise workers, process of labor relations, re-employment promotion, continuance of social insurance etc. • In accordance with local realities, to take practical policy measures with focus on key industries such as electricity, coal, steel, cement, non-ferrous metals, coke, paper, leather, printing and dyeing, and develop employee relocation program, implement active employment policy to achieve re- employment, self-employment and help workers to start their own businesses.

2.3.3 To Ensure the Placement of Workers in the Process of Economic Restructuring

In the process of economic restructuring, the problem of job losses is inevitable. In response to this problem, China has implemented an active employment policy, which originated in 2002 to solve the re-employment of a large number of laid-off workers from the economic structural adjustment and state-owned enterprise reform. After three years of practice, the active employment policy has been constantly improved, and gradually formed a proactive employment policy system at the end of 2005. In August 2007, the National People's Congress adopted and promulgated the Employment Promotion Law to integrate the policy system of employment promotion, institution and mechanisms into the legal track. The active employment policy has increased the public employment service to help laid-off workers re-employed. Specific practices are mainly in the implementation of natural forest protection project, and more than 100 million workers have been properly resettled. In addition, the social security system has also been improved, for example, the new rural cooperative medical system that started to pilot in some counties (cities) in 2003, and has gradually achieve the basic coverage of rural residents in 2010. These social security measures have defused the risk of unemployment and the life worries of workers. In 2011, The Joint Advice of the Ministry of Human Resources and Social Security, Development and Reform Commission, Ministry of Finance, Ministry of Industry and Information Technology, State Council, SASAC, National Energy Board and the National Federation of Trade Unions on Elimination of Backward Production Capacity and Resettlement of Workers of Merged and Restructured Enterprises (Renshebufa [2011] No. 50), pointed to integrate laid-off workers of merged and restructured enterprises into the support policy system of employment and re-employment, and implement various policies to promote the to-start-your-own-business and encourage enterprises to absorb employment and help people of employment difficulties. Necessary funds for the elimination of backward production capacity and the integration of laid-off workers from merged and reconstructed enterprises into the policy system of employment support are from the central and local special employment funds.

Eliminated enterprises of backward production capacity and merged and restructured enterprises should participate in social insurance and pay social insurance premiums in accordance with relevant state regulations; laid-off workers from eliminated enterprises of backward production capacity and merged and restructured enterprises can enjoy the basic workers’ medical insurance benefits paid by the unemployment insurance fund during the period of receiving unemployment insurance benefits. To properly handle the labor relations, according to the law, the original enterprises should pay economic compensation for the employee rescission or termination of the labor contract, and pay back wages, medical expenses and related debt. Related departments should guide and help the eliminated enterprises of backward production capacity and merged and restructured enterprises in various ways to carry out employment skills training, job skills upgrading training and reorientation, retraining; to improve the implementation of staff training funds, and the relevance and effectiveness of trainings; to achieve the goal of "One person gets training and one person gets employed", and to make smooth transfer of workers in the eliminated enterprises of backward production capacity and merged and restructured enterprises from one job to another.

2.3.4 To Encourage Green Business and Promote Green Jobs

After the then General Secretary Hu Jintao proposed the social construction task of implementation of the development strategy of expanding employment and promoting entrepreneurship to create jobs, in his report at the 17th People’s Congress, the central government issued a series of policy measures to promote to-start-your-own-business and encourage business starters to enter the national prioritized industries of resources comprehensive utilization, such as the Notice on the Implementation of the Central Document No. 1 to Accelerate the Technological Innovation and Entrepreneurship in Rural Areas issued by the Ministry of Science (Guokefanong [2012] No. 156), which proposed "to launch the special action of technology correspondents in seed industry and rural circulation areas; to promote the construction of technological entrepreneurship bases relying on national agricultural science and technology parks; to promote the piloting project of technological poverty alleviation in Qinling Mountainous Areas; to actively engage in international piloting projects of science and technology

correspondents". To better implement the results of the 17th China Communist Party's Third Plenary Session and the Central Rural Work Conference, and accelerate the implementation of development strategies of employment expansion, and further improve the financial discount policy of small loans for laid-off workers, and protect women's development rights, and improve the work for women's entrepreneurship and employment, the Ministry of Finance issued the Notice on Improving the Financial Discount Policy for Small Loans to Promote Women’s Entrepreneurship and Employment (Cai Jin [2009] No. 72. ), which proposed " to provide small loans to urban women who are qualified, and the maximum amount of the individual loan is 80,000RMB, the repayment and interest settlement should be agreed by the two sides; to qualified women who partner with each other for organized employment, the financial institutions could increase the maximum amount of the individual loan to 100,000. In addition to the central government's policies to promote employment, provinces have also issued related policies, such as Guangdong, Jilin, Hunan, Shaanxi, Hebei, Jiangsu provinces. The Human Resources and Social Security Department of Guangdong Province issued the Notice on Work Guidance for the Construction of Employment-leaded-by - Entrepreneurship Incubator in Guangdong (Guangdong Renshehan [2009] No. 218. ), which proposed to build more than one national employment-leaded-by -entrepreneurship incubator in every city of the Pearl River Delta by 2012, and build at least one provincial employment-leaded-by-entrepreneurship incubator in every city of other areas; by 2015, each county (district, city) will build a county-level base, and the total number of the entrepreneurship incubator bases will be about a total of 150 within the province, and the total size of incubated enterprises will reach 5000 or more, and an entrepreneurship incubator system with national, provincial, municipal and county levels will be gradually built up. Changchun Municipal People's Government Office issued the Notice on Work Guidance for Strengthening and Improving the Employment and Entrepreneurship of College Graduates (Trial) (Changfu Ban Fa [2011] No. 12. ), which proposed that “the department of human resource and social security offers the Proof for Changchun

University Students to Start a Business to qualified college graduates who start a business, social organizations or carry out online businesses; the Proof for Changchun University Students to Start a Business, and, the Employment and Unemployment Registration Certificate can be used to apply for the small loans with the maximum amount of 80,000RMB, and the loan size for partnership and organized employment can be expanded to 2,000,000RMB”. To promote the universal entrepreneurship, Hunan Province issued the Notice on a Number of Measures to Promote Entrepreneurship, which proposed to expand the field for entrepreneurship, support for various types of entrepreneurship in industries and sectors not prohibited by national laws and regulations; to support rural unemployed persons, landless farmers, veterans, dependents, college graduates, returning oversea students, the disabled people and emancipist to start their own businesses; to specifically support enterprises; to promote internet entrepreneurship; to cultivate brand and boost entrepreneurship; to guide private capital to entrepreneurship; to regulate the market to protect entrepreneurship. The Nanjing Bureau of Human Resource and Social Security, together with the Nanjing Bureau of Finance, the Women's Association, and the People's Bank Nanjing Branch, issued the Notice on Further Improving the Work of Entrepreneurial Small Loans (Ningrenshegui [2010].NO.7), which proposed to adjust the methods of interest subsidies for entrepreneurial small loans, to improve the work of approval for entrepreneurial small loan amount and the interest subsidies for secondary loan, to further strengthen the work of small loans to support women entrepreneurs, and vigorously promote the work of entrepreneurial small guaranteed loans in other counties outside the scope of original ten counties, and further increase the support for farmers' entrepreneurship. In addition, in order to evaluate the entrepreneurial environment of entrepreneurial cities and the effects, the central government also actively promotes the construction of the performance appraisal system of entrepreneurial cities. The Ministry of Human Resource and Social Security issued the Notice on Further Promotion of the Construction of Performance Appraisal System in Entrepreneurial Cities (Renshebuhan [2012] No. 113), which provided a detailed description of the appraisal scope, evaluation content, evaluation basis, evaluation methods, work schedules and relevant requirements. This is a

31 conclusion of employment promoted by entrepreneurship, and will further promote employment.

3.3.3. International and local experience and case analysis of

Green Jobs Creation and promotion

3.1 Smart city management and planning

This report looks at smart city management and planning in Hunan, with Zhuzhou and Changde. Although smart city management and planning can be narrowly defined as the use of information and communications technologies to improve the performance of urban infrastructure and services, in this report the intention is to use smart management and planning to underpin urban environmental goals and economic performance. The terms eco-cities, sustainable cities and, in the case of Hunan, smart cities, can be used interchangeably. China is considered a best practice leader in eco-city smart city management and planning in the Asian region. A total of 28 provinces have developed eco-city projects, involving 133 cities, 256 industrial parks, and 1,352 enterprises were identified for pilot programs 1 . Key characteristics of best practice include government leadership and coordination, innovation in city and infrastructure planning and the role of government in facilitating industrial transformation towards the green economy. Green jobs emerge, both in the public and private sector, driven by demonstration projects and green infrastructure and services. Many examples can be cited. A strategic area of heavy industrialized Tianjin is being transformed into an eco-city. Based on an agreement between Chinese and Singapore government, the aim is to build a green city for 350,000 residents, based on green principles, high energy efficiency standards for buildings and renewable energy, particularly wind. De Jong et.al 2 have researched the case study of Pingdi, a less

1 The People's Republic of China (2012), National Report On Sustainable Development, a report to 2012 United Nations Conference on Sustainable Development 2 De Jong, Martin, Dong Wang and Chang Yu (2013) Exploring the relevance of the Eco- City Concept in China: The case of Shenzhen Sino-Dutch Low Carbon City, Journal of Urban Technology, 20:1, 95-113.

developed area on the border of Shenzhen, where innovative master planning created new opportunities for a green city linked to growing new employment opportunities. The project team developed a vision of a green knowledge-based economy, emphasizing service and technology-oriented employment, and high environmental amenity and accessible public transport as a means to attract highly educated employees. The aim was to attract high skilled foreign and local knowledge workers. The project developed the concept of green collar workers, which embraced all levels of education, including “engineering, maintenance, surveillance and personal services” as a means of ensuring the benefits of growth of the area were broadly shared with existing local workers as well as incoming highly skilled workers. Smart city concepts such as “mobile smart grids” and “intelligent transport systems” are put forward as underlying infrastructure foundations. The vision articulated clusters of agriculture, food and health care and green energy to distinguish their development path from more industrialized areas of the Pearl River Delta. The World Bank has published a major report on eco-cities3. HammarbySjöstad, a district of Stockholm, is a designated eco-city and embarked on a major redevelopment project to demonstrate best practices in energy-efficiency, water conservation, waste reduction and reuse, increased renewables, emissions reduction and integrated transport solutions. Coordination was the key to success. The city appointed a project team under one department with a clear charter (Development Department) and participation by other agencies (eg energy, environment, utilities), enable the team to access public resources and lever resources with the private sector. The report also cites Curitiba, Brazil as a best practice case study in city planning, where decisions to grow the city along linear corridors, facilitated the growth of higher density residential and commercial development and protected green areas. The increased densities along these corridors supported investment and viability of public transport, resulting in the highest use of public transport in Brazil and reduction in traffic congestion. The Amsterdam Smart City project is a partnership between an independent organization Amsterdam Innovation Motor, a grid operator, and the Municipality of

3 Hiroaki Suzuki, Arish Dastur, Sebastian Moffatt, NanaeYabuki, Hinako Maruyama (2010), Eco² Cities: Ecological Cities as Economic Cities, the World Bank

Amsterdam4. It now involves 70 partners including CISCO and IBM. The aim of the project is to reduce carbon emissions and energy use in the city. Projects include smart school education with a focus on sustainability, smart transport, larger smart grids, smart metering and smart electrical vehicle charging projects. By making data easily available, the aim is to spur innovation and behavioural change.

3.2 ④aste management

In China, around 10 million workers are engaged in waste recycling activities (UNEP 2008). Based on a definition of green jobs that includes decent livelihoods, many of these jobs can’t be considered green jobs. Many are workers employed in the informal sector and they work in often unsafe environments with precarious incomes. Best practice strategies recognize, firstly, the growth in waste and the potential to deploy technologies and skills to reduce it; and, secondly, initiatives to strengthen employment for vulnerable workers in waste management through skills, extending national OHS laws to protect workers and support for start-up businesses. To address the challenge of increasing waste, the Korean government introduced the “Extended Producer Responsibility” system which requires companies to recycle a certain proportion of their products. Combined with the introduction of a Volume-based Waste Fee System, new markets were created to better utilized and manage waste. Reduce reuse and recycle are hallmarks of a sustainable economy. New markets for waste were created by government legislation. The policy was further developed to utilize waste as an energy resource, and resulted in a significant decline in greenhouse gas emissions. Further, it resulted in a substantial increase in the amount of solid waste recycled. By 2007, more than 80% of total waste was being recycled. The policy resulted in the creation of new industry opportunities and growth of new businesses and green jobs, such as new jobs created in the Metropolitan Landfill Power Plant. Government policies in the Republic of Korea have sought to grow new businesses and jobs in the recycling industries. Small recycling businesses are eligible for low interest loans to expand recycling facilities and upgrade technologies, and start-ups are

4 www.amsterdamsmartcity.nl

35 provided with business advice. Over the decade 1999 to 2009, the number of recycling companies in the republic of Korea grew from 1,647 to 4,375, employing around 52 000 people5. Many opportunities can be created for poor rural and urban households in waste management. In Dhaka, Bangladesh, 1,200 jobs were created collecting and composting organic waste6. The project increased employment and improved environmental benefits such as a reduction in irrigation and improved soil quality. A key feature of the project included worker protection involving health insurance, childcare and free meals. In addition to creating jobs and environmental benefits, by addressing the social dimension of meeting “decent” conditions, the jobs could be categorized as green jobs.

3.3 New energy industries

A number of countries have designated new energy industries as strategic industries to enable them to pursue economic and environmental goals. As discussed elsewhere in this report, China is considered a leader in a range of new energy industries, including photovoltaics and wind, and these industries are experiencing phenomenal growth. What are some of experiences of best practice lessons that may be shared between global best practices and China. Strong government leadership was instrument in making Germany a leader in renewable electricity. Key policy innovations included giving renewable energy priority to access the grid, an attractive feed-in tariff and integration between renewable energy generators and utilities. In 2000 the renewable Energy Sources Act was introduced, which provided a long term investment climate in renewable energy sources and provided incentives for photovoltaic, wind and biomass, and was the catalyst for the take-off of renewables industries. Renewables industries now employ more than 300,000 people. An interesting feature of the growth of renewables is that it is creating many opportunities in

5 Energy & Climate Policy Institute (2012), Green Growth and Green Jobs in Korea: Potentials and Perspectives. 6 Sinha A.H. and Enayetullah I. (2010). “Innovative ways to promote decentralized composting by Waste Concern in Bangladesh, A toolbox for building sustainable solid waste system.” C40 Cities Climate Leadership Group Waste Workshop, March 22-24, London, UK.

small rural areas, spurring the creation of hundreds of energy cooperatives7. Denmark has been seen as a pioneer in wind technology and the sector generates 30% of the country’s electricity generation. Until recently, the country had a dominant position of the global wind turbine market, and Danish manufacturing Vestas remains the world’s largest wind turbine manufacturer. As a consequence of long term government commitment, including the new Danish Energy Strategy, Denmark has retained a strong globally competitive position, developed around strong national and regional clusters. These tend to be based around research, universities and test centres, and involve ongoing interaction with industry. Importantly from China’s perspective, the country has developed a highly qualified and experienced workforce in the wind industry, with around 28,000 people employed in the wind power sector. One explanation for India’s recent success is its capacity to learn from other countries and adapt them to India’s conditions. This process has been termed interactive learning, where companies in the emerging producer country (ie India), continue to strengthen competencies, learned from large suppliers from the strong producer countries (ie particularly Denmark), through a mentor/apprentice relationship, whileengaging in the innovation. A study of the successful emergence India’s wind industry8suggests that the strategy of “interactive learning” with international and especially Danish partners, as opposed to imitation of foreign technology policies and institutions, was a significant factor in explaining the emergence of a strong Indian their wind energy industry.

3.4 Environmental protection industries

China is aiming to be a best practice country in relation to environmental protection industries. It has designated environmental protection as a “pillar” industry, which will be eligible to attract tax breaks and subsidies and a strong government commitment to research and development. Given the forecast high rate of growth of the industry, major challenges relate to how quickly high skilled jobs can be created and the pace at which

7 Climate Service Centre (2013), From vision to actionA workshop report on100% Renewable Energies in European Regions. 8 Kari Kristinsson and RekhaRao(2008), “Interactive Learning or TechnologyTransfer as a Way to Catch-Up? Analysing the Wind Energy Industry in Denmark and India,”Industry and Innovation, Vol. 15, No. 3, 297–320, June.

new technologies and skills are diffused to enterprises, provinces and local areas. One of the issues raised in consultations was the opportunity to strengthen the role of business associations to encourage the growth of green industries and jobs at the provincial level. The benefits include accelerating information flows regarding emerging markets, project identification involving complementary activities on businesses and advocacy and collaboration for implementing green skills. Many regions have implemented initiatives to strengthen local networks of clusters The Norwest Environmental Business Council, Oregon is an example of a local network. It draws on the multi-disciplinary inputs on its members, and covers a number of environmental protection activities as well as other sustainable practices. It is an organisation that develops initiatives to grow the local industry, including advocating on behalf of its members an optimal regulatory environment, supportive policies and tax structures, the dissemination of knowledge, and the adoption of best practices. Sub-national clusters are an important mechanism to strengthen industry capabilities. Denmark’s Copenhagen Capacity is an organization that brings together public and private partners to attract investment, grow businesses and strengthen international competitiveness around local clusters 9 . The group has established Copenhagen Cleantech Cluster (CCC) is a leading example of a dynamic cluster in environmental protection and other cleantech industries such as new energy. An important best practice indicator is its global orientation. The group has played an instrumental role in establishing the International Cleantech Network, now comprising 13 global cluster partners, including China’s Yixing Industrial Park for Environmental Science and Technology, as well as Korean, European and North American partners. The aim of this global partnership is to create partnerships for R&D and commercialization across countries, knowledge exchange, assisting in internationalization of companies and encouraging more FDI to the regions. Given China’s aspiration to become a global leader in environmental protection industries, participation in global clusters such as ICN may facilitate an acceleration of investment, employment and deployment of innovative technological solutions.

9 www.copcap.com

3.5 Green agriculture

China’s agricultural sector confronts the twin challenges of economic sustainability of farmers and environmental degradation. The agricultural sector also plays an important part in poverty reduction and providing for national food security. Can green agriculture - which can encompass organics, eco-farming and conservation agriculture - contribute to addressing these challenges? Supporting farmers and growing new opportunities in green agriculture are important priorities, with an emphasis on poverty reduction and reducing environmental impacts of agriculture (and related forestry). Hunan is taking important to strengthen green agriculture. Around 200,000 farmers have been organized with training in advanced techniques and to cooperate in rice products and harvesting. The province is implementing policies to transform agriculture. The Garden of 100 Flowers, for example, was established with support of the Hunan Agriculture Department in 1998 is a demonstration project for fruit, tea and vegetables. With its beautiful natural setting on the outskirts of Changsha, the garden is expanding opportunities for relaxation, education and accommodation for visitors. The aim is to focus on developing an advanced facility that can demonstrate virus free cultivation using natural techniques including organics. The facility provides a learning environment and training for farmers, agricultural technicians and researchers. Green agriculture is typically more labour intensive than conventional agriculture, due to more diverse crop rotations, recycling of organic wastes, integrated pest management and careful investment in land and soil rehabilitation. Farmers often find it attractive to shift from conventional to organic farming, not only because of the improved health benefits, but also because of increasing costs of chemicals and pesticides. A range of drivers are underpinning the growth of green agriculture. One of the most important is education and training, with an emphasis on delivering green skills in flexible ways, usually through agricultural advisory services and demonstration projects. Providing financial support to enable farmers to make the transition from conventional and traditional agriculture to green agriculture is another important driver. Governments and associated regulatory agencies are often instrumental. Brazil is implementing major initiatives to improve limit environmental degradation resulting

from de-forestation and poor agricultural practices. The National Climate Change Plan has succeeded in reducing deforestation and facilitating the shift to low-emission agriculture. The Brazil Development Bank has been restructured its lending conditional to give priority to environmental protection measures that avoid deforestation, and land and water pollution10.Moldova is developing its organic agriculture sector. Government support, through regulations and the enactment of an organic marketing law, has resulted in growing commercial interest from farmers. Organics account for 11% of agricultural exports and represents 2% of total arable area. In the Southern Highlands of Tanzania, long-term extension programs and farmer field schools have introduced the concept of conservation agriculture, resulting in maize and sunflower yields more than double on average. In Zambia, the government implemented initiatives to promote Conservation Agriculture, training hundreds of field extension workers in these techniques and established a network of demonstration farms and learning plots11.

3.6 Green manufacturing ––– clothing and textiles

One of the challenges for green manufacturing is how to improve environmental outcomes, not just at the enterprise level, but across the whole supply chain. It may be counterproductive for one enterprise to invest in green technologies and skills if raw material and other intermediate suppliers and customers don’t share the same practices. Traditionally, the use of toxic chemicals is common at the upstream growing raw materials and for the manufacture of several fabrics in different stages such as pre- treatment, dyeing and printing. These industries generate large amounts of waste. A recent study by Ghosh and Shah12 investigates some innovative examples of improving

10 Commission on Sustainable Agriculture and Climate Change (2012), Achieving food security in the face of climate change – Final report, p24 11 EcoAgriculture Partners (2013), Six Opportunities to Green Agricultural Production in the Southern Agricultural Growth Corridor of Tanzania (SAGCOT), a report to theSAGCOT Centre and the SAGCOT Green Reference Group. 12 DebabrataGhosh and Janat Shah (2012), A comparative analysis of greening policies across supply chain structures, International Journal of Production Economics, Volume 135, Issue 2, February, Pages 568–583

40 environmental outcomes. A US company, Patgonia, made a decision to eliminate a harmful chemical, perfluoro-octanoic acid, from its Eco Rain Shell Jacket. This resulted in transformative changes to design and manufacturing processes, and required close collaboration with suppliers. Another case study is Adidas, which has introduced a number of strategies to reduceharmful substances used in manufacturing, and to reduce wastes in the packaging materials. The company has developed its own four point sustainability agenda: 1. Standards and guidelines: A supplier code of conduct covering greening, material and workplace standards. 2. Capacity building and outreach: The companytrains its suppliers so that they understand the importance of establishing and maintaining management systems. 3. Monitoring and verification: The company has a dedicated team of auditors, which monitors suppliers' performance against set Standards. 4. Rating and sourcing decision: Suppliers are audited based on their performance and sourcing decisions are based on these ratings.

4.4.4. The Labour market supply and demand analysis

444.14.1 ①he Labour market supply analysis

4.1.1 Decreasing Working Age Population in Future

The long lasting low fertility is giving rise to a change in the population age structure. If we take the population dependency ratio (ratio of dependent population to the working age population) as an indicator of demographic dividend, it reveals an alarming upward trend. In the time frame between 2010 and 2015, the dependence ratio will reach its bottom, before it begins to increase dramatically. According to a more detailed prediction, which takes into account the impacts of rural-to-urban migration (Hu, 2009), the labor demand in urban sector has been fulfilled by rural labor migration in recent years. By 2015, the amount of incremental working age population in urban areas will be less than that of reduced working age population in rural area, and the total working age population will begin to shrink (Figure 4-1).

25 1450

20 1400 15

10 1350

1300 0 Total population (Mill.) population Total -5 1250

Increase of WAP (Mill.) WAPof Increase -10

-15 1200 2002 2005 2008 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038 2041 2044 2047 2050

Rural ④AP ②rban ④AP ①otal Pop

Figure 4-1 Changes of Working Age Population of Rural and Urban China Source: Calculated based on data of Hu (2009).

4.1.2 Status of Labor Supply in Hunan and Fujian

If we take the elderly dependency ratio as the basic indicator, it can be seen from this figure that Hunan province has a higher elderly dependency ratio of 13.46%, Fujian has a lower of 10.3% than that of the whole nation of approximately 12% (Figure 4-2).

18 16 Elderly Dependency Ratio National Average 14 12 10 8 6 4 2 0 Jilin China Hebei Anhui Hubei Fujian Gansu Xizang Henan Shanxi Hunan Jiangxi Tianjin Beijing Hainan Jiangsu Ningxia Yunnan Qinghai Sichuan Shannxi Xinjiang Guangxi Guizhou Liaoning Zhejiang Shanghai Shandong Chongqing Neimenggu Guangdong Heilongjiang Figure 4-2 The Elderly Dependency Ratio by region (%) Source : the 6th population census data. Table 4-1 also shows that kind of information, the proportion of working age population aged 15-64 in Hunan is 72.61%, is lower than the level of national average level of 74.47%. The proportion of working age population aged 15-64 is 76.64 % in Fujian. Table 4-1 Age Structure by Region in 2010 Age 0-14 Age 15-64 Age 65+ China 16.61 74.47 8.92

Beijing 8.60 82.68 8.71 Tianjin 9.80 81.68 8.52 Hebei 16.83 74.93 8.24 Shanxi 17.10 75.33 7.58 Neimenggu 14.07 78.37 7.56 Liaoning 11.42 78.27 10.31 Jilin 11.99 79.63 8.38 Heilongjiang 11.94 79.78 8.28 Shanghai 8.61 81.26 10.13 Jiangsu 13.01 76.11 10.88 Zhejiang 13.21 77.45 9.34

Anhui 17.77 72.00 10.23 Fujian 15.47 76.64 7.89 Jiangxi 21.90 70.49 7.60 Shandong 15.74 74.42 9.84 Henan 21.00 70.64 8.36 Hubei 13.91 77.00 9.09 Hunan 17.62 72.61 9.77 Guangdong 16.87 76.33 6.79 Guangxi 21.71 69.05 9.24 Hainan 19.78 72.15 8.07 Chongqing 17.00 71.28 11.72 Sichuan 16.97 72.08 10.95 Guizhou 25.26 66.03 8.71 Yunnan 20.73 71.65 7.63 Xizang 24.37 70.53 5.09 Shannxi 14.71 76.76 8.53 Gansu 18.16 73.61 8.23 Qinghai 20.92 72.78 6.30 Ningxia 21.39 72.22 6.39 Xinjiang 20.45 73.07 6.48 Source : the 6th population census data.

4.1.3 Education Composition of Labor Force

Educational composition is an important indicator of social and economic development at the regional level. Table 4-2 shows the education structure of the labor force in each region. Both Hunan and Fujian have higher education level of the schooling year more than 9 years, higher than the level of the whole national of 8.99 years. Table 4-2 Education composition of employment by region (% year) Illiterate Primary Junior Senior College Universit Graduate Schooling y Year Beijing 0.5 4.8 34.2 21.5 14.7 19.2 5.08 12.04 Shanghai 1.0 9.0 40.2 21.5 12.6 13.1 2.55 11.09

Tianjin 0.8 12.2 44.9 20.7 10.3 10.2 1.06 10.52

Guangdong 0.9 15.7 53.1 19.6 6.5 3.9 0.41 9.67 Liaoning 0.7 17.5 53.9 14.3 7.6 5.5 0.47 9.65 Shanxi 1.2 16.2 56.6 15.2 7.0 3.5 0.21 9.49 Jiangsu 2.4 20.2 48.8 16.7 7.1 4.4 0.46 9.39

Jilin 0.9 22.6 50.4 15.5 6.0 4.3 0.34 9.34

Heilongjiang 0.9 20.7 53.4 14.8 6.3 3.6 0.27 9.34 Hainan 3.2 17.6 54.5 15.7 5.7 3.2 0.23 9.18 Xinjiang 2.0 26.5 46.1 11.6 9.2 4.4 0.26 9.17 Inner ongolia 3.5 22.9 46.6 14.6 7.9 4.3 0.24 9.16 Hunan 1.7 22.7 51.3 16.3 5.2 2.5 0.20 9.10 Shaanxi 3.3 21.5 50.3 14.4 6.6 3.5 0.38 9.10 Hebei 1.6 19.5 58.7 12.5 4.9 2.6 0.17 9.09 Fujian 1.6 27.0 47.1 14.3 5.7 4.0 0.28 9.07 Zhejiang 3.5 25.3 44.7 14.9 6.5 4.6 0.39 9.06 Shandong 3.6 21.2 52.3 14.1 5.4 3.2 0.26 8.99 Hubei 3.9 22.5 49.3 15.1 5.6 3.2 0.36 8.97

Henan 3.8 19.1 57.3 13.0 4.7 2.0 0.16 8.87 Jiangxi 2.1 26.6 51.4 12.8 4.7 2.3 0.17 8.81 Guangxi 2.1 28.6 50.6 11.4 4.7 2.5 0.18 8.72 Ningxia 6.8 26.5 41.6 12.4 7.9 4.6 0.23 8.70 Chongqing 4.0 34.6 38.7 12.3 6.1 3.9 0.34 8.59 Anhui 8.2 26.7 48.1 9.6 4.7 2.6 0.22 8.19 Sichuan 5.4 35.2 42.7 9.7 4.4 2.3 0.21 8.16 Gansu 10.0 33.8 37.1 10.9 5.2 2.8 0.20 7.88 Qinghai 13.7 34.4 30.6 9.8 6.9 4.4 0.22 7.71 Yunnan 6.9 46.5 32.9 7.2 3.9 2.5 0.16 7.58 Guizhou 11.0 39.6 35.8 6.5 4.5 2.5 0.1 7.43 Tibet 36.6 38.6 13.6 4.1 4.0 2.9 0.2 5.09 National 3.4 23.9 48.8 13.9 6.0 3.7 0.39 8.99 Source: China Statistic Year Book, NBS. Changes of workforce supply and associated costs may entail prolonged and profound implications for the economy. First, changes of workforce supply may force a region or a country to transform its labor intensive industries to become more capital or technology intensive. Second, upsurges in wages may change relative prices of capital and labor, pushing enterprises to use more capital to replace labor and minimize total cost. Such adjustments can spur the upgrading of traditional industries to green industries and also require corresponding improvement in human capital as represented by workforce knowledge and skills.

