Publications: Environmental and Social Policies in Overseas Investments: Progress and Challenges in China by Denise Leung, Yingzhen Zhao, Athena Ballesteros, Tao Hu (May 2013)

Environmental and Social Policies in Overseas Investments: Progress and Challenges in China

Denise Leung, Yingzhen Zhao, Athena Ballesteros, Tao Hu

May, 2013

The face of development finance is changing. China is quickly becoming one of the world’s largest overseas investors, measured by the amount of money it directs overseas. Many of these projects are large-scale, high impact projects involving natural resources. They’re reshaping the relationship between investor and recipient countries, as well as posing opportunities for environmental and social initiatives.

This issue brief analyzes the opportunities and challenges faced by Chinese state-owned enterprises (SOEs) and policy banks as they invest overseas. It provides insights about how to move forward in the development of environmental and social policies as they relate to risk management.

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Summary

Like other countries that invest overseas, China—through the projects it finances and executes—can bring great benefit to the countries and communities in which it invests (“host countries”). However, investments can pose challenges and risks to host and investor countries. Effectively tailored environmental and social policies can identify and mitigate not only unanticipated environmental and social harm, but also some of the investment risks that can undermine the long-term financial success of a project.

Even in the midst of the 2008–09 global financial crisis, China’s outward foreign direct investment (OFDI) continued to grow.1 Between 2008 and 2009, China’s OFDI flows grew nearly 8 percent, while total world OFDI flows during the same period decreased nearly 40 percent (Unctad Stat 2012). In both 2009 and 2010, the Export-Import Bank of China and the China Development Bank together lent more than the World Bank did to developing countries (Dyer, Anderlini and Sender 2011).

Environmental and Social Policies in Overseas Investments: Progress and Challenges for China examines trends in China’s overseas investments and considers how social and environmental policies can reduce investment risks and enhance the positive impacts of China’s OFDI. We focus on three major forces in China’s OFDI: the central government, financial institutions, and centrally owned state-owned enterprises (SOEs). Although a variety of institutions are involved in overseas investments, the majority of Chinese OFDI originates from centrally owned SOEs, and its OFDI growth is fueled largely by the strong lending capacity of its financial institutions, especially the China Development Bank and the Export Import Bank of China. Aid, trade, and other types of financial interest that may be associated with overseas economic interests are not addressed here, nor are overseas investments by collectively or privately owned companies.

As China continues to expand overseas investments, understanding and managing the environmental and social impact of these investments in host countries can help it build mutually beneficial relation-ships with host countries. Already, methods to address environmental and social issues in overseas investments are emerging in China. Chinese regulatory authorities are creating guidelines in their areas of jurisdiction, and individual financial institutions are developing and refining their own policies. International experience with environmental and social risk mitigation offers a useful context for Chinese investors and policymakers to consider as they continue to develop these overseas investment policies.

Moving forward, China faces several challenges, not the least of which is a lack of understanding of the regulatory and legal environment in host countries. Attention to host countries’ regulatory and legal environments must be ratcheted up if investment risks are to be reduced. Supervisory challenges and coordination among ministries should also be prioritized. Finally, even though governments, financial institutions, and corporations have produced multiple guidelines and policies to guide more sustainable overseas investments, implementation remains a major challenge. Sufficient resources should be directed toward implementation to overcome barriers such as cost, coordination of resources, and time.

While these challenges are real, China’s rapid economic growth and global presence also create opportunities that offer insight for a global audience. China can shape the direction and return of its OFDI to maximize positive impact and achieve “win-win” relationships with host countries. As an experienced recipient of OFDI, China can now apply those lessons as it invests abroad. In addition, China can step into facilitator and leadership roles in the international agenda of promoting sustainable cross-border investment, especially in developing countries.

This issue brief is the first in a series of WRI publications by the International Financial Flows and the Environment (IFFE) project that examine the role of environmental and social policies in overseas investments. Future publications will look at the “business case” for adopting stronger environmental and social policies, and will include case studies of overseas investments from China and other countries.

