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DiscussiononHowGreenInnovationCanImproveCircularEconomyDevelopmentinChinaYifeiGUOCorrespondingauthor(email:jasper_fei@yahoo.com.cn)ChinaCleanerProductionCenterofLightIndustry,EnvironmentalProtectionResearchInstituteofLightIndustry,Level6,BeiKeHigh-TechBuilding,#10Dayangfang,Beiyuan,ChaoyangDistrict,Beijing100012,ChinaAbstractAstheeconomyisgrowingrapidly,issuesofenergyexhaustionandenvironmentalpollutionhaveraisedagreatconcernoverChina’seconomicsustainabledevelopmentduringthe21stCentury.ItisoneofChina’smaintargetstodevelopcirculareconomyduringits12th Five-YearPlan.Greeninnovationistoprovideenvironmentallyresponsibleproductsandserviceswhichbotharesustainableandcanreducetheenvironmentalimpacts.ThispaperanalyzestherolesofenvironmentalinnovationonthedevelopmentofcirculareconomyinChina.ByreviewingtheconditionsofcirculareconomydevelopmentinChina,andcombiningwithexperiencesfromsomesuccessfulcountries,suggestionswillbegeneratedforgreeninnovationpromotioninChina.Keywords:greeninnovation;circulareconomy;environmentalprotection 1.IntroductionTakingonefifthoftheworld’spopulation,China’seconomyhasbeensharplydevelopingsincethe1980s.However,therapiddevelopmenthasledtolotsofenvironmentalissuessuchasnaturalresourcesscarcity,energyover-consumption,environmentalpollution,andgreenhousegases(GHGs)emission,etc.Asaresult,environmentalsustainabilityhasbecomeachallengeforChinaduringthe21stCentury.Tomeettherequirementsofenvironmentalsustainability,anideacalled‘circulareconomy’,hasbeenformedsincethe1990s,tosaveandcomprehensivelyutilizeofnaturalresources,torecyclewastes,andtoprotecttheenvironment.Sincetheover-useofnaturalresourcesandenvironmentaldegradationcontinuetodeteriorate,peoplehavebeenseekingforstrategiestobalancetheeconomicdevelopmentandenvironmentalquality.Tofulfilltherequirementsofenvironmentalsustainability,a‘greeninnovation’approachhasbeenintroduced.Abroadconceptof‘greeninnovation’isallapproachesthatrelevantactors(likecompanies,politicians,unions,associations,etc.)develop,adoptandintroducenewideas,newactions,newproducts,andnewprocesses,toreducetheenvironmentalburdenandtoachievethegoalforecologicalsustainabledevelopmentReferencesKlemmerP,LehrU,LobbeK.1999.EnvironmentalInnovation.Volume3ofpublicationsfromaJointProjectonInnovationImpactsofEnvironmentalPolicyInstruments.SynthesisReportofaProjectCommissionedbytheGermanMinistryofResearchandTechnology(BMBF),Analytica-Verlag,Berlin..Itaimstomitigateoreliminatetheimpactsfromtheproductionandutilizationofindustrialproductsoneco-environment.ThispaperwillanalyzetheChina’spotentialstoconductgreeninnovationapproach,fromwhichthecapabilityofproductsandservicestoreduceGHGsemissioncanbeevaluated,todevelopcirculareconomy.2.CircularEconomyDevelopmentConditionsinChinaChinaisplayinganincreasinglymoreimportantroleintheworld’seconomicdevelopment.Therapideconomicgrowthleadstotherisingdemandsofenergyproductionandconsumption,andlargeamountsofpollutantsgenerated.Untilnow,China’sindustrialstructureandenergyutilizationpatternhavenotbeenchangedsomuchcomparingwithwhichduringtheenergycrisisinthe1970sWangYi.2010.TransformingEconomicDevelopmentPatternthroughImplementingGreenDevelopment.GreenEconomyandInnovation.25(2):121-126.