4.2 ①he Labour market demand analysis

4.2.1 The overall analysis of labor demand

We can do roughly prediction of on labor demand in future through calculating the employment elasticity with its meaning of how much of the employment growth will be driven by per unit of output growth (growth rate of employment/growth rate of GDP) based on the data of China Statistical Yearbook. We found that from 2005-2010 (the 11th five years period), the employment elasticity of secondary industry and of tertiary industry is 0.20 and 0.12 respectively. That is to say, roughly speaking, an average of one percentage point of GDP rising in secondary industry will bring 0.2 percentage points of the increase in employment, and the level is 0.12 for tertiary industry.

4.2.1.1 Employment Elasticity

According to the employment elasticity we calculated, and taking the economic growth rate of 10%, there would arise 2% more labor demand (10%*0.2) for secondary industries. We also calculate the employment elasticity for each 30 manufacturing industries, which are listed in table 4-3 based on the 1st economic census survey in 2004 and the 2nd economic census survey in 2008. Most of the industries have employment elasticities between 0.1-0.25, but still some industries have great ability of absorbing employment, such as Manufacture of Communication Equipment, and some of them also have lower employment elasticity of less than 0.1, such as Manufacture of Textile. But we notice that, the pillar industry of Hunan almost have the average employment elasticity level of about 0.2. Table 4-3 Employment Elasticity of Manufacturing Industries Growth Rate Growth Employment of Rate of Elasticity Employment Output Processing of Food from Agricultural Products 0.453 1.725 0.262 Manufacture of Foods 0.287 1.575 0.182 Manufacture of Beverage 0.301 1.493 0.202 Manufacture of Tobacco 0.041 0.73 0.056 Manufacture of Textile 0.029 1.009 0.029 Manufacture of Textile Wearing Apparel 0.279 1.325 0.211 Manufacture of Leather,Fur,Feather and Its Products 0.175 1.067 0.164

Processing of Timbers,Manufacture of Wood, 0.418 2.024 0.207 Manufacture of Furniture 0.375 1.491 0.251 Manufacture of Paper and Paper Products 0.043 1.202 0.036 Printing,Reproduction of Recording Media 0.172 1.059 0.162 Manufacture of Articles for Culture,Education 0.092 0.996 0.093 Processing of Petroleum,Coking 0.14 1.507 0.093 Manufacture of Chemical Raw Material 0.228 1.535 0.148 Manufacture of Medicines 0.23 1.399 0.164 Manufacture of Chemical Fiber 0.079 1.028 0.077 Manufacture of Rubber 0.126 1.246 0.101 Manufacture of Plastic 0.29 1.229 0.236 Manufacture of Non-metallic Mineral Products 0.076 1.542 0.049 Manufacture and Processing of Ferrous Metals 0.079 1.608 0.049 Manufacture and Processing of Non-ferrous Metals 0.343 2.422 0.141 Manufacture of Metal Products 0.382 1.742 0.219 Manufacture of General Purpose Machinery 0.332 1.723 0.193 Manufacture of Special Purpose Machinery 0.354 1.765 0.2 Manufacture of Transport Equipment 0.31 1.391 0.223 Manufacture of Electrical Machinery and Equipment 0.37 1.655 0.224 Manufacture of Communication Equipment, 0.53 0.975 0.544 Manufacture of Measuring Instrument 0.257 1.221 0.211 Manufacture of Artwork, Other Manufacture N.E.C 0.087 1.337 0.065 Recycling and Disposal of Waste 1.305 4.041 0.323 Source: 1st economic census data, 2004; 2nd economic census data, 2008; National Statistic Bureau.

4.2.1.2 Labor Demand Analysis based on Production Function

Using the economic census data, we estimate the production function for each industry. The coefficient of Ln(l), that’s the log value of amount of labor means how much output will be produced with one more percent of labor input. So the larger coefficient the Ln l, the lower employment elasticity it is in that industry. The results in Table 4-4 indicate this, manifest that except for the mining industry and Manufacturing industry. Pure green jobs have similar labor demand elasticities with processing green jobs and end pipe green jobs. In other words, transforming industrial structure from traditional industry to green industry will significantly increase labor demand. Table 4-4 Production Function by Industry lnk lnl r2_a N

Purely green job Information Transfer, Computer Services and 0.6151 0.6154 0.5446 1329243 Software Finance 0.3099** 0.7314** 0.7321 149261 Tenancy and Business Services 0.5198** 0.6244** 0.5836 165566

Scientific Research, Technical Service and 0.3388 0.83 0.5083 349073 Geologic Perambulation Resident Services and Other Services 0.3575** 0.6402** 0.5355 21506 Education 0.4022** 0.7145** 0.6644 51501 Culture, Sports and Entertainment 0.4408** 0.6198** 0.7284 37784 Processing green job Mining 0.5373** 0.4504** 0.666 85731 Manufacturing 0.5072** 0.5778** 0.7041 1703938 Production and Distribution of Electricity, 0.4565** 0.6673** 0.7697 53879 Gas and Water Construction 0.4345** 0.6836** 0.7225 202190 Wholesale and Retail Trade 0.4538** 0.6386** 0.6395 64448 Traffic, Transport, Storage and Post 0.4698** 0.6698** 0.6553 96187 Accommodation and Restaurants 0.4652** 0.7637** 0.554 123071 Real Estate Trade 0.4364** 0.7738** 0.6602 8580 Public Management and Social Organization 0.3773** 0.7016** 0.6157 32428 End of pipe green job Management of Water Conservancy, 0.4174** 0.8100** 0.5717 105228 Environment and Public Establishment Sanitation, Social Security and Social Welfare 0.4294** 0.6192** 0.5772 93755 Source: Calculated by author using economic census data in 2008.

4.2.1.3 Education Feature of Employee in Secondary industry

Next, we pay some attention on the specific industry of secondary industry to see the education composition of the employee, especially the proportion of the college student and senior high school. It shows that the employee in some of the industries are mainly composed of the college and senior high school student, the proportion of those two kinds of employees are nearly 58%. About half of the secondary industries are composed of the employees with average schooling year above 10 years.

70 14 College(%) Senior High School(%) Average Schooling Year (year) 60 12

50 10

40 8 % year 30 6

20 4

10 2

0 0 Manufacture of Foods of Manufacture Manufacture of Plastic of Manufacture Manufacture of Textile of Manufacture Manufacture of Rubber of Manufacture Manufacture of Tobacco of Manufacture Manufacture of Furniture of Manufacture Manufacture of Beverage of Manufacture Mining of Nonmetal Ores Nonmetal of Mining Manufacture of Medicines of Manufacture Manufacture of Articles for… Articles of Manufacture Mining of Other Ores N.E.C Ores Other of Mining Mining and Washing of Coal of Washing and Mining Mining of Ferrous Metal Ores Metal Ferrous of Mining Manufacture of Artwork,Other… of Manufacture Manufacture of Chemical Fiber Chemical of Manufacture Manufacture of Metal Products Metal of Manufacture Processing of Petroleum,Coking of Processing Recycling and Disposal of Waste of Disposal and Recycling Manufacture of Textile Wearing Textile of Manufacture Manufacture of General Purpose… General of Manufacture Mining of Non-ferrous Metal Ores Metal Non-ferrous of Mining Production and Distribution of Gas of Distribution and Production Manufactureof Non-ferrous Metals Non-ferrous Manufactureof Manufacture of Leather,Fur,Feather of Manufacture Processing of Food from Agricultural… from Food of Processing Manufacture of Electrical Machinery Electrical of Manufacture Production and Distribution of Water of Distribution and Production Manufacture of Non-metallic Mineral… Non-metallic of Manufacture Manufacture of Transport Equipment Transport of Manufacture Processing of Timbers,Manufacture of… Timbers,Manufacture of Processing Manufacture of Measuring Instrument Measuring of Manufacture Manufacture of Chemical Raw Material Raw Chemical of Manufacture Manufacture and Processing of Ferrous… of Processing and Manufacture Production and Supply of Electric Power… Electric of Supply and Production Manufacture of Paper and Paper Products Paper and Paper of Manufacture Printing,Reproduction of Recording Media Recording of Printing,Reproduction Manufacture of Special Purpose Machinery Purpose Special of Manufacture Manufacture of Communication Equipment Communication of Manufacture Figure 4-3 Education Composition of Employee in Secondary Industries (%, year) Source: Author’s calculation based on 1% population sample survey in 2005. Note: Sorted by average schooling year.

4.2.2 Labor Demands Analysis for Green Job Industries

4.2.2.1 Labor Demand Analysis based on Labor Demands Function

The labor demand function can be estimated directly. In table 4-5, we estimate the labor demand function for the whole nation, and Hunan and Fujian separately. The coefficient of the log value of output (lny in the equation) delegates the employment elasticity, that is, how much percent of employment would be raised by 1 percent of growth in output. It can be shown that the employment elasticity for Hunan (0.3615) and for Fujian (0.3119) is larger than that of whole nation (0.2851), which means that in Hunan and Fujian, the same economic growth rate can stimulate more demand for workforce than the national average level. Table 4-5 Labor Demands Function for China, Hunan and Fujian

Nation Hunan Fujian b/se b/se b/se

lny 0.2851** 0.3615** 0.3119** (0.00) (0.00) (0.00) lnk 0.1820** 0.1919** 0.1698** (0.00) (0.00) (0.00) hy YES YES YES dq YES YES YES

r2_a 0.6041 0.6192 0.6446 aic 11877424 319004 369633 N 4882658 144965 153485 Source: Calculated by author using economic census data in 2008. Notes: lnk, lnl is the log value of the amount of capital and employment respectively, r2_a is the adjusted R square, N is the amount of the observation. This model controls the effect of industry (hy) and province (dq).

It is important to examine the level of employment elasticity between different types of industries. According to the former classification of purely green job, process green job and end of pipe green job, Table 4-6 show the estimating results for whole nation. We notice that the process green job has the highest employment elasticity, then is the end of pipe green job, and the pure green job has the lowest employment elasticity. Further, the pure green jobs has the highest educational level among three kind of industries (see details in table 4-6). For the pure green job’s expansion, it requires a workforce of higher quality but not very much quantity. That kind of demand would match the situation of the decreasing working age population in future, but needs the corresponding education improvement on them. Table 4-6 Labor Demands Function for 3 Kinds of Green Job Industries (National) End of pipe green Purely green job Processing green job job b/se b/se b/se

lny 0.2236** 0.3576** 0.3067** (0.00) (0.00) (0.00) lnk 0.1427** 0.2186** 0.1468** (0.00) (0.00) (0.00) hy YES YES YES dq YES YES YES

r2_a 0.4714 0.6424 0.4791 aic 5287469 5595446 707899

N 2213662 2370452 292738 Source: Calculated by author using economic census data in 2008. Notes: lnk, lnl is the log value of the amount of capital and employment respectively, r2_a is the adjusted R square, N is the amount of the observation. This model controls the effect of industry (hy) and province (dq).

We also estimate the labor demand function for three kinds of green job for Hunan and Fujian especially. Table 4-7 shows that for Hunan and Fujian province, it’s also the fact that the pure green job has the lowest employment elasticity and the process green job has the highest. However, for each kind of industry, both Hunan and Fujian have higher employment elasticity than that for China as a whole. This means that the economic development and the green industries expansion would generate more labor demand than on average for whole country. Table 4-7 Labor Demands Function for Green Job Industries in Hunan and Fujian Hunan Hunan Hunan Purely green job Processing green job End of pipe green job b/se b/se b/se

lny 0.2908** 0.4191** 0.3101** (0.00) (0.00) (0.01) lnk 0.1708** 0.2042** 0.1767** (0.00) (0.00) (0.01) hy YES YES YES

r2_a 0.4955 0.6592 0.5094 aic 117333 182130 16196 N 53446 83789 7714 Fujian Fujian Fujian Purely green job Processing green job End of pipe green job b/se b/se b/se

lny 0.2265** 0.4375** 0.3350** (0.00) (0.00) (0.01) lnk 0.1379** 0.1673** 0.1479** (0.00) (0.00) (0.01) hy YES YES YES r2_a 0.4748 0.6895 0.4954

aic 153469 181318 21739 N 64732 78934 9369 Source: Calculated by author using economic census data in 2008. Notes: lnk, lnl is the log value of the amount of capital and employment respectively, r2_a is the adjusted R square, N is the amount of the observation. This model controls the effect of industry (hy).

4.2.2.2 Workforce Quality for Green Job Industries

Table 4-8 provides the education structure of the labor force in each industry of rough category, lists the proportion of each kind of employee with different education level, and the last column also provides the average schooling year of the employee in each industry. We can see that, among all the industries, the education level of manufacturing is lowest, with the average schooling less than 10 years (9.7). Some of the high-level tertiary industries have their employees with higher education level such as banking. But most of the service industries have their employee with the average schooling year of around 10-11 years. We also notice that the most of the pure green industries ask for workforce higher educational level, the average educational year is higher than that of process industry. So the transforming to a green industrial structure put forwards the challenge for improvement of quality of the labor force.

Table 4-8 The Composition of Education of Employee by Industry (%, year) Average Primary Junior Senior University and Illiterate College Schooling School School School Above Year Total 3.4 23.9 48.8 13.9 6.0 4.1 9.0 Purely green job Farming, Forestry, Animal Husbandry and Fishery 6.3 37.2 50.1 5.8 0.5 0.1 7.5 Data Transmission Computer Service & Software 0.1 2.2 18.2 24.3 27.0 28.1 13.0 Banking 0.1 1.2 12.0 24.2 32.6 30.0 13.4 Leasing and Business Service 0.4 5.7 29.5 24.3 20.7 19.4 11.9 Scientific Research, Technical Service & Geological 0.1 2.2 13.6 18.7 23.9 41.4 13.6 Education 0.1 1.7 9.0 18.0 33.3 37.9 13.8 Sports and Entertainment 0.3 5.2 31.5 25.2 18.6 19.2 11.8 Public and other Services 1.6 15.2 57.0 20.4 4.4 1.3 9.3 Processing green job Mining and Quarrying 0.7 13.1 50.1 23.0 8.7 4.4 10.0 Manufacturing 0.7 13.1 56.3 20.1 6.4 3.4 9.7 Production and supply of Electricity Gas and Water 0.2 4.2 28.3 33.1 22.0 12.2 11.8 Construction 1.1 19.9 60.5 12.5 3.9 2.1 9.0 Transport, Storage, Post & Telecommunications 0.5 10.0 54.5 24.1 7.4 3.4 10.0 Wholesale and Retail Trade 0.8 11.0 50.0 25.8 8.7 3.7 10.1 Hotel and Catering Services 1.0 13.0 58.4 21.3 4.8 1.5 9.5 Real Estate 0.7 8.5 33.7 27.4 18.3 11.4 11.2 Public Administrative and Social Organizations 0.5 3.4 14.7 23.0 31.6 26.8 13.0 International Organization 0.2 1.2 12.8 15.3 15.0 55.5 14.0 End of pipe green job Water Conservancy Environment & Public Utility 2.3 16.8 35.7 22.2 13.9 9.1 10.3 Public Health Social Securities & Social 0.2 2.5 14.3 27.5 33.9 21.6 12.9 Source: China Labor Statistical Year Book, National Bureau of Statistics, all year; Hunan Statistical Year Book, National Bureau of Statistics, all year.

5.5.5. Forecast analysis of Green Jobs

5.1 Forecast analysis method

The approach to employment forecasting is as follows: firstly, investigate the overall change rate of employment based on the existing national data and calculate corresponding values at the national level by taking the maximum value as the optimistic parameter for future forecast and the minimum value as the conservative parameter; secondly, based on the existing provincial data, the section calculates the proportion of various industries of the two provinces in China, assuming the proportions to be stable in the forecast period, and multiplies the proportions with corresponding values at the national level to obtain respective forecast values of various industries in the two provinces.

5.2 OOOverallOverall aaanalysisanalysis and prediction of green jobs demandemandddd

Using our definition of three types of green jobs - purely green job, process green job and end of pipe green job -this section classifies the 19 industries of the national economy classification standard GB/T 4754-2002, and distributes them into the above three types. We put the Chinese government target proportion of non-fossil fuel in primary fuel as a goal, with the index rising from 8.3% in 2010 to 11.4% in2015, and 15% in 2020, to estimate the demand for national green jobs, and also to forecast the demand for green jobs in Hunan and Fujian.13 Table 5-1 The classification of 19 sectors and their social, environmental and economic impact Social Environmental Economic

impact impact impact Purely green job

Agriculture, Forestry, Farming of Animals and + + + Fishing Information Transfer, Computer Services and + + + Software Finance + + +

13 http://guangfu.bjx.com.cn/news/20120614/366489.shtml 54

Tenancy and Business Services + + + Scientific Research, Technical Service and + + + Geologic Perambulation Resident Services and Other Services + + uncertain Education + + + Culture, Sports and Entertainment + + + Processing green job

Mining + - + Manufacturing + - + Production and Distribution of Electricity, Gas and + - + Water Construction + - + Traffic, Transport, Storage and Post + uncertain + Wholesale and Retail Trade + uncertain + Accommodation and Restaurants + - + Real Estate Trade + - + Public Management and Social Organization + + uncertain End of pipe green job

Management of Water Conservancy, Environment + + + and Public Establishment Sanitation, Social Security and Social Welfare + + + Note: “+” in table shows positive impact, “-” shows negative impact. This table does not compare the extent. According to the national urban labor distribution by sector, and combining the proportion of non-fossil fuel of primary energy in 2010 and 2011, this sectionestimates the national demand for green work positions. The basic idea is that we need to use both the labor force change information every year, but also use the information of proportion of non-fossil fuel of primary energy. The specific method is to estimate the basic labor forces of 2015 and 2020 according to the data of 2003-2011, and then make clear the proportion of every sector’s workers. At the same time, according to the relationship between total labor forces and proportion of non-fossil fuel in primary energy, we calculate the total labor forces of 2015 and 2020. Finally we multiply the two results and get the green work position demand of every sector. Although the estimation method is not complex, but fully use the limited information, get the basic demand of green job. Meanwhile, in order to make the results more reasonable, our forecast take two strategies of conservative and positive attitude, showing as table 5-2and table 5-3. Table 5-2 the conservative forecast of national green jobs and green industries demand (unit: ten thousand)

current labor future demand added employment force Year 2011 2015 2020 2015 2020 total 14413.4 17301 22764 2887.4 8350.9 Purely green job 3475.4 3930.02 4793.09 454.625 1317.69 Agriculture, Forestry, Farming of 359.5 318.52 281.67 -40.98 -77.83 Animals and Fishing Information Transfer, Computer 212.8 295.32 457.76 82.52 244.96 Services and Software Finance 505.3 621.55 828.35 116.25 323.05 Tenancy and Business Services 286.6 368.37 518.72 81.77 232.12 Scientific Research, Technical Service and Geologic 298.5 356.05 456.7 57.55 158.2 Perambulation Resident Services and Other 59.9 65.55 75.56 5.65 15.66 Services Education 1617.8 1761.95 2016.91 144.15 399.11 Culture, Sports and 135 142.71 157.41 7.71 22.41 Entertainment processing green job 10028.6 12271.3 16536.8 2242.71 6508.2 Mining 611.6 704.03 863.66 92.43 252.06 Manufacturing 4088.3 4924.81 6394.33 836.51 2306.03 Production and Distribution of 334.7 365.08 418.72 30.38 84.02 Electricity,Gas and Water Construction 1724.8 2551.57 4283.02 826.77 2558.22 Traffic,Transport, Storage and 662.8 695.62 760.28 32.82 97.48 Post Wholesale and Retail Trade 647.5 676.13 734.32 28.63 86.82 Accommodation and Restaurants 242.7 296.49 391.7 53.79 149 Real Estate Trade 248.6 367.64 616.88 119.04 368.28 Public Management and Social 1467.6 1689.94 2073.9 222.34 606.3 Organization end of pipe green job 909.4 1099.5 1434.34 190.1 524.94 Management of Water Conservancy, Environment and 230.3 273.75 349.47 43.45 119.17 Public Establishment Sanitation, Social Security and 679.1 825.75 1084.87 146.65 405.77 Social Welfare

Table 5-3 the positive forecast of national green jobs and green industries demand (unit: ten thousand)

current future demand added employment labor force Year 2011 2015 2020 2015 2020 total 14413.4 20539 27025 6125.6 12612 Purely green job 3475.4 4665.59 5690.2 1190.19 2214.8

Agriculture, Forestry, Farming of 359.5 378.13 334.39 18.63 -25.11 Animals and Fishing Information Transfer, Computer 212.8 350.59 543.44 137.79 330.64 Services and Software Finance 505.3 737.88 983.38 232.58 478.08 Tenancy and Business Services 286.6 437.32 615.81 150.72 329.21 Scientific Research, Technical Service 298.5 422.7 542.18 124.2 243.68 and Geologic Perambulation Resident Services and Other Services 59.9 77.82 89.7 17.92 29.8 Education 1617.8 2091.72 2394.41 473.92 776.61 Culture, Sports and Entertainment 135 169.42 186.87 34.42 51.87 processing green job 10028.6 14568.1 19631.9 4539.48 9603.34 Mining 611.6 835.8 1025.31 224.2 413.71 Manufacturing 4088.3 5846.57 7591.14 1758.27 3502.84 Production and Distribution of 334.7 433.41 497.09 98.71 162.39 Electricity, Gas and Water Construction 1724.8 3029.14 5084.66 1304.34 3359.86 Traffic, Transport, Storage and Post 662.8 825.82 902.57 163.02 239.77 Wholesale and Retail Trade 647.5 802.68 871.76 155.18 224.26 Accommodation and Restaurants 242.7 351.98 465.02 109.28 222.32 Real Estate Trade 248.6 436.44 732.34 187.84 483.74 Public Management and Social 1467.6 2006.23 2462.06 538.63 994.46 Organization end of pipe green job 909.4 1305.29 1702.8 395.888 793.402 Management of Water Conservancy, 230.3 324.99 414.88 94.69 184.58 Environment and Public Establishment Sanitation, Social Security and Social 679.1 980.3 1287.92 301.2 608.82 Welfare

5.3 AAAnalysis Analysis and prediction of green jobs demand in different provinces

5.3.1 Estimation of Hunan demand of green jobs and green work positions

In order to keep the consistency of the provincial and national forecast, the project according to the national forecast results and the proportion of Hunan labor force in national labor pool to estimate the Hunan demand. The results are shown in table 5-4 and table 5-5. Table 5-4 the conservative forecast of Hunan green jobs and green industries demand (unit: ten thousand)

current labor future demand added employment force Year 2011 2015 2020 2015 2020 total 1408.91 1619.6 2092.2 210.64 683.32 Purely green job 461.2 467.595 585.65 6.39484 124.45 Agriculture, Forestry, Farming 10.42 9.1 8.05 -1.32 -2.37 of Animals and Fishing Information Transfer, Computer Services and 38.71 46.64 72.29 7.93 33.58 Software Finance 26.01 32.79 43.7 6.78 17.69 Tenancy and Business Services 85.68 101.36 142.72 15.68 57.04 Scientific Research, Technical Service and Geologic 15 13.4 17.19 -1.6 2.19 Perambulation Resident Services and Other 155.55 132.56 152.81 -22.99 -2.74 Services Education 84.61 85.76 98.17 1.15 13.56 Culture, Sports and 45.22 45.99 50.73 0.77 5.51 Entertainment processing green job 893.1 1088.66 1423.89 195.563 530.793 Mining 42.67 42.19 51.75 -0.48 9.08 Manufacturing 188.81 220.4 286.16 31.59 97.35 Production and Distribution of 17.8 19.04 21.84 1.24 4.04 Electricity, Gas and Water Construction 123.86 199.65 335.12 75.79 211.26 Traffic, Transport, Storage and 74.68 80.34 87.8 5.66 13.12 Post Wholesale and Retail Trade 228.79 255.35 277.33 26.56 48.54 Accommodation and 110.75 137.25 181.33 26.5 70.58 Restaurants Real Estate Trade 23.74 38.96 65.37 15.22 41.63 Public Management and Social 82 95.49 117.19 13.49 35.19 Organization end of pipe green job 54.61 63.2942 82.6915 8.68424 28.0815 Management of Water Conservancy, Environment and 9.8 12.49 15.94 2.69 6.14 Public Establishment Sanitation, Social Security and 44.81 50.8 66.75 5.99 21.94 Social Welfare

Table 5-5 the positive forecast of Hunan green jobs and green industries demand (unit: ten thousand) current labor future demand added employment force Year 2011 2015 2020 2015 2020 total 1408.91 1922.7 2483.8 513.77 1074.9 Purely green job 461.2 555.113 695.263 93.9126 234.063

Agriculture, Forestry, Farming of Animals and 10.42 10.8 9.55 0.38 -0.87 Fishing Information Transfer, Computer Services and 38.71 55.37 85.82 16.66 47.11 Software Finance 26.01 38.92 51.87 12.91 25.86 Tenancy and Business 85.68 120.33 169.44 34.65 83.76 Services Scientific Research, Technical Service and 15 15.91 20.41 0.91 5.41 Geologic Perambulation Resident Services and 155.55 157.38 181.41 1.83 25.86 Other Services Education 84.61 101.81 116.54 17.2 31.93 Culture, Sports and 45.22 54.6 60.22 9.38 15 Entertainment processing green job 893.1 1292.42 1690.4 399.323 797.297 Mining 42.67 50.08 61.44 7.41 18.77 Manufacturing 188.81 261.65 339.72 72.84 150.91 Production and Distribution of 17.8 22.6 25.93 4.8 8.13 Electricity, Gas and Water Construction 123.86 237.01 397.85 113.15 273.99 Traffic, Transport, 74.68 95.37 104.24 20.69 29.56 Storage and Post Wholesale and Retail 228.79 303.14 329.23 74.35 100.44 Trade Accommodation and 110.75 162.94 215.26 52.19 104.51 Restaurants Real Estate Trade 23.74 46.25 77.61 22.51 53.87 Public Management and 82 113.36 139.12 31.36 57.12 Social Organization end of pipe green job 54.61 75.1408 98.1685 20.5308 43.5585 Management of Water Conservancy, 9.8 14.83 18.93 5.03 9.13 Environment and Public Establishment Sanitation, Social Security and Social 44.81 60.31 79.24 15.5 34.43 Welfare

5.3.2 Estimation of Fujian demand of green jobs and green work positions

Similarly, in order to maintain the national forecast and provincial forecast in consistency, the project according to the national forecast results and the proportion of Fujian labor force in national labor pool to estimate the Fujian demand. The results 59 are shown in table 5-6 and table 5-7. Table 5-6 the conservative forecast of Fujian green jobs and green industries demand (unit: ten thousand) current future demand added employment labor force Year 2011 2015 2020 2015 2020 total 596.34 668.1 895.7 71.757 299.36 Purely green job 88.6 101.226 124.096 12.6265 35.4962 Agriculture, Forestry, Farming 6.1 5.31 4.69 -0.79 -1.41 of Animals and Fishing Information Transfer, Computer Services and 5.43 7.4 11.47 1.97 6.04 Software Finance 13.6 15.89 21.17 2.29 7.57 Tenancy and Business Services 6.6 11.01 15.51 4.41 8.91 Scientific Research, Technical Service and Geologic 5.71 6.28 8.06 0.57 2.35 Perambulation Resident Services and Other 1.31 1.53 1.77 0.22 0.46 Services Education 46.05 49.87 57.09 3.82 11.04 Culture, Sports and 3.8 3.93 4.33 0.13 0.53 Entertainment processing green job 485.87 541.03 737.868 55.1605 251.998 Mining 6.91 6.32 7.76 -0.59 0.85 Manufacturing 282.98 321.53 417.47 38.55 134.49 Production and Distribution of 9.53 10.38 11.91 0.85 2.38 Electricity, Gas and Water Construction 99.95 108.71 182.48 8.76 82.53 Traffic, Transport, Storage and 17.87 17.21 18.81 -0.66 0.94 Post Wholesale and Retail Trade 20.13 16.45 17.86 -3.68 -2.27 Accommodation and 8.74 9.03 11.93 0.29 3.19 Restaurants Real Estate Trade 9.11 14.59 24.47 5.48 15.36 Public Management and Social 30.65 36.82 45.18 6.17 14.53 Organization end of pipe green job 21.87 25.8405 33.7398 3.97045 11.8698 Management of Water Conservancy, Environment 4.73 5.63 7.19 0.9 2.46 and Public Establishment Sanitation, Social Security and 17.14 20.21 26.55 3.07 9.41 Social Welfare

