Change:Development Opportunities amid Crisis

AFTER marathon negotia- tions in the final 48 hours， the 12-day Warsaw Climate Change Conference decided on the evening of November 23， 2013， to push forward the Durban Platform and institute the International Mechanism for Loss and Damage to compensate developing countries for greenhouse gases that the industrialization of developed nations has caused. Developed countries such as Japan and Australias announcement of reduced emission targets and capital contributions， however， somewhat diluted this principle as laid down at the conference. Rodrigo Bezerra， member of the Brazilian delegation and participant of several climate change conferences， was heard to comment， “Fortunately we didnt have high expectations of this conference.”

Head of the Chinese delegation and Vice Chairman of the National Development and Reform Commission Xie Zhenhuas comment on the result was that “not everyone is satisfied but all can accept it.” Xie led his delegation in attending various forums and negotiations and in issuing the National Strategy of Climate Change Adaptation， signifying Chinas elevation of climate change adaptation to a national strategy. The document stipulates incorporation of climate change adaptation into the comprehensive process of Chinas economic and social development. This is in line with the reform plan drawn up at the Third Plenum of the 18th CPC Central Committee last November， which raised the goal of building an ecological civilization.

Over the past eight years China has maintained high-octane growth with an average rate of seven to eight percent while at the same time reducing energy consumption by 26.4 percent per unit of GDP. This translates into a 980 millionton saving of standard coal – equivalent to at least 2.35 billion tons of carbon dioxide emissions and a 28 percent decrease in carbon intensity. Most significant is the common realization that environmental protection and economic development are not incompatible. Initiatives are hence taken to explore green development and grasp the commercial opportunities that arise in the process of tackling climate change.

Low-carbon Transition Sparks Urban Vitality

Shenzhen has long been synonymous with manufacturing. The 13 million citizens inhabiting the citys 2，000 square km area – a population density surpassing that of Beijing， Hong Kong， Tokyo and New York – places enormous pressure on its environment. In recent years， however， while achieving an annual GDP growth of around 10 percent， Shenzhens water and electricity consumption have both fallen. The SEZ consequently topped the seventh Green Economy and Green GDP Index of 300 Provinces and Cities in China published last November.

Proactive industrial restructuring is a key reason for Shenzhens success in this respect. “Things were first of all made and then assembled in Shenzhen， but are now invented there，” Deputy Mayor Tang Jie said at the Warsaw conference. Dependent on science and technology and innovation， Shenzhen focused its development strategy on new industries like biotech， the Internet， new energy， new materials， information technology， and cultural innovation. Information consumption in Shenzhen stands at around RMB 300 billion and e-commerce volume at around RMB 630 billion every year. Chinese Internet icon Alibaba has made the city its international business headquarters and its fellow Baidu has chosen Shenzhen as site of its southern China operations head-quarters. Emerging e-commerce has thus replaced traditional high-energyconsumption markets， so making significant contributions to the green GDP.

As early as 2005， Shenzhen carried out a 10-year low-carbon development plan in efforts to escape the “pollute first， green later” mode. Half of the citys area was reclassified as a protected region wherein development of any kind is prohibited. The government set out to develop metro and other public transportation that now accounts for about 70 percent of motor vehicle traffic， and has also promoted new energy vehicles. As of the end of last April， there were 5，244 new energy vehicles， including 2，200 electric automobiles， on Shenzhens roads， representing the largest scale in the world. The city plans to replace half of its present 14，000 standard buses and taxis with electric vehicles in five years.

“Electric cars use clean energy， and are also the most efficient mode of storing energy. They can hence shorten the peak-to-trough decline in power grids， and guarantee steady and economic op- eration，” Mr. Tang said.

Thus far， energy-saving， environmental protection， new energy and related industries have generated more than 30 million jobs in China， and achieved an annual output value of RMB 2.7 trillion. “Chinese practice has proved that proactively adapting to climate change does not have severe impact on the economy. On the contrary， positive actions accelerate the quality and efficiency of economic growth as well as nurturing strategic emerging industries，” Xie Zhenhua said at a high-level forum in Warsaw on November 19.

