HIGHLIGHTS OF THE WORK OF THE CLEANER PRODUCTION WORKING GROUP

　　1. Contributed to making CP a priority of the Government of China

　　--First CPWG policy recommendations (endorsed by CCICED) delivered to Premier in November 1998

　　--CP first included in the report of the Premier to the NPC in March 1999

　　--CP incorporated as priority in 10th 5-year plan

　　--Responsibility for CP promotion assigned to STEC and SEPA

　　--First nationa--CP law drafted by the NPC

　　2. Helped build the infrastructure required for expansion of CP throughout China

　　--Brought key government agencies (SETC, SEPA, Ministry of Agriculture) together to foster improved communication and shared commitment to CP

　　--Developed concept and supported the implementation of the first city-wide demonstration of CP in order to develop the infrastructure required to promote CP on a local/regiona--basis

　　--This concept was subsequently adopted by SETC and SEPA for implementation in other cities and in five major industria--sectors

　　3. Directly supported the promotion and implementation of CP

　　--Assisted loca--officials in developing CP regulations

　　--Helped promote public awareness of CP

　　--Supported the training of managers, supervisors, and workers

　　--Documented and disseminated information on the environmenta--and economic benefits of successfu--CP demonstration projects

　　4. Information exchange and knowledge building

　　--Conducted workshops and seminars for awareness raising at each CPWG meeting

　　--Sponsored and organized and three nationa--and one internationa--conference on CP

　　--Developed assessment indicator system for use in evaluating effectiveness of CP

　　--Preparing publications on CP concepts and experience for both Chinese and internationa--audiences

　　INTRODUCTION

　　The Cleaner Production Working Group (CPWG) of CCICED was established in May 1997. The mission of CPWG is to: (1) conduct investigation, research, and demonstration on the effective strategies with which China can promote cleaner production (CP), reduce pollution, and attain sustainable development; and (2) to propose policy recommendations related to CP implementation to the Chinese government.

　　The CPWG has two co-Chairs: Professor Yi Qian from Tsinghua University, China; and Professor Tsugio Ide from Keio University, Japan. Professor Ide took the position of the foreign co-Chair following the untimely death of Dr. Katsuo Seiki, the first foreign co-Chair, in 1998. There are twelve Chinese and internationa--experts serving on CPWG.

　　During the past four years, CPWG has conducted many activities to promote cleaner production in China. These activities include:

　　--investigating the implementation of CP at China's Township and Village Industries and Enterprises (TVIEs);

　　--establishing the Taiyuan City Cleaner Production demonstration project

　　--conducting CP training and education; and

　　--convening CP conferences and seminars.

　　Through these activities, the CPWG has raised awareness of cleaner production strategies to achieve sustainable development in key government agencies, and has accelerated the implementation of cleaner production at the city leve--and the sector level. CPWG has also engaged in policy studies and legislation on cleaner production, which has important implications for China's environmenta--protection and sustainable development.

　　BACKGROUND AND NATIONA--CONTEXT FOR WORK OF CPWG

　　The history of China promoting CP can be divided into four stages:

　　1. spontaneous actions at the enterprise leve--(the end of 1970s to 1993);

　　2. implementation of CP at selected demonstration projects (1993-1999);

　　3. promotion of CP through programs at both the regiona--leve--and the sector leve--(1999-2003);

　　4. implementation of CP with laws and regulations (by March 2003).

　　Since the end of the 1970s, a number of Chinese enterprises, such as Jilin Chemica--Company, have carried out technology innovations to reduce the amount of waste generated during their production processes. These innovations were called "zero-waste technology", "waste minimization" and "pollution contro--during the whole production process". These successfu--cases had provided experiences for China to promote CP in the future.

　　Starting from the early 1990s, China has adopted the strategy of sustainable development proposed on the United Nations' Environment and Development Conference, and the strategy of CP suggested in the 21st Century Agenda. In 1993, the State Environmenta--Protection Administration and the State Economic and Trade Commission (SETC) convened the Second Nationa--Industria--Pollution Prevention and Contro--Conference jointly.

