The central government is launching pilot projects in selected sectors, such as coal and chemicals, to promote a circular, greener economy. By conserving resources, China hopes to sustain a robust GDP growth rate over the long term.

The National Development and Reform Commission (NDRC) said on Wednesday that it is designing a national campaign to promote a circular economy,

In a circular economy, interlinked manufacturing and service businesses seek to enhance economic and environmental performance through collaboration in managing environmental and resource issues.

A circular economy can take better advantage of resources and energy, minimize waste, and reach a harmonious interaction between society, the economy and the environment.

The government-sponsored projects of the circular economy are ultimately aimed at eliminating emissions by making more efficient use of resources.

Pilot projects are planned in such sectors as coal, chemicals, electricity generation, building materials and recycling of household appliances.

China hopes to sustain an average annual growth rate of 8 percent over the long term, but that requires also sustaining the resources necessary to support growth. The NDRC states that insufficient resources may be the single most dangerous threat to an otherwise optimistic outlook.

Experts said the circular economy is an ideal development model, but more incentives are needed to make it a reality.

“Basically, a circular economy will not work unless there are clear incentives and emission control responsibilities,” said Zhang Jianyu, a visiting scholar with Tsinghua University.

China is only now starting to develop a circular, more environmentally friendly economy. Policies, laws and regulations on issues like recycling home appliances and construction materials are still lacking and recycling systems all but nonexistent. Areas such as these should be corrected as quickly as possible, according to the NDRC.

Nevertheless, in recent years China has made considerable strides in environmental protection. In 2002, it passed a law promoting clean production methods, and many provinces and cities have instituted local regulations along the same lines.

More than 400 enterprises in 20 industries have had clean production evaluations.

Some 20 local clean production centers have been established and more than 10,000 people have attended training on clean production.

R.C. Lao, a Chinese Canadian working as an environmental expert with the State Council, said the government is mapping out standards for the circular economy.

“The standards will detail upper limits of energy and resource consumption for all sectors,” said Lao, who is also the resident project manager of the Canada-China Project on Cleaner Production, under the Canadian International Development Agency.

He said a massive publicity campaign should be organized nationwide to inform the Chinese people of these practices.

(China Daily July 23, 2004)