THE CHINA COUNCIL FOR INTERNATIONAL COOPERATION ON ENVIRONMENT AND DEVELOPMENT THE THIRD MEETING OF THE FIFTH PHASE Diaoyutai State Guesthouse, Beijing December 1 – 3 2014 Summary Record February 2015 Table of Contents I. Introduction ................................................................................................................................ 1 II. Annual General Meeting.......................................................................................................... 3 Item 1. Opening of the Meeting 3 Item 2. Secretary General’s Progress Report and Work Plan 4 Item 3. Introduction of Draft Policy Recommendations 6 Item 4. Keynote Speech 10 Item 5. Addresses, Special Remarks, Issues Paper 17 Item 6. Task Force and Policy Research Reports 42 Item 7. Draft Policy Recommendations to the Government of China 72 Item 8. Open Forums 85 Item 9. Briefings on the Open Forums 150 Item 10. Final Draft of the Policy Recommendations 152 Item 11. Closing Session 163 CCICED Summary Record 2014 i ABBREVIATIONS AGM Annual general meeting APEC Asia-Pacific Economic Cooperation forum ASEAN Association of Southeast Asian Nations CCICED China Council for International Cooperation on Environment and Development CITES Convention on International Trade in Endangered Species of Wild Fauna & Flora CO2 Carbon dioxide EPRL Ecological protection red line EU European Union FYP Five-Year Plan GDP Gross domestic product GHG Greenhouse gas HFC Hydrofluorocarbons MEP Ministry of Environmental Protection NDRC National Development and Reform Commission NGO Non-governmental organization NOX Nitrogen oxide NPC National People’s Congress OECD Organisation for Economic Co-operation and Development PM Particulate matter PV Photovoltaics RMB Renminbi SE4All United Nations Sustainable Energy for All initiative SERI CCICED Secretariat SISO CCICED Secretariat International Support Office SO2 Sulfur dioxide TCE Tonne coal equivalent UNEP United Nations Environment Programme WHO World Health Organization CCICED Summary Record 2014 ii THE CHINA COUNCIL FOR INTERNATIONAL COOPERATION ON ENVIRONMENT AND DEVELOPMENT THE THIRD MEETING OF THE FIFTH PHASE Diaoyutai State Guesthouse, Beijing December 1 – 3 2014 Summary Record I. Introduction The China Council for International Cooperation on Environment and Development ("the Council" or CCICED, pronounced “sea-said”) was established in 1992 by the State Council of the Chinese government in order to foster cooperation in the areas of environment and development between China and the international community. The Council is a high-level advisory body that puts forth recommendations on environment and sustainable development for the Chinese government’s consideration. It has so far convened 23 annual meetings organized in five-year phases. The Council supports the development of a comprehensive approach to sustainable development and environment through close cooperation between China and other countries. At present the Council is composed of 25 Chinese members and 25 international members who were chosen for their experience, expertise, and influence. CCICED Summary Record 2014 1 The Council is chaired by Mr. Zhang Gaoli, Vice Premier of China’s State Council and a member of the Political Bureau Standing Committee. It was at his invitation that the members of the Council attended the third meeting of Phase V. The CCICED Bureau serves as the executive body of the Council. The Council’s host institution is the Ministry of Environmental Protection (MEP). Previously known as the State Environmental Protection Administration, MEP is responsible for the Council and for ensuring inter-ministerial coordination. It has established the CCICED Secretariat (SERI) to support international and domestic contacts. The Secretariat supports follow-up in China to CCICED recommendations, and deals with routine matters when the Council is not in session. The Secretariat is assisted by the Secretariat International Support Office (SISO), directed by Mr. Christopher Dagg and located at Simon Fraser University in Burnaby, Canada. Until April 2013 SISO was funded by the Canadian International Development Agency, afterwards by Canada’s Department of the Environment (Environment Canada). This Summary Record of the CCICED’s third meeting of Phase V was prepared by Patrick Kavanagh for SISO, based on detailed notes recorded during the annual general meeting (AGM). Representing SISO’s interpretation of the discussions, the Summary Record does not necessarily reflect the views of all participants. To encourage frank and direct dialogue, the Summary Record presents an overview of the points made during comments and discussion sessions without attribution to individual speakers. CCICED Summary Record 2014 2 II. Annual