Respected Mr Chairman，Council Members，Working Group Co-Chairs，ladies and gentlemen，
Please allow me，on behalf of the Secretariat，to brief you on the implementatio n ofthe Recommendations of the 3rd Meeting of the 2nd Phase of the China Council to the Chinese Government ，change of Counci l Membership and WG Co－Chairmanship，major progress made by the WGs，work of the Secretariat，and financial situation of the Council during the past year when the Council was not in session．
l． Responses made by the various departments of the Chinese Government to the Recommendation of the 3nd meeting Of the 2nd phase of the china council the chinese Government
As requested by the Secretariat，20 ministries; government agencies and provincial-level governments have prepared written summaries of their responses to the Recommendations of the3rdMeeting of the 2nd Phase of the China Council. They are: State Development Planning Commission，State Economic and Trade Commission，Ministry of Science and Technology, Ministry of Land Resources，Ministry of Construction，Ministry of Water Resources，Ministry of Agriculture，Ministry of Foreign Trade and Economic Cooperation，State
Enviromental Protection Administration ，State Forestry Bureau，Chinese Academy of Sciences，China Meteorological Administration，State Coal Industry, State Pet rochemical Industry Bureau，State Light Industry Bureau，State Construction Mate rials Bureau，State Nonferrous Metal Industry Bureau，State Oceanography Bureau ，State Power Corporation，and Shanghai Municipal Government．They all think th at the Recommendations are of high reference value for the formulation of the 10thFive-Year Plan，and have drawn upon the respective items of the Recomme ndations in formulating the 10th Five－Year Plan for the own sectors (jurisdictions）．They have summarized their implementation of the Recommen dations item by item．Their responses are very comprehensive，and some summaries presented to the Secretariat are as long as 8 pages．
In order to give you a more detailed report on their responses，the Secretariat has complied them into Annex l of this work report for your reference．
2．Change of Council Membership and WG Co－Chairmanship
We welcome Dr. Len Good，President of Canadian International Development Agency ，to become Vice－Chair of the Council. Former vice－Chair Dr．Huguette Labelle has been asked to stay as a Council Member．During the past year，some members have retired from the Council. They are: Mr. Zhang Zhigang，Mr．Lu Ming，
Mr．Gao Qiang，Mr．Kazi Jalal，Mr．Jin Lee，Mr．David Buzzelli，Mr．Shridath Ramphal．Some new members have been invited．They ar e：Mr．Wang Wanbin，Mr．Zhang Baowen，Mr．Zhu Zhigang，Ms．Eimi Watanable，Mr．Chin－Seung Chung and Mr．Klaus Topfer．
In July of this year, the Task Force on Forestry and Grassland Issues as Relat ed to Great Western Development was established．Mr. Shen Guofang and Ms．Uma L ele have been invited to be Co－Chairs of the new Task Force．
The CVs of the new Council Members and WG Co－Chairs have been distributed to al l Council Members，and their membership has been approved by he Council meeting this morning．The Secretariat would like to welcome the new Council Members and
WG Co－Chairs to join the China Council，and thank those who no longer serve as Council Members and WG Co－Chairs for their valuable contribution to the Ch ina Council．
3．Work progress made by the Working Groups（Task Forces）
During the past year the Secretariat has been more actively involved in the acti vities of the WGs，and provided necessary support for them Whenever possible．I n order to strengthen the contact between the Secretariat and the various WGs，t he Secretariat organized a meeting of the liaison persons of then WGs. This me eting stressed the need to strengthen contact and cooperation among the WGs．It also came out of the meeting that，in oder to promote policy demonstration and p roject demonstration, the WGs should try to establish links with aid projects in China and bilateral cooperation projects in their selection of demonstration projects．
The WGs have been carrying out policy research and demonstration projects accord ing to their respective work plans，and have made considerable progress．N ow I would like to cite some examples．
The WG on Pollution Control has been implementing the project on"Policy and Pro ject Demonstration on CO2 Emission Reduction in China" smoothly. Experts of t his WG have also conducted case studies on the development trend of the environm ental status and countermeasures of pollution control in the cities of Guangzhou ，Chongqing，Zibo and Suzhou．Based on these case studies，he WG compiled the Guidelines for Integrated Environmental Assessment and Forecasting in Ch ina，and distributed it to the Environmental Protection Bureaus of 47 key cities for reference and further comments．
The WG on Cleaner Production has been actively promoting the pilot program on cleaner production in demonstration provinces and cities, and has been made rema rkable progress. The Regulations of Taiyuan City on Cleaner Production has taken effect in Taiyuan as the first comprehensive local regulations on cleaner production. The Indicator System for cleaner Production Demonstration Cities has taken initial shape, and is being improved.