New Approaches for Less-developed Regions

Adapting to climate change has accelerated the transition of the industrial city， and also brings historic opportunities to less-developed regions like Guangxi Zhuang Autonomous Region. Guangxi is an agricultural region located in the far southwest of China. The process of industrialization and urbanization that the region is going through places a huge demand on its resources， especially electricity. Short of coal， oil and gas， the region is largely dependent on its rich hydroelectricity resources. But due to overexploitation and declining water levels， hydroelectricity can no longer meet its growing demand， as evident in the red alert that the Guangxi Power Grid Corporation issued in the summers of 2011 and 2012.

The environmentally friendly concept has provided Guangxi with a new approach – that of generating power through bagasse， a by-product of sugar manufacturing. As Chinas largest sugarcane base， Guangxi refines two thirds of the countrys sugar. It produced 8.6 million tons in 2012. Every refining season generates about 14 million tons of bagasse. Today， in addition to papermaking， the residual 10 million tons of bagasse are used for power generation.

All refining factories – more than 100 in the region — have set up their own power plants that produce two billion kWh every year， equivalent to around three million tons of standard coal. Biomass generation technologies help the factories get through the winter dry season and also to achieve a 28，500-ton reduction in sulfur dioxide emissions. In 2012， Guangxi allocated RMB 8 billion to upgrading the bagasse generating system. It is expected to provide 4.5 million kWh for household use in 2015.

More than 60 percent of Guangxis 52 million citizens live in the countryside. Not long ago， farmers would chop down trees for fuel when they ran short of power. Taking into account the regions location in the subtropical monsoon climate zone， its consequent good light and heat and ample animal and poultry manure， the government has utilized these natural rural conditions to develop biogas digesters. Farmers raise the livestock that provide raw material for the biogas digesters， and the waste products are used as fertilizer for fruit trees and fishery.

In the last decade， the government has spent more than RMB 3 billion on constructing digesters in around 3.95 million households. About 19 million farmers have benefited from this project， and developed a dozen or more modes of methane utilization.

The methane digesters provide 1.58 billion cubic meters of high quality fuel， 98.78 million tons of high quality fertilizer， and increase farmersincome by RMB 5.97 billion， according to Guangxi Development and Reform Commission director Huang Fangfang. They meanwhile save 7.9 million tons of timber， and decrease carbon dioxide emissions by 7.9 million tons. “Methane is one of the most important ways of solving rural poverty and energy shortage，” Huang said. “Green development protects the environment on which farmers are largely dependent， and also benefits farmers practical economic interests.”

New Opportunities for Developed Countries

Chinas low-carbon development road also presents opportunities for other countries. The amount developed countries should contribute towards achieving target emission cuts was a main focus of the climate change conference. Many regard funding as a burden， but Italy has a different view. Director General of the Italian Ministry of Environment， Land and Sea Corrado Clini said in a speech at the China Pavilion in Warsaw that developed countries financial commitment to developing countries provides them with a political opportunity for development.

China and Italy first cooperated on environmental protection in 2000. In the past decade or more， they have jointly carried out more than 200 projects. In that time， assistance funds from the Italian government have reached 185 million euros， according to Clinis conservative estimate. The cooperation covers such aspects as transforming unsustainable production and consumption modes， sustainable agriculture， biodiversity， energy efficiency and combating desertification.

Investment in Chinas environmental undertaking has brought Italy fruitful returns， as many Italian companies have found ways into the huge Chinese market. One example is that in 2008， when Beijing decided to purchase engines to update the citys bus system from Italys Iveco rather than Cummins， the better known U.S. engine-maker.

Although Italy is not a leader in environmental technology， its products suit the Chinese market， taking into consideration both quality and price. The country also helped Beijing construct air quality monitors and smart car systems， and Iveco donated 300 engines to Beijing that met the then worlds strictest EEV standards. Last September， the Italian government launched the Green Science and Technology Program in which 17 Italian companies were involved.

Mr. Clini remarked that the series of actions China is carrying out provide unique opportunities for both developing and developed countries to participate in the joint pursuit of creative solutions to climate change. Xie Zhenhua defined China-Italy cooperation in this field as a model of South-North cooperation.

Climate change is a challenge that everyone must confront as a matter of urgency. Proactive exploration of new modes of environment-friendly development and of unified development and environmental protection is undoubtedly the wisest approach.