24694 Public Disclosure Authorized November 1996 Public Disclosure Authorized N A ~ - .j, -IFS ie! Public Disclosure Authorized ½N1. I~~~~~~~~~l~04"I 9A; 2 | * 4 ; ' ~3@ipjfb* &; l* .E ~~~*r v S24.~ , . .~Fi ,__,,zi S s d * .~~~ -c.,Iv<X4-4,O -S> Public Disclosure Authorized 14001- 1300 - D200_C RURAL 1200 J l loo JLX URDANJ 1 I00 I ~~ ~ ~ ~ 83%'8U1%XBA.~ ~ ~~~I S g 0oo1 83% 700 600 83%' '88% 1 _ 500.. I S0 0_ 15% 17% 17% 17X 19% . 24% 26% ._ 29% 1952 1957 1962 1970 1975 1990 1985 19 0 1995 2G_0 26. cG3 242 C3 20 ___ 93 1 10 1 0. 14 ___.. 1952 1957 1962 1970 1975 1900 1905 1990 1995 , P :,.Ak . common witzh'-^t ^8^ls,.. 'the "j ~rest ~ of Asia.~ ~ ; 'A - t>. ,. _is<,Chiraa struggling ."' .... .,< fi , ,<.wi(Khwidespread i moveOO.f'rON 5 ', . #' * , . , ~~damage. to iots,,environ!-> etht,,''i"lEt~~~~~~~~" i'e,\iz '/tmrt.~lncrdadse'int'0t.I to cities aore awith o2-^ t eltteW1 1i s 6> 4's 4^ 't?525s b Eptacing new pressureres .2 AZ'\t 0f ;">>5hci'n'nturial%"t, resource's.> ................., ; tti\S89 _ K ' 8 . o @ 2~~Recentty, Asian ,,t <+ sCb2\i w 'a' ssss1iL;0 8<nNh '6 uhtrie's,av6seen,>'A' * i S g4d~~~~~~~~~~~~4 > SrttZt9 ' % 2 \ ;,'an ,expornentiqlgrowt,h-................ v_|oz¢ otS;5' k. 0 z'>4" -. \. 74;.N.". 24in, potutloh. traff c E ^, rand <,~~~~~~~t6k ic,wastAes.:3 ,be- 'the retconomies of - -- V " " '~~~~~~,,-j,!ogulprationandutil; ,-' ,. S '' >.i tlilr~~~~~~~~~h,esecountri,e,s' are e-o ' ;' ''f.i§ 'j'to'cities-dF&6l.o.22 t> t ,"Cdoublirig roughglyi' ,,, . ,., ~ev,ery ten yearrs,but,,t.' 5 w 4 '; ]i'/ S;h->;on naturale resfourkes.rb;9 - .. .. hil~~~~~~~-'P,tttioi ^ >ne 8tgy. ts L-$_ -. Wr; . - e mamage a rnato it en n- >c~~'Kp<v"~'- - coutries hoave X' V * ' smovehrefoukeyple_ S 9 w &; ;pro 'N 3 n;~~~~~~- N" inpluin.t.fc - atems in EastAsian ___sQ <-a Y . L| Q%%N ~~ . B 7- - 17~~~~o URBANIZATION AND ECONOMIC GROWTH hina is demonstrating that even the rw _ _ .Iworld's largest and most polluted cities can take action to prevent ' i . .furtherenvironmental deterioration, - =. vand to reverse some of the damage . *. 1Itsrapid growth and industrialization have led to severe problems of water pollution and atmospheric 1contamination. Under-pricing of coal and water has contributed to much waste, while the sheer size of China's population and the country's natural resource constraints have made the situation especially acute Today, a third of China's 1 2 billion people live in cities ''~5- By 2010, this figure may double AIR QUALITY N RiE t * i Half of the world's 10 most polluted cities are in China, and many other Chinese cities do not meet the air I -~ 'I quality standards set by the World Health Organization 1rF-"1 1 ¶ | - Two-thirds of the total amount of sulfur dioxide emis- sions in Asia are generated in China Sulfur dioxide is a ~1>.- - precursor to acid rain and urban emissions of this sub- stance are expected to at least double in China over the next two or three decades Already the damage from acid rain can be seen in many areas Since 1995, China has been the world's single largest producer and consumer of ozone depleting substances With its rapid economic growth, the production of CFCs, widely used for refrig- eration, insulation, packaging and aerosol-borne prod- ucts, has increased dramatically Before economic reform in the 1980s, two decades of heavy investment in industry took place with little attention to environmental protection or the provision of basic infrastructure This publication reviews some of the issues, notes some examples of what the Government is doing about them, and shows how the World Bank is contributing _E X-X*%1,zf 1',<,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.. Vf 0 Ptib~~~~~~4 ~~~~~~~~~~~~~~~~~~~~~~~~~~w-- -Z fwSt Fe- -NSgr ew countries are as dependent on coal for cncrgy as China. More than one billion tons are consumed annually. This is expected to increase to 1.5 billion tons by the end of the century. When this mostly low grade coal is burned it causes serious atmospheric pollution from airborne particulates and sulfur dioxide emissions. Coal is used mainly for industrial production and power generation, but it is also a ! major source for the heating and cooking of individual households. Three major health risks have been associated with the domestic use of - polluting fuels: acute respiratory infection, a major killer of children under the age of five; chronic lung diseases such F as bronchitis, emphysema, asthma and cancer. ik China's rapid eco- nomic growth means that increasingly people are abandoning the bicycle for motor vehicles. Rising consumer demand for motorcycles and cars may be good for the economy, but the outcome of car ownership, continuing to expand as it has in industri- alized countries, will bring unacceptable environmental conditions. Vehicle emissions are already reaching toxic levels in some cities. Motor Vehicle Growth in China likely Motor Vehicle-Related Air Quality Trends inChina 12 12 ________________________ 2 10o - - - AllMotorVehicles 10 _ . Goods NOx - 8 - Passenger t _ =,6 . 