The WG on Environment and Transportation has put forward the"Recommendation son How to Tackle Transportation and Environment Issues in Chinese Cities". Thes e recommendations have been forwarded jointly by the Department of urban Constru c tion of the Ministry of Construction (MOC）and the Department of Pollution Cont rol of State Environmental Protection Administration（SEPA) to the construction departments and environmental protection departments of 36 key cities．The citi es of Shezhen，Dalian，Kunming and Qingdao have formulated plans respectively to implement these recommendations．
The WG on Environmental Economics has planned to undertake research on environm e ntal protection and poverty alleviation on the basis of their previous work on environmental taxation reform．The focus of this research topic is how to tackl e environment and poverty issues in an equitable and efficient way by adopting rational environmental economic policies，and how to make policy adjustment ac cording to the costs and benefits of environmental damage and of remedial measur es．this research will be of great reference value for the western regions of C hina．
The WG on Energy Strategies and Technologies held two international workshops on the" Design and Implementation of Renewable Portfolio System(RPS） Policy"during the past year. In order to carry out more in－depth research on this issu e，they conducted surveys and analysis in some typical areas．The objective of t he RPS policy is to promote the trading of renewable power supply between diffe r ent regions (power grids）according to the quotas assigned to them respectively . Just a few days ago, this WG held another international workshop on"Developm ent Trend and Problems of Distributive Power Supply in China".
The WG on Environment and Trade has focused their attention on China's access ion to WTO and related issues．They held an international training workshop on"China's Accession to WTO:Environment and Trade Issues". They have recommen ded that，after its accession to WTO，China needs to distinguish between trade b arriers under the disguise of environmental protection and legitimate environmen tal requirements aiming to protect environmental and human health．This is very important for China's foreign trade．
The WG on Biodiversity, in response to the Great Western Development initiativ e，held an international workshop on biodiversity in Sichuan Province，and cond ucted assessment of the situation and protection of the biodiversity in Sichun． This WG continued to carry out the demonstration project on alpine grassland． The Sustainable Development Demonstration Project in Suojia Town of Qinghai Province，jointly implemented by the WG on Biodiversity and the Association for the Promotion of Eco－Economy in they Yangtze River Source Areas of Qinghai－Ti bet Plateau，has been going on smoothly. Suojia Town has set up an Environmental Protection Bureau，furnished personnel and equipment for 4 environmental protec tion stations，established 4 nature reserves，3 hunting prohibited areas，l demo nstration area, and I grassland（desert）research area．The WG is also tying to set up a website for better information exchange．
The Task Force on Forest/Grassland is newly established at the call of Premier Z hu Rongji and the suggestion of World Band President Wolfenohn，Vice President I an Johnson, and some China Council members and WG Co-Chairs. It received financi al support from the World Bank and CIDA, and got other support from a number of Chinese and international institutions and experts. The First meeting of the TF was very successful. It reviewed China's forest and grassland problems, current policies and existing research, and made the TF's work plan for the next 2 years . The preliminary report by the TF, which we have heard earlier today, has prese nted their research results to us. We look forward to a more in-depth report nex t year
4. Completion of the self- assessment for the "China Council Project"
After the 2nd Meeting of the 2nd phase of the China Council, CIDA requested that a self-assessment be conducted for the China Council Project. The SA exercise w as formally started in September last year. In order to ensure the objectivity a nd fairness of the SA, the Secretariat invited a few Chinese and international c onsultants to undertake the task. These consultants formulated the SA framework, looked up tremendous amount of documentation, conducted interviews and focus g roup meetings, and distributed questionaires to the relevant peop1e. After more than one year's hard work, the SA report has been comp1eted as planned. The SA r eport is the first comprehensive review and summary of the work of the China Cou ncil in the past 8 years. It collected concrete data on the impact of the China Council on China's policy-making and public environmental awareness, as well as comments and suggestions by the relevant people at various levels to the China C ounci1. It can be seen from the SA report and its very substantial annexes that the China Council is accepted by all to be a unique and vital organization. All the peop1e concerned agreed on the positive contribution of the China Council to China's environment and development, and hoped that the 3rd Phase of the China Council could further improve itself and p1ay a bigger role. It can be said that the SA report has reflected these facts and various kinds of comments in an obj e ctive way , and also laid a foundation for the 3rd Phase of the China Council. Th e Secretariat has taken careful note of the comments and suggestions on the shor tcomings of the China Council, and would strive to improve in the future. Just t o give you a few examp1es of such comments and suggestions: each annual Council meeting should have a clearly defined theme;implementation of the Council's Reco mmendations should be promoted and monitored more c1osely; a special drafting te am should be set up to prepare the Recommendations prior to the annual Council m eeting; services for Council members and WG Co-Chairs should be improved; the da tabase and website of CCICED should be updated in a more timely manner; etc. Bea ring these comments in mind, the Secretariat has been trying to improve its work during the past year in order to live up to the expectations of all people con cernd. At the same time, we are confident about the 3rd Phase of the China Counc i1, and hope to get continued support from the international community.