For more information: 

http://www.wri.org/publication/environmental-and-social-policies-in-overseas-investments-progress-and-challenges-for-china

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New Books: Environmental Policies (Routledge Revivals) An International Review Edited by Chris C. Park (26 Jun 2013)

Environmental Policies (Routledge Revivals)

An International Review

Edited by Chris C. Park

To Be Published 24th June 2013 by Routledge – 316 pages

Descriptions: 

The importance of the effective management of the natural environment has become vital over the past few decades. In different countries, varying policies are implemented by governments to manage the environment, both to foster growth and reduce pollution and destruction. Employing a broad country-based approach, this edited collection, first published in 1986, surveys the growth, nature and effectiveness of the environmental management policies implemented by governments around the world. The overarching argument is that a coherent international approach is needed to deal with the problems surrounding environmental sustainability. This title will be of great value to students of the natural environment, sustainability and resource management.

Contents:

Contributors; Acknowledgements; 1. Environmental Policies in Perspective Chris C. Park 2. Environmental Policies in the United States Melvin Marcus 3. Environmental Policies in CanadaGeoff Wall 4. Environmental Problems and Policies in the European Community David Briggs5. Environmental Policies in the United Kingdom Andrew Gilg 6. Environmental Policies in Australia John Formby 7. Environmental Policies in India S. L. Kayastha 8. Environmental Policies in Japan Takamasa Nakano 9. Towards a Global Environmental Strategy Richard Sandbrook; Index

For more information: http://www.routledge.com/books/details/9780415712729/

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New Book: Emissions, Pollutants and Environmental Policy in China Designing a National Emissions Trading System By Bo Miao (25 Mar 2013)

Emissions, Pollutants and Environmental Policy in China

Designing a National Emissions Trading System

By Bo Miao

Published 25th March 2013 by Routledge – 208 pages

Description:

As the world's biggest polluter, the environmental challenges that China faces in controlling its airborne emissions are crucial, not only to its own population in terms of tackling the severe domestic air pollution, but also to the planet as it faces calls from the international community to accept its responsibilities in cutting greenhouse gases.

Deteriorating air quality clearly shows that China’s current environmental regime is unsuited to either tackle the rampant domestic air pollution or contribute fairly to international climate action. As such, this book explores the feasibility of applying a national emissions trading system to control multiple air pollutants in China. It begins with an outline of the existing emissions management system and goes onto explore whether a national emissions trading system is a viable choice to combat China’s conventional air pollutants. To this end, there is an in-depth analysis of the two pilot sulphur dioxide emissions trading programs in Taiyuan and Jiangsu, as well as an examination of emissions trading schemes in the US and EU. Finally, the book discusses the key design elements of a multi-pollutant cap-and-trade scheme that addresses both conventional air pollutants and greenhouse gasses.

This book will be of great interest to students and scholars interested in the fields of environmental studies, Chinese politics and environmental law. It will also be invaluable to policy makers in the field.

Contents:

1. Introduction
2. The Rationale for China’s Institutional Framework of Emissions Trading
3. Why Emissions Trading? An Empirical Study on China's Own Experience
4. What We Have Learned: Implications From Other Countries Experiences
5. Special Considerations For a GHG Cap-and-Trade Program in China
6. Key Design Elements of a Multi-Pollutant Cap-and-Trade System
7. Conclusion

For more information: http://www.routledge.com/books/details/9780415659574/

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New Book: Taking Sustainable Cities Seriously: Economic Development, the Environment, and Quality of Life in American Cities - American and Comparative Environmental Policy Series by Kent E. Portney (8 Feb 2013)

Taking Sustainable Cities Seriously: Economic Development, the Environment, and Quality of Life in American Cities - American and Comparative Environmental Policy Series

by Kent E. Portney

Book details

Published
08/02/2013

Publisher
MIT Press

ISBN
9780262518277

Synopsis

Today most major cities have undertaken some form of sustainability initiative. Yet there have been few systematic comparisons across cities, or theoretically grounded considerations of what works and what does not, and why. In Taking Sustainable Cities Seriously, Kent Portney addresses this gap, offering a comprehensive overview and analysis of sustainability programs and policies in American cities. After discussing the conceptual underpinnings of sustainability, he examines the local aspects of sustainability; considers the measurement of sustainability and offers an index of "serious" sustainability for the fifty-five largest cities in the country; examines the relationship between sustainability and economic growth; and discusses issues of governance, equity, and implementation. He also offers extensive case studies, with separate chapters on large, medium-size, and small cities, and provides an empirically grounded analysis of why some large cities are more ambitious than others in their sustainability efforts. This second edition has been updated throughout, with new material that draws on the latest research. It also offers numerous additional case studies, a new chapter on management and implementation issues, and a greatly expanded comparative analysis of big-city sustainability initiatives. Portney shows how cities use the broad rubric of sustainability to achieve particular political ends, and he dispels the notion that only cities that are politically liberal are interested in sustainability. Taking Sustainable Cities Seriously draws a roadmap for effective sustainability initiatives.

