Review of First-round Three-year Environmental Action Plan

Second-round Three-year Environmental Action Plan

Principles and goals
Main fields and measures
Institutional reform and transition of governmental function

Review of First-round Three-year Environmental Action Plan(2000-2002)

Environmental construction accelerated

Environmental Construction Accelerated(1)
110 key projects in five major areas completed or reached phased targets
Rehabilitation of Suzhou Creek and Wusong Industrial Zone have gained significant progress

Environmental Construction Accelerated(2)
Three sewage treatment plants completed
929,000 tons increase for daily sewage collection
441,000 tons increase for sewage treatment

Environmental Construction Accelerated(3)
Cleaner fuel substitution for coal burning boilers and furnaces
4500 coal burning boilers
and furnaces in urban area
modified with gas or oil

Environmental Construction Accelerated(4)
Green space expanded
3988 hectares of public greens built in urban area in three years

Environmental Construction Accelerated(5)
Domestic waste management
Yuqiao and Jiangqiao domestic waste incineration plants put into operation
3390 tons /D increase of domestic waste treatment capacity

Environmental investment increased

Approximately 45 billion yuan RMB invested in environmental fields in three years
Environmental investment accounted for 3% of GDP in the same period
65% from governmental revenues
Environmental quality improved

Environmental Quality Improved(1)
In urban area main waterways, water quality has significantly improved
Water quality in Suzhou Creek now reaches the required standards
Greenery coverage rate increased from 19.5% to 30%

Environmental Quality Improved(2)
Green space per capita increased from 3.5 sq m to 7 sq m
Ambient Air quality in 2002 compared to 1999:
Days that complied with API Class Two increased by 10%
The annual average of SO2 decreased 18%
The annual average of Nox decreased 15%

Environmental management strengthened

Three regulations enacted
Three regulations amended
Environmental enforcement highlighted
Trials for Market Based Instruments launched

Environmental awareness enhanced

By implementing “Three-year Environmental Action Plan” :
Environmental awareness of decision makers greatly improved
Environmental initiatives of citizens promoted

Second-round Three-year Environmental Action Plan(2003-2005)

Principles and goals
Main fields and measures
Institutional reform and transition of governmental function

Second-round Three-year Environmental Action Plan(2003-2005)
GOALS

Build Shanghai to be a national green city.
Its overall environmental quality attains the leading position among other big cities in China.
Shanghai becomes one of the most livable cities in the world with its clean air, clear water and green spaces.

Principles(1)
Implement Sustainable Development Strategy
Enhance City’s integrated competitiveness
Improve urban environmental quality and protect citizen’s health
Adopt ideas of “Environmental priority, Green civilization and Sustainable Development”

Principles(2)
Developers protect
Polluters pay
Manufacturers recycle
Users bear cost

Principles(3)
Environmental Planning with high quality
Pollution prevention and control with high standards
Develop and build environmental infrastructure with high intensity
Environmental management with high level

Principles(4)
Institutional reform and policy/mechanism innovation
City’s economic, social and environmental sectors coordinate development

Major Indices(1)
To eliminate foul conditions in urban area main waterways
Sewage treatment >70%
Daily sewage treatment capacity >480,000 0ton

Major Indices(2)
85%-90% of days in compliance with Class Two of Air Pollution Indices (API)
Implement household garbage sorting in urban area
Build up centralized garbage collection and disposal system in suburban area

Major Indices(3)
Conduct “Cradle to Grave” management for hazardous waste
Greenery coverage rate in central city > 37%
Average greens per capita: 11 M2
Greenery coverage rate in suburb >20%

Major Indices(4)
15% reduction of chemical fertilizer in per unit area
20% reduction of pesticide per unit area
Reduction of livestock farm waste emission
Improvement of Eco-agricultural environment

Major Indices(5)
Progress on industrial pollution control
Industries fully meet emission standards
Environmental quality in Wusong Area reaches required standards
Taopu Area transitions from chemical industry zone to urban industry zone
Environmental quality in Wujing Area is significantly improved

