The year 2008 was the first year of full operations for the Fourth Phase of CCICED, which was officially inaugurated at the November 2007 Annual General Meeting. With continuing strong Chinese Government support, the cooperation of donors and other major domestic and international partners, and the active participation of Council Members, task force co-chairs, Chinese and international experts, and Secretariat staff, the 2008 Work Plan approved by the Council Bureau meeting in November 2007 has, under the leadership of the Bureau, been successfully implemented.

Chinese Government support for CCICED activities was demonstrated during the meeting of international CCICED members with Premier Wen Jiabao in November 2007. The Premier emphasized the Chinese Government’s resolve to give highest attention to harmony between economic growth and environmental protection, stating that environmental protection and sustainable development are the Government’s top priorities. He placed high value on the Council’s work and praised the enthusiasm and commitment that the Council brings to its role of helping China meet the challenges before it.

The Chinese Government approved the appointment of Vice Premier Li Keqiang of the State Council to serve as the CCICED Chairperson in June 2008, indicating that the Chinese Government will continue its strong leadership and support of CCICED.

The National People’s Congress of China approved the establishment of the Ministry of Environmental Protection (MEP) in March 2008. This ensures on-going enhancement of the capacity to provide support to CCICED, to follow-up the Council’s work, and to provide leadership of the CCICED Secretariat. At the same time, Ministry of Foreign Affairs, NDRC, Ministry of Finance, Ministry of Commerce and other central Chinese government departments provided stronger support to CCICED activities. The Chinese Government will continue its financial support to CCICED operations through its central government budget.

On-going international partner support for the Council is reflected not only in donors’ interest in the Council’s agenda and on-going work, but also in the magnitude of their financial support for the Council. To date, there are seventeen international donors supporting the Council’s operations during Phase IV: Australia, Canada, Denmark, the EU, France, Germany, Italy, Japan, The Netherlands, Norway, Rockefeller Brothers Fund, Shell, Sweden, UK, UNDP, Environmental Defence Fund, and WWF.

Following is a summary of progress in the course of 2008.

I. Council Membership

There have been adjustments to the Council’s membership over the past year, reflecting CCICED’s development needs as well as the Chinese Government’s new term of office.

1) Bureau Members: The new CCICED Chairperson is Vice Premier Li Keqiang of the State Council. Ms. Margaret Biggs, President of CIDA, was invited with the approval of the Chinese Government to serve as the International Executive Vice Chairperson and has taken up her appointment.

2) CCICED Members: Several Chinese Members from government departments no longer serve on the Council due to changes in their assignments resulting from, inter alia, the Chinese Government’s new term of office. Several Chinese and international experts have been invited to serve as new Council Members.

At present, CCICED has 53 Chinese and International Members. Many members are veterans, who have been involved in the Council’s work for many years. Several Members are new to the Council. Members come from a range of backgrounds -- government agencies, international organizations, research institutions, non-governmental organization, the private sector, and universities -- and from many countries; all have broad experience in environment and development.

II. Policy Study Activities

Policy studies constitute the core of CCICED’s work in providing policy recommendations to the Chinese Government. CCICED activities related to policy studies in 2008 include the following:

1. Task Force on Innovation and Environment-Friendly Society (2007-2008). It has submitted its final report at the 2008 AGM.

2. Task Force on Environment and Health (2007-2008). It has also submitted its final report at the 2008 AGM.

3. Task Force on Economic Instruments for Energy Efficiency and the Environment (2008-2009). It has submitted its background report to the 2008 AGM.

4. Task Force on Energy Efficiency and Urban Development (2008-2009). A background report has been presented to the 2008 AGM.

5. Task Force on Pathway towards a Low Carbon Economy in China (2008-2009). It has submitted its background report to the 2008 AGM.

6. Task Force on Rural Development and its Energy, Environment and Climate Change Adaptation (2008-2009). Its activities have commenced and are proceeding according to plan.

7. Task Force on Sustainable Use of Coal (2008-2009). The organization of the team and its initial research activities are underway.

8. Task Force on Ecosystem Service and Management Strategy (2009-2010). The organization of the task force team was initiated. It is anticipated that research will begin in 2009.

9. Policy Pilot Project on Energy and Environment Management towards a Low-Carbon Urban Development (2008-2009). Yinchuan City, a medium-sized city and capital of Ningxia Autonomous Region, was chosen as the site of the research.