(inChinese).Withoutcertainapproaches,resourcesandenergydemands,andemissionsofGHGsandother environmentalpollutantswillcontinuetogrow.The‘CircularEconomyPromotionLawofthePeople’sRepublicofChina’wasproclaimedinAugust2008andcameintoeffectinearly2009TheCentralPeople’sGovernmentofPeople’sRepublicofChina.http://www.gov.cn/jrzg/2008-08/29/content_1082915.htm.(inChinese).IthasbecomeacriticaltargetforChinaduringthe12th Five-YearPlan(2011-2015)tostrivetodevelopcirculareconomy.In2007,InternationalEnergyAgency(IEA)conductedasurveyforfutureenergyinChinaandIndia.Inthereport,byfollowingtheReferenceScenario,China’sprimaryenergydemandisprojectedtobemorethandoublefrom1,742Mtoeby2005to3,819Mtoeby2030–anaverageannualrateofgrowthof3.2%,andwillovertakeenergyconsumptionoftheUnitedStatestobecometheworld’slargestenergyconsumersoonafter2010;increasedfossilfuelsuseacceleratesemissionsofCO2andlocalairpollutants,SO2emissions,forexample,risefrom26Mtin2005to30Mtby2030;Chinahasbeenseekingfortheitsenergy-policy,regulatoryandinstitutionalframeworktomeetthecurrentandfuturechallenges,fromwhichasetofpoliciesthatthegovernmentisconsideringwouldreduce15%ofChina’sprimaryenergyusein2030;reductionsonCO2andotherpollutantscouldbeachievedbyadoptingcleanenergiesandimprovingenergyefficienciesOECD／IEA,2007.WorldEnergyOutlook2007:ChinaandIndiaInsights..China’sresourcesdemandpressureduetothelong-termlowresourcesinefficacyandextensiveresourcesutilizationcanbepotentiallyovercomebygreentechnicalinnovation.Thereconstruction,optimizationandupdateofChina’sindustrialstructure,canmitigatetheconflictbetweeneconomicgrowthandtheenvironmentcausedbytheheavyindustrydominatedeconomicstructure.Toenhancethegovernmentalfunctionstowardstheservicesoncirculareconomydevelopment,itisnecessarytomodifyChina’senvironmentalmanagementpattern.Byestablishingacomprehensivelegalsystem,supervisingthegovernmentalbehavior,andintegratingtheadministrativesystem,China’senvironmentalgovernanceinnovationcanbeimproved.3.GreenInnovationConditionsinChinaChinahasbeenseekingadevelopmentmodelwithhigh-tech,economicallyprofitable,resourcesefficientandenvironment-friendlyfeaturesforacertainperiod.Chinahasconductedseveralapproachestodevelopgreeneconomy. TofulfilltherequirementsforChina’scirculareconomydevelopment,theStateEnvironmentalProtectionAdministrationsetfourspecificgoals:1)toimprovetheeco-efficiencytowardsthosehighlyenergyconsumptiveandcontaminativeindustrialsectors;2)topromotethereuse,recyclinganddecontaminationofwastes,especiallyelectronicwaste;3)toraisepoliciesonlocalandregionalcirculareconomydevelopment;4)toproposekeyeconomicpoliciesoncirculareconomypromotion.DepartmentofPolicy&LawsofStateEnvironmentalProtectionAdministration(2007):StudyonPoliciesforPromotingCircularEconomyinChina.ProjectfortheWorldBank-ItalianTrustFundProgram(No.TF054538).China’senvironmentaltechnicalinnovationsystemhasbeendevelopedfromthepatternofgovernmentsandcorporatesbased,intothecomplexstyleofmulti-affectsfromgovernments,universities,institution,agencies,creatinganintegratedtechnicalinnovation&transfernetwork.Figure1showsthetechnicalinnovationoperationsystem.Universities&institutesTechnicaltradeTechnicalapplicationTechnicalmarketGovernmentsEnterprisesFigure1EnvironmentaltechnicalinnovationoperationalsysteminChinaZhao,Xikang.2006.LeadtoGreenInnovation:ResearchofInnovation-orientedEnvironmentalPolicy.Beijing:EconomicSciencePress.