By Devon Reid Mok, CNTV Reporter

As the PRC acclimates to a prolonged slowdown in the economy after 30 years of rapid industrialization, the Chinese government plans to implement a more sustainable mode of economic development on a national scale.

China has demonstrated its commitment to promoting quality production by lowering its GDP growth target to 7 percent for 2015. This act signifies China’s transition to the “new normal” phase of economic progression in which targets will be adjusted in order to accommodate sustainable growth.

Key structural adjustments under the “new normal” will also include a widespread shift in production to service-sector led growth, along with a strengthened role of the market in encouraging consumption-driven development in the Chinese economy.

Economic restructuring of this magnitude is bound to have a residual impact on China’s natural environment as manufacturing slows and regulatory legislation begins to take hold.

Whereas previous growth targets and economic policies have seen pollution and environmental degradation intensify, the PRC’s freshly augmented growth imperative – combined with a series of economic and environmental reforms drafted by the CCP leadership – is likely to have a favorable impact on China’s ongoing efforts to improve environmental conservation.          

Impact of new normal reforms on environment

Jurgen Conrad, Head of the Economics Unit of the Asian Development Bank (ADB) in Beijing, says the lowering of the GDP growth target will definitely be good for China’s natural environment. 
 
He argues that this is an important precondition for the cultivation of sustainable development in China as it provides the necessary room for undertaking much-needed structural reforms.

“With a lower target, Chinese government agencies can focus more on quality of growth rather than on quantity,” Conrad says.

Lesser growth targets make room for more consumption-driven growth. This in turn boosts demand for more consumer-oriented manufacturing and services, which are more environmentally friendly.

“Growth targets that are set too high force the government into stimulating growth through investment programs. These investment programs boost heavy industries, which are the greatest polluters.”

The ADB representative also approves of the PRC’s planned shift toward service sector-led development.

“Focusing on service sector led growth instead of industry led growth will definitely help China’s environment, since services tend to be more environmentally friendly,” he says. “The ongoing deregulation of the service industry, and the opening of the service sector to more private investment are therefore also good environmental policy.”

According to Conrad, China’s move from investment- to consumption-driven growth helps in similar ways.

The government’s effort to improve the effectiveness of fiscal policies and resource allocation by financial institutions is also beneficial to the environment, because it should refine the selection of investment projects. Conrad believes this will help China make better use of limited natural resources.

Additional measures to help in conservation effort

Environmental experts say there are additional policy initiatives which, if enacted, could further reduce the pervasive air pollution, soil erosion and land degradation plaguing much of the country.

ADB’s Maria Ancora prescribes the implementation of policies which can fill the gap in actual implementation and enforcement of environmental regulations at the local level.

One way she says this can be accomplished is by offering more flexibility to cities on their planning targets to make these objectives more achievable. This way local authorities will be less likely to condone manufacturing practices deleterious to the environment as they work toward unrealistic growth targets.

Ancora argues the government should “increase public awareness of the importance of sustainable development and engage the private sector, especially small and medium-sized enterprises, through feasible incentives to share the burden of cleaning costs.”

Echoing the need for direct government action on the matter of conservation, Nicholas Stern, chairman of the Grantham Research Institute on Climate Change, emphasizes the need for less congested, cleaner and better-connected cities, as well as cleaner and smarter energy systems with a particular emphasis on energy efficiency and non-hydrocarbon energy sources.

The renowned London professor argues for the regrading of degraded land and the protection, expansion and intensification of forests.

“Some of this can be incentivized by strong carbon taxes and regulation and efficiency standards,” he says.

Stern argues it is important for China to make sure that coal consumption peaks now and reduces rapidly from now on. He says this can be encouraged through the strong taxation and regulation of coal, and also by way of investment in renewable energies and nuclear power.

Energy efficiency, he argues, will be particularly important in reducing the use of hydrocarbons and thus reducing pollution.

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