5. Work of the Secretariat
Under the leadership of the Bureau, the Secretariat has completed a number of ne w tasks during the past year while fulfilling its routine responsibilities. Apar t from the self-assessment exercise mentioned above, these new tasks mainly incl ude the fol1owing among others:
5．1 Monitoring the implementation of the Council's recommendat ions
The Secretariat Head Office gave first priority to the implementation of the Rec ommendations by the 3rd Meeting of the 2nd Phase of the China Council．It forwar ded the Recommendations to the relevant departments of the State Council in a ti mely manner, especially to the 14 ministries（agencies）Which have members hip on the China Council and 10 other related departments．Prior to this meetin g，the Secretariat had asked these departments to provide a written summary of t heir responses to the Recommendations．20 ministries，agencies or provincial－le vel governments have reported back to the Secretariat．Compared with previous years，their responses are much more active this year. This could be attribute d in part increased monitoring on the implementation of the Recommendatio ns by the Secretariat．It also shows that the China Council has a unique role t o play, and that the Recommendations by the Council have attracted attention from the major economic and resources administration departments of the Chinese gover nment，and have been disseminated and applied wherever relevant．
5．2 Establishment of the Task Force on Forest and Grassland Iss ues（As Related to the Great Western Development）
In l998，The Chinese Government decided to ban logging of primary forests comple tely and promote the conversion of steep arable land back to forest and grasslan d．This year, the Great Western Development Program was launched．During his meetings with China Council members for the Past two years，Premier Zhu Rong ji emphasized the importance of ecological conservation，and the need to find ou t and solve problems with the implementation of the above mentioned logging ban and land conversion. This has posed a new requirement for the China Council as a high－level advisory organization．Some WGs responded quickly to this new situ ation，such as the WG on Biodiversity, WG on Sustainable Agriculture，and the WG on Environmental Economics，etc．At the same time，the Bureau of the Council d ecided to establish a two－year task force to carry out research on forest and g rassland issues as related to the Great Western Development．The Secretariat rea cted quickly, concentrated its attention，and established the new task force wit hin several months with the support of the World Bank，CIDA and others．
5．3 Preparations for the 4th Meeting of the 2 rd Phase of the China Council
Aside from other preparations for the Council meeting，the Secretariat has focus ed on 3 things：
First，given the recent government decision on great western development，and in order for the China Council to better play its role as a high－level advisory o rganization，the Secretariat has proposed that the theme of this years'Council meeting be"Environmental Protection and the Great Western Development"．
Second，with the theme Chosen，the Secretariat has invited the relevant Chinese ministries to attend the Council meeting to introduce their measures and plans for great western development in their respective fields．The Secretariat has a lso invited the relevant provinces and autonomous regions to give presentations on their implementation of the policy of converting steep arable land back to f orest and grassland，and on their plans for great western development．
Third, the Secretariat made a point of preparing the draft recommendations of th e Council to the Chinese government，Which will become the key outcome of the Co uncil meeting．First of all，the Secretariat sent written request o Council me mbers and WG Co－Chair for their suggestions and ideas on the Priority issues of the great western development，and asked them to provide the experience and les sons of other counties．In response，9 Council members and the WG on Biodiversit y the WG on Sustainable Agriculture and the TF on Environmental Protection and Ec onomic Planning provided their recommendations in writing to the Secretariat．At the same time，all the WGs（TFs）have submitted their policy recommendations ba sed on their work of the past year. These recommendations，which reflect the wisdom and research achievement of Council members and WGs and are clearly tar geted and highly practical，have laid solid basis for the Secretariat to make th e first draft of the recommendation of the Council to the Chinese government．T he first draft was then sent to Council members and WG Co－Chairs for further comments．12 members and WG Co－Chairs commented on the first draft and proposed 40 items of revision WG Co-chairs commented on the first draft and proposed 40 items of revision suggestions．Based on these comments, the Secretariat worked ou t the 2nd draft, which has been submitted to the Council meeting for discussion．
5．4 Ensuring smooth communication among the various parts of th e Council
