Distinguished Chairman, Vice Chairman, Members and Co-chairs of Working Groups, Ladies and Gentlemen,

　　Now allow me to present, on behalf of the Secretariat, a brief report on the adoption and implementation of recommendations from the 4th meeting of CCICED PhaseⅡ by the departments and agencies of Chinese government, the changes in the members and co-chairs of task forces, the main progress of various working groups and task forces, the work of the Secretariat, the finance of CCICED and the preparation for CCICED Phase Ⅲ.

　　Ⅰ. Study and Adoption by Chinese Government Departments of the Recommendations from 4th Meeting of CCECED Phase Ⅱ

　　By September, the Secretariat has received correspondence from 14 departments and institutions directly under the administration of the State Council and 7 provinces, autonomous regions and municipalities directly under central government, in regard to the adoption and implementation of the recommendations from the 4th meeting of CCICED Phase II. The central government departments and institutions responding to the recommendations include the State Development Planning Commission, the Ministry of Finance, the Ministry of Trade and Economic, the Ministry of Science and Technology, the Ministry of Land Resources, the Ministry of Construction, the Ministry of Communication, the Ministry of Water Resources, the Ministry of Agriculture, the State Environmental Protection Administration, the State Forestry Bureau, the Chinese Academy of Sciences, the State Meteorological Administration and the State Power Corporation. The provinces responding to the recommendations include Tianjin, Inner Mongolia, Heilongjiang, Guangdong, Hainan, Shanxi and Gansu.

　　According to the correspondence, it is generally agreed that the recommendations from CCICED fit well with the major policies being and to be implemented in China and are of high reference value for promoting sustainable development in China. Therefore they attach great importance to these recommendations. Some of them have organized relevant institutions and people in studying these recommendations and adopted those suitable for the reality of the departments and localities concerned while planning and formulating policies and measures. Some of them have reviewed the implementation of the recommendations one by one with reference to their actual situation. The correspondence is rich in content. In order to better reflect the implementation by these departments and provinces, the Secretariat has compiled their correspondence and printed them as Annex I to my report. What is different from the past is that the recommendations from the 4th meeting of CCICED Phase II contained two parts of recommendations. The first part was those provided to the Chinese government as to how to combine environmental protection with social and economic development. The second part was those provided to the Chinese government concerning China's Great Western Development. To have better description, the Secretariat categorized the correspondence under these two recommendations. Please refer to Annex I.

　　Ⅱ. Adjustment in Membership and Co-chairs of Working Groups

　　In the past year, some members have left CCICED due to the change in their responsibilities. These members include Mr. Zhao Baojiang, Mr. Zhou Wenzhi, Mr. Wen Kegang, Mr. Jalal and Ms. Koch-Weser. The members replacing them are Mr. Zheng Yijun, Vice Minister of Ministry of Construction, Mr. Chen Lei, Vice Minister of Ministry of Water Resources, Mr. Qing Dahe, Administrator of State Meteorological Administration, Mr. Steiner, Director General of IUCN and Mr. Eichenberger, Vice President of Asian Development Bank. The resumes of the new members have been distributed to all of you. Their memberships have been adopted at today's meeting. While warmly welcoming new members, we sincerely thank those old members. We will remember their valuable contribution to CCICED.

　　In addition, in April this year a Task Force on Enterprises' Development and the Environment was established. Mr. Zhang Yanning and Mr. Stigson are Co-Chairs of this task force.

　　Ⅲ. Progress of the Working Groups

　　The work of working groups and task forces is the basis of the activities of CCICED as well as effective ways to achieve the objectives of CCICED. In recent years, the Secretariat has strengthened its communications with the working groups and task forces and actively participated in their activities. The Secretariat has been making great efforts to support and provide service to the working groups and task forces. The meeting was convened to know the progress in preparing working group summary reports and discuss about UNDP's proposal for summarizing CCICED's experience.

　　Following the requirement of the 4th meeting of CCICED Phase II, the working groups and task forces made serious efforts in summarizing their work in the past five years while continuing their policy studies and demonstration projects. The reports they present to this meeting have fully reflected their achievements. Some examples in this regard are cited as follows.

　　The Working Group on Pollution Control conducted case studies on environmental status assessment, future development trends and pollution control measures in four cities, namely Guangzhou, Chongqing, Zibo and Suzhou and Dongjiang River Basin of Guangdong Province. Based on that, the working group compiled the Guidelines for Comprehensive Environmental Assessment and Projection in China. The guidelines have been distributed to more than key cities in China for reference and use. The working group also made specialized studies on how to plan pollution prevention and control by addressing the water quality and relevant problems in the Pearl River Basin in Guangdong Province. To summarize the impacts that relevant policies adopted in the process of rapid economic development on the growth trend of total-amount of greenhouse gases in China, the working group undertook a study on policy options for reducing CO2 and has achieved some results for this phase.

　　The Working Group on Cleaner Production undertook surveys, studies and demonstration projects for promoting cleaner production and minimizing environmental pollution in China. They carried out the pilot work in the field of cleaner production at the province and municipal levels in Shandong Province and Taiyuan City. Taiyuan has issued the first local regulation on cleaner production in China. The working group has summarized the development of cleaner production in China. They have systematically analyzed the situation of promoting cleaner production in China and proposed new models for promoting cleaner production for those enterprises in transition and undergoing industrial restructuring. Training and exchange activities and big international workshops were organized for promoting cleaner production. The working group is collecting, compiling and publishing the research results in this field.

　　The Working Group on Transportation made studies on two aspects: urban traffic and the environment, and inter-city transportation and the environment. They organized a number of domestic and international study tours. Based on that, they proposed recommendations for improving urban transportation and the environment in China (which have been distributed to relevant province-level municipalities, provincial capitals and key cities in China. They have also made recommendations for sustainable transportation development in Western China and improving the road system and environmental protection in China as well as establishing environmentally sound transportation system in China. They undertook pilot work in urban transportation and the environment in four cities, namely Shenzhen, Dalian, Kunming and Qingdao. The working group has compiled and published a book on transportation and the environment.

　　The Working Group on Economic Planning and Protection undertook cooperative studies on some issues such as environmental taxation, environmental damage assessment and poverty alleviation and environmental protection. Meanwhile studies were also made on environmental accounting, economic instruments for industrial pollution control, sustainable grassland development, and incorporation of environmental resources into business education. Breakthrough progress has been achieved in the study of environmental taxes. The working group has proposed the basic principles for including environmental taxation in the financial system reform and the main measures for environmental tax reform. They have established a model of CGE for sulfur tax levy, which is suitable for Chinese reality. In-depth studies were also conducted on how to select proposed and potential environmental taxes, different taxation level of each individual tax and how to select the adjusted level of environmental taxation.

　　The Working Group on Energy devoted to the study and establishment of sustainable energy development based on in-depth surveys and studies on the state of energy in China. They have also proposed the guidelines for identifying and achieving the sustainable energy strategy in China. The energy most widely to be used is coal and renewable energies (mainly hydropower, wind power, solar power and biomass energy). The modernization of energy system must be parallel with economic modernization. The particular characteristics of existing and future energy markets will have major impacts on the nature and the time of strategy implementation. So a reserve plan should be made for unpredictable situation in the strategic development.

　　The Working Group on Trade and Environment undertook studies on China's entry into WTO and its impacts on sustainable development. Two training workshops were organized. The International Workshop on Policy Study for China's Entry into WTO was held. The comprehensive environmental impact assessment was made of relevant trade agreements. Studies were done on usefulness of international experience for China's entry into WTO, use of Clean Development Mechanism(CDM) to promote Western China Development, forestry and fishery, and trade liberalization and sustainable development. Objectives have been achieved in these studies.

　　The Working Group on Biodiversity organized a workshop on regional biodiversity conservation in Qinghai Province, which aimed to assist local communities with their efforts to conserve biodiversity. The working group compiled a guideline for remedial of degraded environment. They share the information on CCICED's website on endangered species in China. The working group worked on a red list of endangered species in China. They undertook demonstration projects in the comprehensive conservation and development of upper reach of Yangtze River and prevention of alien invasive species. The working group emphasized that great importance should be given to biodiversity, value and functions of ecosystems and strengthening coordination within government departments while planning and developing policies. The working group assisted in formulating biosafety management plan at a national level.

　　The Working Group on Agriculture paid field visits to the coastal areas of southeast China and addressed some outstanding issues in this region, such as water pollution, overuse of fertilizers and pesticide, food security, pollution caused by aqua-culturing, arable land reduction and education in rural areas. They organized the International Workshop on Comprehensive Management of Water and Land Resources in Coastal Areas of China. In the past few years, the working group has undertaken field surveys on some important issues, including grassland management in north China, grassland and husbandry management in south China, sustainable agriculture in the Loess Plateau and rural development and natural resources management in red and yellow soil areas in south China. In this process, they have helped the local governments in their efforts to achieve sustainable agricultural development. They have promoted the cooperation between CIDA and Inner Mongolia on the project of grassland ecosystem recovery. They have helped Shanxi Province with the development of a project on sustainable agriculture in the Loess Plateau.

