Green Transformation in China: Progress and Outlook
273
machines, flat-panel TVs, and water heaters sold in China in 2017 alone could save
roughly 10 billion kWh of electricity, equivalent to a reduction of 6.5 million tons of
carbon dioxide, 14,000 tons of sulfur dioxide, 14,000 tons of nitrogen oxides, and
11,000 tons of particulate matter. Green home, school, community, shopping mall,
and restaurant campaigns have been carried out across the country; green lifestyles
have been advocated, calling on the public to save water and electricity, for example,
by setting air conditioners to reasonable temperatures; vigorous efforts have been
made in developing public transport and encouraging cycling, walking, and other
green mobility options; household waste classification systems have been established
in an effort to encourage public participation in waste classification and recycling.
Green lifestyles give an impetus to the supply of green products and services and the
green transformation of modes of production.
6. Green finance and green service markets have started to flourish
To develop green finance and green service markets is a necessary requirement of
green transformation. Green finance can funnel funds towards the fields in favor
of conservation and efficient use of resources, environmental improvement, and
response to climate change, and guide enterprises to produce green and environmentally friendly products. In August 2016, seven central government departments
including the People’s Bank of China jointly issued the Guidelines for Establishing
the Green Financial System, calling on the financial industry to provide financial
services in various fields such as environmental protection and energy conservation,
clean energy, green transportation, and green buildings. For example, green credit,
in combination with national energy conservation and emission reduction funds and
circular economy funds, should give priority to green development projects. In 2017,
the executive meeting of the State Council decided to set up green finance reform and
innovation pilot zones in five provincial-level regions including Zhejiang, Jiangxi,
Guangdong, Guizhou, and Xinjiang to support the development of green finance.
Meanwhile, China is actively promoting the energy rights and carbon trading systems.
It will establish a national carbon trading market on the basis of pilot programs, draw
up corresponding regulatory rules, and put in place a carbon trading market regulatory system; promote the pollutant emission permit system, and expand the pilot
program on paid use and trading of pollutant emission rights to lay the groundwork
for further development of carbon trading. The development of green finance and the
establishment of carbon trading and emission rights trading markets have provided
financing channels and market-oriented tools for green transformation.
7. Unprecedented efforts have been made in pollution prevention and control
Increased efforts in pollution prevention and control are vital for promoting green
transformation. Since the Plan for Aggregate Emissions Control was developed for
the first time during the 9th Five-Year Plan period, aggregate emissions control has
been incorporated in China’s five-year plans and become an obligatory target since
the 11th Five-Year Plan. The Outline of the 11th Five-Year Plan set the obligatory
target of reducing chemical oxygen demand (COD) and sulfur dioxide emissions by
273
machines, flat-panel TVs, and water heaters sold in China in 2017 alone could save
roughly 10 billion kWh of electricity, equivalent to a reduction of 6.5 million tons of
carbon dioxide, 14,000 tons of sulfur dioxide, 14,000 tons of nitrogen oxides, and
11,000 tons of particulate matter. Green home, school, community, shopping mall,
and restaurant campaigns have been carried out across the country; green lifestyles
have been advocated, calling on the public to save water and electricity, for example,
by setting air conditioners to reasonable temperatures; vigorous efforts have been
made in developing public transport and encouraging cycling, walking, and other
green mobility options; household waste classification systems have been established
in an effort to encourage public participation in waste classification and recycling.
Green lifestyles give an impetus to the supply of green products and services and the
green transformation of modes of production.
6. Green finance and green service markets have started to flourish
To develop green finance and green service markets is a necessary requirement of
green transformation. Green finance can funnel funds towards the fields in favor
of conservation and efficient use of resources, environmental improvement, and
response to climate change, and guide enterprises to produce green and environmentally friendly products. In August 2016, seven central government departments
including the People’s Bank of China jointly issued the Guidelines for Establishing
the Green Financial System, calling on the financial industry to provide financial
services in various fields such as environmental protection and energy conservation,
clean energy, green transportation, and green buildings. For example, green credit,
in combination with national energy conservation and emission reduction funds and
circular economy funds, should give priority to green development projects. In 2017,
the executive meeting of the State Council decided to set up green finance reform and
innovation pilot zones in five provincial-level regions including Zhejiang, Jiangxi,
Guangdong, Guizhou, and Xinjiang to support the development of green finance.
Meanwhile, China is actively promoting the energy rights and carbon trading systems.
It will establish a national carbon trading market on the basis of pilot programs, draw
up corresponding regulatory rules, and put in place a carbon trading market regulatory system; promote the pollutant emission permit system, and expand the pilot
program on paid use and trading of pollutant emission rights to lay the groundwork
for further development of carbon trading. The development of green finance and the
establishment of carbon trading and emission rights trading markets have provided
financing channels and market-oriented tools for green transformation.
7. Unprecedented efforts have been made in pollution prevention and control
Increased efforts in pollution prevention and control are vital for promoting green
transformation. Since the Plan for Aggregate Emissions Control was developed for
the first time during the 9th Five-Year Plan period, aggregate emissions control has
been incorporated in China’s five-year plans and become an obligatory target since
the 11th Five-Year Plan. The Outline of the 11th Five-Year Plan set the obligatory
target of reducing chemical oxygen demand (COD) and sulfur dioxide emissions by