For more information: 

http://www.waterstones.com/waterstonesweb/products/kent+e-+portney/taking+sustainable+cities+seriously/9466919/

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Publication: Civic Exchange's Submission on environmental policies for 2013 Policy Address Consultation

Civic Exchange urges HKSAR Government to take swift actions for improving air quality and protecting public health, in line with Audit Commission’s recommendations
DATE: 14 Nov 2012 

HONG KONG: Wednesday, 14 November 2012 – Civic Exchange welcomes Audit Commission’s Report No.59 (the Report) dated 26 October 2012 and released today, in particular Chapters 1 and 2 on “Monitoring and reporting of air quality” and “Implementation of air-quality improvement measures”, respectively. This is a timely report for the new administration to consider as they are preparing for their air quality management strategy and plan, as well as a welcome reminder about how much works still need to be done in Hong Kong to deliver clean air to our people and to protect public health.

Managing Air Quality Objectives

Audit Commission’s Report highlights HKSAR Government’s past inadequacies in managing Hong Kong’s air quality objectives (AQOs) and in setting new AQOs that would protect public health (Chapter 1, Part 2). Civic Exchange argues that it is indisputable that Hong Kong’s AQOs must use the World Health Organization’s Air Quality Guidelines as our long-term goal. It is also extremely important that, as recommended by the Report, time targets and milestones must be set for achieving the AQOs as soon as possible, which is contrary to HKSAR Government’s past approach to achieve the AQOs as soon as reasonably practicable. Regular reviews should also be made in future to revise our AQOs for driving further improvement of our air quality, but not to be constrained by worries of non-compliance.

Administering Air Pollution Index

Administration of air pollution index (API) is also considered in the report as unsatisfactory (Chapter 1, Part 3). Indeed, Civic Exchange has been constantly calling for the government to make the API a better system for communicating air quality information and its associated health risks to the population. With the imminent implementation of the new AQOs, the HKSAR Government should also take this opportunity to revamp their API system for enhanced communication with the public.

Measures on Vehicles and Ships

Chapter 2 of the Audit Commission’s Report focuses on the air quality improvement measures. Civic Exchange agrees with the Report’s recommendations that efforts need to be made by the HKSAR Government in cutting emissions from vehicles, ships, power plants, and non-road mobile machinery, as well as stepping up collaboration in regional air quality management with Guangdong. Among the major local emission sources, priorities must be given to clean-up the diesel commercial vehicles and ship.

Simon Ng, Head of Transport and Sustainability Research of Civic Exchange, explains, “roadside air quality has been getting worse, and one key measure is to get the old and polluting diesel commercial vehicles off the road. On the other hand, ships have become the biggest emitter of respirable suspended particulates (36%) and nitrogen oxides (32%), and the second biggest emitter of sulphur dioxide (48%). Regulations are badly required for the control of ship emissions such as the use of low sulphur fuel at berth. In the long run, an emission control area should be set up in Pearl River Delta waters to maximize emission reduction and public health improvement.”

Inter-department and Cross-bureau collaboration

Last, but not least, Civic Exchange recognizes that the Environment Bureau (ENB) and the Environmental Protection Department (EPD) cannot deliver clean air to Hong Kong on their own, without the support of other government departments and policy bureaux. For example, the Report questions the slow progress in implementing bus route rationalization in the past. To achieve better progress in the future, it requires collaboration among ENB, EPD, Transport Department and the District Councils. Also, we need Health Department’s support if the main objective of our air quality management plan is to improve public health.

Measurable Improvement versus Marginal Gain

“Air pollution in Hong Kong is so worrying that we must go for policies and measures that would not just bring marginal difference, but substantial and measurable improvement in air quality and public health,” Ng exclaims. “It would require a new mindset, sheer determination, bold actions, collaboration within government, as well as support from the Legislature and society. It is heartening that ENB and EPD have acknowledged all the recommendations listed in the Report, and it is time to put promises into actions.”

Download document:

Civic Exchange’s Submission on environmental policies for 2013 Policy Address Consultation:

• http://www.civic-exchange.org/wp/2013env_consultation_en (English)
• http://cht.civic-exchange.org/wp/2013env_consultation_cn (Chinese)

For more information: http://www.civic-exchange.org/wp/121114pr_en/

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