　　Ⅳ. Work of Secretariat

　　Under the leadership of the Bureau, the Secretariat has completed the following four aspects of work since the 4th meeting of CCICED Phase Ⅱ.

　　1. Maximize the roles of recommendations from CCICED

　　The Secretariat regards it as its first priority to implement the recommendation form the 4th meeting of CCICED Phase Ⅱ. The recommendations consisted of two parts, as we did in previous years, the Secretariat transferred in time the recommendation to relevant departments of the State Council and provinces, autonomous regions and province-level municipalities. Prior to this meeting, the Secretariat has contacted again with relevant departments and provinces, autonomous regions and municipalities, requesting them to provide written document concerning the implementation of these recommendations. I have mentioned this earlier in this report and see no need to repeat. It needs to be pointed out that the recommendations have been disseminated and implemented more extensively in the Chinese departments for economic management and resources management and local governments. This indicates that both central and local governments have paid more attention to sustainable development in the process of policy making. This is very important. This also reminds us that during CCICED Phase Ⅲ we will have deeper and further studies on major issues related to sustainable development in China and CCICED demonstrates its unique role in this regard more effectively.

　　2. Establishment of new task forces (Task Force on Enterprises' Development and Environment) 

　　Since the reform and opening up policy was adopted, China has undergone rapid and sustained economic growth, with significant changes in its industrial structure. During the 10th Five-Year Plan period, China will continue to maintain an economic growth rate no lower than 7%. The production and business activities of enterprises will exercise significant influence on the regional environment and development. The Chinese Federation of Enterprises (CFE) has requested several times that a task force on enterprises' development and environment to be established. At the last meeting, representative from this federation made a presentation and many members and Co-Chairs of working groups indicated their support for establishing such a task force. In April this year, the Bureau approved the establishment of this task force. Some delays occurred due to a delayed decision concerning foreign Co-Chairs of this task force. The funding for this task force is in place. CFE took the initiative to present a proposal to CCICED on behalf of this task force. In addition, CFE presents to this meeting a report on their survey about the current status, problems and future trends of Chinese enterprises. This report has been distributed to all of you for comments.

　　3. Preparing for last meeting of CCICED Phase Ⅱ

　　To well prepare for the last meeting, the Secretariat has focused its efforts on the following five aspects.

　　First, to identify the theme of the meeting. According to the instruction from the Bureau and according to the consultation with relevant parties, the theme of this meeting has been identified as "Summarizing Phase Ⅱ and Preparing for Phase Ⅲ". This meeting is to summarize comprehensively what CCICED has done in the past five years, including experience and lessons, which will lay a good basis for doing our work well in Phase Ⅲ.

　　Secondly, to invite keynote speakers and organize some key presentations. For this meeting, Mr.Eichenberger, Vice President of Asian Development Bank will make a keynote speech. Mr. Kakahal, Deputy Executive Director of UNEP, Ms. Leitner, UNDP Representative in China and some officers from SDPC, MOFTEC, CAS and Beijing Municipal Government will be invited to make key presentations. These presentations will provide members with more background information and latest developments.

　　Thirdly, to draft and prepare the recommendations. The Secretariat requested all the working groups to present their draft recommendations to reflect their research achievements. While pooling all this together, the Secretariat tried to keep the original recommendations from various working groups. On this basis, draft recommendations of CCICED have been prepared and distributed for comments. Many members and Co-Chairs have studied this draft carefully. The Secretariat presents this draft for discussion at this meeting having revised it based on comments received.

　　Fourthly, to facilitate and support the summarization of various working groups on their research achievements for the purpose of disseminating them more extensively and broadening the influence of CCICED. The Secretariat has funded the publication of research achievements of some working groups. A CD entitled "Ten Years of CCICED"has been published.

　　Fifthly, to show appreciation of the diligent work and outstanding contribution the cause of environment and development in China, the Secretariat has made some horizontal boards for some members, Co-Chairs and experts working for CCICED for years, according to the instruction from the Bureau. It needs to be pointed out that all this work above is a result of joint efforts of both Headquarter and Canadian Secretariats.

　　It is necessary to point that the Headquarter Secretariat always keeps close ties with its Canadian counterpart by mutually informing and communicating. Comments from the Canadian Secretariat are fully reviewed and taken into consideration. In addition, visits were made between the two Secretariats to discuss how to summarize CCICED Phase Ⅱ and how to make a smooth transition to Phase Ⅲ. The Secretariat also provides timely reports to the Bureau for instruction concerning important issues such as the replacement of members and Co-Chairs, the theme and agenda of this meeting. Meanwhile, the Secretariat helps with communication between members and various working groups and provides services and coordination as needed.

　　4. Summarizing experience of CCICED

　　The two phases of CCICED have been operating for ten years. CCICED has played an active role in promoting sustainable development in China and won high attention and appreciations from the international community. UNDP has proposed to support the summarization of CCICED's experience and further plans to present this to the World Summit on Sustainable Development scheduled in South Africa in 2002. This is significant for widening the influence of CCICED as well as promoting the sustainable development in China and the world. The Secretariat responded to this proposal by immediately calling together liaison staff of all working groups and task forces to make proper arrangements. All the working groups considered this proposal as a very important one and were very cooperative in this regard. They carefully summarized the research and demonstration project in the past five years and extracted something useful for promotion and introduction to the international community, which was given to the Secretariat together with some pictures and photos. The Secretariat has developed a project proposal and reached consensus with UNDP Beijing Office. This work is under way constitutes an important part of this meeting.

　　V. Finance of CCICED

　　The Secretariat has been exploring through various channels and opportunities to seek as much funding as possible for CCICED and its working groups. The government of the Netherlands has signed an agreement to support the Task Force on Enterprises' Development and Environment with a fund of USD 450,000. The government of Norway has agreed to give financial support to the Working Group on Biodiversity to relieve the financial difficulty of this working group. GTZ has provided multi-year and multi-purpose grants to CCICED. The total fund of CCICED in 2001 is USD 3.8 million, of which 82% is used for the working groups and task forces. The detailed financial report has been completed by the Canadian Secretariat and is attached to this report as Annex Ⅱ.

　　Ⅵ. Preparation for CCICED Phase Ⅲ

　　At the 4th meeting of CCICED Phase Ⅱ, the Bureau announced that CCICED Phase Ⅲ would follow. Soon after the end of the 4th meeting, the Secretariat has started its preparation for CCICED Phase Ⅲ as required by the Bureau. The main progress in this regard is as follows: 

　　1. Formulation of Terms of Reference for CCICED Phase Ⅲ

　　The Secretariat has invited experts to elaborate the TOR and received comments from the Canadian side. Based on that, a draft TOR was prepared. Meetings of members, Co-Chairs and liaison staff of working groups were convened to collect comments on the TOR. The TOR has been presented to the Bureau for final approval after being revised based on the comments received.

　　2. Information briefing

　　The Secretariat has convened several briefings for existing and potential donors of CCICED, where concepts of CCICED Phase Ⅲ were introduced. We are optimistic about the funding from international communities as we see from the interest they indicated.

　　3. Collection of research topics

　　The Secretariat has contacted 19 departments of the State Council to request for their propose on research topics for Phase Ⅲ. By now departments have provided 29 research topics.

　　4. Formulation of Procedures for Establishing Task Forces

　　To regulate the establishment of task forces, the Secretariat has drafted the procedures for establishing task forces for CCICED Phase Ⅲ. This draft has been distributed to various working groups for comments. Views were also exchanged with the Canadian side on this draft procedure.

　　At the end of this report, please allow me, to express in sincere appreciation of the kind assistance and full support of all the members and working groups. Every one of us will consider this experience as the most wonderful memory. Thanks again for you all.

　　Annex I.

　　Summary of Responses Made by the Relevant Departments of the Chinese Government to the Recommendations of the 4th Meeting of the 2nd Phase of CCICED

　　I. Recommendations to the Chinese Government on the Integration of the Environment and the Social and Economic Development

　　1. Applying the Environmental Economic to the Entire Process of Planning

　　While formulating the Outline of the Tenth Five-Year Plan and ten specific plans, State Development Planning Commission put the sustainable development strategy at an outstanding position, with special attention given to the coordinated development of the economy, society and eco-environment. There is a separate chapter in the Outline of the Tenth Five-Year Plan-Chapter Four" Population, Resources and Environment", which is devoted to the statements of sustainable development, especially relevant issues in the field of resources and eco-environment. Statements of this topic are also included in other chapters.

　　State Economic and Trade Commission has organized the formulation of the Advice on Speeding up the Environmental Industry, which has been published jointly with seven other departments. The National Program of the Environmental Industry Development has also been published.

　　Ministry of Finance (MOF) gives a priority to the environmental protection while allocating the loans provided by international financial organizations and foreign governments. It insists enhancing the investment of the domestic environmental industry with these loans, supporting environmental protection enterprises to import advanced technologies and equipment, cleaning up some unreasonable preferential taxation policies. MOF also improves the current policies favorable to environmental protection. It is now conducting studies of taxation measures on certain products and pollution discharge behaviors so as to integrate more aspects of environmental protection into the current taxation system.