Table 5-7 the positive forecast of Fujian green jobs and green industries demand (unit: ten thousand)

current labor future demand added employment force Year 2011 2015 2020 2015 2020 total 596.34 793.14 1063.3 196.8 467.01 Purely green job 88.6 120.173 147.323 31.5726 58.7228 Agriculture, Forestry, Farming of Animals and 6.1 6.3 5.57 0.2 -0.53 Fishing Information Transfer, Computer Services and 5.43 8.79 13.62 3.36 8.19 Software Finance 13.6 18.86 25.13 5.26 11.53 Tenancy and Business 6.6 13.07 18.41 6.47 11.81 Services Scientific Research, Technical Service and 5.71 7.46 9.56 1.75 3.85 Geologic Perambulation Resident Services and 1.31 1.82 2.1 0.51 0.79 Other Services Education 46.05 59.21 67.78 13.16 21.73 Culture, Sports and 3.8 4.67 5.15 0.87 1.35 Entertainment processing green job 485.87 642.293 875.972 156.423 390.102 Mining 6.91 7.51 9.21 0.6 2.3 Manufacturing 282.98 381.71 495.61 98.73 212.63 Production and Distribution of Electricity, 9.53 12.32 14.14 2.79 4.61 Gas and Water Construction 99.95 129.06 216.63 29.11 116.68 Traffic, Transport, 17.87 20.43 22.33 2.56 4.46 Storage and Post Wholesale and Retail 20.13 19.52 21.2 -0.61 1.07 Trade Accommodation and 8.74 10.72 14.16 1.98 5.42 Restaurants Real Estate Trade 9.11 17.32 29.05 8.21 19.94 Public Management and 30.65 43.71 53.64 13.06 22.99 Social Organization end of pipe green job 21.87 30.6769 40.0548 8.8069 18.1848 Management of Water Conservancy, 4.73 6.68 8.53 1.95 3.8 Environment and Public Establishment Sanitation, Social Security 17.14 23.99 31.52 6.85 14.38 and Social Welfare

5.3.3 Analysis and prediction of key industries of green jobs

Green jobs can create a lot of indirect employment opportunities, prompting an

61 increase in total employment. However, the official statistics gives an unbelievably low share of indirect green employment over total employment as a result of lack of clear definition and systematic statistics. According to official statistics, by the end of 2007, the total employment in China's new energy industry was around 1.1 million people, mainly spread in solar, wind and biomass energy industries. This accounts for only 0.24% of non-agricultural employment. According to China’s Environmental Protection Industry Association, in 2008 China's environmental protection industry has recorded 35 thousand companies, employing over 3 million people, only 0.66% of non-agricultural employment. The amount of employment created by forestry is much larger, around.. jobs, about 9.5% of agriculture employment. Therefore, keeping low- carbon and green economy development in mind, China will have substantial scope for increasing green jobs. Along the job spectrum from high-end research and innovation to the low-end manufacturing, processing and services, the growth of green industries will generate green jobs at various levels of skills and along the value chains connected to green production and consumption. Environmental protection industry: China has put the ecological and environmental improvement as one of priorities "expanding domestic demand, keeping growth, adjusting structure and promoting development." As a sunrise industry, environmental protection and related industries will be key sectors creating jobs. Actions on energy conservation and restrictions on "two high (high energy consumption, high pollution) and one capital (capital intensive)" industries are likely to have negative impacts on employment, but investment in environmental infrastructure and energy green industries can create more green jobs, absorbing the labor force from the affected sectors. In China’s 12th five year plan, key energy and pollution control targets are set as mandatory, including energy efficiency, non-fossil fuel development, CO2 emission reductions, SO2 and NOx reduction. These targets have been further disaggregated into provincial level figures for implementation, monitoring and assessments. If we look at the rate of change during 12th five year plan, all the targets are highly ambitious. If the rate of change of the figures is somewhat indicative of increases in employment, it is highly likely that these compulsory targets 62 will lead to more than doubling the amount of green jobs (table 1). The rate of growth can be demonstrated by global case studies. According to UNEP's statistics during recent 10 years, the employees directly engaged in environmental protection surged from 4.6 million to 18 million, while indirect employment created by environmental protection surged from 10 million to 55 million. During the same period, the employment growth in garbage collection, handling, processing and marketing departments was the fastest, with an average annual growth of 25% -30%. The South Korean government realized that the development of new energy industries will create jobs 2-3 times of that in the manufacturing sector, particularly solar and wind power sectors will create 8 times employment opportunities than traditional industries. UN studies have shown that investment in the field of nature conservation or ecological infrastructure will create much larger economic returns and employment benefits than the traditional automobile manufacturing, steel, information and other departments. At present, China's environmental protection industry employs more than 4 million people. With the introduction and implementation of national "Energy-saving and Environmental Protection Industry Development Plan", there will be greater increase in employment in environmental protection industry. Table 5-8 Rate of change of the energy and environmental targets set in the 12th five year plan Rate of Unit 2010 2015 change Note Total primary energy Billion tce 3.25 4 4.3%/a A Non-fossil fuel share % 8.6 11.4 2.8 % points M Energy intensity Tce/10,000rmb 0.81 0.68 16% M Grams coal Thermal power efficiency /kW 333 323 -0.6%/a A Electricity installed capacity GW 970 1,490 9.0%/a A thermal GW 660 960 7.8%/a A hydro GW 220 290 5.7%/a A nuclear GW 10.8 40 29.9%/a A Natural gas GW 26.4 56 16.20% A wind GW 31 1,000 26.4%/a A Solar PV GW 0.9 21 89.5%/a A CO2 reduction 17% M SO2 reduction g/kWh 2.9 1.5 -12.4%/a M NOx g/kWh 3.4 1.5 -15.1%/a M Note: A: anticipatory target; M: mandatory target. Source: State Council, Directive 2013(2). January 1, 2013

New energy industry: The same amount of investment in renewable energy and energy efficiency will create 4 times the number of jobs compared to oil and gas, because in the latter case, infrastructure, such as oil and gas wells, refineries and pipelines have been largely completed after years of construction. Investment in equipment for utilising solar, wind and biomass, in fuel cells, new lighting microchips, "smart" power grids and other new energy sources will create new green jobs. These will be mainly Process Green Jobs, such as insulation equipment installers improving the energy efficiency of housing, and wind turbine construction personnel removing coal-fired power plant, as well as the construction jobs for those working on more environmentally friendly buildings and upgrading the power grid. These jobs are process green in a sense that zero emission in the process of their production is not normally the case but the production process can be made greener and the products serve the need in primary green and end of the pipe green jobs. Bio-fuels, wind, solar photovoltaic and fuel cells are fast growing industries. Spending on clean energy technology grows much faster than other traditional venture capital investment industry, such as computers, health care and retail companies. However, in the entire job market they account for a small share, around 3.7% of the total. In the short term, investment on improving energy efficiency can bring the greatest return. In the coming decades, innovative improvements in energy conversion efficiency are considered an effective solution to the current multiple crises, especially in response to global warming and concerns about energy security. In the long term, exploring innovative technology is critical to energy storage and biomass conversion. Photovoltaic and solar heat collection, and carbon acquisition and storage, will create a huge green job market. Vigorously developing renewable energy is included as a national basic strategy, and the employment in 2020 will reach 2.2 million people. As a matter of fact, the actual increase in renewable energy development is faster than anticipated (Table 5-9). Many targets set in the 11th five year plan have been substantially higher in the end, such as wind and solar. This would be an indication that green jobs in these areas must be created more than projected. 64

Table 5-9 Renewable Energy Development: 2005 and 2010 actual, and targets for 2015 2010 unit 2005 actual planned 2010 actual 2015 target Hydropower GW 117.39 190 216.06 260 Wind GW 1.26 10 31 100 Solar PV GW 0.07 0.3 0.8 21 Biomass electricity GW 2 5.5 5.5 13 Biogas B m3 8 19 14 22 Household bio-digesters m 18 40 40 50 Solar water heaters M m2 80 150 168 400 Ethanol M tons 1.02 2 1.8 4 Bio-diesel M tons 0.05 0.2 0.5 1 Total output Mtce 166 286 478 Source: State Council, 2013. 12th Five Year Plan for Renewable Energy Development. Beijing. Green buildings industry: According to UNEP’s estimates that if Europe and the United States can meet the 75% reduction of carbon dioxide emissions target in 2030, then the increased jobs in green buildings sector will be at least 2 million. In 2009 Chinese Ministry of Finance issued "Opinions on accelerating the implementation of solar PV buildings applications ", known as the "Solar Roofs Plan", so as to provide lighting in the buildings, road and ground in the residential and public places such as City Square. Through granting funds for building demonstration projects, and encouraging the relevant technological progress and innovation, the aim is to effectively promote capital investment in high-tech and energy-saving, and promote the adjustment and upgrading of building materials, chemical industry, metallurgy, equipment manufacturing and other industrial activities. Modern ecological forestry: among all the green industries, the most direct and most natural should be the forestry sector. Forests are considered to be the largest "carbon sink" and most economic "carbon absorber". Eco-forestry is a typical labor- intensive green industry, with a great employment potential mainly reflected in: job creation by afforestation, reforestation, restoration of degraded ecosystems, the establishment of agroforestry systems, enhancement of sustainable forest management; job creation by timber production and processing, forest chemical industry, manufacturing of forestry machineries, forest tourism, forest food, herbs, flowers and bamboo products. Since 2002, China began to implement six key forestry projects, and established all types of forest parks, creating a total of 30 million jobs in the

65 forestry sector. According to earlier studies, during 2005 to 2020, in the forestry sector, the cumulative direct and indirect creation of green jobs are estimated at more than 40 million, equivalent to about 2.66 million people engaged in related industries every year. Modern Ecological Agriculture: With population increase, due to excessive reclamation, especially when combined with “white pollution (plastic film applied in and then left behind the field)” associated with the application of agro-chemical products such as chemical fertilizers, the color of agriculture itself has also undergone complex changes. Large-scale fossil fuel based cultivation of agriculture is anti-green employment. Vigorously developing modern ecological agriculture and promoting Primarily Green Jobs are projected to be highly promising, considering the need for non-point source pollution control, protection of biodiversity, food safety, and restoration of ecological degraded land. It is possible to achieve high-yield, high- quality, non-polluting agriculture through the promotion of biological, physical pest control techniques, reducing pesticide use, improving fertilizer efficiency and promoting organic vegetable production technology. The promotion of ecological fishery polyculture technology can achieve a reasonable variety for breeding. Further, promoting waste utilization technologies, such as improved utilization of straw, also creates green jobs Modern eco-tourism: Ecotourism is internationally recognized as an emerging growth industry. The State Forestry Administration statistics show that in nearly 10 years, the forest tourism industry maintained a high growth rate of more than 30% every year, and jobs created directly or indirectly by forest tourism are more than 3.5 million. Green consumption: We emphasize the initiative to create green jobs, at the same time, we must attach importance to the growth of green consumption This is because all the production and services are demand driven. Therefore, green consumption leads to green products and services, which in turn promoting the development of green industry standards. In a similar manner, green industry standards will push the country's green policies. And ultimately the whole society will 66 create an atmosphere of green production and consumption. Against the background of a booming low-carbon and green economy, there will be new social consumption patterns in the future. For example, after electric vehicles become widespread, the traditional gas stations may be replaced by power sticks. Traditional mass assembly line production may give place to flexible and personalized production, family-style or team unit operating mode will be popular, and people work together through internet to complete the manufacture of a product or jointly provide a service.

5.3.4 Case analysis of various industries

To make detailed analysis of the challenges to and experience of green employment in key green industries of Hunan and Fujian Provinces, this part will, for each industry, select one representative enterprise for case analysis.

5.3.4.1 Agriculture

The research group researched good measures for expanding green employment in rural areas. For example, some collective economic organizations at village level in Zhuzhou City engage in landscape engineering, in which integration of design, construction, scientific research, production and sale has been integrated in some projects. Training demand continues to grow. For this, Zhuzhou has developed high- quality training projects, including village-level financial management and new energy technology training, etc., which have trained 100,000 rural migrant workers already. Case analysis of representative enterprise: Tangrenshen Group Co., Ltd. Tangrenshen Group Co., Ltd., TRS Group for short, is one of the first key leading enterprises of agricultural industrialization nationwide engaged in integrated operation of five industries including feed production, piglet breeding, healthy reproduction, meat processing and brand monopolization. As Zhuzhou Feed Plant before, the company was restructured into Tangrenshen Group Co., Ltd. in 2000. In 2012, the group had realized sales revenue of 10.6 billion Yuan. Now, the group has over 50 subsidiaries with 4,752 employees nationally. Each year, more than 100

talents will be recruited by the company from various junior colleges and technical secondary schools across the country. For example, in 2012, 3 doctors, 10 masters and over 140 undergraduates were introduced, which provides talents for the company’s continuous development. (See Table 5-10, 5-11 and 5-12 for details of post structure, education structure and age structure of employees in the enterprise) Table 5-10 Post Structure of Employees in TRS Group in 2013

Category Number of employees Proportion of total employees (%)

Technician 312 7%

Production personnel 1,532 32%

Administrative personnel 695 15%

Sales personnel 1,945 41%

Other personnel 268 6%

Total 4,752 100% Data source: Tangrenshen Group Co., Ltd. Table 5-11 Education Structure of Employees in TRS Group in 2013

Category Number of employees Proportion of total employees (%)

Doctor 9 0.19%

Master 64 1%

Undergraduate 965 20%

Junior college graduate 1,796 38%

Graduate from technical 1,918 40% secondary school or below

Total 4,752 100%

Data source: Tangrenshen Group Co., Ltd. Table 5-12 Age Structure of Employees in TRS Group in 2013

Number of Category Proportion of total employees (%) employees

≤ 30 1,573 33% 31-40 1,460 31%

41-50 1,440 30% 51-55 277 6% Total 4,752 100% Data source: Tangrenshen Group Co., Ltd.

The company has constructed Tangrenshen College, which facilitates training of the group to ensure it is standardized, professional, open and of high quality. Apart from organizing a discussion every two months, the middle and top management of the group further conducts closed training for 5 to 7 days in July each year, including training on marketing, professional managers construction, production field management, human resources development, organization communication, key account marketing and good strategic implementation construction. The purpose is to leap-forward enhancement of management levels. The company also provides the production personnel with skill training and appraisal, requiring them to gain certificates when working, and pays them wages as per their skill level, so as to keep enhancing their labor skills and improving their overall quality. In addition, the company keeps improving the employment environment to realize green employment. Supported by three pillar industries of “pig, feed and meat”, oriented by “dedicating to farmers’ becoming rich and manufacturing green food”, and by implementing the strategy of integrated operation of the industry chain combining “breed improvement, safe feed, healthy reproduction, meat processing and brand monopolization”, the company is making efforts to lead farmers to become rich via breeding industry, producing healthy meat and promoting the development of agricultural and animal husbandry processing industries in China, so as to achieve the title of a world-class agricultural and animal husbandry processing enterprise. It mainly includes the following five aspects: First, piglet industry. The company implements the project of integrated industry chain of 10-million pigs by providing breeders with piglets of improved varieties, safe feed and animal healthcare, purchasing pigs and processing meat, and taking the healthy breeding mode of “company + specialized farmer households + modern service system” to provide specialized breeding with integrated services of product, technology, management and purchasing for guaranteeing safe source of meat, so as to help farmers get rich via breeding. Second, feed industry. The group carries out hierarchical operations and is

69 engaged in scale expansion based on specialization by cooperating with multiple colleges and universities, like China Agricultural University, in scientific research and gaining advantages of aspects such as hierarchical research & development, quality control, bulk purchasing, brand guarantee and integrated service. Feed of “Camel” brand belongs to genuine goods at a fair price and actually contributes to poverty alleviation. Of the industry, the group is the first to advocate feed safety, thus ensuring food safety. The feed workshop is provided with ventilation, de-dusting and temperature-regulating equipment for continuous improvement of production environment, so as to achieve the transition to the environment for green employment. Third, meat processing industry. TRS Group has cooperated with institutes, such as China Meat Research Center, in research on meat product processing, and constructed Hunan Research Center for Meat Engineering and Technology, and utilized the pig industry chain to ensure healthy, nutritious and delicious meat in the whole process from source to dining table. Fourth, brand monopolization. The group has initiated the project of healthy meat to vigorously create meat brand monopolization by constructing “TRS Healthy Food Brand Store” in urban communities, “TRS Healthy Food Franchised Store” in agricultural trade markets and “TRS Healthy & Delicious Food Franchised Store” in supermarkets. These stores provide the citizens with healthy, nutritious and delicious food via the whole-process cold chain, timely delivery, perfect quality and enthusiastic service. Fifth, one-day green food eco-tour. Since 2009, the group has launched the characteristic experience marketing activity of “one-day green food eco-tour” to enable consumers to visit the whole process of production and processing of TRS meat products and understand the development and corporate culture of TRS Group. At present, the activity receives over 100 people per day. Visitors from Changsha, Zhuzhou and Xiangtan, etc. and participated in the “one-day green food eco-tour”, which has become a preferred daily activity for many common people. Through the above analysis of the TRS Group, it can be seen that the group’s experience in developing green employment mainly includes the following aspects: First, green integrated industry chain operation. The TRS Group conducts integrated operation of feed production, piglet breeding, healthy reproduction, meat processing and brand monopolization by replacing traditional decentralized and scattered breeding with intensive and scale breeding of the piglet industry to directly 70 reduce environmental pollution and energy consumption of a unit. The company alsoimplements a hierarchical operation in feed industry and focuses on scale expansion based on specialization; and provides the public with a chance of visiting the actual meat product processing and brand monopolization, which forms the whole-process guarantee from source to dining table, exhibiting the idea of green operation throughout. Second, standardization, professionalization and openness from person-post matching in recruitment to group training. In recruitment, the company recruits personnel for different levels based on specific post requirements under the principle of person-post matching and making the best possible use of each employee to arouse enthusiasm of various personnel. After induction, the company provides classified training and cultivation for various talents: for middle and top management, it organizes conferences for collective discussion; for production personnel, it provides skill training and appraisal, and requires them to attain certificates when working, and pays them wages as per their skill level. Third, continuous improvement of employment environment. The company sets up a special strategic development center, including engineering and an environmental protection department, which is responsible for researching, learning and popularizing national environmental protection regulations and standards, formulating corporate environmental protection rules and regulations and an annual environmental protection plan, and designates personnel to implement the rules and regulations of the plan, for the purpose of environmental protection engineering construction. The trade union of the company assists in popularizing environmental protection knowledge. Meanwhile, the company keeps improving labor environment and labor protection and advocates greening of office and office areas with the greening rate to be 50%. Certainly, agriculture is a labor-intensive industry with high investment but low profit, and as a developing agricultural enterprise, while making achievements, it will have to face challenges. For instance, leaders of TRS Group think there are mainly two points challenging the company. The first point is professional shortage, because many young people are not willing to study animal husbandry, veterinary medicine and food science, and the teaching level of agricultural colleges and universities also restrict the development of agricultural talents and enterprises. For this, the company hopes that, the government can issue supporting policies for the development of 71 agriculture and animal husbandry and popularize the development trend of the two industries to lead aspiring young people to study animal husbandry, veterinary medicine and food science; enhance the teaching level of agricultural colleges and universities to train high-standard and high-quality technical and skilled talents. The Department of Labor and Training shall lead land-lost farmers and migrant workers to learn animal husbandry and veterinary medicine knowledge via training to transform them into professionals of agricultural and animal husbandry fields; hold special job fairs for agriculture and animal husbandry. The second point is green employment environment. Traditional agricultural environment is confronted with heavy odor, much dust and noise, along with hard manual labor requiring manual handling, which not only goes against talent introduction, but also restricts green post development of agriculture, a green industry. Therefore, the company hopes that, the government can lead qualified scientific research institutions, colleges and universities, and large equipment manufacturing companies to develop green ecological preparations capable of removing odor, dust and reducing noise, production equipment capable of reliving or replacing hard manual handling, and high-speed sterilizing facilities, so as to improve labor environment and labor efficiency.

5.3.4.2 Intelligent urban management

Involving various activities, industries and technologies, intelligent urban management and planning is an important case capable of laying the foundation of sustainable development and green employment for the government, which includes infrastructure construction and environmental protection. In terms of this, Zhuzhou City has implemented a series of measures, including developing a green transport network by constructing transfer facilities for public transport system; developing green sidewalks and bicycle lanes via environment-friendly lighting and warm asphalt technologies. Moreover, the city has enlarged the public bicycle network by establishing 1,058 public bicycle returning points and installing 26,000 intelligent parking equipment with 20,000 public bicycles in total, creating 20-million rent and 200 green jobs for public bicycle management and maintenance. The measure of encouraging travel by bicycle has created thousands of jobs in bicycle manufacturing. Besides, the city has introduced new electric buses, which saves over 20% of fuel, 20- million funds and reduces 50% of exhaust emissions, and thus promotes employment

72 in electric bus production and maintenance. Case analysis of representative enterprise:

Zhuzhou Jianning Public Bicycle Development Co., Ltd. Founded in September 14, 2011, Zhuzhou Jianning Public Bicycle Development Co., Ltd. (hereinafter referred to as “Jianning Company”), consists of Tianzhou Bicycle Parts Co., Ltd., located in Shunde District, Foshan City, Guangdong Province, and Zhuzhou. The state-owned Assets Investment Holding Group Co., Ltd. Jianning Company specializes in assembly and production of public bicycles, locking posts and public bicycle spot management boxes, as well as operation management of public bicycle service system. The products are mainly exported to various areas, such as America, Australia, France and Italy. In 2012, the company realized a total output value of 31.133 million Yuan, up by 8.21 million Yuan comparing with that in 2011. At present, the company has total assets of 55.04 million Yuan with the annual net assets being up to 19.547 million Yuan. Petroleum and electric power are main energies required by the company. In 2012, the company spent 838,000 Yuan on 87 tons of petroleum and 1.028 million Yuan on 1.25 million watt-hour of electric power. With respect to environmental protection, the company invested 1 million in 100% wastewater treatment, conforming to the national discharge requirements for Class-Ⅱ Water. For the small amount of solid waste, the company has entrusted specialized company to conduct harmless treatment. In terms of personnel composition, the company, at present, includes 223 personnel in total who belong to 7 departments respectively. See the following table for details. Table 5-13 Personnel Composition (Person) Professional Management personnel Common personnel title 32 191 Male Female Gender 160 63 Senior high Junior school/technical Junior high Undergraduate college/higher Educational secondary school or education vocational background school/secondary below school vocational school 24 68 113 18

20 to 30 31 to 40 41 to 50 51 to 60 Age 107 77 30 9

By March 2012, public bicycle system has basically covered the whole city of Zhuzhou; 1000 rental spots can be seen everywhere of the urban area, which is very convenient for the citizens to borrow and return bicycles. Of the public bicycle rental system across the city, 20,000 bicycles have been provided in 1,000 rental spots. By January 2012, over 150,000 citizens had got public bicycle cards and the number is growing at the rate of about 400 per day. More than 90 million people had used public bicycles with over 200,000 riders in a single day at most and over 150,000 riders per day on average; each card had provided access to public bicycles for 12 times per day on average. As the most commonly-used product in China, public bicycle conforms to the objective of “leading international and becoming number one domestically”. Sanitation workers, urban management personnel and the police, etc. choose public bicycle as their vehicle to work. For government travel, policies advocate green and low-carbon travel to reduce government vehicles’ use, and advocate public bicycles for short travel, so as to encourage those working in the public institutions to apply for a public bicycle card. After the construction of the project, the total riding distance will be up to 36 million km, and based on 8-liter oil for 100km, 2.88 million liters of product oil will be saved and carbon emission reduced by approximately 10,000 tons. In Zhuzhou, Jianning Company is responsible for subsequent operation services for the public bicycle system. It is obvious that “Zhuzhou Model” of public bicycle system has already become an object imitated by many other cities. With the joint efforts of government, enterprises and citizens, in 2011, Zhuzhou was entitled the national “Candidate City of Demonstration Project of Urban Pedestrian and Bicycle Transport System” for the second batch; in January 20, 2012, determined as the national pilot city of low-carbon transport system construction for the second batch by the Ministry of Transport, becoming the first low-carbon transport pilot city of Hunan Province; in February 21, 2012, evaluated as the first public bicycle city nationwide. Through the successful case of Jianning Company, it can be summarized that the company’s experience in promoting green employment mainly includes the following aspects: First, advanced idea and management experience. Adhering to the idea of “low 74 carbon, environmental protection and green travel”, the company adopts mature and reliable facilities and management software, and dedicates to technical innovation and commercial operation of public bicycles. In terms of management, the company takes the second urban public bicycle management system which is most advanced internationally, comprising real-time monitoring of public bicycle rental spots, timely transfer from transfer center and intelligent management of background management center. Advanced idea and management mode ensures initial product greening and initial green employment for personnel. Second, technical innovation. Taking humanistic, scientific, comfortable, convenient and safe design conforming to ergonomics, the company manufactures aesthetic bicycles with solid and durable body, no-chain transmission shaft, three- speed gear, and anticorrosion & antirust abilities to provide comfort and safety for the citizens. To promote technical improvement, the company has employed a lot of technical talents and improved the company’s technician composition. Third, combination of social benefit and economic benefit. Public bicycles can be borrowed, used and reused at any time, which effectively alleviates urban traffic congestion, and meanwhile, provides free, convenient and green vehicles for general public and tourists, so as to advocate a healthy life style of energy saving, emission reduction and low carbon. According to calculation, if a person goes to work and back home by driving, 2.73kg carbon will be emitted for every 10km, and based on the situation that 30,000 people choose bicycles, rather than cars, to go out every day, carbon emission will be reduced by 81,900kg per day and 29.89 million kg per year, equivalent to increasing 7 million m2 of green space, while in 2012, newly added green space of Zhuzhou reached only over 300,000m2. At the same time, public bicycle development creates new green jobs, such as administrator, maintainer and public bicycle spot tester, which not only perfects composition of the company’s technicians, but increases green jobs.

5.3.4.3 Recycling industry

Since “Circular Economy” is advocated internationally, many enterprises engaging in recycling and resource reutilization are founded accordingly, which requires supervision and policies for promoting green employment creation. For instance, in 2011, 1.1 million tons of industrial solid waste and 140,000 m3 of waste

75 gas were recycled in 26 projects of Zhuzhou. Also, a factory in Zhuzhou manufactured building materials by utilizing slag, coal gangue, fly ash, chemical and smelting waste, which creates new employment opportunities and improves the company’s internal employment structure. Case analysis of representative enterprise: Zhuzhou Smelter Group Co., Ltd. Zhuzhou Smelter Group Co., Ltd., with total assets of 6.5 billion Yuan, was restructured from Zhuzhou Smelting Factory founded in 1956 and listed in Shanghai Stock Exchange in 2004. By mainly producing lead, zinc and Pb-Zn alloy products, in combination with comprehensive recycling of sulfuric acid and various precious metals such as copper, gold, silver, cadmium, indium and germanium, the company has an annual production capacity of up to 600,000 tons, including 100,000 tons of lead and 500,000 tons of zinc, and leads the industry in the number of valuable metals comprehensively recycled. The company is titled “National High-Tech Enterprise”, “First National Pilot Enterprise of Circular Economy” and “Pilot Enterprise for Two- Oriented Construction”. In 2012, the company completed a total output of lead and zinc of 562,700 tons, achieving sales revenue of 12.2 billion Yuan. By the end of 2012, the company totally has 5179 employees, including 661 electromechanical operators and 3100 smelters; 3884 men and 1295 women; in terms of age group, those of no more than 29 years old take up 7% and of 30 to 39 years old 25%, of 40 to 49 years old 55%, of 50 to 54 years old 7% and of at least 55 years old 5%; in terms of educational background, those receiving education of technical secondary school or below occupy most, which is 50.3%, and junior college graduates 24.6%, undergraduates 18.7%, those graduated from technical secondary school 5.5% and postgraduates 0.9%. The main growth points of the company’s sustainable development and transition to greening, low carbon, circulation and ecology include: first, as the first national pilot city of circular economy, the company makes efforts to establish the green smelting mode of lead and zinc smelting complex and realize the reduction of pollutant discharge; second, the company tries to ensure that Pb-Zn alloys take up over 70% of the total output of lead and zinc, strengthen technical services before, in and after sales, further enhance market share and proportion of low-carbon products, strengthen cooperation with colleges, universities and scientific research institutions, develop new alloy products, like hot-dipped alloy with thin coating and high 76 corrosion, environment-friendly lead-rare earth alloy and alloy for wind/photovoltaic energy-stored battery, thus keeping leading the industry domestically in Pb-Zn alloy output, market share and variety (namely new product) development, besides, the company can further grasp a chance to construct alloy production lines in East China and North China where consumption is concentrated; Third, in combination with its own advantages, the company seeks for opportunities of new product development and product structure adjustment in new material and new energy field, specifically, application of alloys for lead-acid battery and a series of high-purity metals with good R&D and production basis directly influences partial industries of new energy field, exhibiting great potential of new energy industry, for which the company can try for development opportunities. To cooperate in the corporate transformation and upgrading, the enterprise has launched, in succession, big circular economy projects like direct extraction and direct lead smelting. At the beginning of each year, the company prepares annual environmental protection plan. Actually, the company has established Environmental Protection Committee, which is responsible for significant decisions on environmental protection work of the company; set up Safety and Environmental Protection Department, a specialized organization, which takes the responsibility for formulating and organizing the implementation of the company’s environmental protection planning and plans, supervising and managing the specific implementation; allocated designated personnel to various third-level units for environmental protection management. Meanwhile, various business management departments undertake relevant environmental protection management work, so as to ensure implementation of environmental protection plans. For the situation that employment transformation and upgrading brings change to posts and increase of green jobs, the company solves personnel composition via job- transfer training and internal adjustment, so as to ensure normal project operation basically. However, in development, the enterprise is still faced with the following problems and challenges: first, under the pressure of economic recession, the enterprise, so far, has been in the red for successive two years with a rather high asset- liability ratio, leading to continuous weakening of financing ability in capital market, furthermore, over the past three years, rather than via securities market, the company conducts financing via bank mainly, but greatly affected by the national 77 macroeconomic policies for control and the central bank’s tight monetary policies, the financing cost is increasing and financing is becoming more and more difficult; second, environmental pressure, specifically, with more and more emphasis laid on environmental protection, environmental protection requirements for nonferrous metal industry also keeps increasing, and at present, the main pressure on the company comes from industrial equipment upgrading; third, technical equipment require higher and higher skills of personnel, and it is necessary to enhance employees’ ability in using mechanical equipment; fourth, personnel elimination shall be settled properly with technical progress, specifically, technical progress promote generation of new posts and elimination of old ones, thus the enterprise is confronted with personnel elimination and reposition, actually, the company now has 5000 personnel and has to reposition at least 2000 of them. The experience of Zhuzhou Smelter Group Co., Ltd. in developing green employment mainly includes the following aspects. First, accommodating the need of sustainable economic development and transition to greening, low carbon, circulation and ecology, the company introduces new projects and technologies and creates new green smelting mode. Second, the company provides a good talent cultivation platform. The National Enterprise Technology Center and Post-doctor Scientific Research Workstation of the company are platforms for innovation and talent cultivation, and so far, post-doctors of two terms have worked in the Workstation and completed tasks successively. Every year, the company cooperates with domestic scientific research institutes and universities in dozens of horizontal cooperation projects, through which a lot of scientific talents will be provided for the company. Third, the company has perfect incentive system. The incentives for scientific personnel include evaluation for “expert” title and reward for achievement. Every two years, the company conducts an evaluation of technical personnel for the titles of “technical expert” and “top technician”, and those qualified, apart from being awarded the title of honor, can enjoy special fringe benefits each month. As to scientific achievements of scientific personnel, the company provides awards in three ways: award for significant scientific achievements, award for patent and award for technical improvement. By means of the above incentive means, enthusiasm of technical personnel has been fully aroused, which boosts technical progress of the company.