General Meeting Item 1. Opening of the Meeting China’s Minister of Environmental Protection and CCICED Executive Vice Chairperson Zhou Shengxian called to order the third meeting of Phase V, focusing on the theme of management and institutional innovation in green development. He introduced the following dignitaries: Vice Premier of China’s State Council and CCICED Chairperson Zhang Gaoli; Canadian Member of Parliament, former Minister of the Environment for Canada, and CCICED International Executive Vice Chairperson Peter Kent; Vice Chairman of China’s National Development and Reform Commission (NDRC), and CCICED Vice Chairperson Xie Zhenhua; Executive Director of the United Nations Environment Programme (UNEP) and CCICED Vice Chairperson Achim Steiner; Deputy Secretary General of China’s State Council Ding Xiangyang; China’s Vice Minister of Environmental Protection and CCICED Secretary General Li Ganjie. He welcomed guests, Council members, and observers to the 2014 AGM, and declared the meeting open. CCICED Summary Record 2014 3 Item 2. Secretary General’s Progress Report and Work Plan Secretary General Li Ganjie presented to Council his report on the progress of work during 2014 and CCICED’s work plan for 2015. Here are the highlights of his presentation: Our progress has been reflected in the following: First, we have conducted two task forces and four special studies, as planned. On the basis of the findings we have drafted recommendations to China’s State Council. Second, to expand the impact of CCICED we have been sharing our experiences and research findings. For example: Back-to-back with the Asia-Pacific Economic Cooperation (APEC) high-level roundtable we held the CCICED roundtable on the theme of green transformation and institutional innovation for investment, trade, and consumption. We shared our findings and policy recommendations with local governments and representatives from Asia-Pacific countries. During the 11th China-ASEAN (Association of Southeast Asian Nations) Expo in Nanning, 17 September 2014, we held a side event on the topic of ecological civilization and institutional innovation for green transformation. We also held a workshop on China-African partnership on sustainable development. Thus we have promoted exchange with developing countries and enhanced the role of CCICED as a platform for two-way communication. In the green supply chain demonstration projects in Tianjin and Shanghai, CCICED developed the operational policies, systems, standards, and measures for green production, green supply, green procurement, and green consumption chain. At the same time the demonstration project on media and public participation accelerated the formation of regulations on public participation in environmental protection in Hebei province. In addition, the Council has also initiated a demonstration project on sustainable consumption. Third, in 2014 great progress has been made in China. Many of our policy recommendations have been highlighted and adopted. For example, in 2013 CCICED suggested putting in place an CCICED Summary Record 2014 4 incentive/punishment evaluation mechanism incorporating energy consumption, environmental damage, and other factors into the national economic evaluation system. We also suggested that ecological civilization should be incorporated in the indicator system for performance review of local officials. As a result, in August 2014 the NDRC issued a document on evaluation related to per capita gross domestic product (GDP) carbon dioxide (CO2) emissions reduction. In addition, CCICED suggested the revision of environmental protection law and the formulation of implementation procedures. In July 2014 the Standing Committee of the National People’s Congress (NPC) adopted the revised law which will accelerate the revision of air and water pollution control law. What is worth special mention is that our initiative proposal to establish an APEC Cooperation Network on Green Supply Chain, which was put forward on the basis of CCICED demonstration projects on green supply chain, was endorsed by the 22nd APEC Economic Leaders’ Declaration. The year 2014 is critical to the 13th Five-Year Plan (FYP) with its strategic window of opportunities for modernization. Our mandate is to accelerate the modernization of the governance process for green development. In the coming year, with the approval of the Bureau, we will work on the following: Focus our efforts on policy research on governance for green transition as a foundation for making policy recommendations. Disseminate and share our findings in order to expand their impact. Start preparatory work for CCICED phase VI. The 2015 AGM will be held 9 to 11 November in Beijing. CCICED Summary Record 2014 5 Item 3. Introduction of