10. Joint Project on Environment and Development Policy in China and India (2008-2009). With support from CCICED and the Indian Council for Sustainable Development, a joint study was initiated in 2008; its research activities are underway.

11. Joint Project on China’s Ecological Footprint Report (2007-2008). A team of Chinese and international experts with joint support from CCICED and WWF completed its work; its Report was released in June 2008.

Council Members or other prominent Chinese and international experts have been invited to co-chair each task force or project. There has been very close cooperation among experts taking part in the research activities; the quality of their work and their dedication hold promise of excellent policy recommendations.

The Secretariat and the Secretariat International Support Office have assisted the task forces and other studies in coordination, administrative and logistic support, and financial management. The Chinese and International Chief Advisors and their supporting expert group have provided comprehensive guidance, suggestions, and often, substantive technical input to task forces. Many Chinese and International Council Members have participated directly in the work of the task forces, and donors and other partners have provided financial and organizational support to policy study activities. The high degree of collegiality and cooperation that exists between the Chinese and international sides is a key element in the smooth implementation of the Council’s policy research agenda.

III. CCICED Roundtable Meeting

The Roundtable Meeting, a newly established mechanism, was created by the Council with the aim of disseminating CCICED policy study outputs and findings to a wider audience, of promoting the adoption of improved environmental regulations and practices at the local level, and broadening the impact of the Council’s work.

Organized by the Secretariat, the CCICED 2008 Roundtable Meeting was held in Beijing on April 22-23, with the support of Chinese and international partners. During the meeting, an Enterprise Forum was also organized. Participants in the Roundtable Meeting included Chinese and International Council Members, officials from central and local governments, Chinese and international experts and scholars, representatives of domestic and international enterprises, and delegates from donor partner missions in China.

The Roundtable Meeting focused on the discussion of such issues as the Council’s policy recommendations, global implications of China’s transformation of environment and development, international experience in and policies on promoting the development of low carbon economy, local efforts and actions to address and adapt to climate change, and the contribution of enterprises to innovation in aspects of environmental management.

The 2008 Roundtable Meeting achieved the objective of disseminating CCICED policy recommendations to local government decision makers and representatives of industry and commerce. It also provided a platform for dialogue and cooperation among Chinese and international decision makers, experts, scholars, and enterprise leaders. The Meeting reached common understanding on the following points:

First, achieving a transformation in environment and development is a long-term focus for future sustainable development. Currently, there are fundamental contradictions between economic growth, resource use, and the environment. China will face serious environmental risk if development and environmental protection are not in harmony; this will have a significant impact on the global environment.

Second, promotion of a low-carbon economy and development presents a significant opportunity for economic transition in China and an important approach to meeting and adapting to the challenge of climate change. The actions of local governments, public participation, and the cooperation of enterprises are all of vital importance.

Third, a key strategic option for China is to build a resource-saving and environment-friendly society through innovation. Partnership among government, enterprises, and the public is vital, and the role of enterprises is central to the initiation, promotion, and achievement of innovational development.

Fourth, while international experience is important in informing policy choices, there is no existing development model elsewhere that is appropriate in itself to China. China must explore its own sustainable development model capable of resolving the many contradictions between environment, resource use, and development.

IV. CCICED Operation and Management

The various components of the CCICED structure – the office of the Secretary General, the Secretariat and its International Support Office, the Chief Advisors and their supporting expert team – have been consolidated in accordance with the updated CCICED Rules of Procedures adopted at 2007 AGM last year. The Secretary General, with the assistance of the Secretariat and Chief Advisors, oversaw daily operations over the past year in accordance with the work plan approved by the Bureau Meeting.

　  Secretariat and its International Support Office

The following were the principal foci of the Secretariat and its International Support Office over the past year:

·　　　　  providing support and assistance during the organization and implementation of the work of policy study task forces and other projects; coordinating their activities and the resources required to support these activities;

·　　　　  maintaining contact with Chinese and International Council Members; acting on their suggestions related to the work of the Council; providing Council members with relevant information in a timely fashion; providing assistance to facilitate their involvement in Council activities;

·　　　　  strengthening communications with donors and working to expand the Council’s domestic and international partnerships; through cooperation, consultation, and information-sharing, gradually enhancing relations with the central government departments, enterprises and local governments.

·　　　　  planning, organizing, implementing, and monitoring major scheduled activities; improving capacity to organize a wide variety of events;

·　　　　  standardizing the management of donor funds and enhancing funds management mechanisms in support of policy study and other activities.

