At the start of a new phase for CCICED, and in light of the significant global environment and development events over this past year, it is useful to review international issues and progress in sustainable development and their implications for China. This is a task that covers both mainstream national and international decision-making and geopolitical considerations since the issues are now major concerns for international relations, globalization and for both ecological and human security.

Ten major issues arise from the review. They are noted below.

1. Our planet's environment continues to deteriorate at an alarming rate, and the solutions, in the form of equitable human development, strengthened knowledge, institutional capacity and governance, are being implemented far too slowly. There will be serious impacts on China's sustainable development achievements, domestically and internationally, if worldwide progress lags.

2. Plausible scenarios, based on philosophies that include security first, market-based solutions, development policy, and behavioral transformation for sustainability, suggest that nations and the international community have immense power to shape outcomes over the next 30 years. At present there are forces pulling in a11 directions among these four approaches. Unless a suitable balance is found, the various dimensions of sustainable development will not be achieved, even if wealth continues to increase globally.

3. The social dimensions of sustainable development, including poverty reduction, environmental justice, and human ingenuity applied through business, civil society and community action, will prevail in the coming years. How can governments, including China's, foster the leadership and enabling conditions to strengthen this approach within their own countries, regionally and globally?

4. Trade, foreign direct investment, and development assistance taken together have not provided adequate sources of development assistance required to achieve the ambitious goals of the Earth Summits in Rio and Johannesburg. The latest commitments are still inadequate. China is reasonably well favored by comparison to many other countries, but will face huge demands as a consequence of its rapid economic growth and accumulated environmental debts. To what extent can China's substantial government budget commitments for sustainable development be supplemented by innovative financing mechanisms such as fee and incentive systems, substituting ecological service solutions in place of expensive infrastructure, and by technology sharing?

5. The WSSD has focused on partnership among business, government and civil society institutions in order to accelerate the pace of sustainable development and to spread the effort more broadly into society, for example, with small and medium-sized enterprises, and in rural and urban communities. These partnerships may prove hard to sustain, depending on everything from international relations, willingness to share experience, and the right enabling circumstances and openness of governments to new governance approaches. But China may be able to benefit tremendously from this partnership model, especially given the new emphasis on business and entrepreneurs participation within governance structures.

6. The multilateral environmental conventions (MEAs) agreed upon during the Rio Earth Summit, and in the decade before and after, will continue to be the most prominent elements of the global framework governing environment and development. Yet they are still not fully internalized within national laws and decision-making of most countries. Even more difficult is the role of global conventions in creating change at local levels. China has done more than many other nations, but implementation is still limited. How can the domestic process be accelerated? And can China exert its growing influence within negotiating sessions such as the Committee of Parties meetings to develop a more effective overall system for the MEAs to operate internationally?

7. The current lack of knowledge concerning important environmental issues and ecosystems, the slow transfer of technology, and the high costs for development of sustainable technologies are working against innovative sustainable development solutions. The problem is particularly acute for China, given the rapidity of development and possible option foreclosure. Expanded international cooperation and strengthened global knowledge networks are required to address science and technology. This is an area where China may need to invest even more than it currently does in order to derive full benefits from linkages with the world's scientific and technology communities.

8. Despite considerable evidence of China's proactive and positive positions in support of international environmental negotiations and remarkable progress domestically on environmental management, there is considerable and probably growing international concern about China's potential impact on the global environment and regional conditions. These perceptions likely can only be altered through a combination of more international cooperation to address specific problems, well- documented improvements, on-going international communication of successes, and consideration of international impacts arising from resource management and other decisions.

9. China's progress towards sustainable development is of interest to all parts of the world but particularly valuable to developing countries. In the years ahead China can be expected to serve as a major source of advice, services and technology for other countries. How Can China prepare for such tasks within the region and in other areas such as Africa? To what extent should it be partnering with others in this process, for example via development agencies and through private sector and professional and international civil society organizations?

10. China appears to be well positioned to take a global leadership role in sustainable development, serving its own needs and for the ultimate benefit of the entire world.

The most important window of opportunity to address international environment and development concerns is the current decade, and the window will start to close if continued erosion of biodiversity, land and water degradation, ocean and atmospheric pollution reduces options. The period for demonstrating large-scale success has been defined by the world community as 2010 to 2020. This is a very short time from the present. The challenge is great. And much of the outcome will be determined mainly by progress by a relatively small number of the largest nations and groups of countries such as the European Union.