　　Ministry of Communications has the opinion that the Recommendation of CCICED is practical in general, with excellent values for references.

　　Ministry of Water Resources thinks that there are lots of excellent ideas in the Recommendation and the relevant contents with the water resources in China are quite useful and consistent with the actual performance of Ministry of Water Resources.

　　State Environmental Protection Administration regards the principle of integrating the environment with economic and social development as one of the guidances and put it into the Tenth Five-Year Plan. It is clearly stipulated that the fundamental purpose is to improve the environmental quality and the public health. The governmental control should be integrated with the market mechanism. Based on the system renovation and policy renovation, the new mechanism of environmental protection with the governmental guidance, market promotion and public participation shall be set up.

　　The State Power Corporation has actively promoted the industrialization of environmental protection, especially the industrialization of desulphurization. It has adopted the wet desulphurization technology widely used nowadays in the world and promoted the localization of the technology.

　　Tianjin Municipality has been giving priority to the environmental protection for a long time. It pays high attention to the coordinated development of environmental protection and economic construction, insisting that environmental protection and sustainable development should be regarded as the guidance of the overall urban development plan. It devotes great efforts to the adjustment of economic structure, technology renovation and opening up; enhances the coordination of the plan and implement the sustainable development strategy in a serious way.

　　While formulating the Program of Turning Heilongjiang Province into an Ecological Province, Heilongjiang Province relies on environmental economics, ecology and systematic engineering science, focusing on the conservation and improvement of eco-environment, the reasonable development and sustainable utilization of the resources and carrying out the National Outline of Eco-Environmental Protection and Ecological Construction Program on full scale. The province has conducted assessment of the economic losses caused by environmental pollution. It apples to participate the demonstration project of calculating environmental economic losses in provinces jointly conducted by SEPA and World Bank, and conducts assessment of the real cost of environmental pollution and resource damages, which will be a resource for comprehensive decision-making. The province has initiated to charge SO2 discharge fee, and adopted economic instruments to promote the re-structuring of resources and cleaner fuels to prevent air pollution. The province keeps on carrying out the tax reduction policy concerning the products which utilize resources in a comprehensive way and puts forth suggestions to the central government on issuing new favorable tax reduction concerning the projects of energy conservation and pollution reduction.

　　Shanxi Province takes full consideration of the CCICED's recommendations and has put forth relevant policy measures in the Tenth Five-Year Plan and the specific plans. During the Tenth Five-Year Plan period, the province will focus on the following: the establishment of the indicator system of sustainable development; further improvement the Local Agenda 21 and the Priority Projects of Local Agenda 21; survey and assessment of water resources in a sound way; formulation of the Water Function Zone Plan of Shanxi Province and the Water Resources Conservation Plan of Shanxi Province; formulation of the controlling scheme of total pollution acceptance load in the key river courses and supervision of the implementation; devotion of efforts to solve key environmental problems and technical supportive problems that have limited the social and economic development of Shanxi Province for a long period; and formulation of meteorological service program for eco-environmental conservation and reasonable utilization of the climate resources.

　　Guangdong Province regards the establishment and improvement of the comprehensive decision-making of the environment and development as one of the key measures of implementing the Tenth Five-Year Plan. The major contents include: 1) to set up the environmental impact assessment system for the key decision-making. Based on the results of environmental impact assessment, the projects whose environmental quality could not meet the national and local standards shall not be carried out; 2) To set up the scientific consultative system of the environment and development so as to conduct studies on the extent of the influences of the key decision-making projects on the environment and the feasibility of taking relevant environmental protection measures and provide scientific evidence for the decision-making of administrative leaders; 3)To set up inter-department reviewing system so as to coordinate the problems of the environment and development and promote the institutional coordination of the environment and development.

　　By adopting the theory of environmental economics, Guangdong Province conducts reasonable calculation of the costs of environmental pollution and natural resource depletion, and formulates the economic policies favorable to environmental protection so as to give guidance to environmental protection of enterprises in economic ways. The Province will take following actions: to increase the SO2 discharge fee and treatment fee of the household sewage; to formulate the policies of urban garbage treatment fees; to encourage the desuplpurization in coal-fired power plants; and to charge ecological compensation fees on the producers exploring and using resources as well as the consumers. Guangzhou city has initiated the levy of garbage treatment fee.

　　Hainan Province has conducted active study on the sustainable development approach practical in Hainan and designated the guidance that the protection of eco-environment and resource is the protection of productivity; the improvement of eco-environment and resource is to develop the productivity and the damage of eco-environment and resource is to damage the productivity. The Province has made the strategic decision to establish the ecological province. It will set up the ensuring mechanism favorable to the eco-environmental protection, and promulgate the Implementation Measures of the Target Responsibility System of Environmental Protection in Hainan. It is conducting a study on formulation of evaluation indicator system of establishment of an ecological province, supervision the target responsibility system of serious eco-environmental damage accidents. It is now conducting a study on economic policies dominated by eco-environment, promoting and giving guidance to the ecological oriented production approaches and consumption, conducting researches on the formulation of verification standard system and favorable policies for the ecological industry projects, and on the administrative instruments and economic instruments for preventing the production and consumption of polluting products. It is also conducting researches of formulating and operating the new national economic auditing system (i.e. the green GDP). 

　　2. The economic planning and the environmental protection should be integrated closer

　　In the Key Specific Program of the Ecological Construction and Environmental Protection, State Development Planning Commission has put forth policy measures of "enhancing the leadership and set up the target responsibility system,""improving laws and regulations, enhancing the enforcement and governmental supervision,""adopting the instruments of the prices, fees and taxation, and making use of market adjustment role,""expanding the financial channels production, developing the environmental industry and actively preventing industrial pollution."In the meantime, according to the fragile eco-environment and poverty in the western part, the policy measure of "further integrating the ecological construction and poverty alleviation and promoting the coordinated development of economy, society and eco-environment in poor areas"has been formulated.

　　While formulating the Tenth Five-Year Science and Technology Plan, Ministry of Science and Technology regarded the science and technology of environmental protection as key work and integrated environmental pollution prevention technologies into the National Development Program of the High Technology Research (863 Program). The Ministry will continue to enhance the input to science and technology in the field of environmental protection through the National Program of the Key Science and Technology Projects, basic research plans and basic science and technology work.

　　State Forestry Bureau has restructured and prioritized forestry production and emphasized on the following: natural forest protection projects; establishment of shelter belts in the Three North, middle and lower reaches of the Yangtze River; rehabilitation projects of cultivated land with afforestation; desert prevention projects surrounding Beijing; the construction projects of the wild species and nature reserves, as well as the construction projects of the bases of fast growing and high yield forests in key areas.

　　The State Power Corporation has enhanced the energy conservation and environmental protection. While formulating the sector Tenth Five-Year Plan and the plan of the Corporation, it has taken environmental factor into consideration. It has formulated the Tenth Five-Year Plan of Environmental Protection and 2015 Plan of the Stat Power Corporation as a key component of the Tenth Five-Year Power Development Plan and 2015 Plan of the State Power Corporation.

　　The comprehensive decision-making of the environment and development is integrated into the Tenth Five-Year Plan of Inner Mongolia Autonomous Region. Part of CCICED's recommendations is regarded as key parts. Practical measures have been formulated so as to put into implementation in the Tenth Five-Year Plan. Decisions of the key work in the coming five years have been made. The major measures include: 1) to focus on the conservation of natural reserves and forestry bases in key areas with fast growing and high yield forest as the major component so as to promote the forestry ecological conservation and construction in the whole region; 2) to enhance the infra-structure of agriculture, speed up the transition of extensive production to the intensive development, promote the approaches of few and fine plantation, high efficiency, more plantation and high yield, combine the infra-structure construction with the re-afforestation and re-vegetation and turn the grain and economy mode into grain, economy and feeding-stuff (grass); 3) to focus on the grassland ecological construction and grassland resource conservation. The measures of reducing grassland environmental pollution have been formulated.

　　While formulating the Tenth Five-Year Plan, Heilongjiang Province integrated the economy and the environment, and designated a separate chapter for ecological construction and environmental protection. While formulating local laws, regulation and chapters with close relation to eco-environment, the mid and long term national economic and social development program, the key technology and economic policies of the planning, environment, resources, energy, industry and urban and rural construction, conducting regional territory treatment, implementing key development and infra-structure construction projects and promoting key new technologies, new materials and new products, the governments at various levels should conduct environmental evaluation and comprehensive benefit analysis. The Province will further increase the percentage in GDP as environmental input. Priority will be given to the comprehensive treatment of the Songhua River basin and the establishment of ecological province in the infra-structure investment in the Tenth Five-Year Plan. It summarizes and analyzes the input of pollution treatment funds and conducts research on the role the funds play, based on which the key area of financial input will be designated.