　　At the conference, SETC and SEPA called a shift of the strategy of controlling industry pollution from end-of-pipe treatment to whole production process control. Cleaner production was considered to be the most important means to realize the shift. Thus, the CPWG conference defined the strategic role of CP in China's environmenta--protection. It also defined the promotion of CP as one of the administrative functions of the government, which indicated the government's commitment to CP. Since then, the Chinese government has been engaged in promoting CP via officially organized activities. CP concepts and approaches started to be introduced and applied in China.

　　STRUCTURE OF REPORT

　　The structure of this report is to focus on the major achievements and results of the Working Group; to identify some of the factors contributing to these successes and the lessons learned; and to make some recommendations for the future. In the appendices to the report are listed: the major activities conducted by the Working Group (Appendix 1); the papers and reports prepared over the past four years (Appendix 2); and the membership of the Working Group (Appendix 3).

　　MAJOR ACHIEVEMENTS

　　CCICED established the Cleaner Production Working Group in 1997, to enable Chinese and internationa--CP experts to share their expertise to help promote CP in China. The Working Group also functions as a channe--through the Counci--of the CCICED to propose policy recommendations to China's top leaders. Innovative approaches adopted by CPWG has been one of the keys to its success. In particular, the CPWG has emphasised a systems approach to cleaner production which includes policy, technica--components, methodologica--development, theory and practica--experimentation.

　　The CPWG's program of work and major achievements fal--into six main areas:

　　--input into nationa--policy;

　　--demonstrating the feasibility of cleaner production at city and regiona--levels;

　　--promoting cleaner production within the technica--and administrative levels of government;

　　--developing a practica--assessment too--and methodology for measuring the impact of cleaner production on environmenta--quality and the cost-benefits of cleaner production investments;

　　--communication, outreach and training on cleaner production;

　　--publications and dissemination of results.

　　1. Input into Nationa--Policy

　　Following recommendations made by the CPWG, Premier Zhu Rongji included the phrase "to encourage cleaner production" in the March 1999 government report to the Second Plenum of the Ninth Nationa--People's Congress. In May 1999, SETC issued the "Notice on Promoting Cleaner Production via Demonstration Projects," which required ten cities (including Beijing, Shanghai, Tianjin, Chongqing, Shenyang, Taiyuan, Jinan, Kunming, Lanzhou, Fuyang) and five industria--sectors (including petrochemicals, chemicals, metallurgy, light industry and shipbuilding industry) to conduct regional-leve--and sector-leve--CP programs. These important decisions show that China has scaled-up cleaner production strategies from the enterprise leve--to the regiona--and sector levels.

　　At the same time, the Chinese government switched its focus on CP from policy analysis to policy making. According to the legislation procedure in China, the Environment and Resource Committee of the Nationa--People's Congress took the responsibility of drafting a Nationa--Cleaner Production Law in 1999. The Law, which wil--provide a lega--basis for implementing CP in China, is planned to be promulgated by March 2003.

　　In these ways, the CPWG has played an important role in promoting CP in China and making the recommendations that led to these significant policy developments.

　　2. Demonstrating the feasibility of cleaner production at city and regiona--levels

　　The CPWG functioned as the catalyst in promoting CP in important demonstration projects at provincia--and city levels. particularly, the project of "Promoting Cleaner Production in One Demonstration Province and One Demonstration City".

　　Its experiments in promoting CP in Taiyuan City, especially the promulgation of the Taiyuan Cleaner Production Law, provided a valuable empirica--basis for drafting and promulgating the future Nationa--Cleaner Production Law.

　　After a in-depth investigations on existing efforts and barriers in promoting cleaner production, CPWG believes that the key to promote cleaner production in China is to establish effective mechanisms which incorporate CP policy making, institute building, training and education, and technology renovation. Therefore, the CPWG placed its focus on policy analysis and policy recommendations. CPWG established its goals and working plan based such a focus. Meanwhile, CPWG decided to conduct experiments at the loca--leve--to explore effective mechanisms for promoting CP in China, and provide experiences for CP policy making at the nationa--level.

　　In March 1999, CPWG started its work on Taiyuan City Cleaner Production Program, whose major components include the followings: a loca--CP law; short-term, mid-term, and long-term CP plans; and, CP index system. The Taiyuan CP Law, the first loca--CP law in China, took into effect in Apri--2000. Through the Taiyuan City Cleaner Production Program, CPWG aims to urge the Taiyuan Municipa--People's Government to establish city-leve--CP policies and to implement them.