The Secretariat strove to ensure smooth internal and external communication．Th e two offices of the Secretariat have been sharing information and in close coo peration with each other through telephone，fax and email．During the process of preparing for the establishment of the Forest/Grassland Task Force and the Coun cil meeting，the Head Office has been working closely with the Canadian Office． The two offices have paid reciprocal visits to each other, discussed the self-ass essment report and exchanged views on a possible Phase III of the Council during these visits．The Secretariat has also been providing timely service of the Bu reau on key issues like change of Council membership，establishment of the new Task Force，the theme of the Council meeting，etc．The Secretariat has also pro vided assistance，coordination and support for Council members and the WGS（TFS ）．
5．5 Providing assistance for the"International Meeting on Gove rnment and Business Strategies for the Development of Environmental Industries i n China"
With the assistance of the Secretariat ，the"International Meeting on Governmen t and Business strategies for the Development of Environmental Industries in Ch ina, was held in Beijing in May . This meeting was co－sponsored by SEPA PA，CCI CED，the world Business Council for Sustainable Development（WBCSD）and the Prog ram on Environmental Protection and Economic Planning in China (PEPEP). and sup ported by the European Commission，the Norwegian Government，the Enviroment Agen cy of Japan and the Chinese Association for Environmental Industries．
participants to the meeting numbered 130．The issues discussed at the meeting in cluded：strategies for improving environmental performance of Chinese industry in the 21st century；international activities and experiences related to improvi ng environmentalperformance；the role and experiences of enterprises in developi ng environmental industries；investment and finance mechanisms for environmental industries；market management and certification for environmental industries; a nd opportunities for international cooperation; etc. 25 international representa t ives and l4 Chinese representatives made presentations at the meeting. The discu ssions were very active, and the participation was enthusiastic. In the end, the meeting put forward the Recommendations to the Chinese Government on the Strateg ies for the Development of Environmental Industries. Detailed information concer nming this meeting has already been distributed to you.
5. 6 Establishment of the CCICED database and updating of the CCI CED website
Information techno1ogy wil1 be a key to the society in the 2lst century. Many Co uncil Members and WG Co-Chairs have expressed hope that the Council could utiliz e information technology to faci1itate communication. Therefore, the Secretariat has invited technical experts to deve1op a CCICED database. With the joint eff orts of the experts and the Secretariat, the CCICED website has been improved an d updated before the meeting. The new website address of CCICED is:www. ccicedorg . From the new website, information about CCICED could be searched and downloade d, including information on the history of CCICED, key documents for the past 8 y ears, self- assessment report, and the most updated information. Each Council mem ber and WG member will be given his/ her own electronic mailbox for the convenie nce of communication with each other. Council members and WG members could also post information on the website through the Secretariat and carry out electroni c discussions. Currently, the information on the website is not complete yet, an d there is still much room for improvement. Council members, WG Co-Chairs and an y other related peop1e are welcomed to make comment on it, so that we could imp rove in the future.
5. 7 Financial situation of the Council
The Secretariat has been utilizing various opportunities and channels to seek ad ditional funding for the Council and the WGs from various donor agencies. Up to
now the German GTZ has expressed intention to provide continued financial suppor t for the WG on Transport and Enviroment; the Energy Foundation of the US has in dicated their wil1ingness to support a China-US project on SO2 emissions tradi ng;EU has been much involved with China Council activities and may also be able toprovide financial support; the Dutch Government has reiterated its support fo r China's environmental protection and the China Council, and is interested in s upporting a new Working Group on Sustainable Business Development; Sweden is int erested in supporting a research and demonstration project on the ecological pro tection of the Beijing-Tianjin Region. The World Bank has agreed to raise fund f or the new Forest/Grassland Task Force. CIDA has a1so committed 25, 000 US dolla r s to support the first phase of the Forest/Grassland Task Force. The Total incom e of the China Council for 2000 is 2, 977 K US dol1ars, among which 72% will be us ed for the WGs(TFs). The detailed financial report, which has been prepared by t he Secretariat Canadian Office, is attached as Annex 2.
Thank you for your attention.