　　In the Outline of the Tenth Five-Year Plan, Guangdong Province puts forth the policy to further promote overseas oriented development, depending on science and technology and carrying out sustainable development strategy so as to integrate the rapid economic and social development with sustainable development. The significant improvement of the eco-environment is regarded as one of the key tasks. The sustainable development strategy is integrated into the various parts of society and economy, such as industrial restructuring, energy development planning, comprehensive traffic system and urban development. Specific chapters are devoted to the strict family planning, comprehensive environmental pollution treatment and the reasonable conservation and development of natural resources. Concrete requirements have been formulated for sustainable development, and promotion of the coordinated development of population, resources, environment, economy and society.

　　Hainan Province integrates the ecological environmental protection planning with social development plan closely together. Based on the Outline of the Ecological Province Construction Plan of Hainan Province, it formulates the Tenth Five-Year Plan of Environmental Protection and 2015 Plan of Hainan Province, the Tenth Five-Year Plan and the 2015 Plan of the Ecological Conservation and Construction of Hainan Province. The activities the Province is to be carried out are as below: implements the key projects of eco-environmental construction; integrates the regional development with regional environmental treatment and ecological construction; carries out comprehensive treatment and protection projects of Nandu River and Wanquan River basins; improves the agriculture eco-environment in the river basin; develop the agriculture economy; implements comprehensive treatment projects of soil and water conservation in the middle mountainous areas; regards ecological environmental protection and construction as the component of speeding up the development in the middle area of Hainan so as to enhance the capacity of sustainable development. The Province enhances the leadership and the coordination of constructing an ecological province, enhances the comprehensive decision-making of the environment and development, sets up the joint meeting system of the construction of ecological province, establishes the office of construction of ecological province so as to provide a foundation for institutional coordination and leadership and brings a good scene that various departments and areas are taking responsibilities.

　　3. The energy policy should be put at a highly prioritized position

　　State Development Planning Commission regards the recommendation consistent with the Tenth Five-Year Key Specific Plan of Energy. The energy development strategy for the Tenth Five-Year Plan formulated by SDPC is that: while ensuring the security of the energy, the prioritizing of the energy structure should be the key part of the energy work, and efforts should be devoted improve the energy efficiency, protect the eco-environment and speed up the western development.

　　State Economic and Trade Commission formulated the Key Points of the New Energy and Renewable Energy Industry Development Plan for 2000-2015. It formulates specific plans for wind power, bio-mass development and utilization, issues the Advice on Speeding up the Localization of Wind Power Technologies and Equipment, and integrates the demonstration projects of localizing the wind power into key national technology renovation project plan so as to construct the demonstration power plant with 80,000 KW units made in China ("National Bond Wind Power"project). A total number of 200,000-300,000 sets of solar power generation system will be promoted in Inner Mongolia, Gansu, Qinghai, Xinjiang, Tibet and Sichuan so as to solve the problem of the daily power demand by the farmers in remote areas.

　　State Environmental Protection Administration regards the energy restructuring as the key work of pollution prevention, and puts forth concrete requirements on the energy management in the 6 key sectors including coal, power and metallurgical industries, such as limiting the mining of the coal with high sulfur content, limiting the direct sale and use of raw coal step by step, prioritizing power distribution, controlling new coal-fired power plants in the east, reducing small coal-fired power plants, removing backward old coal-fired power units, encouraging the combined power and heat generation, developing new energies and getting rid of low metallurgical furnaces and small indigenous coking processes.

　　Chinese Academy of Sciences enhances the research and development of cleaner coal and bio-mass technologies, and makes arrangements in projects, personnel and bases so as to make technical preparation for the promotion of large-scaled cleaner energy actions.

　　In the Tenth Five-Year Plan period, State Power Corporation will kick off the LNG project and increase the percentage of power generation with natural gas and LNG. Major efforts will be devoted to the development of wind power, solar energy, ground thermal energy and ocean energy, increasing the commercialized percentage of the other new energies, especially the development and utilization of bio-mass in rural areas. The use of coal as terminal energy will be reduced as much as possible. The percentage of the hydro-power and coal-fired power will be adjusted. The hydro-power will be developed in an active way. By the end of the Tenth Five-Year Plan period, the percentage of the hydro-power in the entire power will hit 25% and 30% by 2015. According to the economics of resources and the demand of power networks, great efforts will be devoted to the construction of demonstration projects of cleaner coal power generation such as Baima in Sichuan (CFBC), Taishan in Dalian and Jiawang in Jiangsu (CFBC) and Yantai in Shandong (IGCC). In the Tenth Five-Year Plan period, all the steam units under 50 MW will be stopped and the percentage of the units of and over 200MW will increase by 5-10 percent.

　　Tianjin adjusts the energy development and utilization in an active way and tries its best to utilize cleaner energy, develops new energy and renewable energy actively. The development mainly focuses on the application of non crystal silicon solar energy batteries, fuel cells and ground thermal pumps. Active efforts are devoted to the development and utilization of the renewable energy in rural areas. The energy conservation has been further enhanced, with 14.68 million tons of standard coal saved in the Tenth Five-Year Plan period and the annual energy conservation rate being 8%. Under the leadership of the Ministry of Science and Technology, cooperation is conducted with EU on the energy development strategy in China.

　　Heilongjiang Province regards the energy restructuring and improvement of energy deficiency as the key work of resource conservation, devoting great efforts to conduct energy conservation and consumption reduction activities, and promoting water saving, oil saving, cleaner coal and comprehensive use of gangues. The Management Rules of Energy Conservation of Heilongjiang Province has been formulated. Supports are provided to the demonstration of cleaner energy city in Mudanjiang and cleaner energy is promoted widely in the restaurants in the entire province.

　　Shanxi Province gives support to the researches and development of the bio-briquette, ethanol fuel and membrane technologies in the field of environmental protection. The development of bio-gas and the gasification of the straw as the key work of energy development in rural areas. The wind power is promoted in north Shanxi. The compensation utilization system is carried out as to the mine property right and the mining rights. Main efforts are devoted to the development of sound environmental coal with low sulfur, low phosphorus and low dust in Yule. In the Tenth Five-Year Plan period, it is planned that natural gas, district heating and cleaner energy projects will be promoted in the entire province. Based on resources in the province, it will also kick off natural gas power generation projects, and increase the percentage of natural gas power generation so as to ensure the transmission of the power in the west to the east.

　　Guangdong Province devotes great efforts to advocate and promote the cleaner energy, develop hydro-power and natural gas power generation, and promote nuclear power in an active and stable way so as to increase the percentage of nuclear power and hydro-power. Efforts will be made to develop natural gas, urban piped coal gas and LPG, and conduct the transition from oil to gas. The small coal-fired power generation units with high energy consumption and serious pollution will be limited. In the Tenth Five-Year Plan period, the development of gas power plants, energy accumulation power stations will be speeded up. The renewable energy, cleaner energy and new energy will be fully utilized and the energy conservation and comprehensive utilization technologies will be promoted.

　　4. Sustainable agriculture is another priority

　　Ministry of Finance increases the expenditure on protecting agriculture germ plasm resources in the budget for 2001, and increases significantly the expenditure on rural energy construction projects with the bio-gas as the major energy. In the arrangement and uses of financial budget, emphasis are given to the comprehensive prevention of pests and bio-prevention in agriculture, including bio-medicines and natural enemy control so as to reduce the pollution.

　　Ministry of Agriculture keeps on the construction of the eco-farming counties. Based on the current 100 national level eco-farming counties, further efforts will be devoted to the construction of eco-farming counties, and the researches and promotion of the regional and industrialized development of the eco-farming. The construction of eco-farming in special ecological typed areas will be promoted. Efforts will be devoted to promote the demonstration of eco-farming in areas with agriculture and animal husbandry, Three Gorges Reservoir area and Tai Lake basin so as to attain the targets of reasonable agriculture production, ecological technologies, clean process and environmentally sound products.

　　Ministry of Land and Resources convened the Workshop that geographic study should serve the agriculture so as to promote sustainable agriculture.

　　State Environment Protection Administration takes the chance of agriculture restructuring and speeding up the small town construction, and regards the non-point source pollution and rural household pollution and the improvement of rural environmental quality as the key work. In the Tenth Five-Year Plan period, SERA will conduct a national survey of soil pollution and demonstration of pollution prevention, as well as the pollution prevention of large-sized poultry farming and aqua-culture.

　　Chinese Academy of Sciences puts forth the important concept of agriculture cleaner production, and arranges a series of researches and development project of bio-pesticides, slow release and controlling release of fertilizer, and biological degradable membrane. Part of the technologies have been industrialized through the cooperation with enterprises.

　　China Meteorological Administration is organizing the third national agriculture climate zoning so as to provide scientific meteorological evidence and utilize the regional advantages of agriculture.

　　In the Tenth Five-Year Plan period, Inner Mongolia Autonomous Region will enhance the grassland resource conservation and has initiated the balance system of grass and husbandry which will be disseminated based on the demonstration projects. In accordance with the grassland degradation and desertification, there will be various kinds of zoning programs, and policies of forbidding husbandry and recovery of grassland vegetation will be carried out. Afforestation and vegetation will recover cultivated grassland and forest. The effective conservation and reasonable development and utilization of grassland resources will be promoted. Efforts will be devoted to the promotion of sustainable husbandry. The efficiency improvement of agriculture will kick off and the arid and water conservation agriculture will be emphasized. The green food will be developed and the in-depth fertilizing projects will be carried out. The chemical fertilizer utilization rate will increase and environmental pollution caused by the loss of chemical fertilizer will be reduced. The protective machinery farming will be promoted and the farming system will be reformed. The soil erosion and degradation and desertification of the land will be reduced. The comprehensive utilization of machinery straw processing will be enhanced so as to improve straw utilization rate and develop the husbandry in rural areas and reduce the incineration of straw.