　　3. Promoting cleaner production within the technica--and administrative levels of government

　　Centering on the strategy of promoting CP at the technica--and administrative levels within government, CPWG placed its emphasis on the following aspects: training and publicity, enterprise management, technology renovation and innovation, economic incentives, and the enforcement of environmenta--policies. CPWG has proposed eleven types of measures to promote CP, such as adjusting environmenta--policy, providing CP training and publicity, building institute, and conducting demonstration projects, etc.. These suggestions have helped government agencies to incorporate CP into their regular work, and provided new approaches of promoting CP during China's transitiona--period[1].

　　4. Developing a practica--assessment too--and methodology for measuring impacts of cleaner production

　　CPWG discussed and assessed various measures of promoting CP in-depth. It concluded that CP should be not only explained with the terms of environmenta--protection and technology innovation, but also analyzed in economic terms. CP should be translated into terms, such as cost-benefit and return on investment, that are easily understood by economic experts and wil--help to integrate CP into economic models and to form investment mechanisms that are favorable for CP.

　　To provide guidance and a practica--assessment too--for cities and enterprises to measure the impacts and benefits of CP, the CPWG organized a collaborative project between Shanxi University, Tsinghua University and the Research Institute of Radiation Prevention (under the Chinese Academy of Sciences) to conduct research on CP Index System. With the joint-effort of the three institutes, a CP Index System has been developed and tested. The CP Index System provides criteria for Taiyuan and other cities to assess the progress made in promoting CP; to identify weak links of the CP implementation process; and to set up goals for future improvement.

　　5. Communication, outreach and training on cleaner production

　　During the past four years, CPWG has organized 8 workshops and training courses, three national-leve--seminars and one internationa--seminar. These activities helped loca--government officials, enterprise managers, technicians and engineers, and the public to be aware of CP, and obtain tools to implement CP.

　　For example, CPWG has held severa--meetings and offered CP reports in Taiyuan City. These training activities improved the leaders and the staff of Taiyuan government's knowledge on CP, and facilitated the promotion of CP in Taiyuan.

　　In addition, CPWG has attracted enterprise managers, researchers, and officials from various government agencies to attend its seminars. The topics of these seminars include cleaner production policies and management, cleaner production technologies, and cleaner production theories. These seminars provided a valuable platform for participants from different fields to exchange their ideas and experiences relevant to cleaner production. In addition, the CPWG has summarized the results of the seminars and integrated them into its policy recommendations to the Chinese government.

　　6. Publication and dissemination of results

　　In order to disseminate CP concepts more widely, CPWG has been organizing the outputs of its work during past four years. The outputs include research reports, policy proposals, and technica--papers submitted to its seminars. The CPWG has developed a strategy for further dissemination and publications of these papers and reports by March 2002. This wil--include a consolidated report of the technica--papers in Chinese for distribution to academics, students, technica--experts and government. A selected number of papers wil--be translated into English and submitted to internationa--journals. Presentations wil--also be made to important internationa--conferences in the coming year so that the results of the work of the CPWG and the achievements made in China in cleaner production.

　　SUCCESS FACTORS

　　Over the four and one half years of operations, it has become evident that there were severa--critica--success factors in the team operations. We believe that some of these constitute best practice for the operation of similar teams.

　　--Team Composition

　　The team is made up of both Chinese experts and overseas experts. There was a good blend of academic, research, policy, economics and practica--implementation experience. This is critica--to address al--aspects in the promotion of implementation of cleaner production.

　　--Leadership

　　The joint leadership of the co chairs of Professor Qian Yi and Professor Ide was an excellent combination. Professor Qian Yi is a highly regarded academic and has a passion for cleaner production. She was able to rally a staff of people from Tsinghua University who also believe in Cleaner production. Their help was critica--in achieving the work of the team. Professor Ide is from Japan. He was able to bring expertise from another Asian country.. Through GISPRI in co-operation with the Japanese Government, he was able to support the CPWG with finance. Also a study team of government officials and enterprise management was sent to Japan to learn about best practices.

　　This combined leadership brought the critica--factors of loca--and overseas credibility to the team. They brought together a team not just 12 individuals who were al--committed to the success of the project.