6 _ X ttt t(O 6 6~~~~~ o g * - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~PM-1O :E 4 * ~~~~~~~~~~~~~~~~~~~~~~~Staodard =2 _2 __ Sod 0 . ll lll lll ll ll 0l 1965 67 69 71 73 75 77 79 81 83 85 87 89 91 1993 1990 2000 2010 Y E A R Y E A R Urban Total Suspended Particulates Levels in Northern and Southern China, 1981-1992 12 10 08 06 0.4 02 0 0 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 -,-'- North --a- South -V- WHOGuideline Urban Sulphur Dioxide Levels in Northern and Southern China, 1981-1992 mg/m 3 0.14 0 12 010 0.08 6~~~~~~~~~~~~~~~~~ot 0 06 0.04 0.02 000 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 PROTECTING WATER RESOURCES Water quality is another major concern Throughout the developing world, some 90 percent of sewage is discharged untreated, usually into freshwater bodies China is no exception More than 40 percent of newly-built urban areas have no sewerage systems In many cities, rainwater and sewerage flow through the same pipes into rivers or discharge causing pollution to groundwater resources. As early as the 1980s, more than 300 cities were short of water, and in 100 of them the shortage was critical Drinking supply for a quarter of the population does not meet acceptable standards Today, industrial wastewater is the dominant source of pollution, less than one- third of which is treated Coastal waters and rivers are polluted, and both surface and groundwater are contaminated in many areas Toxic and hazardous wastes are becoming a major environmental problem Hazardous wastes, mainly produced by petrochemical, tanning and chemical industries are collected and disposed of in a largely uncontrolled manner Volumes of waste, already large, are increasing, though some is recycled About 80 percent of solid waste comes from industry, most of it coal-ash Urban residents generate 10 percent more waste each year Due to lack of collection and treatment facilities, much of the urban solid waste and night soil is piled up or improperly buried *7' Urban Water Consumption, 1990: Selected Cities (population over I million) and Some International (omparisons CITY Harbin Kunming Beijing - - (hongqing Jinan _ - Shenyang - Chengdu - - - - Shanghai - - Hangzhou - - - - Wuhan - - - - - - Guangzhou - - - - -- CHINA (average) - - -_ Santiago Paris (suburbs) - - - Tokyo - - - (anada (average) _____ 0 100 200 300 400 500 600 700 CONSUMPTION I/c/d 4? ~ ~ ~ ~ sopi t ~1: WHAT IS BEING DONE? n recent years, central and local authorities have enacted a comprehensive set of environmental laws, regulations and standards These measures emphasize preven- tion and are based on the principle that the polluter should pay The next step will be to strengthen environmental management, intensify pollution regulation enforcement, and improve tariff collection for all urban environmental services, to ensure sustainability To illustrate how the Government of China and the World Bank are collaborat- ing to overcome these problems, one could look at the cities of Beijing and Shanghai and urban development in the provinces of Liaoning in the north, and Zhejiang, south of Shanghai Liaoning Province has limited water resources Twenty-five million of its people live in or around cities, which have grown rapidly due to migration from rural areas Liaoning has become one of China's major industrial bases due to large reserves of iron ore, coal and oil The pressure on water resources is serious around the capital, Shenyang Here, an area which is less than one fifth of the province supports about 15 million people in the Hun River basin A .;\ A numberfl 5' of, cities.1= .. in the river basin are major centers of industry, generating a signifi- __| : -cant proportion of national -- n,.*a , ^ 9 i industrial output This degree -?ps -/ ^ P - of industrial activity, coupled . with limited treatment of 9 wastewaters, imposes severe ~T h 7 t rs , on the5stress water environ- >- - - j Water1 t^ment supplies are t-' L w ¢sl Lta 1 critically dependent on two -A 2;i-jt ,r 6 _ rivers, the river water quality fails to comply with national L_____ - __ t .waterquality standards The situation is particu- larly acute in the case of cities such as Shenyang and Fushun, which are close to - 3~the headwaters of the Hun River The flows are con- - ,| t _ _ trolled by operating multi- purpose reservoirs upstream r3>F -!^ 7 1 l 1! 1- The pollution from these cities contaminates the river for considerable distances downstream because of the heavy pollution loads and re- stricted dilution When water resources close to cities are degraded with pollutants, water must be transported from more distant sources at substan- tially higher cost For example, in Fuxin, at the recently completed Bank-financed water supply - j " svC> ',_#jproject, the intake and treatment plant are situated iI.