　　Heilongjiang Province will conduct surveys on current situation of eco-environment in the entire province and provide scientific evidence for sustainable agriculture development. It will focus on the eco-environmental function zoning in various cities and designate the targets and directions of eco-farming in the respective function zones so as to lay a foundation for sustainable development strategy and the reasonable industrial distribution. The input of eco-farming construction will increase, and the eco-farming construction experiences in Baiquan will be summarized and disseminated. Effective bio-engineering and agriculture measures will be taken in order to recover the green vegetation and conduct comprehensive soil erosion treatment. It is forbidden to burn the straws and the comprehensive utilization of the straw is enhanced so as to promote the development of animal husbandry and establish the benign agriculture production cycling system with lots of grain-lots of animals-lots of fertilizer. The management of chemical fertilizer and the pesticides will be enhanced so as to prevent the pollution of unreasonable use of chemical fertilizers and pesticides on the soil and environment. The recovery and the renewable use of the residue of agriculture membrane will be enhanced so as to prevent the white pollution.

　　Shanxi Province divides the agriculture field into the first category and second category for conservation and ensures the stabilization of agriculture fields and the sustainable development of agriculture production. Efforts will be devoted to enhance the researches and development of comprehensive treatment and development of the soil erosion in Loess Plateau, the high-effective water consumption agriculture, degradable agriculture membrane, hazard-free pesticides, and chemical fertilizers. Priority will be given to the projects with combined eco-benefits and economic benefits. It is forbidden to reclaim land by draining lakes and rivers. The over cultivated land with influences on the ecology will be turned back to forest, grassland and lakes in a planned way. It is planned to set up the new monitoring and forecast warning service system of weather calamities so as to provide service for sustainable agriculture.

　　Guangdong Province pays high attention to the development of eco-farming and promotes the sustainable agriculture. Efforts will be devoted to the prevention of pollution of pesticides, chemical fertilizers, agriculture membrane and intensive animal husbandry of modern agriculture and rural urbanization. The soil erosion and the non-point source agriculture pollution will be prevented so as to promote eco-environmental protection. In Don guan, Chao'an and Zhanjiang, both national level and provincial level eco-farming demonstration sites will be set up so as to promote various kinds of eco-farming and arid water-saving agriculture development modes and promote the prioritized utilization of agriculture resources.

　　Hainan Province pays high attention to the prioritized development of eco-farming, promotes the agriculture sustainable development and guides the agriculture economy development towards eco-farming so as to promote the traditional agriculture transiting to eco-farming. It is forbidden to use pesticides with high residue and toxicity, and pesticides with low residue and toxicity will be promoted. The non-point source agriculture pollution will be prevented. The toxic free fruit and vegetable bases will be constructed and the green aqua-culture will be developed in an active way. The demonstration of comprehensive utilization of eco-forest will be conducted. The eco-homeland engineering with bio-gas in rural areas as the major component will be carried out so as to promote the application of renewable energy such as biomass in rural areas and towns gradually. It is encouraged to use the organic fertilizer so as to improve the rural habitat environment and agriculture eco-environment.

　　5. The biodiversity should be conserved

　　The State Council has issued the National Outline of the Eco-Environmental Conservation.

　　Ministry of Agriculture will further improve the relevant laws and regulations of the assessment of the husbandry capacity of grassland and the evaluation of grassland level, as well as the standards of grassland degradation so as to designate the grassland husbandry capacity in the means of laws and regulations and change the behavior of neglecting the grassland capacity and expanding the number of animals so as to increase income. The grassland contracting responsibility system will be carried out in an active way, and the plane sowing of the herb, prevention of mice and pests in grasslands, comprehensive demonstration of grassland husbandry and the development demonstration of husbandry zones will be conducted. In the entire country, the grassland supervision (management) stations will be set up gradually with relevant management staff and the enforcement teams will be set up so as to enhance the management of the grassland.

　　State Environmental Protection Administration carries out the National Outline of Eco-Environmental Conservation issued by the State Council on full scale. Through the measures of setting up the eco-function reserves, enhancing the management level of nature reserves and eco-demonstration zones, the National Outline of Eco-Environmental Conservation enhances the bio-diversity conservation and the bio-safety and carries out the national bio-diversity program.

　　State Forestry Bureau will focus on the key eco-construction projects and enhances the co-conservation and construction in the ecologically fragile areas. From 2001, it has set up compensation funds for forest eco-benefits according to the Law of the Forest, which are used in the protection and management of the national eco-benefit forests. After conducting the demonstrations, the behavior will be promoted gradually. In the Tenth Five-Year Plan period, the establishment of wild species conservation system will be promoted so as to set up the management networks of the wild species at central, provincial and municipal levels.

　　Tianjin insists focusing on both pollution prevention and eco-conservation and conducts comprehensive treatment on eco-environment. The city is divided into four eco-environmental zones. The ecological rehabilitation project is conducted. Based on the current eight nature reserves, three new nature reserves of various types will be set up. The afforestation in the entire municipality will be enhanced. The resource distribution will be prioritized and the water saving, water resource supply and demand system will be set up. The demonstration project of eco-farming will be established so as to expand the eco-farming areas to 3887 km2, accounting for 32.7% of the total area of the municipality.

　　Inner Mongolia Autonomous Region will stop the logging of the forests in natural forest conservation zones at the upper and mid Yellow River on full scale in the Tenth Five-Year Plan period, and take effective measures to conduct strict management so as to enhance the establishment of eco-benefit forests. The log production will decrease significantly in the natural forest resource conservation zones of major state-owned forest zones in Daxin'anling area, Inner Mongolia and the management will be enhanced. The desertification prevention project will be conducted so as to speed up the treatment. The expansion tendency of the desert should be kept within limits. The reafforestation and regeneration project should be promoted in a planned and stable way. The wild species conservation system should be improved and a series of nature reserves should be upgraded and built.

　　Heilongjiang Province has formulated the outlines of the eco-environmental conservation in Da and Xiao Xin'anling areas, Three-River Plain and Neng river Plan, as well as the Construction Program of the Wetland Natural Flood Adjustment and Storage, Bio-Diversity Conservation and Eco-Function Reserves in Three-River Plain Area for demonstration construction of eco-function reserve construction in the entire country. Active efforts are devoted to the Flood Prevention and Wetland Bio-Diversity Management in Songhua River project funded by ADB and the GEF funded Wetland Bio-Diversity Conservation Project in Three-River Plain. The province will go on with the networking construction of nature reserves in the key areas and the river basins as well as the bio-diversity resource conservation.

　　Guangdong Province conducts the eco-function zoning in a serious way, enhancing the protection and construction of water conservation forests, water and soil conservation forests and the mangrove forest in beaches, expanding the amount and areas of nature reserves and enhancing the conservation of resource diversity of animals and plants. It is planned that by 2005, the nature reserve area will account for 5% of the total area in the entire province and the area of marine nature reserves will hit 362,400 hectares so as to ensure that the forest coverage will be over 55%, with five national level inspection and 100 provincial level eco-demonstration villages and towns (farms and districts). Surveys will be conducted on the state of bio-safety management and researches will be conducted on the relevant management counter-measures. The national level eco-demonstration zones will be carried out in Zhuhai, Lianjiang, Longmen, Zengcheng and Zhongshan, among which Zhuhai has passed the national level inspection and acceptance, being one of the first national level eco-demonstration zones.

　　Hainan Province mainly focuses on the eco-system rehabilitation and bio-diversity conservation along the coastal zones and the mid mountainous areas. The offshore marine areas and terrestrial areas are designated as the marine-coastal eco-sphere and great efforts are devoted to the treatment of the two kinds of forests and coral reef so as to enhance the protection of the coral reef. The experiments of coral reef rehabilitation are conducted so as to promote the fast growth and recovery of coral reef. The coastal mining and aquaculture will be regulated and the mangrove forests will be introduced and cultivated. It is forbidden to conduct mining along the coastal areas and efforts will be devoted to the rehabilitation in cultivated areas. The ponds will be turned back to forests and the coastal shelter belts will be enhanced and cultivated. The current coastal shelter belt will be improved and upgraded. The hills over 300 meters in the middle and south parts are designated as the mid ecological conservation zones. Efforts are made to establish the ex-situ conservation bases of wild species in nature reserves in Jianfengling, Wuzhishan, Diaoluo Mountain and Bawangling so as to protect the tropic forests, endangered and rare species and water conservation areas. As to the slope areas over 25 degrees, the cultivated lands should be turned back to forests. The coverage degree of natural tropic forest should be promoted gradually. Biological measures and engineering measures will be taken to treat soil erosion and desertification. Efforts will be devoted to the protection of drinkable water. The campaign of greening the treasure island of organizing a million people will be conducted so as to conduct afforestation.