　　--Continuous Work

　　The Chinese members of the team and staff from the university continued to do work between the meetings of the CPWG sometimes in emai--consultation with the other experts on the team ( both foreign and local). They were responsible for the development of aspects such as the indicator systems.

　　--Goa--setting and planning

　　Every year there was goa--setting and planning as a key requirement. At subsequent meetings there was follow up on the progress towards these goals. This team operating discipline meant that every one knew what was expected of them and what their contribution was to the team objectives.

　　--Best practice Sharing

　　This committee has been a great forum for sharing of best practices, not just from China but around the world. This was the result of the culture developed in the team and the team makeup.

　　--Team Operation

　　Because of the operationa--system of the team and it's make up it has been possible to contribute to the three major aspects of CP promotion and implementation; namely policy formation, research and development of methodology, and implementation at the enterprise and regiona--level.

　　RECOMMENDATIONS FOR THE FUTURE

　　In addition to summarizing and disseminating the experiences of successfu--cases in implementing CP, CPWG systematically analyzed the barriers impeding the promotion of CP. The implementation of CP is uneventhroughout China. Except a few cities and provinces (for example Taiyuan City and Jiangsu Province), the majority cities and provinces have not established a mechanism to promote CP. On the whole, the implementation of CP is far from satisfactory.

　　Therefore, CPWG proposes the following suggestions to further promote CP in China:

　　--to set up a project task force of "Strategy and Mechanism Study for Promotion of Cleaner Production in China" by the third CCICED.

　　--to integrate CP to socioeconomic development plans and nationa--policies;

　　--to establish incentives for loca--government to promote CP;

　　--to follow up the actions and results of promoting CP in ten demonstration cities and five demonstration sectors;

　　--to encourage the financia--sector to support CP;

　　--to extend the efforts of promoting CP to the primary sector and the tertiary sector, and to expand the efforts to the western regions;

　　--to conduct studies on innovative CP concepts and approaches; and

　　--to make further recommendations for government legislation and policy.

　　1. Proposed project task force of "Strategy and Mechanism Study for Promotion of Cleaner Production in China"

　　During the past four years, the CP Working Group has conducted considerable work in promoting CP in China. The collaboration of senior internationa--and domestic experts has brought new theories, ideas, and approaches of promoting CP together. These ideas and approaches have been adjusted to fit with the China's situation, and they have led to significant achievements in promoting CP in China. We believe that the approach of the CP Working Group has been efficient and successful. We propose that the third CCICED set up a project of "Strategy and Mechanism Study for Promotion of Cleaner Production in China", which wil--follow up the activities and consequences in promoting CP in the ten demonstration cities and five CP demonstration sectors. The results of this project wil--provide theoretica--and empirica--basis for promulgating the Nationa--CP Law and promoting the adoption of CP to a new stage within China.

　　2. Integrate CP into socio-economic development plans

　　The practices and experiences related to CP in China and the world indicate that CP is a "win-win" strategy, which can lead to both economic and environmenta--benefits. Therefore, we propose the following suggestions regarding the national-leve--macroeconomic policies. The government should continuously take the promotion of CP and the fulfillment of sustainable development as part of the major contents and objectives of its macroeconomic polices. The promotion of CP should be integrated into a systems framework which includes: the adjustment of industria--infrastructure, energy efficiency, technology improvement and innovation, pollution control, and environmenta--management. Related government agencies at the nationa--level, such as SETC and SEPA, should analyze and modify existing CP-related policies in order to enhance environmenta--administration over polluting enterprises, and to provide economic incentives to these enterprises. To promote CP, the coordination and cooperation among these governmenta--agencies should be further enhanced.

　　3. Incentives for loca--government to promote CP

　　The experience from conducting the project of "Promoting CP in One Demonstration Province and One Demonstration City" shows that loca--governments have played a major role in improving environment and promoting CP locally. Therefore, to promote CP at al--localities, incentives and requirements for loca--governments to engage in CP-related activities should be created by the centra--government. We propose related centra--government agencies establish specia--regulatory systems, which require loca--government to integrate CP into loca--development plans, for example, socioeconomic development plans and environmenta--plans. In addition, CP can be incorporated into the nationa--inspection systems for assessing loca--governments' performance.