Second-round Three-year Environmental Action Plan Main fields and measures

Action Plan focusing on six components:
Water pollution control
Air pollution control
Solid waste disposal
Greenification
Agricultural pollution control
Industrial pollution control

Water Pollution Control

Targets:
Foul conditions in waterways eliminated in the urban area
Main rivers in the rural area achieve the target of clean water surface, tidy banks and green landscapes
Sewage treatment capacity improved, with the treatment rate reaching up to 70%, and daily capacity over 4.8 million cubic meters

Water Pollution Control Main Measures (I):
Implementation of Suzhou Creek Rehabilitation Project (Phase II) focusing on interception and ecological restoration. By 2005, water quality of main stream of Suzhou Creek will be further improved; aquatic eco-system will be revived as aquatic species increase

Water Pollution Control Main Measures (II):
Construct more sewage treatment plants and perfect the sewage collection system
Some large-scale sewage treatment plants, such as Zhuyuan, Bailonggang will be put into operation
Construct and expand 11 sewage treatment plants in the suburban area
Upgrade sewage collection system to match treatment facilities
By 2005, urban sewage centralized treatment rate will be increased up to 70%, COD and NH3-N loads will be cut down over 30% and 15%

Water Pollution Control Main Measures (III):
Strengthen protection of drinking water sources to secure drinking water safety
9 waste water treatment plants will be constructed and 2 be expanded in upper Huangpu River
Tough enforcement will be conducted in upper Huangpu River
Complete the afforestation of watershed intake protection zone (Phase I)

Water Pollution Control Main Measures (IV):
Comprehensive Rehabilitation of Waterways
Rehabilitation of other medium-and-small sized waterways to initiate local tourism and economic development
Focus on rehabilitation of key waterways in the city center and 9 developed towns in rural area
Build water gate control center to manage overall water flow network

Air Pollution Control

Targets:
85%-90% of the days in compliance with Class II level of API or above

Air Pollution Control Main Measures:
Natural gas substitution of coal as the main energy source in Shanghai along with citywide energy restructuring for reducing SO2 emissions
More rigid emission standards on new vehicles and I/M program on used vehicles to be introduced to cut down exhaust emissions effectively
Dust pollution to be addressed strictly through administration and legal enforcement

Solid Waste Disposal

Targets:
Setting up sorting and collection system for household refuse in the downtown area
Setting up collection and disposal system for household refuse in the rural area
“Cradle to Grave” management for hazardous waste and its secure disposal

Solid Waste Disposal Main Measures (I):
Speed up sorting and collection system of household refuse. By 2005, household refuse sorting will be implemented across urban area and in 60% of the rural area
Upgrade or construct safe, high quality disposal facilities for domestic waste. Disposal rate will reach 95% in the urban area and 90% in the rural area

Solid Waste Disposal Main Measures (II):
Promote waste recycling and reuse through participation of community, enterprises and government
Strengthen management and supervision of industrial wastes and hazardous wastes, the comprehensive recycle/reuse rate of industrial wastes will reach 95%

Greenification

Targets:
Build Shanghai into a national green city
By the year 2005, greenery coverage will be over 37% in the urban area and over 20% in the rural area
Green space per capita 11m2

Greenification Main Measures (I):
In conjunction with the plan for citywide industrial restructuring, urban infrastructure construction and redevelopment, more green spaces will be built in the urban area
More greenery belts and corridors along major avenues and waterways will be set up in the process of river rehabilitation and highway construction

Greenification Main Measures (II):
With expansion of the urban area, farmlands in the rural area will be replaced with plantations and forests
Conservation and preservation of natural areas and wetlands will be addressed; 1-2 national nature reserves will be built

Agricultural Pollution Control

Targets:
Annual usage of chemical fertilizer and pesticide per hectare in farms will be reduced 15% and 20% respectively
Livestock pollution load will be largely reduced
Trend of ecological deterioration will be strictly curbed in the rural area

Agricultural Pollution Control Main Measures (I):
Encourage use of organic fertilizer to prevent livestock waste pollution
– Consolidate livestock farms, so that the total amount of livestock farms to be controlled is less than 700
– Set up organic fertilizer processing center
– By 2005, the total amount of livestock waste pollution load will be reduced over 40% below 2000 levels