　　6. Further efforts should be devoted to encourage cleaner production

　　and pollution prevention

　　The pollution treatment projects in the Three-Rivers and Three-Lakes organized by SDPC, SETC and SEPA will be completed soon, with significant achievements.

　　The draft Cleaner Production Law by SETC has been submitted to the Environmental and Resource Conservation Committee of the People's Congress. The Advice of Promoting the Cleaner Production has been formulated. The second National Inventory of Cleaner Production Technology Guidance in the Key Sectors and the Guidance of Cleaner Production in Key Sectors are being formulated. Efforts are devoted to the establishment of cleaner production indicator system and cleaner production networks.

　　Ministry of Science and Technology plans to set up key projects of Cleaner Vehicles, Cleaner Energy and Water Pollution Prevention Technologies and Treatment Engineering. The development and utilization of pollution prevention technologies for the coal combustion and venerable energy and electrified vehicles, fuel cell vehicles will be conducted, together with the recovery technology researches and demonstration of polluted water. The active local governments and enterprises will be selected participated in the researches and demonstration of the implementation of relevant cleaner production technologies, together with some practical treatment projects and technology renovation projects.

　　Ministry of Land and Resource will promote the Demonstration of Ground Thermal Energy Development and Utilization in Districts in Beijing jointly with SDPC so as to promote the high and new technologies of ground thermal energy development and utilization and clean up the atmospheric environment in Beijing.

　　Ministry of Construction carries out the Cleaner Vehicle Action, actively promoting public buses and taxis with LPG and CNG and speeding up the construction of gas stations of vehicles so as to reduce vehicle emission.

　　Ministry of Agriculture strongly promotes the prescribed pesticides, in-depth fertilizing and balanced fertilizing technologies, promoting pesticides of high efficiency, low toxicity and low residue and the bio-pesticides so as to reduce the loss of chemical fertilizer and pesticide residue. The treatment and comprehensive utilization of the night soil in the poultry farms will be enhanced. Technologies of anaerobic ferment treatment of poultry night soil are promoted and the construction of large and medium sized energy environmental demonstration project is conducted. In the key regions of the Three-Rivers and Three-Lakes, the monitoring of non-point source agriculture pollution will be conducted periodically in designated sites so as to report the non-point source agriculture pollution in time.

　　Together with the renovation of traditional industry, SEPA promote cleaner production and advocates the approach of recycling economic development. In the Tenth Five-Year Plan period, cleaner production demonstration will be conducted in five sectors and ten cities, with fifty cleaner production demonstration enterprises established.

　　In recent years, State Power Corporation has made an investment of over one billion Yuan to conduct treatment and renovation to meet the environmental standards. By the end of 2000, the smoke, dust and the sewage discharge of the enterprises under the State Power Corporation basically attained the discharge standards.

　　Tianjin promotes the levy of urban sewage treatment fee, urban garbage treatment fee and hazardous waste treatment fee or environmental tax on full scale. The pollution discharge fee or the environmental tax is integrated into financial reforms. In the field of urban infra-structure construction, domestic and overseas funds as well as private funds are introduced in an active way and the marketized operation and enterprise-management are carried out. The development funds of environmental protection science and technologies are set up. The international cooperation is conducted widely and the resources of international science and technologies, experts and funds are fully utilized. Active efforts will be devoted to promote the products with environmental labels and the green products.

　　Heilongjiang Province carries out the total load control of pollutant discharge, conducts cleaner production demonstration in relevant cities and brewery industry, and formulates the Plan of the Water Resource Conservation in the Entire Province and the Plan of Water Pollution Prevention in Songhua River Basin. The Regulation of Water Resource Conservation of Heilongjiang Province and the Regulations of Water Pollution Prevention in Songhua River Basin, Heilongjiang Province and the Plan of Ground Water Development and Utilization are issued so as to reduce the exploration gradually, recover the damaged resources and protect the ground water storage layers. During the Tenth Five-Year Plan period, a series of new urban sewage treatment plants and garbage treatment plants will be set up to improve the urban environmental quality in a practical way. Favorable policies have been formulated in order to guide and support the development of environmental industry and set up the standard system of product quality.

　　Shanxi Province enhances the support to environmental pollution treatment technologies, conducts satellite monitoring of natural environmental degradation, analysis of the causes and influences of the sand storms, and the researches of quantitative analysis of regional environment in the Yangtze and Yellow River basins. The monitoring and forecast of the sand storms, draught and pests will be improved. The areas with excessive ground water exploration, areas where the ground water exploration is forbidden and areas where the ground water exploration is limited will be designated. The ratification of the new water exploration projects will be conducted in a strict way so as to reduce the ground water exploration in a planned way. A certain percentage of forest conservation fund will be charged on the coal exploration to support the afforestation and improve the eco-environment.

　　Guangdong Province sets up a joint meeting system in river basins and regions so as to coordinate environmental protection in these areas. Policies favorable to environmental protection and economic development in the river basins and regions coordinate the benefits in various regions and sectors, and promote the coordinated development of environmental protection and economy in river basins and regions. Demonstration of water quality will be conducted in Dongjiang Basin and environmental protection compensation mechanism will be set up between the upper and lower reaches. Three to five percentage of the annual financial income of the cities in the river basin will be used for water quality protection of the river basin, including the sewage and solid waste treatment, water and soil conservation and eco-forest. The joint prevention and treatment of the water quality in the river basin will be conducted, which will be promoted to the river basins gradually based on the demonstration. The ISO 14000 will be promoted in an active way. There are 100 enterprise with ISO 14000 certification. The establishment of national environmental management demonstration zone is being conducted in Tianhe District.

　　Hainan Province enhances the infra-structure construction of environmental protection and pollution treatment, removing and closing up 75 small enterprises with serious pollution, closing 21 enterprises of the 167 industrial enterprises under the national and provincial supervision according to laws. 11 enterprises have stopped production for improvement and 14 alcohol production lines have been closed up. The investment of one hundred and seventy million yuan has been made, with 197 sets of the pollution treatment facilities being set up. The 1988 industrial enterprises in the entire province with pollution have met the pollution discharge standards ahead of the schedule. The key pollution treatment projects of sewage and garbage treatment have been accelerated. The gas renovation projects of fuels of urban buses are carried out. The work of getting rid of the white pollution and the establishment of provincial fluorine free zone will be carried our. The principle of no resource damages, no environmental pollution and no construction duplication will be followed. All large-sized resource industrial projects will be concentrated in the pollution controlling zone in the western industrial corridor. Active efforts will be devoted to promote the industry with high science and technology and high added-value. The new eco-industrial system will be set up. The modern technologies and ecological project will be adopted to renovate the traditional industry and prioritize the industrial structure gradually. Great efforts will be devoted to promote cleaner production and upgrading of the industry so as to solve the environmental problems basically during economic development.

　　7. The comprehensive transportation policy is another priority field

　　SDPC integrates this recommendation into the Key Specific Plan of the Comprehensive Traffic System Development of the Five-Year Plan. By utilizing the national bonds to support the traffic system construction in large and medium sized cities in the whole country, SDPC follows the principle of giving priority to the public transportation in the fields of planning, policies, project implementation and financial arrangements so as to encourage the development of urban pubic transportation and change the situation of the traffic jams in urban areas.

　　Ministry of Construction jointly with CCICED issued the Advice on Improving the Urban Transportation and Environmental Problems in China, which requests that the local governments should take the advice into consideration while formulating relevant urban transportation policies, programs and measures. The cities should clear up the public transportation. Some large cities re-start the urban track transportation construction. The urban public transportation has transited from buses to comprehensive transportation system with buses, trolleys, sub-ways, ferry boats and passenger cables. In urban transportation, effective measures have been taken, the priority position and the dominant role of public transportation have been designated. The urban traffic network construction, the reasonable public transportation networks and prioritization are closely integrated and have been integrated into the overall urban development program and the national economic and social development plan.

　　Ministry of Communications has the views that highways, railways, waters, aviation and pipe transmission have their respective advantages and application conditions, and promotes the comprehensive planning-to promote railways and waters where they are suitable. The railway transportation should not be encouraged in all the places because railways will have significant influences on environmental noises and vibration.

　　Tianjin regards the transportation planning and policies as the priority fields of transportation development and environmental quality improvement. The urban road transportation system of multi-layers and networks should be further improved. Priority should be given to the high speed public transportation system with large passenger carrying capacity. In the urban planning, the land for roads should be increased, the intensity of road networks should be enhanced, the track transportation networks should be adjusted and intensified and the ownership and use of cars and motors should be further controlled.

　　Heilongjiang Province fully utilizes the current highways and transportation infrastructures and emphasizes both improvement and renovation of current facilities and the transportation capacity and the construction of new projects. The planning will be enhanced. The environmental impact assessment of highway construction projects will be conducted. The afforestation along the highways, soil erosion prevention and ecological damages will be enhanced.