　　4. Follow-up in CP demonstration cities

　　Initiatives aiming at promoting CP have taken place in ten demonstration cities (including Taiyuan) and five demonstration industria--sectors (including chemica--industry) in the past few years. These cities, sectors, and involved demonstration enterprises have obtained considerable experiences and primary achievements in promoting CP. It is necessary to create an environment that supports these projects, and enables loca--governments and enterprises to strengthen their CP-related efforts. We suggest that relevant centra--government agencies (particularly, SETC and SEPA) investigate and inspect these demonstration cities and sectors, summarize their experiences, and find out then remove the barriers preventing them from adopting CP measures. Based on such information, the government agencies can provide continuous guidance and pertinent policies to support these demonstration projects. In the end, these demonstration projects wil--be able to show other cities and sectors the significant advantages of adopting CP.

　　5. Encourage financia--sector to support CP

　　With the development of the China's market economy, economic instruments become increasingly important in promoting CP. We suggest strengthening research on market and financia--incentives to promote CP. Concepts related to CP should be translated into terms that are easy to integrate into economic models and forecasts. Such efforts are also likely to encourage greater investments in CP from the finance sector (such as banks) when the return on CP investments can be better measured and understood. Thus, more financia--resources could be mobilized to implement CP, and sustainable financia--mechanisms for supporting clean production might be built up gradually.

　　6. Extend CP regionally and to other economic sectors in China

　　The CP demonstration projects have engaged various government agencies into activities related to CP. Government agencies' involvement is one of the basic conditions for promoting CP at both the regiona--and the sector level. At the sector level, we suggest extending the efforts of promoting CP to the primary and the tertiary sectors, especially in economically prosperous regions. At the regiona--level, the experiences of the ten CP demonstration cities and five sectors can provide important implications for integrating CP into the China's efforts of developing its western areas.

　　7. Conduct studies on further innovative approaches to CP

　　With the evolution of the worldwide understanding of CP, the content of CP has been expanded over time. New theories and new technologies continue to emerge. We suggest relevant government agencies enhance their studies on innovative concepts and theories related to CP. Based on the results of these studies, these government agencies shal--modify CP-related polices to improve their guidance. Currently, they may consider combining the implementation of CP with the promotion of ISO 14000 and the construction of eco-industria--parks.

　　8. Further input to government policy and legislation

　　At the present time, the Environmenta--Protection and Resource Conservation Committee under the Nationa--People's Congress is preparing a nationa--CP law. In order to provide empirica--basis for the nationa--CP law, we suggest following up the implementation of the Taiyuan CP Law, the first loca--CP law in China.

　　Appendix 1: Major activities of Working Group 1997-2001

　　In addition to conducting research and demonstration projects, the members of CPWG met twice a year to discuss the barriers of promoting CP in China, and policy recommendations for the Chinese Government. The main activities of CPWG are summarized chronologically below.

　　May 1997 - June 1998 Investigated the implementation of CP at TVIEs.

　　January 15 - 17, 1998 Convened a CP conference.

　　June 9, 1998 Held an advanced seminar on promoting CP at TVIEs, with a focus on policy suggestion[2].

　　August 4 - 7, 1998 Held a CP seminar with a focus on the implemenation of TVIEs. The implementation status of CP at China's TVIEs, and the barriers for TVIEs to adopt CP, and corresponding countermeasures were discussed. The report of "Promoting Cleaner Production at TVIEs in China" was finalized at the seminar.

　　March 16, 1999 Co-sponsored (with a Japan organization) a seminar on the management, recycling, and reuse of waste plastic products.

　　September 1998 Started the project of "Cleaner Production Demonstration City" under the guidance of United Nations Environment Programme (UNEP) and with the approva--from the State Economic and Trade Commission (SETC) and the State Environmenta--Protection Administration (SEPA). Taiyuan was chosen to be the demonstration city.

　　March 1999 to now Assisted the Taiyuan Municipa--People's Government to promote CP via multiple approaches, including: the establishment of a CP leading group and a working group; education and training on CP; the inauguration of Taiyuan City CP Program and the event of "leaving your signature to indicate your support" on CP declaration on CP of UNEP; the compilation of Taiyuan short-, mid-, and long-term CP plans; the promulgation of Taiyuan CP law[3]; and, the implementation of CP at Taiyuan's enterprises[4].

