Chinese factories producing 50,000 goods for the U.S. market SPOTLIGHT ON CHINA “I wish to express heartfelt thanks for your contributions to China’s development.” Wen Jiabao Premier, People’s Republic of China

China’s Premier Wen Jiabao (r.) greets our chief economist Daniel Dudek, recipi- ent of the Friendship Award, the highest honor China confers on foreign experts.

ONLINE: See TV news coverage of our China work at edf.org/friendship08

PIONEERING INCENTIVES FOR ENVIRONMENTAL PROTECTION 1991 1999 2001 2003

China’s National We open an office in EDF is named by the In the Yangtze River Environmental Beijing and initiate State Environmental Delta, we help establish Protection pilot projects to cut air Protection Agency the first province-wide Administration invites pollution in the cities to help draft China’s sulfur dioxide emissions us to participate in of Benxi and Nantong. national air pollution trading system. the country’s first regulations for sulfur experiments with dioxide. economic incentives for pollution control.

For Fiscal Year 2008, our China work is included in the Climate line of our financial statement. THE VIEW FROM BEIJING “No other U.S. environmental organization has the strong reputation and breadth of experience that Environmental Defense Fund brings to protecting China’s environment. Our team of ten experts in Beijing is proud to be working with such an important organization.” Zhang Jianyu Managing director, China

AS CHINA GOES, to use the purchasing power of global Following recommendations of a retailers like Wal-Mart to improve panel co-chaired by Dudek, Premier SO GOES THE WORLD product safety and make complying Wen Jiabao created the Ministry of China is roaring into the 21st century When a major chemical spill fouled with Chinese environmental laws a Environmental Protection, a cabinet- with the force of a locomotive, its the Songhua River in 2005, the requirement for contracts. Wal-Mart level post. “We’re seeing in China a economy doubling every six years. Chinese government turned to us to alone has 30,000 suppliers in China. revolution in environmental thought,” But the miracle has come at a high help develop an emergency response Working with us, the retailer set a goal says Dudek. “We need to do everything price: fouled air, despoiled rivers and system for environmental accidents. for its top suppliers to cut their energy we can to make it actually happen.” a growing share of the world’s global We then offered recommendations on use 20% by 2012. warming pollution. environmental governance to better Environmental Defense Fund hold polluters accountable. recognized the challenges and op- Now we are helping China tackle portunities early. More than 15 years carbon dioxide. Last year, China ago, we engaged in what our chief became the world’s leading green- economist Dr. Daniel Dudek calls house gas polluter. Working with us, OUR WORK IN CHINA “the world’s biggest environmental the China Beijing Equity Exchange CHINA Air pollution control programs experiment.” We initiated projects us- this year established an environmental Enforcement programs Greenhouse gas reduction ing economic incentives to cut power commodities exchange and a registry projects with farmers plant pollution in several of China’s to track emissions reductions. Green commuting partners cities and provinces. The areas cov- Since much of China’s pollution ered by our programs now encompass comes from factories that export one-third of China’s sulfur dioxide goods, we launched a Green China emissions. Supply Chain Initiative. The goal is

2004 2005 2006 2008

China’s environmental We establish an We work with Following our recom- agency asks EDF to be institute with poor farmers mendation, China its partner in designing Tsinghua University in Xinjiang and strengthens the penal- enforcement mechanisms to train thousands Sichuan provinces ties in its Clean Water to improve compliance of business and to introduce Act, and our green com- with environmental laws. government officials farming practices muting campaign with on economic that reduce global 70 companies helps incentives to protect warming pollution clear the air in Beijing the environment. and slow the and more than 20 other spread of deserts. cities. 15