　　Guangdong Province devotes great efforts to promote the fuels with low pollution such as lead free gas, and set up and develop comprehensive transportation management system. The transportation pricing system indicating real social costs, economic costs and environmental costs should be set up. During the Tenth Five-Year Plan period, the comprehensive transportation systems will be constructed, dominated by the high speed inter-city track transportation system in Guangdong, Shenzhen Subway and Pearl River Delta.

　　8. Further studies should be conducted on the influences of China's access to WTO

　　According to the relevant principles of WTO, SEPA has cleared up the current environmental laws, rules, regulations and policies. In the meantime, it is focusing on the amendment of environmental standards and the establishment of environmental labeling product system so as to be adapted to international environmental standards and requirements.

　　Heilongjiang Province has conducted researches to formulate management measures on import and export related with the environment, limit and forbid the import and export of the products with influences on environmental resources and ecological construction. According to the relevant principles of WTO and based on the actual situation in China, the province conducts studies on the establishment of technical trade measure systems so as to promote eco-environmental construction and give strong support to the processing and export of green products. As to the utilization of overseas funds and technology transfer, the province actively takes the CDM of Kyoto Protocol into consideration and promotes the development in the entire province. The exchanges with European countries have been further enhanced so as to conduct joint studies on the environmental management and planning, and further promote the environmental cooperation with the European countries. The publicity of relevant environmental situation and development trends will be enhanced. The information exchanges with domestic and overseas environmental protection institutions and organizations will be strengthened. Efforts will be devoted to improve the scientific management of information system and set up information data base of cooperation projects and the data of international cooperation personnel.

　　9. Environmental impact assessment

　　Ministry of Land and Resources has organized the evaluation of the geographic calamities along the natural gas transmission pipe from the west to the east so as to ensure the implementation of the project. The project of New Evaluation of the Ground Water Resources in the Whole Country and the Strategic Research of the Conservation and Reasonable Utilization of the Ground Water Resources have been conducted. The survey of water resources in the western part is regarded as one of the key work.

　　Ministry of Construction is conducting the researches on planning of natural gas utilization in the cities along the natural gas transmission. The cities are encouraged to increase the gasification rate of the energy utilization in household. Relevant policies of the urban district heating reforms are being conducted and district heating is encouraged so as to improve the energy efficiency in domestic buildings.

　　In order to further enhance the EIA on construction projects, SEPA has issued the Inventory of Environmental Protection Management of the Construction Projects so as to carry out management in various categories. In the meantime, key efforts have been devoted to the management of EIA on Water Diversion, Natural Gas Transmission and Electricity Transmission projects.

　　China Meteorological Administration has provided in-time and accurate meteorological monitoring and forecast services to the fields concerning the Recommendation so as to enhance the metrological disaster prevention and reasonable development and utilization of meteorological resources.

　　10. Education and training facilities in the poor areas

　　SDPC integrates the Recommendation into the Key Specific Plan of the Education Development of the Tenth Five-Year Plan. In recent years, China has long been giving strong support to poor areas, especially the input and development of education at various levels in the western part, carrying out the Compulsory Education Project in Poor Areas and the National Poverty Alleviation Education Project.

　　SEPA has formulated the Outline of Environmental Education and Publicity in the Whole Country in 2001-2005, which promotes environmental education in rural areas to an important position. The activity of the Rural Environmental Publicity and Education has been conducted, adopting the conventional ways to disseminate knowledge on environmental protection and the information of getting rich through green ways to farmers. The environmental education is combined with the improvement of farmers' capability, the promotion of agriculture through science and technologies and the poverty alleviation in rural areas.

　　11. International negotiation of climate change

　　In the Key Specific Plan of the Ecological Construction and Environmental Protection, SDPC points out that the policies and measures favorable to global environment, especially the climate change mitigation should be further carried out; the basic and policy researches on global environment, especially the climate change issue will be further carried out; and active efforts should be devoted to the international cooperation and negotiation in the field of climate change.

　　Chinese Academy of Sciences has listed the project-Carbon Recycle in the Terrestrial Ecological System in China as a key project which will provide scientific and technology support to the discovery of the role of carbon recycle in terrestrial ecological system in China and the implementation of Kyoto Protocol in China.

　　China Meteorological Administration has actively organized the departments with close relation to climate change and the relevant research institutions and scientists to participate in the formulation and evaluation of the third evaluation report of IPCC and participate in the negotiation of Climate Change.

　　12. Improvement of laws and regulations in China

　　The State Council has issued the Implementation Measures of Water Pollution Prevention Law.

　　Ministry of Agriculture pays high attention to the bio-safety, especially the management of genetically modified bio-safety of agriculture. The Implementation Measures of the Safety Management of the Bio-Genetic Engineering in Agriculture has been formulated. In order to meet the actual demand, the Management Rules of the Modified Gene Safety in Agriculture (draft) has be formulated which has been ratified by the State Council in principle.

　　SEPA has completed the amendment of ambient air and surface water quality standards and issued the four pollutant discharge standards such as the Domestic Garbage Pollution Prevention Standards.

　　Guangdong Province plans to complete the Environmental Protection Rules in Guangdong Province, the Management Rules of Attaining the Standards of the Water Quality of the Trans-city Rivers in Guangdong, the Management Rules of the Nature Reserves in Guangdong Province, the Management Rules of the Urban Garbage, the Management Rules of the Radioactive Wastes in Guangdong Province. The Rules of the Water Quality Protection in Dong River System in Guangdong and the Management Rules of the Environmental Protection in the Construction Projects in Guangdong Province have been amended.

　　13. Wide consultation at various levels (including the public participation)

　　Guangdong Province has set up the system for public participation of the decision making of the environment and development. As to the environmental and development decision making directly related to public interests, public hearings will be convened to listen to their opinions and advices. The legal instruments will be adopted to ensure the public participation. The responsibility mechanism of the key decision making will be set up according to laws. As to the cases with serious environmental problems or serious pollution accidents due to wrong decision making, the leaders should be responsible for their decisions. Those activities violating the laws should be suited according to laws.

　　Hainan Province has sets up the public reporting and public hearing systems so as to fully utilize the public supervision and democratic supervision, and further set up and improve the public participation and monitoring mechanism of the ecological province.

　　Ⅱ Recommendation to the Chinese Government on the Great Western Development

　　1. Basic principles of the Great Western Development

　　SDPC clearly stipulates the targets in the Eighth Chapter of the Tenth Five-Year Plan -Implementation of the Great Western Development Strategy and Promotion of the Coordinated Regional Development, significant progress will be made in five to ten years concerning the infra-structure facilities and the eco-environmental construction as well as great development will be made in the field of science, technology and education. While formulating the Overall Plan of the Western Development, the Human Resources Development Plan in the Western Part and drafting the Advice of the Implementation of Policy Measures in the Great Western Development, SDPC have taken into full consideration of the relevant policy measures. Relevant policy recommendations will be further studied while formulating specific plans.

　　Ministry of Science and Technology has carried out the key projects and researches of the Reasonable Utilization of Water Resources and Eco-environmental Conservation in the North-West Areas, the Research and Demonstration of Water Saving Agriculture Technologies, the Research of the Variation Patterns and the Renewable Maintaining Mechanism of Water Resources in the Yellow River, and the Project of Science and Technology of Highly Effective Water Consumption in Agriculture. In Xinjiang, Gansu, Inner Mongolia, Shanxi and Guizhou, six demonstration bases of water saving agriculture have been set up so as to conduct the demonstration and dissemination of arid agriculture water saving technologies, and the comprehensive utilization of desertificated land and water resources technologies.

　　2. The development planning and EIA should be conducted in a serious way

　　SDPC will distribute part of the national bonds specifically for pollution treatment projects in the middle and upper reaches of the Yangtz River, the sewage treatment and water source conservation projects in the central cities in the west part. The policy of levying sewage treatment fee will be carried out on full scale so as to construct and operate the centralized sewage treatment facilities.

　　Ministry of Science and Technology has formulated the science and technology program for the Great Western Development, and has organized provinces, autonomous regions and cities to formulate regional science and technology development programs in fifteen sectors and levels. While formulating the programs, the local governments pay high attention to the coordination with the local Tenth Five-Year Economic and Social Plan and focus on the eco-environmental construction, adjustment of industrial distribution, development of special industries and renovation of science and technologies in the main regions and river in the western part.

　　Ministry of Water Resources pays high attention to the environmental and ecological conservation in the areas with construction projects through the process of pre-reviewing of ELA of large-sized construction projects of water resources so as to promote the local social and economic sustainable development.

　　Chinese Academy of Sciences has kicked off and actively promoted the project of the Evaluation of Eco-System of the Great Western Development which will conduct scientific and objective evaluation on the influences of various eco-systems in the Great Western Development and put forth relevant counter-measures and recommendations.