　　February 2000 Held a seminar on "Cleaner Production Index System for the Demonstration City" in Zhuhai City. During the seminar, CPWG summarized its efforts in promoting CP in the Demonstration City and Province.

　　Apri--2000 Discussed the future development of the Taiyuan City CP Program with the new leaders of Taiyuan City, cosponsored the ceremony for Taiyuan CP Law taking into effect, and started promoting CP at Taiyuan's enterprises.

　　September 2000 Convened a nationa--CP conference in Beijing. Representatives of major CP projects, including government officials and representatives of enterprises and research institutes, attended the conference. The participants discussed the development of CP and their experiences in promoting CP in China. Conference proceedings were published.

　　February 2001 Organized a CP study tour to Japan. The participants of the study tour learned the experiences of promoting CP in Japan by exchanging ideas with Japanese CP experts, and visiting Japanese factories those are advanced in adopting CP.

　　Apri--2001 held a working group meeting in Sanya City. CPWG reviewed its workduring the past four years, and discussed the possible research projects which wil--be proposed to the 3rd CCICED.

　　September 2001 Sponsor a CP internationa--conference jointly with the Canada-China Cooperation Project in Cleaner Production, The China's Enterprise Federation, and the Nationa--Cleaner Production Center of China. Besides Chinese experts, experts from UNEP, USA, Canada, Japan, Netherlands, Austria, Thailand, Philippines and India wil--also attend the conference.

　　Appendix 2: List of reports and papers prepared by CPWG

　　Minutes

　　May 1997, Beijing, The First Conference of CPWG

　　January 1998, Xiamen, The Second Conference of CPWG

　　August 1998, Weihai, The Third conference of CPWG

　　March 1999, Taiyuan, The Fourth Conference of CPWG

　　September 1999, Taiyuan, The Fifth Conference of CPWG

　　February 2000, Zhuhai, The Sixth Conference of CPWG

　　September 2000, Dalian, The Seventh Conference of CPWG

　　Apri--2001, Sanya, The Eighth Conference of CPWG

　　September 2001, Shanghai, The Ninth Conference of CPWG

　　Working Report

　　Executive Summary in August 1998

　　Executive Summary in August 1999

　　Executive Summary in August 2000

　　Executive Summary in August 2001

　　Executive Summary for the Past Four Years' Work on Promoting Cleaner Production (September 2001)

　　Evaluation Report

　　Evaluation Report of CPWG, the 2nd CCICED

　　Proceedings

　　September 2000, Proceedings of Nationa--Conference on Cleaner Production

　　September 2001, Proceedings of Internationa--Conference on Cleaner Production

　　Appendix 3: List of past and present members of CPWG

　　Prof. Qian Yi（Co-Chair）

　　Department of Environmenta--Science and Engineering, Tsinghua University

　　Prof. Xi Deli

　　Department of Environmenta--Science and Engineering, Tsinghua University

　　Dr. Duan Ning

　　China Cleaner Production Center

　　Ms. Liang Boqing(Died)

　　Mr. Yang Zaipeng

　　Environmenta--Protection Research Institute, Beijing Research Institute of Chemica--Industry

　　Ms. Wang Siju(Died)

　　Prof. Qu Jiuhui

　　Research Center for Eco-Environmenta--Sciences, China Science Academy

　　Mr. Katsuo Seiki（Died）

　　Prof. Tsugio Ide（Co-Chair）

　　Globa--Industria--and Socia--Progress Research Institute

　　3E Institute Keio University

　　Ms. Jacqueline Aloisi de Larderel

　　Division of Technology, Industry & Economics, UNEP

　　Prof. Alan Brewster

　　Schoo--of Forestry & Environmenta--Studies，Yale University

　　Ms. Judy Castledine

　　Dow Chemica--Pacific Limited

　　Ms. Ann White

　　Internationa--Development and Research Center， Canada

　　Dr. Changchun Lao

　　China-Canada Cleaner Production Cooperation Project

　　Dr. Tongroj Onchan

　　The Mekong Environment and Resource Institute (MERI)