5.3.4.4 Manufacturing industry

Considering the scale of traditional manufacturing industry, the project team chose textile and garment industry as the key industry for case analysis to give prominence to the potential of the existing industries in green employment. In Fuzhou, textile fiber industry is a pillar industry with a complete industry chain: cotton spinning, weaving, dyeing & finishing and making garments. The products are mainly sold domestically. In 2012, over 300,000 people were employed by more than 450 relevant private enterprises in Fuzhou. Duet to expanding domestic market, textile industry keeps on rapid expansion via enterprise transformation and technology upgrading. However, the problem is how to assist the industry in transformation and upgrading to comply with the international standards. Case analysis of representative enterprise:

Liheng (Changle) Polyamide Technology Co., Ltd. Founded in 2005 by Hong Kong Liheng (International) Holding Co., Ltd., Liheng (Changle) Polyamide Technology Co., Ltd. is a high-tech enterprise integrating polyamide research & development, production and sale. Investing a total amount of about 2.5 billion Yuan in projects, producing 105,000 tons of polyamide filament and 180,000 tons of nylon-6 chips annually and with an annual output value of over 4 billion Yuan, the company has already constructed an industrial structure mainly consisting of new fiber materials and led by polymerization, turning to be a large modern enterprise group integrating polymerization, spinning, weaving and dyeing & printing of nylon 6. As the world’s largest enterprise engaging in polyamide polymerization and spinning, part of its products fill in the gaps in the domestic market, which reduces the pressure of importing advanced differential fibers. The company attaches importance to introduction and utilization of talent resources and now has over 1200 technical and management talents working on polyamide R&D and production, including over 300 intermediate and senior technical and management talents. The company delimitates posts and allocates personnel mainly based on production capacity as per the standards for state-owned enterprises, encourages the employees to be hardworking, implements the modern talent utilization strategy of “retaining employees by true feelings, career development prospect, appropriate treatment and high-quality training”, promotes humanistic and 79 transparent management, provides employees with good working & living environment and via two times’ of pay raise in May and December each year, favorable wages and benefits, and creates complete educational and training system as well as perfect development and promotion channels. With the strategy of appointing talents by abilities and extensive development space, the company provides a stage for those competent to realize their life value. With perfect quality assurance system, the company has, in succession, passed ISO9001 Quality Management System, ISO14001 Environmental Management System, OHSAS18001 Vocational Health and Safety Management System and Oeko- Tex Standard 100. Besides, by excellent products and perfect services, the company has earned extensive social recognition and has been titled “Fujian Famous Trademark”, “Fujian Famous Brand Product”, “AAA High-Integrity Enterprise”, “Member of Fujian Quality Association”, “Meritorious Enterprise” and “High-Tech Enterprise”, etc. As a listed private enterprise granted with many honors, Liheng (Changle) Polyamide Technology Co., Ltd. has accumulated remarkable experience in green employment, mainly including: first, good incentive system. Though being a private enterprise, the company delimitates posts and allocates personnel based on its own characteristics and according to standards for state-owned enterprises, provides employees with pre-career and on-the-job training, takes mentoring system, raises wages annually according to employee performance, and for new employees, provides psychological guidance to reduce their psychological gap; second, resource recycling. On the one hand, it is recycling of raw materials, specifically, the waste may be good raw materials for other factories, thus the company will recycle the waste for reuse, which is environment-friendly and economical, while on the other hand, it is water recycling, to be specific, since textile industry requires a large quantity of water, the company uses corresponding equipment to recycle water resources, after which the discharged water is of higher quality than that specified in the national discharge standard; third, perfect quality assurance system. Since the foundation, the company has improved the idea of quality assurance, which can be seen from the fact that the company has passed a series of quality assurance systems.

5.3.4.5 New energy industry

Quanzhou Bright Solar Energy Co., Ltd. Quanzhou Bright Solar Energy Co., Ltd., lying in Quanzhou—the central city of the economic zone on the west side of Taiwan Strait, is a high-tech enterprise specializing in research, development, production and sale of solar photovoltaic and photoelectric products. Founded in 2003, the company focused on the international marketing of solar products in the early stage and achieved an annual output value of over 100 million Yuan in 2012. Now, the company is making efforts in the development of agriculture and ecological agricultural. Since the foundation, adhering to the operation idea of “Integrity, pragmatism, innovation and excellence” and following the quality policy of “focusing on customers and realizing continuous customer satisfaction”, the company has comprehensively implemented ISO9001: 2008 Quality Management System, ISO14000 Environmental Management System and OHSMS18000 Vocational Health and Safety Management System, fully integrated various resources and kept improving product quality. At present, the company has 517 employees in total, including 345 women, 213 rural migrant workers and 132 personnel who have junior college degree or above (see the following table for details).

Table 5-14 Personnel Composition of Quanzhou Bright Solar Energy Co., Ltd. (Person) Those with junior college Rural migrant degree or Total Women workers above

Management personnel 53 29 46

Professionals 61 13 53

Sales personnel 10 8 10

Production operators 390 295 210 23

Others 3 1 3

Total 517 345 213 132 Data source: Quanzhou Bright Solar Energy Co., Ltd. Currently, the company has tens of workshops, like electronics, injection molding

81 and hardware workshops, equipped with multiple production lines and various advanced test equipment to ensure fulfilling every order in time with high quality and efficiency. Furthermore, the company has successively developed nearly a thousand solar energy applied products with mature technology and stale quality, a great number of which have been sold to over 50 countries and areas, such as Britain, Japan, Australia, Germany, Italy, the Netherlands, Spain, Canada and America. With continuous joint efforts of the staff, the company now realizes an annual output value of over 100 million Yuan. The series products developed by the company and sold in quantity include: solar garden light, solar festival lantern, solar glass lamp, solar mobile phone charger, solar knapsack, indoor LED lamp, outdoor energy-saving LED lamp and so forth, amounting to over 2000 varieties. The products’ market share in some countries is high up to 30% and the output value is growing at a rapid speed of 100% on an annual basis. On the basis of promoting traditional products, the company keeps bringing forth the new through the old and now develops in the direction of combining photovoltaic intelligentization and modern agriculture, of which the achievements include solar street lamp monitoring system, solar greenhouse ventilation system, automatic temperature and humidity measuring system, supplemental lighting system, solar orchard and paddy field-used real-time automatic bird-repelling system, etc. In terms of talent team construction, the company strengthens human resources development, reinforces talent team construction, and especially, invests more in research and development for enhancement. The company uses 10% of the revenue as funds for research and development annually, carries out industry-university-research integration between schools and enterprise, and prepares the application for constructing post-doctor workstation to develop advanced products manufactured with solar photovoltaic technology. The experience of Quanzhou Bright Solar Energy Co., Ltd., lying in Quanzhou in development mainly comprises the following points: first, the company grasps market opportunities to combine photovoltaic industry with agriculture perfectly, namely applying technology to tradition, and thus open the international market; second, the company implements specialized and mass production, carries out research, development and manufacturing according to international green standards, (actually, abide by the standards since the initial stage of product design) and keeps bringing forth the new through the old to achieve market share; third, the company 82 keeps improving talent hierarchy and structure, and a higher proportion of the talents are graduated from junior college or above.

5.3.4.6 Environmental industry

CECEP COSTIN New Materials Group Ltd. CECEP COSTIN New Materials Group Ltd. is the first enterprise specializing in nonwoven materials of Chinese Mainland being listed in the IPQ Main Board of Hong Kong Stock Exchange and a member of China Energy Conservation and Environmental Protection Group. Aiming at producing nonwoven materials via advanced and innovative technologies, the company is the first enterprise engaging in nonwoven materials, in China, being accredited by “Carbon Footprint”, titled “National Development Base of Environment-friendly Filtering Materials” and “China Top 500 in Textile and Garment Industry”, and accredited by SCS Recycled. The headquarters lies in Hong Kong, the production base in Jinjiang City, Fujian Province, and the sci-tech information consultation service platform in Beijing. COSTIN has two pillar industries: differential fiber industry (the differential fibers are manufactured by recycling resources to realize circular economy) and nonwoven material industry (the nonwoven materials are manufactured via cleaner production). For differential fibers: COSTIN differential fiber industry has 2 first-rate production lines capable of producing various functional polyester staple fibers of 42,000 tons and a disposal capacity of 53,000 tons of solid waste. All the products are manufactured by utilizing PET and polymerase waste as raw materials. For nonwoven materials: COSTIN nonwoven material industry has 9 needle-punching production lines and 17 stitch-bonded production lines, which are advanced and introduced from Germany, Taiwan and China Mainland, with an annual output being up to 160 million yards; 7 hot-rolling, shaping and spunbonded as well as associated production lines with an annual treatment capacity reaching 80 million yards; the world’s most high- end equipment for industrial filtering material manufacturing industry. In terms of environmental protection materials, the company mainly produces industrial dust-filtering materials with high strength, low elongation at break, stable dimensions, high peeling strength, good permeability, flat and smooth surface, dense fabric, good particle interception ability, good dust non-stickiness and good peeling performance on surface, which are manufactured via processes followed by need

83 punching by using high-temperature resistant PPS fibers, PI FE fibers and aramid fibers in combination with regenerated polyester staple fibers. The group now has staff of around 1000, but does not belong to labor-intensive enterprise, for it has high mechanization degree and employee utilization rate. However, the group still meets the problem of talent shortage and first-line employees’ low knowledge level. In this aspect, COSTIN brings forward the idea of internal training and external introduction. To provide a channel for COSTIN employees to realize self-enhancement, the company presents the planning of COSTIN University, in which one of the sub-projects is to cooperate with colleges and universities in setting courses suitable for COSTIN employees and aiming at combination of theory with practice, for the purpose of enhancing those with rich operating experience but insufficient theoretical knowledge and facilitating technical innovation. At present, COSTIN University has been prepared for over one year and the framework has been basically finished, which still requires further construction. The project to be put into operation currently is the two-year course learning in cooperation with Fujian Normal University started in autumn this year, of which the trainees will graduate in June 2015. As a leading nonwoven enterprise, COSTIN has been always in the forefront of technology and environmental protection and applied various advanced technologies to products. The company’s application and design idea of high-quality engineering materials and more individual mode selections can not only provide consumers with more modern and convenient life, but also protect our irreplaceable green environment imperceptibly. In June 2008, the company was authorized by the National Development and Reform Commission to draft three industrial standards; in October, the company was designated as “National Development Base of Environment-friendly Filtering Materials and National Textiles Development Base” by China Textile Industry Association and China Textiles Development Center; besides, the company has been honored, in succession, “China Top 300 in Textile and Garment Industry”, “China Top 10 in Industrial Textiles Industry”, “Fujian Top 300 in Industrial Competitiveness”, “Fujian Top 300 of Private Enterprises”, “Award for Top Ten Outstanding Small and Medium-Sized Enterprises of China in Social Contribution” and “Excellent Enterprise in Environmental Protection”, etc. The successful experience of CECEP COSTIN New Materials Group Ltd. 84 mainly includes the following points: First, fully utilize renewable resources and take the route of circular economy. Consistently adhering to the idea of “making environment-friendly innovation and achieving prosperity by science and technology”, COSTIN, in the process of continuous development, has made great efforts to develop waste material recycling industry with advanced technical equipment to reduce resource waste and environmental pollution, meanwhile, it will keep on providing the whole society with the cleanest materials under the principle of low material consumption, low water consumption, low energy consumption and low discharge. Second, internal training and talent introduction. Aiming at the problem of technician shortage and low personnel quality, COSTIN formulates the policy of internal training and external introduction. In terms of internal training, the company prepares the construction of COSTIN University and cooperates with colleges and universities in setting courses suitable for COSTIN employees according to the principle of combining theory with practice to enhance those with rich operating experience but insufficient theoretical knowledge and facilitate technical innovation. As to external introduction, COSTIN introduces technical talents in different majors from various colleges and universities and hopes that COSTIN courses can be materialized as part of credits of the colleges and universities, so as to enable the graduates to work immediately without probation period as soon as they graduate.

Third, the whole industry chain is environment-friendly, for environmental protection can be seen from the whole process of raw material selection to manufacturing, and to product application. In terms of raw material selection, taking PET cruse flake and polymerase waste as raw materials can reduce 60% discharge of carbon dioxide in production comparing with using petroleum as raw materials; in production, there is no wastewater, waste steam or waste slag; degradable, pollution- free, non-hazardous and recyclable products are environment-friendly; the products are applied in an environment-friendly way mainly to heavy steel, cement and power generation industries for industrial dedusting and environmental governance, and also to consumable industries as raw materials of textiles, garments, suitcases, automobile interior trim and home decoration. Overall, the whole industry chain is environment- friendly, which not only provides green jobs for the employees, but also facilitates

85 green employment of the upstream and downstream industry chains.

5.4 ①he Analysis of the Questionnaires on Green EmploymEmploymentent

Development Strategies

In order to comprehensively and accurately understand problems and prospects of green employment in the various enterprises from different industries in the pilot provinces, and to better study the needs for policies and specific measures on promoting green jobs in our country, the project team conducted field researches between 15 and 26 April, 2013, in Zhuzhou and Changde of Hunan Province, and Fuzhou and Quanzhou of Fujian Province. We used questionnaires to survey on the states of the green job development, expectations on future development, and the policy environment for green job development in enterprises from different industries.

5.4.1 Sample Selection and Survey Objects

Based on the different economic development levels and characteristics of geographic locations in our country, we selected Hunan Province and Fujian Province for the pilot research. Based on each province’s industrial development characteristics, and its green development level and potential, we selected three key industries in each province respectively, which include agriculture, smart city management, and waste recycling in Hunan Province, and manufacturing (mainly textile), new energy industry (mainly PV industry), environmental protection industry (environmental protection products, and environmental protection services) in Fujian province. The Human Resources and Social Department in each district was responsible for sending and collecting questionnaires to 40 selected enterprises in each industry, and 389 valid questionnaires were received in return. The surveyed questions included 6 aspects, which were the enterprise’s basic information, staff employment, skill training situation, energy consumption, management of water and waste, green job development policy, and expectations on

86 future development. These six aspects are all related in the analysis in this article. The composition of the sampled enterprises is outlined in Table 9. Table 1 shows that enterprises with annual revenue below RMB10,000 accounted for 23.51%; enterprises with staff number between 20 and 300 accounted for 71.83%; limited liability companies accounted for 58.79%, and light industries accounted for 31%.

5.4.2 Basic Information of Enterprises’ Green Job Development

5.4.2.1 Enterprise basic information

Among the sampled enterprises in this survey, 121 are in the light industry category, accounting for 31.00% of the entire sample; the second highest are the manufacturing enterprises, accounting for 19.75%; Urban construction accounted for the least percentage, only 0.25%. Most of the sampled enterprises’ revenue taxes are in the range of RMB110,000 to 1,000,000, accounting for 40.79%; then there are those whose revenue taxes fall in the range of RMB100,000 and below, accounting for 16.43%. As for industries, most of the sampled urban construction enterprises have revenue taxes in the range of RMB3,010,000 to 5,000,000, most electronic information enterprises’ revenue taxes are in the range of RMB110,000 to 1,000,000, which is the same as enterprises in the other industries. Overall speaking, 36.14% of the sampled enterprises spent 1-2% of their sales revenue on research and development. As for industries, new energy industry spent relatively more on R&D, followed by electronic information, while other services spent the least. In terms of the entire sample, 69.55% of enterprises never export. In terms of industry, export oriented enterprises mostly belong to the light industry and electronic information industry.

5.4.2.2 The Basic Employment Situations

(1) Employees in the majority of enterprises are mostly production operators, among which female are quite few, and the numbers of migrant workers show small increases Based on the types of work positions, employees are categorized as management, professional and technical personnel, sales personnel and production operators. The survey data show that, in the majority of the sampled enterprises, the percentage of management, professional and technical personnel, and sales personnel is below 25% in 2012. Production operators accounted for the majority, and over 50% in most enterprises. As for the number of operators in different industries, light industry, manufacturing and other services rank the top three of all industries, while urban construction and new energy have relatively fewer operators. The employee composition index was complied in order to study the changes in employee composition in different work position. The employee composition index equals to the highest figure in each group times the percentage of each group. The comparison of such indexes for 2012 and 2010 shows that the overall indexes for management, professional and technical personnel, sales personnel all gained some increases, which implies that technology had some improvement in those 2 years, such that demand for management and technical personnel got increased; but at the same time, front line operators’ over index got increase too, and the magnitude of its increase is higher then the other 3 categories. This shows the change in employee structure brought about by enterprises’ production expansion is larger that brought about by production technology advances. Table 5-15 Employee composition (%) 2012 25% and 26%- 76%- Composite below 50% 51%-75% 100% index Management 85.57 12.13 1.31 0.98 29.42 Professional 87.87 8.52 2.95 0.66 29.10 technical personnel Sales personnel 92.13 5.25 0.33 2.3 28.21

Production 22.62 21.64 34.75 20.98 63.52 operators 2010 25% and 26%- 76%- Overall below 50% 51%-75% 100% Index Management 87.5 10.26 1.6 0.64 28.85 Professional 88.78 9.29 1.92 0 28.28 technical personnel Sales personnel 93.59 4.17 1.28 0.96 27.40 Production 31.73 17.63 34.29 16.35 58.82 operators Source: Data from the project group’s survey Regarding gender difference, among the sampled enterprises, less than 25% are with over 50% female employee, which means male employees are the majority. Compared with 2010, percentages of female employees in each type of enterprises got lower. In terms of different industries, industries with relatively more female employees are electronic information, light industry, and other services. Migrant workers are a key group among each enterprise’s employees. According to statistics, 65.89% of enterprises had 25% or below migrant workers in 2012. This was a slight increase compared with that in 2010. In terms of different industries, new materials, agriculture, forestry and water conservancy, and electronic information are industries with relatively more migrant workers. (2)Most employees are of junior high school education level, and the majority are junior to medium level skilled workers The education composite index has been designed in order to understand the education levels of employees in the sampled enterprises. The education composite index equals to the highest figure in each group times the percentage of each group. By comparing the composite indexes, it shows that junior high school level education is mot common in employees of the sampled enterprises, which is followed by senior high school, and then college or high vocational level, those with medium vocational education level or technical school education level are quite few. In terms of different industries, the majority of those in electronic information, agriculture, forestry and water conservancy, other services, and light industry are with junior and senior high school educational levels, the majority of those in energy saving and environmental 89 protection industry are with junior high school or university education levels, the majority of those in energy and new materials industries are with college or senior high school education levels, the majority of those in new energy are with college and university education levels, and the majority of those in manufacturing are with junior high school or medium vocational education levels. (3)Most Enterprises have turnover rates below 5%, think recruitment is difficult, and the highest percentage of employees with work injury insurance falls in the group with monthly wage below RMB3,000 In the past 3 years, 31.9% of enterprises had their annual turnover rates below 5%, mainly in industries include new materials, energy, agriculture, forestry and water conservancy, manufacturing, other services, and light industry; 23.8% of enterprises between 5-10%, mainly in urban construction, electronic information, and new energy; only 13.40% of enterprises had turnover rate over 20%, which are mostly in light industry, other services and electronic information industry. The main reasons for labour mobility are higher wages and benefits (50.52%), shorter distance to work (18.65%), and improved working conditions (16.58%). Regarding difficulty in recruitment, most enterprises feel such difficulty exist. 40.63% consider recruitment quite difficult, 16.41% think it very difficult, 32.55% consider it manageable, and only 9.38% think it not difficult, 1.04% think it very easy. The main reasons for recruitment difficulty are that job seekers consider the wages and benefits too low (51.13%), job seekers think the work place is too far (28.96%), job seekers think the conditions at work too poor (16.29%). Other factors also include the enterprises do not know where to recruit (7.69%), the measures for attracting talents are incomplete (7.24%), occupational health (2.26%) and so on. The types of work in most shortage are technician (39.64%), these are mainly operators like turners, mill workers, carpenters, welders, fitters, and mechanics etc. Professional technical personnel are also in relative shortage (29.79%), which are specialized engineers, electrical engineering designers, environmental engineers, industry-specific professional designers, etc. Regarding employees’ minimal pay, most employees’ wages are below 90

RMB3,000. 43.77% of the enterprise employees have wages below RMB2,000, 35.45% between RMB2,000-3,000, 4.99% below RMB4,000. Regarding the percentage of employees with different types of insurances, work injury insurance has the highest participation percentage, 42.03% of enterprises pay for work injury insurance for 76-100% of their employees; it is followed by pension insurance and medical insurance, the type with the lowest participation rate is child birth insurance.In terms of different industries, urban construction has the lowest participation rate for all insurances, which may due to the few number of enterprises being selected in the sample; regarding the participation of pension insurance, manufacturing has the highest rate of participation, followed by light industry and other services. For medical, unemployment, work injury and child birth insurances, manufacturing, light industry and other services have relatively high participation rates. One reason for such result is because the sampled enterprises in these industries, accounting for a significant proportion, completed the questionnaires with high quality; another reason is that they are all conventional labour intensive industries, the enforcement of the Labour Contract Law has promoted these industries to pay attention to insurances. (4)The majority of enterprises have relatively low occurrence rates of occupational disease and work injury Regarding the occupational hazards for employees on duty, 61.39% of enterprises think there is no occupational hazard, 30.03% think there is slight hazard, while only 8.58% think there exists some general occupational hazards. 96.88% of the enterprises think their respective enterprise’s occurrence rate of occupational hazards is below 1%, 83.19% of the enterprises think their occurrence rate of work injury is below 1%, only 0.88% of enterprises think the rate is over 5%, which mainly belong to manufacturing. The main occupational hazards exist in the work place include dust, noise, toxic gas, high humidity which increases the possibility of rheumatism, laser welding causing eye injury of the welders, injuries caused by mechanical accidents and so on. To protect employees against occupational hazards, the enterprises main take the 91 following measures: safety education (82.64%), giving out labour protection products (69.69%), safety facilities equipped at work place (66.58%), periodic body check (47.93%) and so on. Other measures include periodic convalescence, regular monitoring of work place, heavy metal dust control, purchase of accidental injury group insurance for RMB300,000 per head, and development of operation safety technique assessment etc. (5) Insufficient skill level is the main problem encountered during the development of green jobs In the course of green economic development , industrial restructuring and the adaptation of new technology, the enterprises will encounter a series of problems, among which, insufficient skill level is considered as the main one, being selected by 48.19% of the sampled enterprises; this is followed by inability to fill the jobs, at 28.76%; the third problem is the shunting and resettlement of workers, at 10.88%. (6) Employees’ attitude towards energy saving and emission reduction is very supportive Employees are the core of an enterprise, their attitude towards energy saving and emission reduction, and elimination of backward production capacity would have an effect on the enterprise’s development. In the survey, 55.17% enterprises’ employees’ attitude towards energy saving and emission reduction, and elimination of backward production capacity is very supportive, 41.38% is supportive, only 3.18% is indifferent and 0.27% is unsupportive.

5.4.2.3 Policy environment of green job development

(1)The majority of enterprises’ energy saving green products did follow standards but did not enjoy any subsidies or preference, making it difficult to enter the government’s procurement list Regarding the enterprises’ energy saving green products, 37.37% enterprises were aware of standards but were difficult to meet, they are mostly from light industry, manufacturing and energy; 36.68% enterprises’ answer was no standards,

they were mostly in manufacturing, light industry and other services. This shows that the 2 industries do have some standards, but because of low entry barrier, some micro and small enterprises could not meet the standards. When asked whether the enterprises’ energy saving green products enjoyed any subsidies or preference, 51.19% enterprises answered “do not understand the policies, do not apply”, while 22.03% answered “Enjoyed subsidies”. This shows that many enterprises do not understand the preferential treatments energy saving green products could enjoy.

- Have standard 22.84 36.68 which is easy 有准，易达到标 to meet 有标准，不易达到 - Have standard, 有标准，没人管 not easy to 37.37 没有标准 meet 3.11 - Have standard, no monitoring - No standard

Diagram 5-1 Percentage of enterprises’ energy saving green products have standards (%) Source: Data from project group’s survey

The Central Government’s Procuring List had been drawn up to meet the annual producurement plans by the central government organs, selecting a number of suppliers for the central and local governments which have not yet been included in government procurement and whose products are indeed energy saving or hi-tech and of good quality. They would be highly recommended to government departments at all levels and procurement centers, so the procurement officials could have more direct and thorough understanding of the enterprises and their products, significantly improving the probabilities of these products being enquired and procured. This survey shows that 70.17% of the sampled enterprises have not applied for government procurement list, 12.20% enterprises’ energy saving products are in the list but the

93 application processes were very complicated, these mostly are from industries of agriculture, forestry and water conservancy, and energy saving and environmental protection; only 10.85% enterprises felt the application was very easy, which are mostly from industries including light industry, manufacturing, new energy and other services.

10.85 12.20 是，容易 - Yes, easy 6.78 是，很难 - Yes, very difficult - Already applied, 70.17 申请了，未批准 not yet approved 未申请 - Not yet applied

Diagram 5-2 Whether the enterprises’ energy saving green products were listed in the government procurement list (%) Source: Data from the project group’s survey (2)Most enterprises feel that green investment’s approval process complicated, and the supervision of green products manufacturing operation cumbersome Regarding the enterprise’s approval process of green investment, 49.62% feel the process very complicated, they are mostly in the industries of new energy, energy saving and environmental protection, and agriculture, forestry and water conservancy; 26.15% enterprises think it was not necessary to get approval, they are mostly from electronic information, other services, and manufacturing; 24.23% feel the approval process was simple, they are mainly in new materials, and energy. In the production and operation supervision of the enterprise’s green products, 41.09% thought the supervision very too complicated, they are mostly in new energy, energy saving and environmental protection, and light industry; 21.71% enterprises said there was no supervision, these are mainly in manufacturing, electronic 94 information and other services. (3)Enterprises would face administrative penalties, though not very high, after violation of environmental protection regulations and standards 39.92% enterprises said there would be administrative penalties after violation of environmental protection regulations and standards, but the penalty was not very high, quite acceptable. These enterprises are mainly from industries of energy, new materials, and new energy; 26.74% enterprises faced no penalty, they are mostly in energy saving and environmental protection, and manufacturing; 24.81% enterprises, mainly from agriculture, forestry and water conservancy, felt it was too strict to pass; 8.53% enterprises, mainly from electronic information and light industry, said they could apply for remission of penalties.

5.4.3 Future development prospect

5.4.3.1 Most of enterprises had yet to find opportunities for green economy investment

To future green economy investment, enterprises had different expectations. According to statistics, 45.18% enterprises had yet to find opportunities for green economy investment. These enterprises were mostly from the fields of city construction, electronic information and manufacturing. 21.9% enterprises found opportunities in investing in green economy, mostly in the fields of energy-saving and environmental protection, new materials and energy industries. The green products of these enterprises were mostly used for sewage processing equipment, heat-source tower heat pump, intelligent streetlamp, environment-protection lightning protector, which met the ROHS standard14, and also used to develop nano-technology based

14 ROHS is a compulsory standard by EU law. Its full name is Restriction of Hazardous Substances. Such standard was active since July 1st 2006 and was mainly to regulate materials and technologies used for electronic and electrical products to ensure people’s health and environmental protection. The purpose of the standard was to eliminate lead, mercury and cadmium and hexavalent chromium, polybrominated biphenyls and polybrominated diphenylether. The standard regulates that the proportion of lead should not be over 0.1%. 95

daily products, fabric such as natural Modal and Lead-zinc-processing products As for questions if enterprises are planning invest on workers skills to promote green employment, 51.06% enterprises chose no, only 48.94% enterprises answered positively. The invested enterprises were mainly from sectors with high demands for workers skills such as city construction, energy-saving and environmental protection, new materials. Those who did not invest were mainly from industries like electronic information, manufacturing, and service. 55.37% enterprises thought there were barriers for investing in green economy. The major barriers were high cost (54.73%), lack of skilled workers to manage green technology and production (27.03%), and other reasons (8.11%) like high entrance standard on new technology by the government, difficulties in implementing policies, high cost on green technology, low motives, priorities on traditional industries and low quality of labor forces, etc.