　　3. To formulate and carry out the economic policies favorable to the environment

　　Ministry of Finance has formulated the relevant policies concerning the utilization of overseas policy loans in the western part so as to utilize more loans in the west, and encourage the western areas to actively utilize overseas policy loans, especially the infra-structure, eco-construction, water saving agriculture, environmental protection and the advantageous industries so as to enhance the support to economic construction in western areas. The pollution discharge fee levy system has been gradually improved. The levy of pollution discharge fee has been kicked off. The urban sewage treatment fee has been demonstrated in some large and medium cities in the Three-River and Three-Lake basins, with progress being made. In the Tenth Five-Year Plan period, the sewage and garbage treatment fee levy system will be promoted on full scale.

　　4. To enhance the recovery of eco-systems and bio-diversity conservation

　　In the Key Specific Plan of the Ecological Construction and Environmental Protection, SDPC gives prioritized consideration to this issue. The key tasks of the Ecological Construction and Conservation in the upper and middle reaches of the Yangtze and the Yellow River, the Establishment of the Key Shelter Belt System with Three-North as the Major Part, the Grassland Conservation and Construction, and the Eco-Farming, Rural Energy and Rural Environmental Protection listed in the Plan are located in the western part. In the meantime, the Establishment of the Comprehensive Ecological, Environmental, Resources and Disasters Monitoring System also covers the western part.

　　Ministry of Science and Technology pays high attention to the implementation of the researches-Variation and the Adjustment Patterns of the Eco-Environment in the Arid Regions in the Western Part, Technologies of Keeping the Root Stalks in the Fields to Prevent the Sand Storms, and the Process and Prevention of Desertification in the North China. The Ministry mainly focuses on the overlapping plantation technologies of the water saving economic forests in the sand areas, and water resource conservation forests and water sources conservation, carries out comprehensive researches on the eco-environmental variation patterns in the western arid regions, the key eco-environmental issues and protection measures in the western part. The demonstration has been conducted in the areas of 1533 hectares, preliminarily attaining the surface bio-coverage all year round and sustainable agriculture development of high quality, high yields and high efficiency. In Inner Mongolia, Ningxia, Sichuan and Tibet, several demonstration sites have been set up for the demonstration of special science and technology industries. The projects of the Research and the Demonstration of Desertification Treatment Technologies and the Science and Technology Action for Beautiful Mountains and Rivers in the north-west have been further carried out.

　　Ministry of Land and Resources has ratified the establishment of five national level geological park in Shanxi, Sichuan and Hunan.

　　Ministry of Water Resources has successfully finished the water diversion in the Yellow River, Tarim River and Hei River which ensures the Yellow River does not dry up in the extreme draught. It further transferred water to Tianjin urgently thus reducing the water shortage in Tianjin. Hei River and Tarim River transmitted the water to the lower reaches, which plays a significant role in protecting and rescuing the ecology in the lower reaches. The preliminary comprehensive treatment of the Tarim River and Hei River basins will be speeded up recently, mainly focusing on the water resources management systems in the river basins and water saving upgrading in the irrigation zones.

　　State Forestry Bureau pays high attention to enhancing the natural forests. In the Tenth Five-Year Plan period, the logging of natural forests in the upper reach of the Yangtze River and the middle and upper reaches of the Yellow River will stop on full scale. Effective and strict measures will be taken and individual contracting responsibility system of forest management will be carried out. Key efforts will be devoted to the conservation of natural forest resources in major state-owned forests in the northeast and Inner Mongolia. In the Tenth Five-Year Plan period, together with the Great Western Development, the re-afforestation and re-vegetation will be carried out step by step. The scientific arrangements of the tree species and forest types will be carried out.

　　Chinese Academy of Sciences has conducted the development and demonstration of ecological recovery projects jointly with the governments of Xinjiang, Inner Mongolia, Shanxi, Gansu and Sichuan Provinces and Autonomous Regions, with certain achievements being made.

　　Shanxi Province has kicked off the conservation project of natural forests, forbidding the logging of natural forests on full scale. Strict rehabilitation tasks, treatment deadlines and acceptance in various stages have been designated concerning the eco-environmental damages by the mining activities. During the Tenth Five-Year Plan period, 35 new natural reservation will be set up. Key efforts will be devoted to the conservation of Qinba mountainous areas so as to set up the national level eco-function reservation in Qinling area. The eco-environmental surveys in the mining areas and demonstration of eco-environmental rehabilitation in the mining areas will be carried out.

　　In the Tenth Five-Year Plan period, Gansu Province will regard the head sources of the rivers, the important water resources conservation areas, and the key conservation and supervision areas of water and soil conservation as the major work and set up special eco-function reservations. The construction of the unique eco-function zone of water resources conservation in Shouqu wetland of the Yellow River will be enhanced so as to improve the regional eco-environment and increase the water storage amount in the upper reaches of the Yellow River, and enhance the establishment of unique eco-function zone of the desert oasis in the mid Hei river as well as the demonstration sites of wetland eco-function reserves in Zhangye and Gaotai in Hei River basin.

　　5. To realize the sustainable uses of energy

　　Ministry of Agriculture will enhance the implementation of the Eco-homeland and Getting Rich Action, with the key efforts being made in the arid agriculture areas in the Loess Plateau in the west, the agriculture and husbandry zones in the sand-storm Plateau in the northwest, the rock mountains in the southwest river basins, the mountainous areas and the oasis agriculture area in Xinjiang. The relevant projects of one model project, one fire-wood saving, one set of water heater, one set or solar stove, and one set of small sized power source will be carried out.

　　6. To enhance pollution prevention and promote cleaner production

　　In the Tenth Five-Year Plan period, Gansu Province will go on with removing the backward production processes, equipment and production capacity, give active support to the new and high technologies with no pollution or little pollution, prevent the new pollution sources in a strict way, promote cleaner production and focus on cleaner production demonstration in the key sectors and Lanzhou. The Eco-conservation and Pollution Prevention Program of the Yellow River Section in Gansu in the Tenth Five-Year Plan Period, the Eco-Conservation and Pollution Prevention Program of the Yangtze River in the Tenth Five-Year Plan Period will be formulated. In the Tenth Five-Year Plan period, the total load of water pollution prevention will be carried out on full scale. In Lanzhou, Baiying and other areas, the industrial pollution treatment will be enhanced and the construction of urban domestic sewage treatment facilities will be speeded up. The eco-conservation and the pollution treatment in the first grade branch regions of the Yellow River such as Daxia River, Chao River, and Huangshui River will be enhanced to keep the ecological degradation within limits in this region and improve the water quality of the Yellow River.

　　7. To speed up the construction of the transportation infra-structure

　　SDPC integrates this recommendation into the Key Specific Plan of the Comprehensive Transportation System Development of the Tenth Five-Year Plan. As to the arrangement of the project, high attention has been paid to the principle of combining the construction with renovation of transportation facilities. In the process of project approval, the constructing institutions are required to formulate an EIA report on the project and obtain approval from local EPBs. In the construction process, relevant eco-environmental protection laws will be followed and the eco-functioned conservation is also needed to be protected. It is requested that afforestation along transportation lines should be conducted and land resources should be saved.

　　8. To develop sustainable agriculture in the western regions

　　Ministry of Science and Technology conducts the demonstration of the value-added and transfer of special resources in the western regions in a serious way, and devotes great efforts to develop the deep processing technology and industrialization demonstration of special agriculture crops and poultry. The survey, comprehensive utilization technology development and industrialization demonstration of oil and gas, metal minerals and salt lakes will be enhanced. The comprehensive utilization technologies and the industrialization demonstration of renewable energies, such as solar energy, wind energy and biomass will be carried out. The value-added transfer and the industrialization demonstration of special medical resources in the western part such as the natural herbal medicine, the Tibetan medicine and the medicine of minority people will be carried out and a series of the value-added transfer demonstration bases of special resources will be set up.

　　9. To promote the development of science, technology and education in the western regions

　　SDPC integrate this recommendation into the Key Specific Plan of the Education Development in the Tenth Five-Year Plan. AS to the higher education, China will adopt the national bonds to give strong support to some universities and secondary vocational schools in the western part so as to expand training capacity and improve the education quality.

　　Ministry of Science and Technology will carry out the Comprehensive Ecological Treatment Technologies and Demonstration in the upper reach of the Yangtze River, the upper reach of the Yellow River, Karst Region and Desertificated Areas in Xinjiang. Through collection, demonstration and dissemination of the key technologies of ecological recovery adaptive to these areas, technical guidance and security will be provided to the ecological treatment project in these areas. Main efforts will be devoted to science and technology training for the leaders responsible for science and technology management in the west. The academicians and famous experts will be invited to conduct tours in the west. Experts will be organized to conduct surveys in this region so as to conduct researches on regional development strategies of science and technologies. With the promotion of the projects, relevant science and technology institutions, universities and enterprises in the eastern and western parts will be guided to conduct technology cooperation of mutual benefits in various means. In the Tenth Five-Year Plan period, the Ministry will go on with the technology matching demonstration between the eastern and western parts.

　　Ministry of Agriculture will enhance the implementation of the Trans-Century Science and Technology Training Projects for the Young Farmers. The training courses of the young farmers have been conducted in 198 counties (cities) in the entire countries, with 510,000 trainees. In 69 counties (cities) in the west, the number of the trained young farmers hit 166,000, accounting for 32% of the total figure of the country.