(inChinese)Since1970s,Chinahasbeendevotedtotreatmentsonwastewater,wastegases,andwasteslags.InChina,R&Dongreentechnologiesincludingenergytechnology,biotechnology,separationtechnology,resourcesrecyclingandreusetechnology,havecontributedforthegreentechnicalinnovationindustry.Nowadays,China’sgreentechnicalinnovationapproachhasbeenconductedinenvironmentalmonitoring,cleanvehicles,sewagetreatment,radioactive&noisecontrol,environmentalnanomaterials,fluegasdesulphurization(FGD),nickel-hydrogenbattery,photo-catalysisgaspurifier, cleancoalandotherfieldsZhongShuhua.PresentStateonInnovationofChina'sGreenTechnology.Science&TechnologyReview.2002(5):55-57.(inChinese).Apartfromthese,cleanerproductionapproachbasedontheadoptionofcleanprocesshasbeenimplementedduringrecentyears,fromwhichenterpriseshavebeenencouragedtoupdatetheiroperationalprocessesintoanenergyefficientandenvironment-friendlydirection.Besides,Chinahasimproveditsenvironmental-economicsystembyadoptingarangeofapproaches,includingenvironmentaltaxation,greentrust,greeninsurance,greensecurity,environmentaldischargetrade,eco-compensation,andgreentradepolicy.ThoughChinahasmadegreateffortsongreendevelopmentandinnovation,thereisalongdistancetocatchupwiththosedevelopedcountrieswhencomprehensivelyconsideringthepoliciesimplementationandinnovationprofits.Ingeneral,theineffectiveoperationofinnovationsystem,thesuperficialresearchonenvironmentalinnovation,thescarceinnovationoutcomes,thelaggingtechnologies,andthelow-leveltechnicalindustrialization,haveledtoseveralchallenges.Ingeneral,China’sgreeninnovationmechanismhasnotbeensystemizedthoughthepoliciesongreeninnovationareperforming.Tothisextent,itisanarduousandsignificanttaskforChinatoundertake.4.InternationalExperiencesTounderstandtheperformancesofgreeninnovationforenvironmentalprotectionandeconomicdevelopment,itisnecessarytoreviewtheexperiencesfromothercountries.Duringthe20thCentury,lotsofindustrializedcountriesmadegreateffortsonpollutiontreatmentandcontrol,andacceleratedthedevelopmentofenvironmentalprotectionindustry.EnvironmentalindustriesintheUnitedState,GermanyandJapanarerelativelymoreadvanced,fromwhichtheyaretakingtheleadoftheglobalenvironmentalprotectionmarket.TechnicalinnovationisanAmericanculture,fromwhichthegreatproportionofR&DandhighereductioninvestmentfromitsGDPhasmadetheUnitedStatesastheleadingpoweroftheworldinnovation.SinceBarackH.ObamabecametheU.S.President,a“GreenEconomicRecoveryPlan”hadbeenconducted,fromwhich$100billionwas fundedtosupportcleanenergydevelopment,tocopewithclimatechange,andtocreate2millionnewjobsPodestaJohn.2008.GreenRecoveryANewProgramtoCreateGoodJobsandStartBuildingaLow-CarbonEconomy.http://www.americanprogress.org/issues/2008/09/green_recovery.html..CleanenergydevelopmentnotonlyhasmadetheUnitedStatesthecenterofgreeninnovation,butalsoprovidedgreatopportunitiesandabundantrewards.Germanyisoneofthesuccessfulcountriesoneco-environmentalprotection,andtheearliestcountryforthelegislationofcirculareconomy.GermanyamongtheOECDcountrieshasalreadybeenafrontrunnerfortheideaofCircularEconomy.InGermany,thefederalgovernmentreleasedthreeprinciplesonenvironmentalpolicies:1)precautionaryprinciple;2)dutiesofenvironmentaloffender;3)cooperationbetweenthegovernment,enterprisesandcitizens.HeckPeter.2006.CircularEconomyRelatedInternationalPracticesandPolicyTrends:CurrentSituationandPracticesonSustainableProductionandConsumptionandInternationalCircularEconomyDevelopmentPolicySummaryandAnalysis.http://siteresources.worldbank.org/INTEAPREGTOPENVIRONMENT/Resources/CircularEconomy_Policy_FinalDraft_EN.pdf.Inaddition,many“innovativecities”havebeenfounded,andlotsofdemonstrationprojectshavebeencarriedout.Forexample,theformerRuhrIndustrialBasewasadjustedfromthehighlypollutionregionintoahigh-techtertiaryindustryzone,leadingtothesuccessfulmarketpromotionofproductsandemissionreductiononcarbondioxide.JapanhassetthetargetofreducingGHGsemissionby25%(atleast1.3billiontonsCO2)by2020comparedtothe1990level.Meanwhile,Japanhasplannedtocreatemorethan50trillionmarketsforenvironmentalgoodsandservicesand1.4millionnewcareersinenvironmentalsectors.Toachievethesegoals,Japanesegovernmentreleasedarangeofpoliciestospreadrenewableenergybyexpandingfeed-intariffandothermeasures,toaltertheconstructionsintozero-emissionstructuresthroughthespreadofeco-housing,heat-pumpsandothertechnologies,topromotedevelopmentofinnovationtechnologies,andtoimplementintensiveinvestmentprojectsforlow-carbonsociety.NakaoYasuhisa.2010.Japan’s“GreenInnovation”Policy.http://www.oecd.org/dataoecd/4/17/45010305.pdf.5.Conclusion&RecommendationsChinahasmadeagreatprogressoncirculareconomydevelopment,amongwhichgreeninnovationpromotionisanimportantaspect.Nevertheless,comparingwiththosedevelopedcountries,thereisstillalongwayforChinatointegratethegreeninnovationmechanism.ExperiencesfromtheU.S.,GermanyandJapanhaveindicatedthatcirculareconomydevelopmentrequiresgreeninnovationtobeindustrializedwithcertainsupportsfromgovernmentallegislationandpolicies.Toestablishacomprehensivegreeninnovationindustrialsystem,somesuggestionsare considerable.Firstly,itisnecessarytomotivatethestate,enterprisesandindividuals,sothatmarketmechanismandgovernmentinterventioncaneffectivelybecombined,fromwhichgreeninnovationincentivesystemcanbeacceptedandsupportedbythepublic.Secondly,toalterthecurrentinefficienteconomicgrowth,greeninnovationhastobefocusedonthesustainableproduction,sustainableconsumption,andsustainabletrade.Itisimportanttoinsistonconductingcleanerproductionapproachandtoestablishalowpollution,lowenergyconsumption,andhighefficiencyproductionmode.Itisessentialtoestablishaconsumptionmodewithinternaldemandstimulatingandenvironment-friendlyfeatures.Itisalsosignificanttobuildanewtradepattern,tostimulateChina’seconomicgrowthwithlesseco-environmentaldeficitandtopromotethesustainabledevelopmentforbothChinaandtheworld.Finally,aninformationdisclosureframeworkisofnecessityfortheformulationofChina’sgreeninnovationpolicy.Theinformationdisclosurewillplayanimportantroleinpublicparticipationofgreeninnovationactivities,fromwhichitistheperformanceofindividualsforsupervisionofenvironmentalbehaviorsbythoseenterprises.Besides,anewenvironmentalmanagementsystemthateffectivelycombinesenvironmentalaccounting,productionprocesses,andqualitymanagementisneeded,fromwhichtheenvironmentalqualitycanbecontinuouslyimproved.