- Urban construction 120.00 - Electronic 100.00 100.00 information - Energy saving and 80.00 63.64 environmental 60.00 58.21 60.00 51.72 54.55 protection - Yes 42.86 42.31 44.09 43.75 45.18 是 - Energy 40.00 32.89 不是 - No - Agriculture, forestry 21.93 - Partially yes 部分是 and water 20.00 conservancy .00 城市建电节能源农其他服轻新材料新能源制造合 - Other services 子信息能林水利工计环业 - Light industry 设保务业 - New materials - New energy - Manufacturing Table 5-3 percentage of different industries finding opportunities for green investment - Total Source: data from project group’s survey

5.4.3.2 some enterprises identified opportunities to improve operational

environment and performance and explored new occupations

As for question if enterprises identified opportunities to improve operational environment and performance, 39.72% enterprises chose negative and 22.65% answered positive. Those who answered positive were mainly from energy-saving and environmental protection, new energy and new material industries. The energy-saving 96

and environmental protection enterprises mainly used purifying equipment, improved workers skills, eliminated old equipment, and processed renewable resources. New material enterprises mainly used high-efficiency equipment and electronic upgrade. As for questions how did the employment change to the improvement of operational environment and performance, 79.17% enterprises believed they did not find new employment opportunities. Only 20.83% found new employment opportunities. Those enterprises were mainly from energy-saving and environmental protection fields and the new jobs were in recycling economy. Only 21.71% found employment opportunities that could improve the environment and performance and improve the workers skills. Those enterprises were also from energy-saving and environmental protection fields, including package design, proposal design, project manager, heating engineer, renewable energy recycling.

- Urban construction 120.00 - Electronic 100.00 100.00 information - Energy saving and 80.00 environmental 54.55 50.00 60.00 54.55 42.86 - Yes protection 45.00 46.15 46.27 是 38.46 42.22 39.72 - No - Energy 40.00 不是 - Partially yes - Agriculture, forestry 部分是 and water 20.00 conservancy .00 城市建电节能源农其他服轻新材料新能源制造合 - Other services 子信息能林水利工计环业 - Light industry 设保务业 - New materials - New energy - Manufacturing Table 5-4 percentage of enterprises finding opportunities to improve the operational environment - Total and performance Source: data from project group’s survey

5.4.3.3 there were short of skilled people in new energy, energy-saving and

environmental protection industry and most of enterprises were willing to

cooperate with schools to train new skills.

As for question if enterprises had encountered shortage of skilled workers during the operation, 61.46% enterprises answered negative. Those were mainly enterprises

97 of electronic information, service and manufacturing industries. Those who answered yes were mainly from new energy, energy-saving and environmental protection fields. They were short of skilled workers with experience and determination such as environmental protection and heating engineers. To deal with people shortage, 78.46% enterprises were willing to cooperate vocational schools to explore or train new skills. The cooperation were mainly research and development of new skills(49.31%), providing intern facilities(44.83%), and recruit fresh graduate( 43.10%).

5.4.4 Existing problems

Through the survey, the project team found some issues existing in the process of enterprises developing green economy and promoting green employment. First，During the survey, we found the traditional industries were not very concerned about the environmental issues like GHGs and the industrial standard on energy-saving and environmental protection was lacking or not complete, sometimes the index was too simple or not strictly implemented. Second，Currently, the government issued tax reduction on such products and tax-free policy on public infrastructures. With the upgrade of technologies, more and more energy-saving and environmental protection products are produced. Policy change cannot catch up with the speed of research and development of the new products, which makes it difficult for such products to apply for government procurement. Many enterprises produced such products, but could not enjoy the supporting policies, which had dampened the motives of production. Third，During the survey, we found many enterprises thought the administrative procedure for applying for energy-saving projects and government procurement was too complicated. There were high requirement for SMEs and complex supervision process for producing and operating green products, which had scared off some willing SMEs. Fourth，The survey found that most of the employees in the enterprises only had

98 middle-school education and their skills were primary or medium-level. The enterprises lacked the experienced and responsible skillful workers. The biggest problem the enterprises faced during the development was the low level of working skills. Fifth，During the survey, we found that most of the enterprises had difficulties in holding or finding opportunities in green investment. One of the reasons was lack of understanding of the direction of national policies. The other was lack of understanding of future direction of national economic and social development. Sixth，during the survey, we found also problems in questionnaire design and field survey. For example, in the questionnaire, the mid-level skills worker and low- level skills worker were considered as one category. In fact, primary and medium skilled workers are quite different and should be considered separately. As for some terms such as energy density, we should add some explanation to avoid interviewees’ misunderstanding. Recognize these problems will help us accumulate experience in similar questionnaire design and field surveys in the future and better conduct the surveys.

6.6.6. The development of green jobs and green skills

6.1 Green jobs and green skills

As the output of this research, green jobs in China refers to the jobs in, compared with the average level of society, relatively low-input, high-output, low-consumption, low-emission, recyclable and sustainable industries, sectors, enterprises and posts in the national economy . According to the difference in industries’ attributes and stages of development, green employment can be classified into the purely green job, the processing green job and the end-of-pipe green job. The purely green job refers to the originally environmental-friendly and energy-saving employment, like jobs in traditional agriculture, urban greening, the use of renewable energy, and clean energy technology. The processing green job refers to the employment which can improve production processes by improving energy efficiency and reducing carbon emissions, and which covers most jobs in manufacturing. The end-of-pipe green job refers to a series of jobs emerged for the remedy for environmental degradation, such as waste recycling and ecological restoration.

6.1.1 Green TVET

Green TVET consists of pre-vocational education and training, on-the-job learning and the further training for sustainable environmental, economic and social issues. At the same time, Green TVET should meet the needs of the industry and the individual learner. Green TVET helps learners to be prepared to engage in green jobs which will help to maintain or restore the quality of the environment, and also enhances human well-being and social equity.

100

6.1.2 Green jobs and green skills

Green TVET supports production skills that pay more attention to environmental protection. Governments need to seize the opportunity to create jobs by developing the skills required by the new green sector. Governments also need to targetvulnerable groups in the labor market (youth, women, the disabled, rural population and other vulnerable groups) to develop the necessary knowledge and skills for green jobs.Green jobs are not limited to the emerging green industries, such as renewable energy. ILO carried out a global survey of skills for green jobs (covering 21 countries, accounting for 60% of the world's population). The survey illustrates that skills requirements in existing industry will be significantly completely. If all work can and should become more green, we need to develop a wide range of relevant skills for green jobs. Green TVET should play a key role in strengthening the learner's creative, entrepreneurial and innovative skills. In order to strengthen these skills, we need to critically think the attitudes and values as the core content of education for sustainable development.Many countries are facing the problem of lack of skills required by green industry. TVET can provide these skills.Basic skills affect the ability to learn new skills. Basic skills’ importance is that the workers can gain benefit from improving skills by training. Not all of the new skills are technical. TVET should strengthen learners’ ability to solve problems, analyzing the complexity and exploring the patterns of much sustainable production and consumption.

6.1.3 ESD and green TVET complements each other

TVET not only improves the skills required for employment but also helps young people and adults to own the ability of developing work and life skills. Therefore, Green TVET is not simply to develop technical skills for green jobs (such as eco-tourism, renewable energy and recycling industries) but also means the

101 development of "soft" green skills. There is a lot of overlap between ESD and green TVET. Similar to ESD, green TVET can also include the strengthening of skills education to solve daily problems (life skills education), of promoting the education for sustainable consumption and lifestyles and entrepreneurial learning. Green TVET ensures that all workers can play an appropriate role in the workplace and the broader community to promote the environmental, economic and social sustainability. ESD is the core of green skills and provides a framework of direction adjustment based on sustainability for reforming education and shot training.

6.2 Green skills needed in ‚‚‚s‚ssskillkill upgrading‛ and ‚skill transformationtransformation‛‛ of different industries

If we say that all work can and should become greener, it can be said that there are needs for green skills in all work. Through questionnaires and field study, we found that along with skill upgrading and skill transformation, three types of green employment have obvious needs for four green skills. It will be much clear that we assess the demand of green skills by three industries.

6.2.1 Agriculture

Traditional agriculture and forestry do not need much upgrading of green professional skills. However, if converted to organic agriculture, ecological agriculture and green agriculture, systematic skill upgrading and transformation are needed, which are reflected in every section of production, such as material selection, breeding, pest and disease control. Experienced farmers and skilled forest workers do not only need to learn new technologies of planting and breeding, but also to learn new ways of logistics, new means of information and so on. The need for the training of green skills is expressed in all types of skills, ranging from professional skills to supportive skills and basic personal capability. Some of those green skills need

102 special training with high inputs, and some only need extensive publicity and simple training. For example, the Government of Shunyi District in Beijing provided simple technical training to farmers who lost their land through urbanization, so that they could find jobs in local flower companies as green garden workers. Green Food Office of Jiangsu Province took as the starting point the production technology of high-quality and safe agriculture products, like organic rice, green food, greenhouse vegetables and pollution-free chicken, and conducted technical training among the demonstration households of science and technology to expand standardized production.

6.2.2 Manufacturing

Most occupations in manufacturing can be greening (energy conservation and emission reduction), and many of them are in the process of greening.

There are a number of skills needed in energy saving that are not new, nor need to be developed and trained. We need to just change the processes or crafts. For example to change parts spray coating as the whole to reduce the amount of coatings. When greening those occupations, different skills are needed. Some green skills are new, not existing in the traditional industry. For example, to master technologies like the production of photovoltaic cells and electric cars needs high-level and professional training. There are also some green skills, new but not difficult for workers with technical foundation; for example, after a short-term training of skill transformation, traditional bench workers can undertake repairing of solar-energy water heater and turn into green employment. Some other skills are obtained through specialized training of skill upgrading based on original skills. For example, after using energy-saving aluminum alloy, some enterprises need worker with aluminum- soldering technology, which traditional bench workers are not equipped with. The enterprises should select gas-shielded welders with at least 5-year experience for a short term of in-job special training, in order to meet the requirements of the new 103 technology. For most engineering technical with professional foundation, their skill upgrading in the process of greening occupation mainly depends on self-learning and few internal training. For example, engineering technical workers in the construction industry did not possess knowledge and skills for green building when starting their career. However, now, more and more construction projects require designing and constructing according to different levels of green building standards, therefore, these engineering technical must master the standards and technical requirements of green building. Through enterprise internal training and self-improvement, they maintain the capability of sustainable professional development under the new standard and adapt the requirements of greening occupation.

6.2.3 Service

Unlike manufacturing, most institutions in the service industry have low load of pollutant outputs and are classified into green employment. In addition, in its further greening, service industries need more types of skills, among which “soft” skills accounts for a large proportion. Besides job skills directly needed by the occupation, many industry-supportive skills are demanded, like information technology, management capability and teamwork. As work of most jobs deals with people, the employees are required to have an understanding of service, professional ethics and communication ability. For example, in the professional training standards of careers for the old, more than half of the content is related to work attitudes and values, like responsibility, love and patience. In order to turn into a “Green Hotel”, one hotel in Ningbo carried out in-job further training for employees. The training covered green marketing, saving water, energy management, environmental protection, waste management, green rooms, green food and beverage, and green management. After carefully reviewing its training content, more emphasis is given to the study of concept, rules and system, instead of technical skills. Employees working in green service industries will are required to have additional skill, such as information communication skill of all non-IT staff, English skill of

104 waiters, driving skill of guides, and painting skill of non-art teachers. Currently, the cultivation of optional ability mainly relies on employees themselves and few employers are willing to organize and pay for the training for optional ability.

Table 6-1 lists several examples demonstrating skills and relevant training needed by some green employment. Table 6-1 Illustrate for the technical ability upgrade or transform of Green Employment Origin Technical Ability Key Training (difficulty / New Industry Industry Industry Upgrade or Transform type) (vocation) (vocation) organic New breeding and hard / pre-service or in- agriculture, agriculture, planting technology, service secondary forestry, ecological logistic and information vocational education fishing etc. agriculture and Agricult technology needed green agriculture ure planting and maintenance, green normal / medium-term in- lumbering forest conservation operation, policy service training acknowledge renewable energy normal / pre-service wind management, solar medium and long-term new energy energy energy, wind energy and specialized education and environmental science training normal / short-term in- gas new material welding service technical training aluminum welder shielded technique based on the original (new material) welder technology safety and modern middle-level machining business management easy / in-service short- leaders in modern workshop and optimal time training manufacture director management, etc. enterprises traditional manufac new install process, automotive easy / in-service short- electric vehicle ture safety requirement and engine time training engine installer team work erector architecture green architecture easy / in-service short- green architecture engineer standard and technology term training engineer qualification and easy / in-service short- energy saving burner standard, burning term training brick burner technology equipment structure, easy / in-service short- bench solar water heater standard, maintenance term training worker maintainer technology chemical and industrial hard / master or above none environmental wastewater major training needed engineering treatment engineer hard / secondary nursing nursing and old-age care vocational education and home knowledge, skill and old-age care nurse service training, in-service or worker attitude industry pre-service rich peasant housekeeping skill and normal / short-term pre- housekeeping labor attitude service training personnel 105

green hotel idea and easy / in-service short- hotel waiter green hotel waiter skill and standard term training trade tool, carbon financial trading market function, easy / in-service short- carbon trader staff carbon trading term training technology

6.3 ①he development of green skills

6.3.1 The technology demand analysis for green employment

To describe the green skills needed for technical upgrade and technical transform in different vocations, and evaluate the level of green skill. The skills which are needed in the work are divided into four classifications: occupation skills, industry skills, employability skills and optional skills. Following are the analysis for these four classifications:

6.3.1.1 Occupational Skills

Occupational skills are concerned with the specialized unit or skills needed for specific work, and usually stated as the vocational skill standard in a professional qualification. For example, the electric welder needs aluminum soldering skill, and the nurse needs drug safety knowledge, etc. Every vocational green process puts demands on occupation skills. It could also be divided into Class I and Class II based on the technical training time and demand. Class I means the skills which require long-term pre-service training and high demand of training condition. For example, the ecological agriculture skill, electric vehicle manufacturing skill and nursing skill; those skills need not only long time training, but also certain equipment, qualified teachers and technology conditions. Class II means the skills which build on existing skill sets and are not necessarily difficult to acquire for someone with pre-requisite skills, and they don’t usually require long time training during the period of technique upgrade and transform. Examples include upgrading from gas shielded welder to aluminum welder, and transformation from traditional burner to energy saving brick burner. 106

The main difference between Class I and Class II is the difficulty of the training, but not the difficulty of the skills. Some skills are difficult, but they have a close connection with traditional skills, so the training for technical upgrade and transformation is not difficult. The traditional architectural engineer, for instance, can learn the standard and technical demand for green architecture with a little training. Other skills, on the other hand, are not very difficult, but those skills may be very different to tradition skills, and need high difficult training in technique upgrading and transforming, such as transform from traditional farmer to skilled organic agricultural worker and from nursing home worker to old-age care nurse. During domestic and overseas practice, we found that both governments and enterprises are trying to identify e traditional technicians with green skills, and hoping to support those people learn the new green skills by low-cost and short-term training. Accountants from some European countries could be employed in energy audit work after a little training; workers from circulation department could obtain water circulation operator certification after short-term certification training; and, traditional hotel waiters could upgrade to green hotel waiter. In these instances, Class II has a priority in green skills compared with Class I.

6.3.1.2 Industry skills

Industry skills are concerned with the abilities that workers need in specific areas. Those abilities are area specific, but not as professional and special as vocational skills essentially, such as, for example, the information and communication skills which tourism industry staff need.

In globalization and information economy, no industry and occupation could maintain the traditional ‘pure technique’, and all of the green occupation need supporting skills beside pure profession, such as information skill, modern business management, calculation and evaluation skills and so on. The supporting skills does not have high requirement as occupational skills. Even though, the training of those

107 supporting skills is not easy, and few of the industry abilities could be obtained by short-term in-service training. So the development of those abilities should start from the basis and from pre-service occupational education and training. The international experience also proved this 15 . Many outstanding cases in Europe show that all the changes are based on the skills. The development of skills should be focused on strengthen the existing abilities, and emphasis the core skills, including the skill development in science, technology, engineering and mathematics (STEM). Each work could be changed into green. Comprehend a work’s impact to the environment and the possible contribution it may bring to the green economy should be absorbed into education and training system as a main aspect. Bring in the sustainable development and environment problems into existing qualification system, and catching the demand of new and newly developing techniques in green employment market is a huge challenge.

6.3.1.3 Employability Skills

Employability skills are concerned with the abilities to finish work in all industries for all people, such as communication skill and interpersonal skill. Sustainable development skills originally belong to green skills. The green job market is faced with technology’s fast development and production situation changes. Traditional basic skills remain unchanged including cognitive skill, thinking skill, professional morality, ability to use and administrate all types of resources rationally, interpersonal skill, obtain and utilize information ability, systematically analyzing ability, and ability to use multiple techniques16 . New skills like creativity and innovation skill, critical thinking/solve real world problems skill, information and communication technology skill, communication and cooperation skill, ethics and

15 Skills for green jobs，EUROPEAN SYNTHESIS REPORT，CEDEFOP ，ILO，Luxembourg: Publications Office of the European Union, 2010

16 US Department of Labor，2000 108 social responsibility17 have now become necessary employability skills for green employment. Employability skills are different from technical skills. They do not need much investment in technology and equipment. They put more emphasis on enhancing pre- service occupational education and training, improving general education and workers’ awareness and developing these skills through all kinds of education and training. Some enterprises cultivate employability skills in induction training, since they realize it will affect the skills of learning new technology and its importance is equal to green skills.

6.3.1.4 optional or additional skill

These skills are useful but not absolutely necessary for finishing primary work. They are regarded as segregated units which are extracted from other skills. An example is where a tour operator acquires driving skill to improve work performance or flexibility Optional skills for individuals are not the only mean more opportunities to compete for green and decent jobs, but also a kind of storage for long-term skills. Considering optional skills are transfer skills rather than base-line skills, enterprises and employers are usually not willing to pay for the training. Thus, apart from individual learning, increased investment on pre-service occupational training and training organizations is a more effective way to help learners get more optional skills and to play skill foundation for sustainable development. From the above, occupational skills, industry skills, employability skills and optional skills are all needed in green employment, but urgency degree is different. Input requirements and technical conditions for training vary. In terms of urgency degree, class I occupational skills is nearly the same as class II, industry skills is less urgent, and optional skills ranked last. In terms of training difficulty level and input degree, class II occupational skills is the

17 APEC The Education Minister’s Meeting，Peru，2008 109

easiest to promote, input requirement for employability skills is the least, class I occupational skills, industry skills and optional skills are mainly developed by pre-service general education system and vocational education system, and induction training held by enterprises could develop employability skills.

Table 6-2 lists training needs, difficulty level and trainer for different green skills. Class I Class II optional or occupational occupational industry skills basic skills additional skills skills skills training needs strong strong normal normal weak difficulty-level hard easy normal normal normal enterprises and occupational occupational occupational occupational trainer education individual education education education institutions institutions institutions institutions

6.3.2 The development chances and opportunities for green skills

In China, developing green skills come from four aspects: government orientation, enterprise developing demand, training institution developing programs in response to perceived demand and government orientation, and personnel developing demand.

6.3.2.1 Government orientation

The Chinese government established employment priorities in the Twelfth-Five Year Plan, which identifies green, low-carbon development concept as an instrument, and focuses on resource saving and environmental friendly social construction, taking the employment as the base of people’s livelihood. It emphasizes green employment as the important task in economic development transforming and green economy developing process, expanding green employment and realizing the positive interaction and mutual growth with green economy. Such political orientation undoubtedly creates space and chances for green skills. Skill training influences the basic needs of labor employment, and the development of the green economy cannot be separated from the increase of labor

110 skills and quality. Central government also issued a lot of policies for skill training. For vocational colleges, the government encourages them to construct a training base to enhance their graduates’ skill and practical operational ability. Central financial special fund support the following colleges and institutions: the first are those instructed by employment, and educates mass of technical personnel the society lack in, and have high ratio in graduate employment; the second are the ones that have demonstrated breakthrough and innovation in deepening the reform of vocational education teaching and strengthening the cooperation between college and enterprise; the third are those that have made a great contribution in social training, re-employment training of laid-off workers, rural labor transfer training. The government also encourages students to attend secondary vocational education. After the policy of offering RMB 1500 Yuan per year for each student who has family financial difficulties, a number of agencies - Financial Department, National Development and Reform Commission, Ministry of Education, Human Resources Social Security Department’s issued Suggestion of Exempt the Tuition Fee for Secondary Vocational School Rural Family Financial Difficulty Students and Agricultural Professional Students (CJ[2009]No.442) and Secondary Vocational School Exempt the Tuition Fee and Subsidy Funds Manage Interim Procedures, which cleared the obstacle for students from poor families to obtain secondary vocational education. To strengthen the rural labor transfer employment training, relevant departments drew up the plan that financially supporting peasant-worker, which focuses on vocational skill training. Skill training combines with the district, industry and career target of rural labor transfer, and the skill lack when rural labor adopting the employment transfer, and then operate specific relevant skill training. For enterprise in-service workers, the Eleven-Five Plan Outline for High-skill Personnel System Construction (Year 2006-2010) encouraged enterprises to enlarge the financial input in the training for producing and servicing skill workers, especially for high-skill personnel.

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6.3.2.2 The need from enterprises development

For employees, the enterprise is the main provider to provide training for skills. Surveys indicate that the pre-service training and in-job training both upgrading employees’ professional skills, industry-supportive skills, basic personal capability and optional ability. 84% of the enterprises state that they pay for employee training. (1) The response to green employment The impact of China’s transition to the green economy and green employment is reflected as follows: first, there will be an increase of green occupations and green industry jobs. For example, the development of renewable energy is creating a large number of employment opportunities in the sector of new energy, related manufacturing sectors and the sector of consulting services and will create new jobs such as urban waste recycling management, carbon dioxide capture, carbon trade and environmental impact assessment in thermal power plants. Second, some grey jobs may be confronted with shrinking, or even vanishing. For example, the elimination of backward production capacity of traditional energy industries and key industries like cement, iron and steel, chemicals, non-ferrous metals means that enterprises that cannot meet industry standards will be shut down or face mergers and acquisitions, or some production lines of those enterprises will be removed; and this will result in the disappearance of related jobs. Third, there are changes of work content and required skills. For example, as the traditional farming dependent on chemical fertilizers and pesticides transforms to organic farming, farmers need to master skills like green manure and biological control of harmful insects. Urban planning engineers will need to understand and utilize more green technologies In the power industry after upgrading of thermal power equipment and changing the original decentralized running into centralized-control operation, related operation, work content and required skills of technical staff will change accordingly. The main problem in expanding green jobs is the lack of skills, inability to fill jobs and shunting and resettlement. In response to green employment, enterprises are willing to invest in the

112 development of green skills. The result from questionnaires18 supports this point of view. The answer of 387 enterprises to the question of “What is the attitude of the enterprise’s employees towards developing green economy?” was that 208 enterprises had very a supportive attitude of employees, and 156 had a supportive attitude. As for the question of “Does the enterprise invest in the technology for the improvement of environmental performance?” 200 answered yes, 112 answered some investment, and only 45 answered no. (2) The response to the standard of green industry To respond to the policies and requirements of national development of the green economy, all relevant industries have released supporting administrative regulations and technical standards. These standards can be found in electricity, telecommunications, railways, civil aviation, petroleum, water supply, gas, heating, public transportation, construction, sewage treatment, waste disposal and other industries. Enterprises have to obey these mandatory standards. Thus, employee training for green skills is organized to achieve the purpose of meeting national and industry standards. In the enterprise survey, the answer to the question of “Does the enterprise invest on skill need to meet national standards?” were 147 yes and 150 no. As to the question “Does the enterprise invest in skills needed to meet international standards?”, 75 enterprises answered yes and 181 no. There is an example from the construction industry. China launched the "Green Building Evaluation Standard" (GB50378-2006) in 2006. The standard has 3 levels, 43 indicators, covering land conservation and outdoor environment, energy conservation and energy use, water conservation and water use, materials saving and material-resource use, and indoor environmental quality and operational management 19 . More and more buildings and construction projects in China are making efforts to meet GB50378-2006 and other international standards, like LEED certification. Meanwhile, with the development of green building certification, more

18 Enterprise survey of “the development strategy of green employment”, Ministry of Human Resources and Social Security and Asian Development Bank, April 2013

19 Green Building Technical Guide. China Building Industry Press. 2008 113 and more employees need green-skill training in fields like planning and designing, material industry, construction, installation, maintenance and management. (3) The reserve of green skills for the development of enterprises Most questioned enterprises are dominated by production operators, reflecting the labor intensive path of China’s industrialization. Facing the skill shortages as enterprises upgrade with green technologies, for their own survival and development, enterprises are willing to provide green skill training to employees, as skill reserve of the enterprise. The training content includes professional skills (Category II) and industry-supportive skills, such as ISO certification, training before service, professional training for successful action, professional skills training, and professional etiquette training20. Among the surveyed enterprises, most employees are junior to medium level technical workers. More than 90% organize employee training for the above content by themselves; almost half of the enterprises have over 80% employees trained; 76.43% training are provided by enterprises themselves, 17.19% by other enterprises, 20% by the government and 22.61% by schools; and 14.52% of the training is carried out online. The effectiveness of training is highly recognized by the enterprises and trained employees, and the recognition rates of the both sides are up to 80%. This has a number of implications, particularly the existence of innovative ways to provide more green skills upgrading to lower skilled workers including VET delivery of green skills within enterprises, short courses run by accredited green trainers and improving web based material through establishment of green knowledge hub.

6.3.2.3 The need of TVET institutions development

In order to improve education and training quality, enhance the ability to serve for enterprises and employers, vocational colleges and training organizations are pursuing opportunities to develop green skills.

20 See Footnote 1 114

(1)Offer the new green programs To meet the needs of the green economy, many TVET institutes have started green programs. Jiangsu is an example. In recent 3years, the higher education institutes(include TVET colleges) started 324 new programs among which 70% focus on strategic emerging industries. These include: Energy economy, energy and environment systems engineering, functional materials, bio-functional materials, bio- information technology, marine engineering technology, wind energy and power engineering, resource recycling science and engineering, new media and information networks and networking engineering. (2)Strengthen cooperation with enterprises Every year, in the whole country, many teachers are sent to enterprises to investigate their demand for skill development and seek for skill support both in development and training. This activity has great support from each level of government. Industry guidance committees were organized by the Education Ministry and 43 industry groups with the purpose of providing skill demand information and coordinating cooperation between vocational colleges and enterprises. Many local governments have set up vocational education groups, which are comprised of several enterprises and vocational colleges with the purpose of exploring demand and development of green skills. This cooperation enables vocational colleges to provide more suitable courses and subjects, and enhance their educational level and relativity with enterprises. The Hunan Logistic Vocational College has established close relationships with enterprises through vocational education groups. It not only developed standards for green skills, but also cultivates large number of talents familiar with green skills. Short-term skill training organizations are more focus on enterprises’ skill demand and could adjust training programs any time, thus, it meet the requirements of enterprises while get opportunity for own survive and development. (3)Strengthen the cultivation of employability skills and optional skills for 115 students With the development of green economic, enterprises have higher demand for graduates’’ employability skills. Thus, all vocational colleges have strengthened the cultivation of these skills, which include: cognitive skill, non-cognitive skill, team spirit skill, communication skill, environment awareness, solving practical problem skill, and other sustainable development skills. The aim for doing this is to satisfy enterprises requirement and lay a solid foundation to strengthen employability. Selective courses are provided to help students get optional skills and improve their competitiveness. For example, sophomores of Hunan Agriculture University could apply for associated gardener certification after receiving adequate training courses. Since gardeners have brighter prospects, the certification will increase students’ competitiveness in the job market.

6.3.2.4 Individual development need

Staff, especially young staff, often are enthusiastic and need in–service training to adapt to technical development and economic transition. This could be inferred by the number of participating training: nearly half investigated enterprises said over 80% staff have attended the training in 2012, and staff of 80% enterprises held positive view for it. Well educated staff and high qualified prefer self-study or the internet – including studying to develop green skills to meet ever higher green industry standards and requirements. Taking various engineers in the construction industry for example, they learn green building standards and technical requirements to realize self-skill improvement and to satisfy work requirements.