Agricultural Pollution Control Main Measures (II):
Control non-point source pollution. The total amount of chemical fertilizer and pesticide will be limited to under 110,000 ton/y and 1000 ton/y respectively
Promote eco-agricultural pilot projects for safe agricultural production

Industrial Pollution Control

Targets:
Waste water from all industrial enterprises will meet the state and local discharge standards by 2005
Environmental quality in key Industrial development zones will be improved substantially

Industrial Pollution Control Main Measures (I):
Promote technical renovation and cleaner production to ensure industrial enterprises comply with discharge standard as scheduled
– by the end of 2003, heavily polluting enterprises located in the inner-ring road should be in compliance with discharge standard
– by the end of 2005, all enterprises in Shanghai should be in compliance with discharge standard

Industrial Pollution Control Main Measures (II):
Comprehensive rehabilitation of key industrial zones (i)
– All targets proposed in Wusong Industrial Zone Rehabilitation Plan will be achieved, and environmental indices will be in compliance with the average level of Shanghai industrial zones

Industrial Pollution Control Main Measures (III):
Comprehensive rehabilitation of key industrial zones (ii)
– Accelerate development of low pollution production sector, and shut down heavily polluting enterprises. Environmental quality in Taopu Industrial Zone will meet environment functional zone (Class II) standard
– Initiate comprehensive rehabilitation of Wujing Industrial Zone focusing on successful resettlement, improved and balanced use of energy, and greenification

Institutional Reform & Transition of Government Function

I. Formulate innovative policy

3% of GDP invested in environment is committed for 2003-2005.

Establish government funding mechanism to ensure
a stable and continuous input
- More government investment in environmental infrastructure,
drinking water source conservation, ecological demonstration
zone, nature reserves, as well as environmental monitoring

Improve financing system to attract multi-channel funding

- Better facility operation and fee collection system,
e.g. higher discharge fee on sewage, new levy on
household wastes, centralized treatment of hospital wastes
and industrial hazardous wastes

- Preferential policies on investment, taxation, land acquisition,
and employment to encourage multi-channel funding of sewage
treatment, solid waste recycling, greenery, organic fertilizer
production, green agriculture, etc.

Improve pollution fee collection system

- Increase existing charge, such as SO2 emission levy

- Start new levies, e.g. industrial process exhaust, discharge from livestock farm, dust from transportation, construction and piling sites

- Preferential policies encouraging collection and recycling of
wasted electronics, batteries, fluorescent tubes, packing material,
and etc.

Introduce market-based instruments to promote cleaner production and pollution prevention

- Subsidy for boilers substituted with cleaner fuel
- Zero-interest loan for CNG filling stations and lower price for
CNG users
- Preferential policies on district-heating
- Funding for drinking water source conservation
- Competitive prices for organic fertilizer

II. Introduction of Market Competition

Institutional reform on construction and operation of collection and treatment of sewage and solid wastes
- New facilities:
International bidding for investor, contractor and operation
- Existing facilities:
Share selling, operation contracting

By 2005, construction and operation of environmental facilities
will follow market-based operation.

Institutional reform on sanitation and greenery sector

- Independent companies for sanitation and greenery service
- Break up monopolized operation
- Encourage market competition

Favorable polices on reducing, reusing and recycling of household wastes

Encourage multi-channel contractors to manage environmental facilities in industrial zones

III. Enhanced Law and Regulation Enforcement

To establish a comprehensive legal framework in line with international practice
- Environmental laws and regulations will be formulated
or amended
- Policies stipulating institutional reform and market-based
operation will be released

To build up capacity for upgrading monitoring and supervision

IV. Science and Technology Innovation

Set up an environmental science and technology
innovation framework
More scientific studies for decision making
Fully utilize the role of enterprises in technological innovation
Foster an environmental technical, service and consultation
market

V. Improved Public Education & Awareness and Promotion of Green Consumption

Raise Public awareness

Strengthen environmental education of the public, particularly officials and students

Encourage public participation in environmental activities