The central government's bid to factor in the cost of environmental degradation into economic growth with the introduction of ‘Green GDP’ has run into opposition from some local governments.

 

"There is no consensus on (adopting) Green GDP (standards) among local governments," Wang Jinnan, vice-president of the Chinese Academy for Environmental Planning and head of the Research Team on Green GDP, said over the weekend, admitting the pilot project has failed to take off. "Just a few days ago some provinces and municipalities said they wanted to withdraw from the Green GDP trial.”  

 

While there are different definitions of Green GDP it’s basically a revision of the traditional system and deducts resource and environmental costs in economic activities. China is the first developing country to take this approach.

 

In September the State Environmental Protection Administration (SEPA) released the country's first Green GDP Report for 2004. It estimated that economic losses caused by environmental pollution amounted to 511.8 billion yuan (US$66 billion) or approximately 3.05 percent of the country's GDP that year.

 

The SEPA started a trial introduction of Green GDP in 10 provinces and municipalities last year and Wang said the country plans to publish the Green GDP Report for 2005 in the first half of next year.

 

Despite all the difficulties said Pan Yue, vice-minister of SEPA, the administration would continue to push for the plan. "Even if there’s only one province left in the project we’ll continue with our work," said Pan, a strong advocate of Green GDP.

 

Insiders said the controversy over Green GDP stemmed from technical shortcomings in the survey about accurate figures for economic losses that result from environmental protection.

 

Pan said in China environmental protection was different from other countries. It’s not only a technical issue but also involved politics, the economy and culture, he said.

 

Wang's research team and eight others were given awards by the China Environment Culture Promotion Association on Saturday.

 

(China Daily December 11, 2006)