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6.3.3 Factors that hinder the green skills development

6.3.3.1 The shortage of comprehensive understanding of green skills

Government is determined to transform the economic development pattern to promote green employment, but grass-root enterprises, occupational colleges, training organizations, and masses don’t always have comprehensive understanding toward it. Enterprises don’t think much of green employment and green skills development, they do some work only because government’s requirement and market change. Green skills, in their eyes are just like flowers on the cake, nice-to-have but not essential. For example, for students’ internship, most enterprises hold the opinion that cost saving comes first, even it is energy consumption. The trainer of both training organizations and occupational colleges hardly receive re-training about green skill development, and think it is not the primary task of human resource provider but a slogan. While talking with 14 headmasters about the green skills development in another occupational program which also organized by ADB21, almost all of the headmasters did not know what is and how to develop it. They see it as a slogan proposed by government and show little interest in it. They believe green skills development is time and money consuming, rather than self- development. For individuals, well-educated and high-qualified persons have enthusiasm and intention to promote green skills. They will attend training or self –study whenever they are free. It starts from green skills standards and related new skills in the industry, then optional skills, which not only help themselves to adapt society’s development but also strengthen their competiveness in job market. In contrast, less educated and low-qualified persons seldom have this idea and ability, for them, finding a job comes first, green or not is not important. Unless arranged by enterprises, they rarely have intention and chance to learn green skills.

21 TA-7978 PRC 117

6.3.3.2 The shortage of resources

While providing green skills training, both enterprises and occupational colleges face the problem of resources insufficient, which refers to equipment, facilities, place, technology and staff. For example, considering energy-saving emission reduction, BYD use aluminum to replace steel, it requires traditional welders to get green skills. Since enterprises and local organizations could not provide such kind training, they have to be sent to Harbin, thousands of miles away, to receive it. In a questionnaire, the answer for what are the primary and urgent support for staff training, the priorities are ①capital ①teachers and courses(subjects) ①improving employee quality ①technical support； џinformation platform； Ѡsupport of higher-level leadership. ѡself-hardware facilities. The answer for what are the obstacles of enterprise investment for green skill are ћgreen skill investment is too high ќlack of special staff to manage green skills and production. ѝother TVET colleges is one of the main forces for green skills training. However, since its main task is academic and vocational education for students, green skills training can’t be fully promoted in these colleges. For example, green logistics is a logistic that replaces small, loose, repeat goods transportation into intensive, alliance, reduce-empty and using clean energy goods transportation. Small businesses don’t have the capability to cultivate this skill. Vocational colleges, although they have the ability to develop green skills standards, also can’t satisfy the industry due to limited staff. Some small businesses can’t meet green standards because of limited staff and

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technology. Another example is the electric car, an important future direction for green transportation. Seldom can occupational colleges provide related courses because of equipment, technology and teacher constraints. Lacking of funds is another problem: the training for workers in green industries needs a large investment but corresponding funds cannot be guaranteed due to the owners' reluctance to spend money, the educational institutions' responsibility to use their funds for students' training and the constraints relevant departments must face while holding the training by their own.

6.3.3.3 The shortage of government support

Many policies have been issued to support green employment and green skills development. But concrete measures are not enough such as vocational qualifications, skill standards, demand analysis and incentive system. In fields like logistics, transportation and manufacturing, some green jobs derived with the green skills development, but because there is no state-level new standards for green skills, people have no access to attend training or apply for certification, which affect the development of green skills. So far, there is uncertainty in relation to green skills training since both national and local governments lack training need analysis. On the one hand, the green skills that enterprises need can’t be developed and trained. On the other hand, developed skills were blindly followed and repeated results in a waste of human and material resources. Government often don’t provide measures to stimulate enterprises and occupational colleges to join in green skills training, and don’t integrate training content and activity itself into assessment and evaluation indicators. This is one of the reasons why enterprises are reluctant to invest and occupational colleges choose wait and see.

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7.7.7. Green jobs and vulnerable groups

7.1 Green Employment and ③ulnerable Groups

Vulnerable groups refer to the social groups in a weak position that lack discourse ability or right due to deficiency in social, economic, political, cultural, environmental and other resources for various reasons, featuring that individuals of the groups cannot maintain the basic living standard of themselves and their families if only relying on their own strength or ability, thus requiring national and social support and assistance, specifically including: the disabled, senile group, women, the unemployed, the poor, laid-off workers, help seekers in a disaster, rural migrant workers, informal employees and those in a weak position in labor relations. Vulnerable groups may arise due to objective or natural factors, or because of subjective or artificial causes. Their forming causes mainly include that, women, children, the aged and the disabled are usually at a disadvantage in physical strength, intelligence and opportunity, etc. due to physiological causes and even concepts and discrimination of traditional society; the underdeveloped system directly affects people’s social status and individual’s development opportunity; then it comes to disparity of economic power. Poverty is a plight the vulnerable groups have to face together in the aspect of economic interest. At social and political levels, the groups are often in a weak position as well, which is exhibited mainly in that their ability of expressing and pursuing their own interest is quite low. Though with a great number of population, they master a few resources and their voice is weak, which makes it hard for their interest to be expressed in society, thus when their interest is involved, discourse has to be made by the government and mass media. For this, government and society shall provide further protection for the vulnerable groups.

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7.1.1 Overall Situation of Employment of Vulnerable Groups in

China

According to data provided by the Sixth National Population Census, by the end of 2010, China had 1.05 billion labor force, 720 million employment population and more than 22 million unemployed people. The vulnerable employment groups researched in this paper mainly cover farmers, rural migrant workers, youth, women and the disabled.

7.1.1.1 Rural labor force

Due to low labor productivity and low gross income, the rural labor force has high vulnerability. By the end of 2010, the rural employment population took up 55% of all jobs in China, among which 75% engaged in agricultural production. Since the per capita resources for farmers are of small quantity, most agricultural products require are characterised by high production costs but generate low incomes yield, which restricts increase of farmers’ income. In 2011, the per capita net income of rural residents amounted to approximately 1000 dollars, the per capita living expenditure reached around 800 dollars and the average living expenditure for each day only 2.19 dollars. The core of China’s Poverty Reduction Strategy is to (i) promote the employment transfer of rural labor force to cities and towns, (ii) reduce the farming population, (iii) increase per capita resources possessed by farmers and (iv) enhance agricultural labor productivity.

7.1.1.2 Rural migrant workers

Due to rural household registration, the rural labor force coming to cities and towns for employment are often in a weak position. Many can only engage in low-end jobs and obtain low pay. According to the “Report on Monitoring and Investigation of National Rural Migrant Workers in 2012”, the total number of rural migrant workers nationwide reached 262.61 million in 2012. Of these, 66.4% were men and 33.6% 122 women; and 60% had received junior high school education. In terms of employment 35.7% were engaged in manufacturing industries, 18.4% in building industry, 12.2% in service industry, 9.8% in wholesale and retail industry, 6.6% in transport, warehousing and postal industries, and 5.2% in hotel and catering industry. From 2008 to 2011, the proportion of farmers’ per capita income had been stabilized at 50% to 60% of that of personnel employed in urban areas. Only 43.9% of the rural migrant workers had signed labor contracts with the employers or units, and the employers or units paying premiums for rural migrant workers on endowment insurance, employment injury insurance, medical insurance, unemployment insurance and maternity insurance took up only 14.3%, 24%, 16.9%, 8.4% and 6.1% respectively.

7.1.1.3 Female labor force

According to the data provided in the “China Labor Statistical Yearbook (2012)”, by the end of 2011, rate of employment in urban units accounted for less than 60%, which women less than 40% About 40% of workers in urban areas, most of them women, working in areas such as self-supporting laborers and domestic helpers, were engaged in low-end jobs with insufficient employment guarantee, and can be defined as vulnerable groups in the employed population. These vulnerable groups mainly consist of laid-off workers and rural migrant workers. In some industries, such as residential service, hotel and catering service industry as well as wholesale and retail industry, female workers dominate. According to the “Report on Main Data of the 3rd Investigation of Women’s Social Status in China” 22, in 2010, average annual incomes

Research Group of the 3rd Questionnaire Survey on Enterprises Developing Green Employment of Women's Social Status in China, “Report on Main Data of the 3rd Questionnaire Survey on Enterprises Developing Green Employment of Women's Social Status in China”. Collection of Women’s Studies, Nov. 2011. 123 of women employed in cities and villages were much lower than men, 67.3% and 56.0% respectively. The income gap between men and women is related to employment and occupational status. Specifically, women mainly work in low-paid jobs and for the same job, woman’s professional level is lower than man’s. In villages, low agricultural productivity and gender-based work tasks constitute the main reasons that rural women get lower incomes than men.

7.1.1.4 Youth labor force

According to data provided in “China Labor Statistical Yearbook”, in 2011, the urban unemployment rate in China was 5.7%. Youth, those aged between 16 to 24 years, took up 27% of the total and the youth unemployment rate was 2.1 times the adult unemployment rate. When hiring employees, many businesses require education and work experience. Some undergraduates without experience are constrained from employment advancement and some youth with low educational level are beset with difficulties when seeking for a job. Female undergraduates are often faced with implicit discrimination when applying for a job. Meanwhile, since young people are not fully protected by labor market regulations, they can be fired more easily than adults, which increases the vulnerability of young workers.

7.1.1.5 Disabled labor force

According to the “Monitoring Report on Situation and Well-off Progress of Disabled People in China (2012)23”, the registered unemployment rate of the disabled in cities and towns of China had reached high levels, namely, over twice the national urban registered unemployment rate, and the actual unemployment rate was higher. In 2012, only 37.2% of urban disabled people of working ages capable of caring for themselves obtained a job. In villages, the proportion was 50.0%.

23 Monitoring Report on Situation and Well-off Progress of Disabled People in China (2012) “The research on persons with disabilities issue” . Feb. 2013. 124

7.1.2 Green Employment and Vulnerable Groups

In 2007, the United Nations Environment Programme (UNEP), International Labor Organization (ILO) and International Trade Union Confederation (ITUC) jointly launched the Green Job initiatives to evaluate and analyze influences of employment situation over climate change for the purpose of improving human employment in ways to alleviate and accommodate climate change and make every effort to realize harmony of human labor with nature. In this regard, green employment conforms to the following four criteria: first, low load of pollutants generated per unit of output ; second, low load of pollutants generated per unit of output over the entire life cycle; third, load reduction of pollutants generated from margin output; fourth, decent work with dignity, guaranteed incomes, safe working conditions and no harm to health. In accordance with the above criteria, green employment not only covers some traditional industries, but also involves emerging green industries. In other words, green jobs can be found in all industries. In the field of agriculture, organic, ecological and green agriculture themselves have a positive impact on the environment and contribute to energy saving. In facility agriculture, energy efficiency is enhanced and carbon emission reduced in production. In the building industry, more and more parts of the supply chain require green technologies, such as green building materials and energy-saving design. In the transport industry, the number of vehicles with low energy consumption by using clean energy is continuously increasing. In producer services (such as industrial design), intermediary services (such as legal advice and financial service), consumer services (such as catering and accommodation) and public services (such as education and health care), there is a large room for greening; while garbage collection, waste treatment and ecological restoration act as restoration to deteriorated environment. Table 1 Green Employment Opportunities for Vulnerable Groups 125 industries Green Employment Opportunities Green Employment Opportunities for Vulnerable Groups agriculture organic, ecological and facility organic, ecological and facility agriculture agriculture forestry modern ecological forestry tree planting management, tourism building green building materials and green building materials energy-saving design manufactory wind energy, solar photovoltaic, wind energy, solar photovoltaic, solar thermal utilization, biomass solar thermal utilization, biomass energy, , lighting, cogeneration energy, lighting transportation automobile fuel efficiency, hybrid public transport, car sharing, electric vehicle, public transport, bicycle, railway, car sharing, bicycle, railway, services industrial design, legal advice and catering and accommodation financial service, catering and accommodation, education and health care ecological Air, soil, water protection and recycling, garbage classification, pollution control environment rainwater recycling and

community planting, watercourse restoration cleaning management and protection

The green economy is considered an important part of strategies to alleviate persistent poverty. Vulnerable groups will benefit from a large number of medium and low-end green jobs, especially the labor-intensive jobs with low technical requirements. First of all, the green economy involves investing in new green industries. The direct and indirect green jobs created can facilitate employment of vulnerable groups. Growing industries, such as wind energy, solar photovoltaic, solar thermal utilization, biomass energy, automobile fuel efficiency, hybrid electric vehicle, public transport, car sharing, bicycle, railway, building, lighting and cogeneration, will result in a growing number of employees. The indirect employment effects created by corresponding industry chains are usually greater than the direct employment effects, which can potentially contribute to more jobs for vulnerable groups. Second, development of large-scale ecological systems will bring a lot of 126 employment opportunitiesBox 1 water suitable conservancy for vulnerable project gr inoups. South For Africa example, tree planting managementFrom 1995 to and 2009, protection the project as had well cleaned as watercourse 856,000 mu cl eaningof invasive management alien plants, and protectionwhich not are only both facilitatedhighly labor-intensive unobstructed industri wateres flow,with great but potential also enhanced for providing land productivity, maintain biodiversity of ecologically sensitive areas (where invasive vulnerablealien plants groups take with the placejobs. In of many local cases species) the andgove rnment improved will fire play resilience. a leading Onerole. Aneconomic international aim was example to provide is a support water for conservancy the growing pro tourismject in industry South Africa. in South In Africa. At the same time, the project also promoted employment in some public communities,sectors, such thereas the are Wetland a large Conservationnumber of opportunit Sector, iesFire for Sector, green Tourismemployment, Sector such and as energy-savingGarbage Disposal lamp Sector. recycling, garbage classification, advertising cloth recycling, rainwater recycling and community planting. For the vulnerable groups living in villages and remote areas, modern ecological agriculture and modern ecological forestry are also two major employment opportunities.

The transition to a green economy is not without risks. Recent research (Bowen, 2012) shows that for an economy with three broad sectors: traditional agriculture, formal and informal urban sectors, the transition to a green economy, particularly when the focus is on capital-intensive energy-based industrial development strategy, the transition to green employment might not necessarily contribute to creating jobs. Vulnerable groups can be negatively impacted. In these instances, additional emphasis needs to be given to the implementation of proactive employment policies to support vulnerable groups. In the transition to green growth, developing countries will also meet serious challenge associated with labor force quality. ILO/CEDEFOP (2011) discovered that, the transition to green growth influences skills required by society in three aspects. First, industrial structural change increases demand for skills related to renewable energies and reduces technical demand for coal mining. Second, some new jobs will appear, such as photovoltaic fitter or carbon footprint assessor. Third, the existing employment of the existing industries brings new requirements, for instance, 127 emphasizing energy efficiency and transition to utilization of renewable resources. Technical improvements in agriculture and forestry sectors will increase biomass production and forestry coverage. While laborers in developing countries are of lower skilled in general and training them with skills required for green jobs is difficult, this can result, at least in the short term, in an increase in frictional unemployment and structural unemployment. Employment of vulnerable groups in the future is further affected by a number of factors: First, policy direction creates the right environment for employment of vulnerable groups. If legal rules are explicit and can be carried out strictly, and economic incentive can be utilized effectively, jobs provided for vulnerable groups can be significant and persistent, such as green employment in fields like pollution control, garbage collection, ecological restoration and renewable energy utilization. Second, consumer consciousness is important. The awakening of consumers can increase market demand for green products, such as utilization of organic agricultural products and renewable energies. Third, technical innovation can impact green job creation. Some activities, like methane utilization, biomass gasification and biomass carbon, show great market demand and employment potential, but due to deficiencies in market competitiveness of relevant technologies and y, face difficulties in being aligned with real jobs. For example, a large quantity of crop straws are usually burned in fields, which not only waste resources, but also pollutes the environment. For these biologic materials are valuable energy sources and organic fertilizers, whose conversion can stimulate great employment demand. Fourth, labor skills shortage may impact employability. Comparatively speaking, low-end green jobs may not necessarily require high technology, but they often require certain green skills. For instance, organic agriculture is not primitive agriculture, but requires certain operating specifications with respect to cultivation system and management, which demands some higher order skills. Overall, green employment does not mean precluding social vulnerable groups. 128

Transformation of green employment creation to support vulnerable groups still faces many challenges in aspects such as employment opportunity, laborer quality, government policy and executive capacity.

7.1.3 Policy Measures for Promoting Green Employment of

Vulnerable Groups in China

The Chinese government has formulated a series of policy measures for promoting green employment of vulnerable groups. “Employment Promotion Planning (2011-2015)” stated that, it is required to “improve ability of economic development to boost employment, realize industrial upgrading stably, give attention to development of labor-intensive enterprises, especially those with high value added, when developing capital-intensive and high-tech manufacturing industries, rigorously develop small and medium-sized enterprises, mainly support micro and small-sized enterprises and keep employment share of the secondary industry enhanced in stability; attach importance to developing modern and precision agriculture, explore employment potential of the primary industry, promote agricultural industrialization and keep increasing rural employment opportunities”, to “develop home services industry for employment promotion”, and to “arrange employment of college graduates and other young people properly, facilitate employment transfer of rural surplus labor force, arrange jobs properly for workers in closed enterprises with backward productivity, and strengthen employment assistance for disadvantaged groups.” On the 17th CPC National Congress, it clearly stated the demand for strengthening training for rural labor force on employment transfer. Thereafter, relevant department formulated the migrant worker training program supported by finance, which lays emphasis on professional skill training. In the special vocational training program for coping with financial crisis, importance is attached to providing pertinent vocational training for four groups: first, develop on-the-job training and 129 job-transfer training for workers in disadvantaged enterprises; second, offer professional skill training or entrepreneurship training for rural migrant workers coming back home after losing their jobs; third, provide 3 to 6-month short and middle-term skill training for unemployed people to help them find another job; fourth, conduct 6 to 12-month training on reserve skills for emerging labor force to improve their employment ability. To encourage graduates of junior high school to participate in secondary vocational education, apart from the policy of providing 1500 Yuan apiece as subsidy for students with financial difficulties each year, the government also issued the “Opinions of Ministry of Finance, National Development and Reform Commission, Ministry of Education and Ministry of Human Resources and Social Security on Tuition Waiver for Students with Financial Difficulties and Majoring in Agriculture in Secondary Vocational Schools” (No. 442 [2009] of Ministry of Finance and Ministry of Education), as well as the “Provisional Measures for Tuition Waiver Subsidy of Secondary Vocational Schools”, which clears the obstruction to impoverished students in receiving secondary vocational education. In the “Program for Period of the “11th Five-Year Plan” on Construction of Highly Skilled Talent Cultivation System (2006—2010)”, the government encouraged enterprises to invest more in training skilled laborers working in production and service, especially those with high skills. As required in relevant provisions, enterprises shall provide expenditure on worker education as much as 1.5%—2.5% of employees’ gross pay, mainly for cultivating highly skilled talents. For technical transformation and project introduction, enterprises shall invest in employees’ technical training according to specified proportion and involve it in project cost. For the enterprises incapable of developing employee training on their own and those without highly skilled talent training, the local governments at count level and above have legal right to arrange the worker education expenditure as a whole, and then the Labor and Social Security Administration will organize the training in a unified way. For the employees participating in off-the-job or half-time training upon the approval of their units shall enjoy the same pay and benefit as those on their jobs. As to those 130 joining local training of highly skilled talents for vacant occupations (types of work), achieving corresponding professional qualification and having been hired by enterprises, the enterprises can give some subsidies for their training and appraisal. Disadvantaged enterprises, by relevant certificates, can make application to local Human Resources and Social Security Department and Finance Department, and after being reviewed by the Human Resources and Social Security Department and checked by the Finance Department, the local Finance Department shall directly appropriate subsidies for the enterprise via its basic bank account according to the standard that the highest amount is no more than 50% of training fees. Farmers participating in various vocational training can be provided with subsides from special employment fund and relevant special funds as specified. As to funds for training various unemployed people, subsidies can be provided from special employment fund and unemployment insurance fund as specified. And in terms of funds for training emerging labor force, subsidies can be provided from local special employment fund and relevant special funds as specified. These policies increase vulnerable groups’ opportunities of entering vocational education and training system, participating in green skill training and pursuing green employment.

7.2 Characteristics of Employment of ③ulnerable Groups

Based on Questionnaire Survey on Enterprises Developing

Green Employment

From April 15 to 26, 2013, the project team travelled to Zhuzhou and Changde in Hunan Province and to Fuzhou and Quanzhou inf Fujian Province to conduct field research. This included implementing a questionnaire survey of enterprises in different industries on their green employment development, anticipated future development and policies for green employment development. In total, 389 questionnaires were completed, which included aspects of green jobs for vulnerable

131 groups.The questionnaire survey investigated enterprises from 2010 to 2012. In terms of employee composition, from 2010 to 2012, among employees in enterprises, the number of production operators grew faster than that of management personnel, professional technologists and salespersons, indicating that most enterprises are still in the stage of expanding production scale. Technological innovations are being introduced at a slower pace than production scale expansion, which often involves employment increases but without skill and technology upgrading. The industries covered in the questionnaire comprise: new energy, light industry, agricultural, forestry and water conservancy, energy conservation and environmental protection, urban construction, new materials, electronic information, manufacturing, energy and other service industries. From the perspective of industry, the ratio of production operators in light industry, manufacturing industry and other service industries are high, while the ratio in urban construction industry, new energy industry as well as energy conservation and environmental protection industry are low. In other words, the newly added jobs for vulnerable groups mainly exist in traditional sectors.

7.2.1 Female Employment

In terms of gender, in 2012, among the sample enterprises, men took most jobs and only 20% of the enterprises have female workers of over 50%. Comparing with that in 2010, in 2012, the proportion of female workers in various sample enterprises decreased. Female workers took up a high proportion of total jobs in electronic information industry, light industry and other service industries, and a lower proportion in industries like urban construction, manufacturing, energy conservation and environmental protection, energy, new energy as well as agricultural, forestry and water conservancy. Table7-1 Proportions of Female Workers in Sample Enterprises in 2010 and 2012 (%) No more

than 25% 26%-50% 51%-75% 76%-100% 2010 47.27 30.13 15.84 6.75 2012 53.29 26.64 13.82 6.25 Data source: Questionnaire Survey on Enterprises Developing Green Employment conducted by the project team 132

The distribution by gender shows that women, working in various industries, have become important labor force. In electronic information industry, other service industries and light industry, those with women’s proportion of over 50% take up 30%, 31% and 28% respectively, exhibiting the leading role of women. Even in agricultural, forestry and water conservancy industry, manufacturing industry and energy enterprises, those with women’s proportion of over 50% occupy 12%, 9% and 10% respectively. In emerging green industries, specifically in enterprises engaging in new materials as well as energy conservation and environmental protection, those with female workers of over 50% take up 23% and 13% respectively. However, in new energy enterprises, the proportion of women are all below 50%, showing imbalance of emerging green industries in leading female employment. In short, the industrial structure of female employment still remains unchanged and women are till concentrated in traditional industries such as electronic information industry, light industry and other service industries. Table7- 2 Proportions of Female Workers in Sample Enterprises of Various Industries (%) No more than Industry 25% 26%-50% 51%-75% 76%-100% Urban Construction 100.00 Electronic 36.36 31.82 13.64 18.18 Information Energy Conservation 66.67 20.00 6.67 6.67 and Environmental Protection Energy 66.67 23.81 9.52 Agricultural, Forestry 52.00 36.00 12.00 and Water Conservancy Other services 46.15 23.08 23.08 7.69 Light Industry 45.16 26.88 17.20 10.75 New Materials 46.15 30.77 23.08 New Energy 50.00 50.00 Manufacturing 68.66 22.39 7.46 1.49 Total 53.29 26.64 13.82 6.25 Data source: Questionnaire Survey on Enterprises Developing Green Employment conducted by the project team

7.2.2 Employment of Rural Migrant Workers

Rural migrant workers are primary employment groups in various enterprises.

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Comparing with that in 2010, in 2012, the number of rural migrant workers in various sample enterprises increased slightly, and the enterprises with proportion of rural migrant workers being over 50% took up 26%. While most enterprises had rural migrant workers of less than 1/4. Overall, rural migrant workers mainly work in new materials, electronic information, agricultural, forestry and water conservancy industries as well as light industry, while few engage in urban construction, new energy, energy conservation and environmental protection, manufacturing and energy industries. Table 7-3 Proportions of Rural Migrant Workers in Sample Enterprises in 2010 and 2012 (%) Rural migrant No more workers than 25% 26%-50% 51%-75% 76%-100% 2010 64.84 7.69 10.99 14.65 2012 65.89 8.28 11.92 13.91 Data source: Questionnaire Survey on Enterprises Developing Green Employment conducted by the project team The distribution of rural migrant workers shows that, rural migrant workers, working in various industries, are important source of labor, particularly in traditional industries. In enterprises of electronic information industry, light industry and other service industries, those with the proportion of rural migrant workers of make up over 50% take up 35%, 29% and 20% respectively, dominated by female workers; while in agricultural, forestry and water conservancy industry, manufacturing industry and energy enterprises, those with proportion of rural migrant workers being over 50% occupy 46%, 18% and 20% respectively, dominated by male workers. To some extent, emerging green industries facilitate employment of rural migrant workers. In enterprises engaging in new materials, new energy as well as energy conservation and environmental protection, those with proportion of rural migrant workers being over 50% occupy 46%, 11% and 7% respectively. Table 7-4 Proportions of Rural Migrant Workers in Sample Enterprises of Various Industries (%) No more than Industry 25% 26%-50% 51%-75% 76%-100% Urban Construction 100.00 Electronic Information 59.09 4.55 18.18 18.18 Energy Conservation 86.67 6.67 6.67 and Environmental Protection

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Energy 75.00 5.00 5.00 15.00 Agricultural, Forestry 48.00 8.00 28.00 16.00 and Water Conservancy Other services 66.67 12.82 12.82 7.69 Light Industry 57.61 13.04 10.87 18.48 New Materials 53.85 23.08 23.08 New Energy 88.89 11.11 Manufacturing 77.27 4.55 7.58 10.61 Total 65.89 8.28 11.92 13.91 Data source: Questionnaire Survey on Enterprises Developing Green Employment conducted by the project team

7.2.3 In terms of skills, green industry development contributes to facilitating employment of vulnerable groups, but low employment ability of vulnerable groups constitutes main obstruction to their green employment

Among employees in the sample enterprises, most have received education to junior high school level, followed by senior high school, junior college/higher vocational school, and finally secondary vocational school/technical school. Furthermore, we can see that, rural migrant workers and women mainly engaged in electronic information industry, agricultural, forestry and water conservancy industry, other service industries and light industry have primarily graduated from junior and senior high schools; laborers in energy conservation and environmental protection industry mostly graduated from junior high school and university; for energy and new materials industries, the employees are mainly graduates of junior college and senior high school; new energy industry primarily consists of undergraduates and junior college graduates; and for manufacturing industry, most workers graduated from junior high school and secondary vocational school. For some emerging industries, like new energy industries, most workers require brand new technologies and skills, which plays a small role in providing employment for vulnerable groups. In other green industries, such as energy conservation and environmental protection, enterprises require highly educated

135 workers on the one hand to lead industrial development. On the other hand, certain functions require inputs from lower skilled vulnerable groups. For example, energy, new materials and other industries requiring a great quantity of resources have higher requirements for laborers’ knowledge; manufacturing industry may require less of laborers’ knowledge, but much more of their skills. Low employment ability 24 precludes vulnerable groups from obtaining more green employment opportunities. In general, except for labor-intensive industries, resource-intensive and technology-intensive industries have higher requirements for laborers’ knowledge and skills. The Questionnaire Survey on Enterprises Developing Green Employment shows that, enterprises require technicians (39.64%) most universally, mainly including latheman, grinder, woodworker, welder, fitter, mechanic and other types of operators. Professionals (29.79%) are required as well, primarily comprising special engineers, electrical engineering designers, environmental protection engineers and professional industrial designers. To some extent, the vulnerable employment groups are also at a disadvantage in obtaining employment skills. In traditional industrial greening and new green industry development, particular attention shall be not only paid to cultivating employment ability of vulnerable groups, but also paid to encouraging development of the industries creating direct green jobs for vulnerable groups.

7.2.4 In terms of industrial development and labor remuneration, green industry development contributes to facilitating employment of vulnerable groups

Based on the above analysis, green industry development is an important way of facilitating employment of vulnerable groups. In traditional industries, jobs suitable for vulnerable groups mainly belong to labor-intensive low-end jobs, which are

24Employability including: communication, planning and organizing, teamwork, self-management, problem-solving, learning, initiative and enterprise, technology, etc.. 136 characterised by low incomes and weak employment guarantee. The Questionnaire Survey on Enterprises Developing Green Employment shows that, 1/5 of the enterprises have a relatively higher turnover, mainly involving enterprises in light industry, other service industries and electronic information industry. Approximately 60% of the enterprises have difficulty in hiring employees, mainly because the job hunters think that the pay and benefit are low. Industries providing low incomes cinclude urban construction industry, other service industries, electronic information industry, light industry as well as agricultural, forestry and water conservancy industry. Green industries open new employment spaces. The Questionnaire shows that, the industries providing higher pay, in sequence, are energy, manufacturing, new materials, new energy as well as energy conservation and environmental protection. When joining these new industries, vulnerable groups will have higher income and stronger employment guarantee, thus achieving more stable and sustainable employment. Table 7-5 Proportions of Average Monthly Pay in Sample Enterprises of Various Industries (%) Position from low to high by Industry average No more than 2001 to 3000 3001 to 4000 At least 4000 monthly 2000 Yuan Yuan Yuan Yuan pay Urban 100.00 1 Construction Electronic 53.57 35.71 3.57 7.14 3 Information Energy 27.78 55.56 5.56 11.11 Conservation and 7 Environmental Protection Energy 26.09 34.78 8.70 30.43 11 Agricultural, 51.85 37.04 11.11 Forestry and 4 Water Conservancy Other services 66.67 18.75 2.08 12.50 2 Light Industry 47.01 35.90 4.27 12.82 5 New Materials 38.89 27.78 5.56 27.78 9 New Energy 20.00 50.00 20.00 10.00 8 Manufacturing 29.58 40.85 7.04 22.54 10

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Total 43.77 35.46 4.99 15.79 6 Data source: Questionnaire Survey on Enterprises Developing Green Employment conducted by the project team

7.2.5 Analytical Conclusion of Questionnaire Survey on Enterprises

Developing Green Employment

Based on the above analysis of the Questionnaire Survey on Enterprises Developing Green Employment, a number of conclusions: Firstly, green industries open new employment spaces for vulnerable groups, which can create better, sustainable and decent jobs. Secondly, emerging green industries do not boost female employment in a balanced way, so that newly added employment opportunities are mainly provided by traditional departments. Thirdly, as new green industries usually have higher requirements for laborers’ knowledge and skills, vulnerable groups have difficulty in obtaining more green employment opportunities due to their low employment ability. The Questionnaire further indicates that, in the course of developing the green economy, adjusting industrial structure and applying new technologies, the biggest problems for enterprises are, in order of severity, insufficient skills, difficulty in recruitment and multi-channel employee arrangements. The core to promote green employment for vulnerable groups is to vigorously support technical innovation, strengthen green industry development and provide proper employment services for vulnerable groups when they lose jobs.

