China & The Stern Review

It has been about two weeks since the UK Government released the Stern Review to the rest of the world. A lot has been written about the significance of this report and the implications for our world's environment. In my mind, the report has finally put a warning in a language that governments and policy makers & shapers understand. Money. A realisation that "business as usual" already does have significant economic cost and continuing inaction will have far-reaching consequences.

Already you start to see traditional critics of sustainability and pro-environmental policies performing magnificent backflips on their viewpoints. The current Howard-led Australian government in my mind are the epitome of this bandwagon. I predict, sadly for them, their previous lack of leadership in regards to eco-conservation, land-management and greenhouse gas emissions will leave them without the proverbial leg to stand on.

One of the oft repeated responses by Australian government officials aimed at deflecting inaction has broached that even if Kyoto or green-house emissions targets are met, it doesn't really mean much if current leading polluters like China and India are replacing other country's carbon emission savings. This elicits two thoughts from a reasonably well-informed reader like myself. Firstly, yes I am concerned about these country's contribution to atmospheric and water pollution despite the actions of other countries, if you are reducing or minimising your own contribution carbon emissions, you are contributing to decreasing either the rate or total carbon emissions output worldwide. Yes, you are improving on the status quo. The second thought is prompted by the touch of truth in this somewhat misguided sentiment. It is fact that India & China do currently contribute a lot towards worldwide greenhouse gas emissions. Anything that can be done to reduce the emissions from these countries would be beneficial for each country's and the world's environment. This also cannot be disputed. Yet again, both countries see themselves once again in the world's spotlight. And so far, this expectant audience hasn't a single utterance from these leading players.

Yet for all my morning internet delving in the English-language web, I haven't seen any official response from the Chinese government in response to this report. I find this interesting as we now have a situation where the world's eyes and fingers are pointing towards China and its competitor India as the key players in damage to the world's environment.

One can hypothesise that a range of responses will emerge. The most sceptical from a Western perspective would be adversarial. As anyone who hasn't been under a rock in a coma for the last ten years, China is the world's pre-eminent manufacturing engine. This has transferred a lot of wealth to China, but also seen China's carbon emissions to dramatically increase. The call from developed nations to curb emissions would be seen as hypocritical given that most of these countries have already benefited from their own lengthy industrial revolutions, urban development and manufacturing booms that have contributed their own fair share of pollution to this planet. Further to this, North America and Europe match (or surpass) the more heavily populated India & China in carbon emissions. Along with their manufacturing, the West can be accused of exporting the associated pollution with this manufacturing onto China & India.

In line with this "us versus them" thinking, further grey areas emerge. Foreign wealth that fuels both China and India's manufacturing booms has and continues to contribute to these country's global footprints. It is also worth noting that off-shoring of the world's manufacturing to both India and China has additional environmental costs due to the transportation of goods and raw materials to and from these manufacturing powerhouses. The picture that emerges here is the the burden of the world's environmental problem isn't just India & China's to shoulder, it starts with all of us and our demand for cheap goods.

Both China & India are not innocent parties in facing the world's pollution crisis. India & China, like all countries, are responsible to manage its own environment and its impact on its neighbours. China is faced with unique problem of dealing with the drive for developing its nation while also ensuring its own long-term productivity.

The ChinaDialogue website has recently posted part one of a two entry review by Maryann Bird which explores the findings of the Stern Review and examines China's internal and external impacts. Bird's article explores the potential for environmental damage in China ranging from increased water shortages, coastal flooding, and desertification of marginal agricultural land, and points to some of the consequences for China under such scenarios.

China is already facing some tough environmental problems caused by its rapid development and hunger for coal-supplied electric power. Recent examples of industrial pollution include the 2005 Songhua River chemical spill in Jillin Province, the smog-filled skies of Shanxi and Shaanxi provinces, and a large sulfuric acid spill China's ancient Grand Canal area. This article provides an excellent exploration of the impact of China's environmental problems on its society. There are acknowledged problems, and the Chinese government has implemented many policies to help curb the impact of environmental damage in China. The trillion dollar question is "are they doing enough?".

To me what is really interesting is the link between China's prosperity, the environment of China, and the potential for China to lead the world in environmental solutions (yeah, amazing I know). One of the drivers that led my former employer had for establishing a presence in China is this country's relative water shortage and need for improved water treatment & preservation solutions for the Eastern Asian region. Additionally, both India & China are well-placed to take advantage of their powerful manufacturing capabilities and educated workforces to help create new solutions to their current pollution problems. Indeed, this could be where each country could emerge as world-suppliers of green-friendly technology. We now see the a shift in the West's perspective on the importance of environmental conservation, and with this an emerging market to exploit.

The questions I have are, can China take advantage of this wind of change, is it willing to, and if so can it become a world leader by providing the will and the means to make this needed difference? Could our perceptions of China and its relationship with the world's environment be shattered by *such a scenario?

* Something was cut-off when posting this entry. Sorry about the abruptness in the earlier version!