7.3 Employment of ③ulnerable Groups Based on Field Research in Four Cities of Hunan and Fujian Provinces as wellwell as

Jiangsu Province

The research team undertook field research on green employment in Zhuzhou and Changde in Hunan Province, Fuzhou and Quanzhou in Fujian Province, and Jiangsu Province. This section discusses green employment of vulnerable groups 138 based on the field research in these places.

7.3.1 General Situation of Employment of Vulnerable Groups in

Researched Areas

With 3.9 million population in 2012, Zhuzhou City is now in the process of new-type industrialization, urbanization, agricultural modernization and informatization. Traditional smelting and chemical industries have been upgraded. Further, new energy and other modern industries have developed and urban infrastructure has been constructed. The latter has created space for green employment, particularly enabling vulnerable employment groups to achieve jobs of higher quality via green employment by training them with skills and enhancing their competitiveness. In Changde City, the labor market is oversupplied and the unemployment situation remains serious. Specifically, traditional industries such as textile, mechanical manufacturing and food processing are experiencing a decreasing number of employees; laborers had low skills; 36,400 urban registered unemployed people (including 565 undergraduates) had difficulty in obtaining a job; some enterprises closed down and the employees lost jobs, and the problem of multi-channel arrangement was prominent; export of labor services covered 800,000 people. For underdeveloped areas, government officials still see a “trade-off” between economic growth and green jobs, and emphasise “employment before greening”, exhibiting that, in promoting economic greening, it is still required to ensure enough jobs for social workers, to absorb employment via community and service entities, to facilitate employment by boosting city-wide entrepreneurship, and to stabilize employment through enterprises’ scientific development. Comparatively, these are areas confronted with more serious employment situation.

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7.3.2 Employment Opportunities Suitable for Vulnerable Groups

The research team found that, in agricultural, forestry, urban environmental construction, transport, logistics, new energy and service industries, there are many green jobs suitable for vulnerable groups.7.3.2.1 Develop forestry and relevant industries, promote forestry and agricultural employment

Covering 12.56 million mu of forestry area, which takes up 58% of the total city area, Changde’s forestry industry realized a total output value of approximately 10 billion Yuan in 2012. The city has agricultural population of 4.3 million25, agricultural labor force of about 3 million and those engaged in forestry industry of over 800,000. The forestry industry includes seedlings and flowers, camellia oleifera, phyllostachys pubescens, under-forest economy, afforestation and forest protection, forest tourism and forestry management (forest resource supervision, forestry investigation and monitoring, forest resource policy, law enforcement of public security bureau for forest protection, timber inspection, management and patrol for protection). Via forestry and agriculture cooperation, collective forest right system reform and woodland right confirmation, Changde absorbs and allocates capital for forestry, so as to facilitate production factors to be converged in forestry production, promote poverty alleviation of mountainous areas, increase farmers’ income and solve employment of rural surplus labor force. Initiatives include: First, develop afforestation companies and forest cooperatives to facilitate richness via forestry and agriculture. From 2008 to 2012, 100 big companies and cooperatives with over 500 mu of afforestation area were established in Zhuzhou and had planted trees of up to 200,000 mu, bringing along business models such as big organization’s contracting, corporate investment, forest cooperative and shareholding cooperative system. The main participants of big organization’s afforestation are diversified, including out-of-town businessmen, retired workers, incumbent rural

25 Changde covers an area of 1.8 square kilometers, jurisdiction 6 county, 2 district, 1city, a total population of 6 million people, including about 0.6 million population of city and districts. 140 cadres, forestry technicians, veterans and some ordinary people. In addition, forestry- related industries like camellia oleifera, sheet, flooring, furniture, rosin & turpentine and seedling had realized an annual output value of 4.5 billion Yuan, creating a large quantity of green jobs.

Second, development of a camellia oleifera industry to promote farmers’ employment. The camellia oleifera base in Qingshuijiang Township constructed by Farmers’ Specialized Cooperative of Ancient Forest Camellia Oleifera

Planting Project of Liling City (administered by Changde) has vigorously attracted businesses and investment, and constituted a joint-stock company for companization operation with a total investment of more than 30 million Yuan and rented land area of over 11,000 mu currently, covering 145 households, 43 groups and 4 villages, which has completed new afforestation area of over 5,000 mu with the survival rate being up to 98%. After the base is completely constructed, there will be an annual output of 300kg camellia oleifera totalling up to 200 million Yuan, thus boosting increase of farmers’ income. At present, there are 1,125 enterprises and 15,000 employees. Cooperative has low requirements for recruitment and demands low investment in its unit area, but young people have no interest.7.3.2.2 Urban environmental construction and protection creates green employment

Urban sanitation work includes environmental cleaning, road cleaning, garbage collection and transportation as well as harmless garbage treatment, etc, which can promote employment of vulnerable groups. To improve urban-rural environment, Zhuzhou has carried out projects such as “Blue Sky, Green Water, Clean Land and Peaceful Environment”, “Five Alterations”, “Four Modernizations”, “Urban Quality Improvement” and “Urban Environmental Co-governance”. Projects include completing street and lane reconstruction at one time, creating high-quality urban projects, and facilitating urban scientific management, which has achieved significant changes in the urban-rural environment. 141

Urban-rural environmental construction and protection, such as brightening and beautification, requires big increase of workers. For example, the city has engaged over 1000 personnel of “4050” (at least 40 years old for a woman and 50 years old for a man) as traffic management assistants to lead citizens’ going out and punish those breaking rules or jaywalking; employed nearly a thousand workers in the urban area to conduct cleaning, and in villages, hiring 2 to 4 personnel to take the responsibility for garbage cleaning and hauling for each village (community). The waste material recycling industry will develop greatly in the future, emphasising a complete system of recycling, transport, treatment and utilization. Currently, Changde, with respect to renewable resources, has 260 recycling enterprises, over 480 recycling outlets, more than 90 processing enterprises and over 3,000 employees. The annual recycling amount of various waste materials of the whole city amounts to over 500,000 tons. In the urban area, there are nearly 200 stores engaging in recycling domestic waste materials. According to incomplete statistics, 3,000 jobs have been provided in recycling outlet, trade market, sorting and processing center, and transfer station. Waste recovery has been enhanced from 40% to 55%. By 2015, a modern waste goods recycling system with sophisticated network, advanced technologies, good sorting and processing as well as standardized management will have been established.The recovery of main waste goods will be up to 70% and 5,000 employment opportunities will be provided. This will solve problems of disorderly recycling and selling, random stacking and placement, narrow operation place, unscientific function division and nonstandard recycling arising in waste recycling shops.

7.3.2.3 Transport and logistics industries create green employment

A number of initiatives have been put in place that promote the green economy and green jobs. First, the bicycle sharing system promotes employment of vulnerable groups. Investing 10 million Yuan, Changde Government has built 67 public bicycle outlets

142 with 2,000 public bicycles put into use, for which “4050” personnel and those from a family with zero employment were provided with a job in aspects such as management, maintenance and transportation. Moreover, in the third phase of the project to be implemented soon, another 2,000 public bicycles and 60 service outlets will be added, whereupon about 180 green jobs will be provided, which can solve the survival problem of disabled people after they giving up illegal tricycle operation, thus providing another way of facilitating “4050” unemployed people to find a new jobs. Second, the express industry provides employment opportunities for vulnerable groups. Express industry is an emerging service industry, including delivery, sorting and transportation, which can create a lot of green jobs. Express industry mainly consists of private enterprises, and by April 2013, Changde, of express industry, had 23 licensed enterprises, 13 provincial enterprise branches and 13 municipal enterprise branches with 54,200 employees, taking up 0.2% of those engaged in the tertiary industry. The number of laborers directly engaging in express industry, from object collection to distribution, amounted to over 100,000 workers with the service revenue being up to 550 million Yuan. With the improvement of e- commerce ability and the formation of three-dimensional transport hub combining land, water and air transportation, express industry will develop further and better, and thus create a large number of jobs. Due to low requirements for employees entering express industry, the development of the industry indeed provides employment opportunities for vulnerable groups.

7.3.2.4 Building industry absorbs most rural migrant workers

As a basic and pillar industry, the building industry, especially under the strategy of new-type urbanization in China, is still an indispensable main industry. By April 2013, there were 209 building enterprises in Changde with 109,000 employees, including 94,000 rural labor force, 1,842 constructors and over 9,000 backbone personnel (Quality Engineer, Construction Crew, Data Administrator, Rural Migrant

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Worker Administrator, Mechanist, Test Conductor, Budgeter, Safety Supervisor and Material Administrator). Generally, building enterprises are small, and the employees tend to be older than average and have a low technical level, which is not suitable to the requirement of building industry development. To eliminate some enterprises and support development of more highly skilled building enterprises, education and training for first-line construction crew are very important. At present, based on the industrial characteristics, training for building personnel is mainly provided via migrant worker schools. How to cultivate laborers required for modern building industry and train rural migrant workers as main forces for modern building industry is a major challenge.

7.3.2.5 New energy industry facilitates employment of vulnerable groups

LED lighting industry is an emerging industry, but the assembly part is labor- intensive. On the one hand, since only a few schools have the major of traditional Lighting Applications and no school has LED major, enterprises find it hard to engage technical talents in energy-efficient lighting. They have to conduct training by themselves, but as an emerging industry, faced with high staff turnover. On the other hand, ordinary skilled laborers are mostly rural migrant workers who were born in the 1970s. They often have to take care of the elderly and children, and meanwhile, are faced with housing problem, thus enterprises find it hard to make them stay in their jobs for a long time. While for rural migrant workers who were born in the 1990s, they often change jobs frequently, hence exacerbating problems of an unstable labor force. Quanzhou Bright Solar Energy Co., Ltd. is an enterprise manufacturing solar energy applied products with 510 staff, including 400 operators, 60 R&D personnel and 50 management personnel. The enterprise adopts the strategies of worker localization and equipment automation by utilizing the actual situation that June-to- September duration sees off-season tea industry in Anxi and employing seasonal laborers of Anxi to help farmers increase income.

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7.3.2.6 Home services industry

The home services industry is a profitable service industry in which the home services operator provides services such as house cleaning, clothes washing, cooking, family nursing, baby care and other daily family life matters, which involves 83 sub- items of 8 categories, in the form of domestic service (as baby-sitter), hourly worker and incentive operator, etc. According to incomplete statistics, China currently has nearly 500,000 home services enterprises with business income of approximate 150 billion Yuan and 16 million employees. By October 2012, there were over 1,000 home services enterprises in Nanjing, each of which included 80 to 100 stable workers, involving 50,000 to 100,000 employees in total and thus boosting internally demanded consumption of 200,000 Yuan. The employees mainly consisted of female labor force from villages and laid-off workers in the city. The Home Services Industry Association plays a significant role in standardizing industrial development. National, provincial and municipal Home Service Industry Associations all have been constructed for the purpose of coordinating relevant policies for promoting home service industry development, boosting brand construction, formulating professional standards for housekeeping attendants, nurses and housekeeping managers, organizing and developing regular training. The government provides financial subsidies for relevant training. However, home services industry is also confronted with some problems in its development. First, in home services industry, home services enterprises cannot enjoy the social insurance and subsidy policies for many enterprises within the employee system. Second, the home services industry in second-tier and third-tier cities are currently developing slowly, thus it is required to strengthen the integration to assist enterprises in seeking for stable profit model. Third, the credit system of employees in home services industry is not established, so that enterprises have to undertake great risks caused by breach of contract of employees. Fourth, not all employees work with a certificate,and after the government provides basic training for housekeeping

145 attendants, the advanced training for them is further required to be solved. Fifth, the labor remuneration system of home services industry is in disorder.

7.3.3 Summary of Experience of the Provinces in Promoting Green

Employment of Vulnerable Groups

Four cities of two provinces as well as Jiangsu Province have promoted green employment of vulnerable groups spontaneously in the development of green economy, . Therefore, it is necessary to generalize and summarize their relevance to other places in promoting green employment of vulnerable groups. Overall, the experience includes the following aspects:

7.3.3.1 Take “green development” as guide, promote green employment

First, stimulate green economy, namely, keep increasing green jobs by developing new green industries and projects. Second, promote transition to green economy, so as to enable labourers to transfer from pollution-carrying jobs to green jobs. Third, drive relocation for greening. For instance, with the strategic reconstruction idea of “overall planning, industrial transformation, green relocation and step-by-step implementation”, Zhuzhou has relocated, reconstructed or closed 22 enterprises above designed size; hence eliminating backward production equipment and facilitating the introduction of new green, circulation and low-carbon production processes to lead and help enterprises to make innovations and improve quality, thus creating more green jobs.7.3.3.2 Take “green assistance” as main point, develop green jobs

First, deepen the connotation of “greening” of employment support policies and develop green public welfare jobs such as greening and cleaning. For instance, among the public welfare jobs of Zhuzhou, 50% are green jobs, including Urban cleaner and urban greening, security guard, traffic police,etc.. Second, increase the content of “green

146 development” in various training activities, develop green employment training projects and lead laborers to green jobs. Third, strengthen green employment services, open special employment service area in public employment service organization, collect, screen and release information on green jobs, provide vocational guidance on green economy and green jobs as well as occupation introduction for those with difficulty in finding a job, and thus establish a platform for employment of unemployed people and recruitment of green enterprises. Fourth, strengthen green employment popularization, so as to lead main groups such as college graduates, rural transferred labor force and urban personnel with difficulty in finding a job to green jobs. In 2012, among the special employment funds of Zhuzhou, those for public welfare jobs amounted to 4 million Yuan, and for self-employment reached 10 million Yuan, facilitating the creation of a lot of public welfare jobs and service-oriented jobs, including many green jobs, which plays a significant role in boosting green employment of laid-off workers and other vulnerable employment groups. While for Changde, in 2012, of all the special employment funds, those for public welfare jobs was up to 3.57 million Yuan, taking up 6% of all, and those for training subsidy amounted to 18 million Yuan, occupying 20% of all. It can be seen that, public finance performs an important function of promoting green employment of vulnerable groups.

7.3.3.3 Take “green entrepreneurship” as breakthrough, broaden green employment channel

First, efforts need to be made in green entrepreneurship training, particularly, attaching importance to cultivation of entrepreneurship training teachers. Second, improve the design, implementation and monitoring of green entrepreneurship projects, specifically, establish entrepreneurship project database and excellent entrepreneurship projects to encourage and support emerging entrepreneurs. Third, improve green employment support, including entrepreneurship guidance, provision

147 for small secured loan subsidies, entrepreneurship project consultation, tracking guidance and so forth. Zhuzhou has developed activities for promoting green employment abilities by selecting and training enterprising people with green skills engaged in innovative activity in the development and promotion of new technologies, new materials, new projects and new processes. During the period of the “12th Five-Year Plan”, mainly based on 100 enterprises and 20 training organizations, the city will accelerate cultivating a batch of technology-based, knowledge-based and comprehensive skills- based green blue-collar talents and improve the pertinence of green training via school-enterprise cooperation and order training.

7.3.3.4 Perfect employment support policies, promote green employment of vulnerable groups

Examples from the research include the following: First, preferential policies for re-employment benefits leisure agriculture. According to the provision of Zhuzhou City, for those with “Preferential Certificate for Re-employment” households engaged in individual farming of leisure agriculture can enjoy a fixed local tax relief of 8,000 Yuan every year for 3 years. Before the end of 2010, for service-oriented enterprises engaged in leisure agriculture which had employed laborers with “Preferential Certificate for Re-employment” for newly added jobs, signed with them labor contracts for at least 1 year and pay social premiums for them according to law, they can enjoy a fixed local tax relief of 4,000 Yuan apiece for each year within 3 years based on actual number of the employed laborers. Second, use unemployment insurance premium for the training developed by enterprises employing the personnel with difficulty in finding a job, so as to strengthen employment stability of these people.

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7.3.4 Problems of and Challenges to Promoting Green Employment of Vulnerable Groups in Researched Areas

7.3.4.1 Traditional agriculture belongs to weak industry and affects enthusiasm of laborers

For outdoor working and irregular working hour system, the working environment of traditional agriculture, forestry, animal husbandry and fishery is hard. Young people are less inclined to participate in. Those staying in villages engaged in agricultural production and operation are predominantly women, middle-aged and elderly people, commonly known as “3860” troop (of which the people are usually 38-60 years old). Besides, low agricultural labor productivity, low agricultural product benefit and also low benefit of agricultural product processing industry affect enthusiasm of the laborers, so young people generally leave. However, modern agriculture is a large industry with promising prospects. Currently, the first-line employees are litter older, which in the future, may cause talent shortages. Modern agriculture requires a large number of undergraduates, but those majoring in Agriculture and Animal Husbandry cannot meet the demand. For example, the ratio of supply to demand of Animal Husbandry and Veterinary Medicine is 1:5. This is because that, students are reluctant to to undertake animal husbandry and schools cannot attract enough students. 80% of students graduated from this major choose to sit for postgraduate entrance examination and civil service examination.. Further, technicians willing to undertake first-line physical labor are lacking as well. Therefore, to develop green agricultural industries, it is required to enhance agricultural productivity, strengthen attraction of employment in agriculture and finally lead young people to work on agriculture.

7.3.4.2 Some green public welfare jobs lack financial support

Many green public welfare jobs are required, but due to insufficient finance, the

149 development of green public welfare employment is restricted, exhibiting scant jobs and low labor remuneration for employees. Take urban management as an example. Zhuzhou urban management team is staffed by 407 people, but actually, only 251 of them are on regular payroll and 213 on job, and based on requirements of the existing policies and actual work demand, 287 people are further demanded. Since the first- line personnel of urban management have low pay in general, and especially, the wages for sanitation workers are too low and basically fluctuate around the guaranteed minimum wage, the labor force in sanitation is extremely unstable. In Changde, labor remuneration for those engaged in operating public bicycle rental is only 1,700 Yuan/Person, and after deduction of social premiums, the wages actually obtained are only 1,200 Yuan. Particularly, in underdeveloped areas, due to limited finance and deficient funds, the special employment funds are mainly provided via transfer payment. Shortage of funds obstructs full policy implementation. In addition, some micro and small-sized green enterprises provide low pay, poor working and living environments and require long working hours. Only those relatively disadvantaged choose to stay, thus it is necessary to enhance their employment quality.

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7.3.4.3 Employment support policies are incomplete

Policies for supporting green employment of vulnerable groups are faced with the following problems. First, there is no special policy for supporting green employment of groups with difficulty in finding a job. Second, the existing employment support policies exhibit identity differentiation, e.g., a public welfare project can only recruit those under their respective jurisdiction, not benefiting migrants. Third, the more underdeveloped an area is, the more insufficient the understanding of green employment seems, and thus policies are less effective in areas where they are really needed.7.3.5 Problems of and

Challenges to Promoting Skill Enhancement of Vulnerable Groups

7.3.5.1 Education and training on green skills are insufficient

Currently, vocational education is growing. For example, vocational education of Changde occupies 42% of senior high school education. Under the leadership of the government and with more investment, the majors of flower industry, rural management and tourism have developed, but green majors are still less.

Moreover, there are insufficient teachers with green skills and many of them are working part-time, along with non-corresponding majors and insufficient students. Consequently, it is necessary to strengthen cultivation of teachers, popularize green concepts to improve the masses’ concept of green employment, and expand admission scale of green majors7.3.5.2 Government finance differs among areas

Due to economic development imbalances between Eastern China and Western China, and between the coastal area and the inland, support for employment of vulnerable groups from various local governments differs. In the suburbs of Beijing, farmers can obtain green jobs on flower planting and relevant green skill training, 151 which not only increases their incomes, but enhances employment quality, thus enabling work to be more decent. In Ningbo, hotel attendants have the chance of participating in the construction of “Green Hotel”, which improves their own green skills and also directly contributes to energy saving and emission reduction. However, in Western China and impoverished mountain areas, the situation is quite different. Though with the same policies of the central government, the local governments can only provide poorer conditions. The imbalance constitutes greater difficulties for vulnerable groups of impoverished and backward areas in receiving green skill training. For this, many people have to go to the coastal area in the east first for employment and then find opportunity to participate in various training.

7.3.5.3 Shock to low-skill labor market

At present, in China labor market, demand exceeds supply. Young people with less education and without skills basically, no matter male or female, can still relatively easily get a job. Operators of production lines, waiters or waitresses, and hotel attendants are required all the year round. Without a strict employment permission system, a lot of low-skilled laborers rush into labor market directly, which keeps them less educated and low-skilled. Obviously, those with less education and low skills have fewer chances of obtaining re-training than those with higher education and high skills. This vicious circle is adverse to green employment of vulnerable groups

7.3.5.4 Self-improvement is restricted

Comparing with normal groups, vulnerable groups not only lack the ability of searching for information resources and self-learning, but also are less educated and have low skills, thus it is very hard for them to self-improve green skills if without help from others. While seeking for training opportunity, weak information literacy and judgment ability can easily impede vulnerable groups. However, even if vulnerable groups are given as many chances as normal groups (in most cases, it is),

152 they will still face more obstacles. They have no time for mid-and-long term pre- career vocational education and training, lack self-learning ability, money, ability of searching for information and previous high qualifications, and also cannot or refuse to be far away from home, all of which finally obstruct their being trained. Table7- 6 Examples of Development Opportunities/Obstacles of/to Green Skills of Vulnerable Groups Occupation Skill Opportunities Obstacles improvement Normal Vulnerable Normal Vulnerable examples groups groups groups groups Forest New planting Pre-career or on-the-job Smaller Serious when conservation and conservation secondary vocational joining pre- technologies education career vocational education Logistics Self- Trained by Time Time, cost and management learning or enterprises learning Information trained by ability technology enterprises Marketing ability Aluminium New material Trained by enterprises At least 5 At least 5 welder welding years of years of technology experience experience in in welding welding with with shielding shielding gases, off the gases job, difficulty in leaving home Green hotel Concept of Self-learning or trained by Time, Time, learning attendant green hotel and enterprises learning resources and technical resources previous standards qualifications Nurse Knowledge, Pre-career vocational Admission Admission assistant as skills of and education and on-the-job opportunity, opportunity, nursing home attitude to professional training time time, training nursing and opportunity, elderly nursing tuition Waste Classification Self- Instructed by Almost no Self-learning recycling technology learning and departments obstacle instructed by departments Wastewater Chemical and Professional training Admission Admission treatment environmental opportunity opportunity, engineering tuition, time technologies

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7.4 Gender Dimensions of Expanding Green Jobs

In pursuit of more sustainable and inclusive growth, the People’s Republic of China (PRC) is embarking on a green growth path, and policymakers have identified tapping cleaner sources of growth to be a top priority. As identified in other sections of this study, the transition to a green economy provides both opportunities and challenges. From the standpoint of the PRC’s working population, the shift from brown industries to green industries may increase the demand for some types of workers while rendering others obsolete. This section looks at gender dimensions of the PRC’s shift to expand green jobs. It will be important to recognize such dimensions because both male and female workers must play a vital role in the PRC’s transition to green jobs. At the same time, it will also be important to consider measures to ensure that both women and men benefit from this transition.

This section commences with a brief discussion of economy-wide issues, and subsequently focuses on three case studies for selected from the agriculture, manufacturing, and service sectors. It also proposes ways that government can play an important role in providing training and other interventions that provide a “win- win”: both fuelling the PRC’s continued economic modernization and fostering more inclusive growth. On one hand, the full economic benefits of a green economy cannot be reaped if the talents of women are not utilized. Creating equitable opportunities for the workforce will help ensure a growing supply of both male and female workers who are adequately equipped with skills needed for the new economy, thus spurring growth. On the other hand, ensuring that female workers are able to fully participate in (not be left behind by) the rise of green jobs can also advance equity.

7.4.1 Gender in the PRC’s Economy and Labor Force

7.4.1.1 Women’s evolving role in the labor force

Women in the PRC constitute 46 percent of its labor force. Despite the fact that the PRC has achieved a relatively high degree of gender equity on many fronts,

154 women’s full potential to contribute to the economy has not been tapped because cultural expectations and socioeconomic factors impose significant limits on the economic opportunities for women 26 . Helping women to reach their economic potential is a win-win, fuelling the economy as well as promoting inclusiveness. An empirical study suggests that if the employment rate of women reached that of men in the PRC, the country’s GDP would grow by at least 5 percent 27. In terms of the three economic sectors as defined in section* 6.1.1.2, women largely dominate casual agriculture, assembly-line manufacture, and the service sector, which are characterised by low skill requirements, unstable earnings, no protection, and vulnerability in employment status. Women are disproportionately involved in casual and informal sector jobs, partially owing to limited opportunities for human resource development (HRD) programs that could help them transit to more permanent work in formal sectors 28.

7.4.1.2 Overview of gender implications of a greening economy and shift towards green jobs

Beneficiaries of the emergence of green jobs will be those who are well prepared with matching green skills. As identified in section* 6.2, disadvantaged groups (e.g. rural populations, migrants, unskilled and poor populations, and so forth), need special focus to help them to capture the opportunities. The potential benefits of greening the economy for women cannot be expected as an automatic outcome. Measures need to be taken to ensure equitable outcomes for women and men in the green transition. Enabling women to capture opportunities arise from green jobs can fuel the country’s growth engine, in addition to provide a big opportunity to address the challenges posed by an aging society. HRD schemes —ranging from diploma/degree programs for learning Class-I

26 According to the Economist Intelligence Unit 2012, PRC ranks the 68th globally in the Women’s Economic Opportunity, left far behind by its neighbors, Japan (25th) and Korea (35th). 27 To be specific, gross growth of 8 percent, and net growth of 5 percent (Booz&Company 2012) 28 ILO 2008; IMF 2013 155 occupational skills29 (as introduced in section* 6.1.1.3) to short-term training and other forms of basic support for Class-II occupational skills—will be critical to help women successfully take advantage of new opportunities and minimize risks of being left behind or made redundant the shift to green jobs. Sections 7.3.2 – 7.3.4 investigate one case study that may be loosely representative of gender dimensions of the expansion of green jobs in each of the 3 sectors of the economy (agriculture, manufacturing, and service). In particular, the case studies look at smallholder30 agriculture, high-technology green energy, and senior care (also referred to as “elderly care” in some of the literature). These subsectors provide a useful illustration of gender dimensions (including those related to both Class-I and Class-II skills discussed elsewhere in this study), and are also of particular significance due to their implications on environment, employment and growth, and potential in promoting inclusiveness. Although some of the gender issues are specific to these subsectors, many are relevant to other subsectors, and the final section tries to provide more general findings.

7.4.2 Agriculture Sector Case Study: Smallholder Agriculture

7.4.2.1 The socioeconomic and environmental impacts of greening the agriculture sector, with a focus on smallholder agriculture

Agriculture contributes a declining but still important share of GDP – 10.1 percent 31, and is critical to the wellbeing of the population. It employs roughly 500 million people in the PRC, accounting for 38.4 percent of its population 32. Unlike agriculture in developed countries, agriculture in the PRC is dominated by 200

29 Green vocational skills can be categorized into two classes based on the technical training time and demand. Class-I occupational skills are associated with emerging occupations, while Class-II occupational skills provide opportunities to upgrade existing skills in cost and time effective fashion. 30 The World Bank’s Rural Strategy defines “smallholders” as those with a low asset base operating on less than 2 hectares of cropland. 31 China’s Statistical Yearbook 2012 32 For example, in Hunan, one of the pilot provinces of this study, the population engaged in agriculture accounts for 41.9 percent (China’s Statistical Yearbook 2012). 156 million small farms, with an average size of operational holdings of 0.6 hectares 33. These smallholders have been the backbone of agricultural production in the PRC, helping the agricultural sector grow steadily (e.g., recording 4.5 percent growth in 2011) and feed the world’s largest population. However, in spite of this significant contribution, smallholder agriculture also faces challenges, as reflected in the fact that the proportion of household income from agriculture actually kept decreasing 34. The greening of smallholder agriculture has the potential to address some of these challenges, such as by reversing environmental degradation and allowing farmers to grow more profitable organic crops. The importance of smallholder agriculture for the environment is also very clear. Agriculture relies heavily on climatic conditions and is at the same time one of the most significant sources of environmental pressures, particularly habitat change, climate change, and water and land use35. While the PRC manages to self-sustain the world’s largest consumer of agricultural products, thanks to the remarkable shift in agricultural practices with technological improvements, widespread ecological damage and negative human health effects resulting from excessive use of natural resources and chemical products, caused by lack of understanding and knowledge of environment and green technologies, are emerging as a pressing concern. At the same time, promoting the greening of smallholder agriculture faces particular challenges because small farmers tend to have limited formal education, access to agricultural technology, and financial resources to invest in new technologies. More generally, pursuing a green growth strategy targeting the smallholder agriculture subsector lies at the intersection of environment protection, food security and safety, and poverty reduction 36. It is critically important to PRC’s efforts at increasing agricultural productivity and controlling agricultural pollution while dealing with the unique societal aspects of the country’s agriculture, small-farm holders, and low farmer income.

33 China’s Statistical Yearbook 2011 34 from 66.3 percent in 1985 to 29.1 percent in 2010 (China’s Statistical Yearbook 2011) 35 OECD2008; International Resource Panel & UNEP 2010 36 According to an empirical analysis conducted by Ravallion and Chen 2007, agricultural growth had four times greater impact on poverty reduction than growth in the secondary and tertiary sectors. 157

7.4.2.2 Considering issues from a gender lens in the greening smallholder agriculture

In addition to the predominance of small farmers, a second key characteristic of agriculture in the PRC is that it is increasingly dominated by women, who currently constitute approximately 81.4 percent of the agricultural labor force in the PRC 37. As an increasing number of rural male adults migrate into cities for better-paid work, middle-aged women, largely with low skills, are left to bear the double burdens of agricultural work and family responsibilities, taking care of children and the elderly. It is predicted that the trends of feminisation and aging in agriculture in the PRC will continue in the future 38. Since the promise of transitioning to a green economy with sustainable growth can only be fulfilled by increasing agricultural total factor productivity, it will be important to target these middle-aged rural women to equip them with skills and competencies to adapt to the green shift.

However, as noted above, most agricultural smallholders (which comprise the majority of the farming population and are disproportionately women) do not have access to information, including agricultural extension services39 or other trainings related to research and development (R&D), and thus continue to use the same, often environmentally damaging farming practices. Enabling farmers to adopt practices that have a lower environmental impact but a higher income should be a top priority in facilitating a green transition of the sector. Training and other government support to promote a shift by smallholders to green agriculture would generate benefits on multiple grounds, such as increase agricultural productivity, rationalize the use of natural resources, promote environment-friendly production, and adapt to climate change.

37 Center for Chinese Agricultural Policy and Chinese Academy of Science 2012 38 Center for Chinese Agricultural Policy and Chinese Academy of Science 2012 39 Agricultural extension services provide farmers with information on patterns in crop prices, new seed varieties, management practices with respect to crop cultivation and marketing and training in new technologies. 158

7.4.2.3 Expanding HRD and knowledge dissemination to promote green approaches within female-dominated smallholder agriculture

Evidence suggests that some measures 40 that farmers could take to change their practices to lower environmental impact can also increase farm profitability41. In addition to the immediate environmental benefits, low-impact measures tend to be more labor-intensive, and would in turn enable the sector to keep absorbing both farmers and professionals to work on green farming practices, management and preservation of ecosystems, R&D, and training of the use of green agriculture technologies at least in the short-medium run 42. Moreover, these measures can help enhance working conditions and occupational health of farmers, which meet the mandates of green jobs. Among such measures, formal and informal training will be particularly critical to ensure that the fruits of the PRC’s extensive agricultural R&D translate into green agricultural practices. The PRC ranks among the top ten countries in terms of investing in R&D in agriculture. Technological advancements being developed by recent and future R&D have strong potential to provide PRC’s farmers with tools and resources to make farming more sustainable. An obvious example would be development of new seed varieties that require less water. However, further policy and program support in providing training-related solutions will be critical to facilitate the green shift made possible by such R&D. The characteristics of a large population of small average landholdings and low formal education demonstrates needs for dominantly expanding basic knowledge dissemination and training activities as a basic level (Class-II), including both technical and entrepreneurial components, deserves the most urgent investment. Training topics should include guidance on best practices (including successful experiences as well as obstacles) and information and skills on accessing markets for green agricultural products. In parallel, further agricultural R&D, management and

40 These measures include adopting crop varieties that are more resistant to climate change, modifying the use of inputs, improving pest, diseases and weed management practices, using crop rotation to replace the use of pesticides, and biological plant and animal health management (UNEP 2011a). 41 Center for Chinese Agricultural Policy and Chinese Academy of Science 2012 42 UNEP 2008; World Bank 2008 159 preservation of ecosystems, and training of the use of green agriculture technologies require long-term pre-occupation training (Class-I). At the same time, physical access to formal training programs is a major constraint in rural areas. Radio programs can be adopted as a cost-effective method to deliver some forms of trainings, aiming at transmitting basic knowledge and awareness of environmental issues and readily accessible green technologies with a focus on producer. Actors such as All-China Women’s Federation (ACWF) and local NGOs can complement the government by providing frontline insights and services, especially mentoring, training, and networks 43. For example, the ACWF’s Federation and some NGOs have jointly launched a series of campaigns to foster the participation of women in the greening process, such as “the role of women in water conservation”, and “the March 8 Green Project”. Complementing such training, other government interventions could include efforts to expand rural credit and other financial instruments (to support smallholders’ investment in new crop varieties, water-saving technology, etc.), as well as marketing support and systems (e.g., certification of organic produce) to help integrate smallholders into green value-chains. Other interventions could build on existing subsidy programs: by 2010, the PRC government has implemented a number of subsidy programs in order to green the agriculture sector, covering 2,498 counties/districts, and 6,391 green food production enterprises management 44.

7.4.3 Manufacturing Sector Case Study: Green Energy Research and

Production

7.4.3.1 The socioeconomic and environmental impacts of the manufacturing sector, with a focus on green energy research and production

Manufacturing sector accounts for approximately 40 percent of the PRC’s GDP. More importantly, it served as the country’s growth engine and doubled the country’s GDP per capita over the last decade by adding jobs and generating consumption.

43 Equitable access to finance and training, and more developed support networks among female entrepreneurs help improve the productivity of female-managed enterprises (World Bank 2011; OECD 2012). 44 The People’s Republic of China National Report on Sustainable Development 2012 160

Given the fact that the PRC’s economy, especially its manufacturing sector, relies heavily on energy, introducing cleaner, more efficient, and cheaper sources of energy will be critical to maintain the country’s industrial competitiveness. Green energy will also have important benefits for the society through decreased pollution and lowered related health costs and morbidity. There is broad consensus on the potential role of green energy in decarbonisation, pollution mitigation, and promotion of sustainable growth 45. In the specific context of the PRC, green energy R&D and production have broader implications, ranging from increasing energy security, addressing the mounting environmental concerns, and creating green jobs, to maintaining competitiveness and fuelling economic growth in the short to long terms. As a strategy to embark on a sustainable growth path, the country is diverting its resources away heavy/brown industries towards high- technology industries as placing increased emphasis on producing high value-added and high-technology products. Environmental technologies that can provide the cleanest energy possible at an affordable cost will be highly in demand in the PRC. As the global leader in wind power generating capacity and solar heating 46, the PRC is one of the very few countries (including Australia, Germany, and the United States) that have generated substantial numbers of green jobs from green R&D, clean energy, and energy efficiency. Green jobs in installing, operating, and maintain efficient industrial equipment, and related consulting services are forecasted to widely spread rapidly. A concerted worker training effort focused on this industry will support the country to maintain and expand its global market position in green energy in addition to ensuring an adequate skill base to support expansion of these green jobs.

7.4.3.2 Considering issues from a gender lens in green energy research and production

Green energy research and production is currently dominated by men. Analysis using the Survey 47 data provides evidence that women are under-represented in

45 Perman et al. 2003; UNDP 2012 46 The Worldwatch Institute 2012 47 MOHRSS and the Asian Development Bank (ADB) jointly conducted a firm-level survey in the two pilot provinces, namely Hunan and Fujian in 2012, which covered 389 enterprises. The Paper will refer it to as the Survey afterwards. 161

"high-tech green sectors" (defined as consisting of new energy sources and energy conservation). Regression analysis controlling for factors such as status as non-state- owned, total number of employees, and year established suggests that:48 • the share of females in total staff is roughly 8% lower in firms in these high- tech green sectors; • the share of female expert technicians (JISHI) out of total expert technicians is roughly 14% lower in firms in these high-tech green sectors; and • the share of female expert technicians (JISHI) out of total female staff is roughly 2% lower in firms in these high-tech green sectors. These findings are consistent with the gender gap in educational attainments in science fields within tertiary education in the PRC. Despite tight government regulations issued in early 2013 against gender bias in tertiary education, around two- thirds of the PRC’s top research universities still impose policies to limit the proportion of female students 49 . Gender-related discrepancies continue after graduation, and are believed to discourage women to undertake high-technology associated jobs. 50 At present, the evidence above suggests that women are unlikely to benefit from (and could even be adversely affected by) increases in jobs related to green energy research and production. Actions taken to advocate gender equity in green jobs in green energy sector could encourage women’s participation in the sector and related academic disciplines. For example, Beijing Human Resource and Social Security Bureau has released a draft regulation to correct gender discrimination in the workplace, representing Ministry of Human Resource and Social Security’s (MOHRSS’s) efforts at promoting gender equity. At the same time, enhancing the role that HRD systems can play in moderating gender discrepancies should be an important policy objective. It is critically important in reversing the current bias against female caused by lack of skills.

48 The author’s regression results using the Survey data 49 These include the requirement that female college entrance exam takers need to score much higher than their male counterparts in order to major in engineer and science (Chinese Women’s Research Network 2013; University World News 2013). 50 All-China Women’s Federation 2013 162

7.4.3.3 Expanding women’s participation in high-level HRD on green approaches to energy research and production

The Survey data suggests that many enterprises suffer from a talent scarcity, particularly shortage of applicants with necessary technical competencies. Lack of skills and qualification certification particularly curtail women’s potential in undertaking green jobs in high-technology sector and taking higher-level positions. There is a particular need to expand women’s participation in high-level pre- occupational skills training (i.e., Class-I training, as discussed in other sections of the study). Lifting the restrictions on the enrolment of female applicants into associated subjects should be the first step 51. Moreover, there is a need to expand scholarships to attract both females and males into advanced degree programs in green technology areas (e.g., renewable energies). As these tend to be male-dominated, such scholarships should include gender criteria to encourage female enrolment. In addition, experiences demonstrate that distance education (e.g., online master’s level programs in fields related to green energy) could expand access women who cannot regularly attend formal classes due to their family responsibilities attracts women to participate in the subject and sector. Effective practices have been documented on open and distant learning to ensure learners, especially women, receive support from the institution to successfully complete their studies 52.

The PRC began to implement the strategy of “strengthening the country through human resource development” in 2002, which perceived fostering training and introduction of scientific and technological personnel as a principal task. MOHRSS has a significant role in assessing skills needs, providing matching skills, ensuring the talents of women are not squandered in the process, by enforcing equitable opportunities for women undertaking green jobs in the sector and participating in HRD schemes.

51 Although girls have caught up with or even outperformed boys in science in basic education, there are many fewer females in these fields in tertiary education than boys (OECD 2012). 52 Jung 2007 163

7.4.4 Service Sector Case Study: Senior Care

7.4.4.1 The socioeconomic and environmental impacts of greening the service sector, with a focus on senior care

The service sector accounted for 43.2 percent of the PRC’s GDP, and contributed 38.5 percent to the overall economic growth, according to 2010 official data53. The government encourages the development of the service sector, because it is labor- intensive and requires less capital and natural resources. Greening the sector implies significant potential in reducing carbon emissions, absorbing rural-urban migration, and fuelling growth, which aligns with the PRC’s agenda on low-carbon growth54. As income in the PRC rises and society undergoes various shifts, demand for diverse services will increase significantly. Among other critical shifts, the PRC’s rapid and pervasive population aging represents an area where demand for senior services is expected to explode in the near future. The population of the country has been aging since 200055. The PRC is home to the largest population of the elderly in the world (reaching almost 200 million by 2013) and the number is expected to rise to a share of 30 percent of the country’s total population of nearly 1.4 billion by 205056. This poses immense challenges but also promising opportunities for the PRC’s economy and society. A pressing challenge for the PRC is that its prior “demographic dividend” is diminishing as its population ages. On one hand, the absolute number of workers is declining57 (Diagram7-1), which could potentially create labor shortages and rising

53 The PRC National Report on Sustainable Development 2012 54 The overwhelming majority of carbon emissions results from the production of goods and services other than from the direct consumption of energy by households (ILO 2012). Konishi points out that the service sector, through adequate policy changes, has the potential of becoming an important source of growth while helping absorb rural-urban migration and fostering green growth (China Daily 2013). 55 As per the United Nations definition, a population is aging when 10 percent of the total population is 60 or older, and 7 percent of the population is 65 or older. In 2007, the PRC’s respective percentages stood at 13.6 percent and 9.3 percent (ADB Briefs 2010). 56 Xinhua News August 2013 57 The National Bureau of Statistics announced that the number of working-age Chinese shrank by a total of 3.45 million in 2012. 164 labor costs, placing a damper on economic growth. On the other hand, the fact that PRC society is (as a whole) becoming gray before becoming affluent poses additional long-term challenges. Among these, the PRC’s growing elderly population comprises a major vulnerable group in the PRC society, which imposes enormous economic and social pressures58 (Diagram 7-2).

Diagram7-1 PRC’s working–age population59

The Chinese Academy of Social Sciences characterizes the decline in working-age population as the “greatest threat to China’s economic prosperity” (2010). 58 This is a key conclusion drawn from a survey jointly conducted by PRC and international academics, which covered 17,708 individuals across 28 of the country’s 31 provinces in 2013. See citation under Graph II. 59 The Economist 2013 165

Diagram7-2 Rising No. of elderly & shrinking workforce60 Inherited from the Confucian culture, the responsibility of looking after elderly family members falls on family members, most particularly female members. However, this tradition has faded in contemporary society. The country’s unique “4:2:1” problem, namely four grandparents, two parents, and a child, as a result of the one-child policy, also undermines family care for the elderly, particularly in urban areas: e.g., in Tianjin, 62.5 percent of senior citizens lived alone by 2002, and the figure is estimated to reach 90 percent by 201261. Meanwhile, in rural areas and smaller cities throughout the PRC, the massive outpouring of young adults to large cities (driven by economic opportunities) has created issues in rural areas. On the other hand, aging society is creating a market for senior care services and therefore jobs. Premier Li Keqiang announced during the State Council’s executive meeting in 2013 that the PRC will build a diversified nationwide senior care service system by 2020, which will help create jobs and facilitate economic restructuring. He calls for governments at all levels to provide fiscal and administrative support for the sector and facilitate the training of elderly care professionals62. Driven by the huge market demand and the national incentive policies, social investment has flown into the senior care industry. The Ministry of Civil Affairs, in collaboration with China Development Bank, will support the construction of senior care facilities. At the same

60 The Wall Street Journal 2013 61 Xinhua News Agency 2003 62 Xinhua News Agency August 2013 166 time, a potentially much larger number of the elderly may require in-home care. Expansion of either facility-based or home care will translate into substantial rises in the need for caregivers, ranging from professionals like doctors, facility managers, nurses, and physical therapists, as well as low-skilled workers such as bedside assistants. There is a significant role that MOHRSS can play in shaping the senior care service market into a green sector at the earliest stage.

7.4.4.2 Considering issues from a gender lens in the growing green sector of senior care

Expansion of the senior care industry implies multiple layers of economic and social boons for women on top of the environmental benefits. First of all, women will be the largest beneficiary group due to their high concentration in the sector. More specifically, the gender ratio between women and men in providing nursing services is roughly 9:1, which is in line with the statistics that women account for 91 percent of colleague graduate in nursing science. In the meantime, green development of the senior care sector will generate jobs. As elaborated further below, the expansion of elderly care could comprise a major source of new jobs for rural-to-urban migrant women. At the same time, it could also have at least secondary effects in terms of reversing rising urban unemployment for women: according to official figures63, the urban employment rate for working-age women fell to a new low of 60.8 percent in 2010, while a total of 12.21million new urban jobs were created in 2010-201164. The trend is worsening and thus worrisome. Data from the Survey data echoes the argument: in the sample of 389 enterprises, 53.29 percent registered with less than 25 percent female employees, which declined from that of 2010. Furthermore, green development of senior care services will help provide better access to affordable and high-quality care services in the market65. This favours women in view of the larger composition of women in the aging population. Women make up a significant majority of the elderly population, and the female share increases with age, in spite of the fact that the gender ratio at birth skewed towards

63 Xinhua News Agency 2013 64 Report on the Work of the Government (2012) 65 Expanding access and affordability of services synergizes with the PRC’s urbanization agenda (China Daily November 2013). 167 male in the PRC66. Among the elderly population, fewer women are economically active or are supported by their spouse. Data on Asia indicates that 19 percent of women as compared to 51 percent of men are economically active in the same age cohort67. Finally, increasing women’s participation in the labor market (via employment in senior care provision) will help alleviate pressures from potential labor shortages arising from the PRC’s demographic shift. At the same time, the rise of the caregiving industry will lift family burdens from women employed in other sectors. Especially in Asia, women are the predominant providers of informal care for a family, which prevents them from fully participating in the workforce. The economic contributions of such caregiving are neither recognized nor rewarded by society. Furthermore, working women are often forced to adopt part-time job, forgo a promotion, or even drop out of the workforce in order to look after the family elderly, since they cannot currently find professional care-givers to care for elderly family members. Caregiving by working family members has shown to reduce work productivity by 18.5 percent and increase the likelihood of leaving the workplace or shift to part-time jobs68.

7.4.4.3 Expanding HRD to support the growing green sector of senior care

The PRC has achieved impressive success in expanding social welfare in both urban and rural areas69, and has realized the full coverage of the New Old-Age Insurance for Rural Residents and the Old-Age Insurance System for Non-Working Urban Residents programs by 2012, thanks to MOHRSS’s efforts 70 . Further endeavours need to be directed to initiatives that better serve the elderly population while promoting green jobs. While current policy debates focus on how to marketize facility-based senior

66 According to the UN Economic and Social Council (2000), the female to male ration of the world is 1.1 for the 60-69 cohort, 1.3 for the 70-79 cohort, 2.9 for the 90-99 cohort, and 4.0 for the centenarians. In China, 65 percent of the population aged 80 are women. 67 UN statistics 68 Coughlin 2010 69 Pension covers 12.4 million population as of 2012. 70 Report on the Implementation of the 2012 Plan for National Economic and Social Development (NDRC 2013) 168 care services, it is certain that any expansion of facilities would require large numbers of staff. In addition, in-home care is arguably a better quick-win alternative, due to its low infrastructure requirements. Moreover, in-home care is a more acceptable option to many families, given Chinese cultural traditions, and is likely to be a more cost- effective mechanism for providing senior care. Either option leads to immediate needs for considerable skilled caregivers. Formulating a ready for access pool of vocational laborers should thus be a top policy priority. A range of actions need to be taken in this aspect. First, the rapid growth of the PRC’s aging population, particularly in urban areas (Graph III), suggests that the potential demand for skilled caregivers outstrips the current supply by a large margin. Diagram7-3 Proportion of elderly population in urban and rural PRC, 2000-205071

This gap could potentially be filled by the PRC’s large population of migrant female workers, and to a lesser extent by urban females. At present, lack of pathways and matching skills are the leading constraints for rural women to enter the senior care market in the urban area. The government could pave the way by providing a range of skill-related support. To reach large numbers of female migrant workers, Class-II skills development efforts could include information dissemination and short-term skills training focused on basic skills necessary to make them employable as caregivers. For more educated rural and urban women, Class-I HRD programs could include structured training models that can imparts industry-specific technician-level knowledge. MOHRSS would be well-positioned to play a lead role in developing and launching such training programs and other HRD measures (e.g., job-search services, etc.).

71 UN Statistics 2005 169

Development of particular HRD approaches could draw on international good practices. Among these, the government may explore possibilities for public-private partnerships, including contracting or outsourcing work to a range of potential providers (e.g., national NGOs and international private companies) that have existing extensive experience. For example, Beijing’s Dongcheng District government introduced a trial program in 2010 for providing social services—and in particular senior care—via an “urban grid system”. 72 The 2011 licensing of Seattle-based Cascade Healthcare Services LLC (the first for-profit senior care facility to be licensed in the PRC) may also provide useful lessons. Similar licensing arrangements with private firms could be made for in-home care services. Other interventions should include the development of regulations that cover qualification and quality standards for caregivers and a government-sponsored accreditation processes that would advocate consumers’ rights should be put in place. Finally, in developing training programs, it will be important to start from assessing the needs of the elderly and ascertain the services provided match the care needs. For example, Hong Kong Social Welfare Department adopted the Standardized Care Need Assessment Mechanism, an internationally recognized assessment tool, to access elderly needs and undertake eligibility screening for applications for long term care services.

7.4.5 Conclusions

This section has outlined the importance of considering gender dimensions alongside the transition to green jobs, as well as identifying some potential interventions to provide “win-win” solutions, advancing gender equity while also promoting growth and other economic and social objectives. The case studies presented show examples of gender dimensions and potential interventions for 3 critical subsectors: smallholder agriculture, high-technology green energy, and senior care. While some of the issues and options presented are specific to these subsectors, others are more broadly generalizable. Overall, the discussion suggests that it will be critical that the development of

72 See http://www.am828.com.cn/xwttt/201003/t20100304_580765.htm. 170

HRD programs to promote green jobs, mainstream gender perspectives73, and ensure adequate access to women. In terms of the framework presented in section* 6.1.1.3, specific priority types of Class-I and Class-II skill development programs will likely to vary depending on the subsector and target group within the labor force (e.g., female migrant workers). Collectively, however, such programs can play a critical role in allowing women to fully participate in new opportunities (and avoid downside risks) presented by the shift towards a green economy. Linked to such training programs, MOHRSS and other agencies can utilize a range of relevant interventions (e.g., assistance with job search and matching through employment services). Particularly if complemented by broader labor-related polices, such interventions can collectively help ensure that the PRC’s shift to green jobs taps the talents of women, and simultaneously advances growth, economic modernization, and inclusiveness goals.

73 “Mainstreaming a gender perspective is the process of assessing the implications for women and men of any planning action, including legislation, policies and programs, in all areas and at all levels” (UN World Conference on Women). Gender Mainstreaming has been endorsed by the Beijing Platform for Action (Fourth World Conference on Women, Beijing, 1995). 171

8.8.8. Policy suggestions

888.18.1.1.1 Boost people’s awareness of strategic significance to green jobs

This is a key to whether green jobs are created because of policies. Governments must establish green development ideas and clarify the importance of green jobs to improve quality of employment and promote the green economy. If CPC committees and governments attach importance to green development and mobilize different departments, the environmental issues will be highlighted in regional development planning. Measures will be taken to reform the management system and propel green development. The ideas and actions of green development will create more and more green jobs, push the upgrade of industrial structure and that of employment structure as well, and then improve the quality of employment.

888.8...22 Speed up definition of green job

Despite the green ideas of people’s working styles and guiding ideology, there is no clear definition. Therefore, it is hard to lay down policies with certain purpose. It is urgent to define the green job at the policy level. Green job can be defined from “safety, dignity and dependence” and means of production, instrument of production, production target, producer, as well as industries. The definitions can be different for different industries. Industries and departments can give a definition to the green job based on ways in conjunction with common features of green jobs, and clarify the scope of green jobs, providing a basis for issuance of policies concerning green development.

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888.8...33 Proactive employment policy shifts to quantitativquantitativee green policy system

The current proactive employment policy is an extensional quantitative policy system that helps companies create jobs and laborers find jobs. With decreased total employment pressure and prominent structural contradiction, the proactive employment policy should shift to a connotative quantitative green policy system. Transfer payments for employees of relocated or closed companies are increased. Older employees who do not follow the relocated companies receive policy support. Resettlement of workers is financially aided. Special employment funds benefit green industries like leisure agriculture and green innovative industries. In Zhuzhou, each self-employed households who are engaged in leisure agriculture and have a re-employment license can get tax relief of up to RMB 8,000 per year within three years. Service companies engaged in leisure agriculture, which hire individuals with a re-employment license, sign an over-one- year contract with them and pay social insurance for them, get tax relief of RMB 4,000 per year for each employee within three years. Employment promotion policies are laid down for special industries. Those engaged in agricultural production are mainly middle-aged and old people and many young people are unwilling to take up these jobs. Therefore, policies should be formulated to stabilize employment. There is a demand for human resource training policies regarding the adjustment of industrial structure and industrial transformation and upgrade. For instance, Jinjiang City has issued talent preferential policies, policies about transfer and training of rural labor force, policies about employment of local labor force and quality of employment, as well as management policies for floating population. Public employment service should serve and obey to industrial transformation and upgrade. Jinjiang City sets up seasonal, short-term and long-term recruitment platform and provides services in towns and streets.

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Supportive policies for vulnerable groups to find green jobs are issued.

888.8...44 Perfect talent policies that push gregreenen jobs

Vocational colleges, including vocational technical institutes, vocational schools and secondary specialized schools, have close ties to economic and social development and establish majors related to green jobs according to actual needs. Through cooperation with companies and talent cultivation based on companies’ orders, they determine the development pattern for green economy alongside with companies, with pertinence for school-enterprise cooperation enhanced. Intensify skill training for green jobs. Major challenges include sorting out types of green jobs, design teaching plan, outline and standards on skill training, conduct qualification certification, make evaluation of skills, issue supportive policies about skill training for green jobs and set up responsibility assessment system. Company standards for new occupations need to be upgraded to national standards. Assessment will be socialized in the future. Companies should detail methods to conduct qualification certification and stabilize the number of blue-collar workers.

888.58.5 Establishing development plan for education and training of green skills, strengthening publicize of green skills development

Green skills education and training development plan should be established on the basis of need analysis, and integrated into plans for occupational skills development and high skilled talent training. Different regions and industries should make their own green occupational development plan and specific implementation measures on the basis of actual situation. In order to filter green skills into people's minds, it is advised that enterprises as well as occupational education and training organizations should carry out extensive p ublicity on such skills. At the same time, green economic indicators, related policies

174 and laws should be integrated into all kinds of evaluation system to urge organizations to carry out green skills training.

888.68.6 Establishing and improving the assessment system for the training of talent with green skills

On one hand, we should undertake further the appraisement of green skills. On the other hand, the industry and leading enterprises should be encouraged and guided to develop a series of skill standards on green jobs and gradually implement green skills qualification certificate system. In this way, a timely, convenient and fast appraisement of green skills will be available for workers and thus the scale of talents with green skills will become larger than ever. Mechanics colleges and occupational colleges are encouraged to offer green specialties and develop training for green employment related skills, especially for those serve for enterprises, and provide green skills training for small enterprises.

888.78.7.7.7 Giving preferential policies to skills beneficial fforor the employment of vulnerable groups

It is advised that government should give more financial support for the development of green skills and give priority to following four skills: 1. high-demand, low–investment and beneficial for vulnerable groups; 2. already exist and could get improved through training; 3. close related with traditional technology and low-cost (category II) 4. adapt to different professions. It is advised that government should offer more job opportunities to vulnerable groups, and improve their green skills through green skill employment.

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888.88.8.8.8 Integrating green skills development into green occupational education and trainingtraining，，，，eeeestablishingstablishing a system to stimulate enterprise, training oorganizationsrganizations and individuals to get green skills promoted

Improved coordination is required between all kinds of occupational training resources, setting up occupational education system by enterprises and different training organizations, and vigorously promoting the training of green employability skills, work-upgrading skills, work-transformation skills, and entrepreneurship skills to improve the overall skill level of workers. Pre-service education and training are encouraged to strengthen the training for occupational skills and industry skills on the premise that investment remains the same. Soft-skills should be included in high-talent development process to satisfy the needs of green economy development and industrial structure upgrading. It is advised that green occupational education and training should play a key role in the aspects of strengthen learner’s creative, entrepreneurial and creative. A system aims at stimulating enterprise, training organizations and individuals to get green skills promoted should be established. The development of green employment and training which are beneficial for peasants, youths, and females are encouraged to give preferential policies. The number of green specialties and courses should be key indicators in the assessment for occupational education and training organizations. Green skills standards should be integrated into the standards of curriculum and textbook. Occupational education and training organizations are encouraged to carry out short- term green skills training.

888.98.9.9.9 Other social policies

A number of other social policies will strengthen green job creation:

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1. Set up statistical indicator system for green jobs 2. Enhance promotion of the recycling of resources. Measures, such as promotion, education and launch of policies, help people establish a consumption concept of energy conservation and form an atmosphere of valuing recycling of resources. 3. Strengthen the coordination and regulation. Associations should grasp the development tendency of the entire industry, give instructions to companies and provide support in information release, technical communications, project research, etc. 4. Strengthen labor-management cooperation, protect laborers’ legal rights and interests and encourage companies to shoulder responsibilities of promoting green development. 5. Promote citizenization of migrant workers and treat them equally. 6. Strengthen implementation of labor laws.

888.108.10 Strengthen organizational leadership and coordinaticoordinationon and enhance performance assessment on crecreationation of greengreen jobs

With one department as a leader, creation of green jobs is driven by many other departments and valued by the CPC Committee, governments, the National People's Congress and the Chinese People's Political Consultative Conference. The performance assessment system needs to be reformed, with the focus falling on environmental protection, livelihood, education and scientific research, and the introduction of evaluation and monitoring measures. A GDP indicator is added. Improvements in quantitative assessment and monitoring will strengthen new policy and project design and implementation of green job initiatives.

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