·　　　　  initiating, with the Secretary General’s guidance,  the development of a sustainability strategy well in advance of the end of Phase IV for further discussion with Council stakeholders;

·　　　　  taking steps to ensure the broad domestic and international dissemination and exchange of CCICED policy recommendations and findings; organizing the publication of policy reports, Council proceedings, the CCICED Annual Policy Report, and special issue statements in order to enhance the impact, awareness, and effective use of the Council’s work.

·　　　　  organizing in cooperation with the Chief Advisors group and other partners such special events as the Roundtable Meeting, the launching of the Report on Ecological Footprint in China, and ‘scoping’ workshops on eco-system services and management, rural energy and environment,  and the sustainable use of coal, all of which demonstrated the relevance and timeliness of the Council’s work.

Chief Advisors

CCICED’s Chinese and International Chief Advisors are responsible for providing scientific and technical suggestions to the Secretary General and the Council’s Bureau on the Council’s policy study agenda and for organizing, guiding and monitoring the substantive aspects of the work of task forces’ and other policy study groups. The work of the Chinese and International Chief Advisors, supported by a Chinese expert group, is central to ensuring the effective operation of the Council’s policy study work. More specifically:

l　　　  the Chinese and International Chief Advisors have played a key role in providing suggestions and recommendations to the Secretary General on the substantive themes, foci, and sequencing of the Council’s work, and on the establishment, membership, and scope of work of task forces and other policy study projects;

l　　　  the Chinese Chief Advisor and International Chief Advisor have established effective communication mechanisms to coordinate their work. Quarterly joint coordination meetings between the Chief Advisors and the Secretariat and International Support Office have been held. The Chinese Chief Advisor and supporting expert group have met on a monthly basis to monitor and coordinate policy work;

l　　　  the Chinese Chief Advisor and International Chief Advisor, along with members of the expert group assigned to assist and monitor specific task forces, have provided guidance and advice to task forces in the implementation of their work, ensuring that task force teams are provided with necessary scientific and technical support;

l　　　  the Advisors have prepared the draft of the CCICED’s policy recommendations and drafted the Issues Paper for the CCICED 2008 AGM, based on the findings and recommendations contained in policy study reports;

l　　　  the Advisors and a team of Chinese experts have assumed the important task of seeking to assess the impact of the Council’s policy recommendations on policy and practice in China, drafting a survey report on the matter, and developing methodologies for enhanced tracking of recommendations.

Annex: Summary of CCICED Funding in 2008

Annex

China Council for International Cooperation

on Environment and Development(CCICED)

Phase IV (2007 – 2012)

Report on Funding: 2008

Introduction

Phase IV of the China Council for International Cooperation on Environment and Development (CCICED) was inaugurated at the November 2007 Annual General Meeting. However, during the transition period between Phase III and Phase IV, some Phase III donor funds continued to be expended until October 2007 in order to make optimal use of remaining funds, while some Phase IV expenditures commenced in August 2007, prior to the Annual General Meeting. This report covers Phase IV finances, dating from the first Phase IV expenditures on August 1, 2007, to September 30, 2008.

Phase IV contributions

The Council’s operation and activities for Phase IV are being supported financially by the Government of China and a wide range of international donors. Details of donors’ contributions or commitments appear in Table 1. Phase IV contributions and commitments currently total US$19,865,880.

Core Funding and Dedicated Funding

As in Phase III, Phase IV funding can be categorized as Core Funding and Dedicated Funding.  Generally, Core Funding, which accounts for approximately 80 percent of total funding, can be deployed flexibly to finance the full range of the Council’s operations, including the Annual General Meetings, Task Forces/Special Policy Studies, Roundtable Meetings, Chief Advisor Group, and the Secretariat, and thus helps ensure that the Council can respond in an unrestricted and prompt manner to changing priorities and circumstances. Donors of Core Funding include China, Canada, Norway, Australia, and Sweden. 

Dedicated Funds are funds that are provided to the Council for a specific purpose, usually to support the work of a particular Task Force, Special Policy Study, or pilot project.  Donors contributing Dedicated Funds include Germany, the United Kingdom, the Netherlands, France, Japan, Denmark, the EU, Shell (China) Limited, Rockefeller Brothers Fund, Environmental Defense Fund, WWF, and UNDP. These Dedicated Funds, which account for approximately 20 percent of total contributions, are concentrated on policy studies and help ensure that high-priority policy research activities have access to sufficient resources.

Management of funds

Most funds are administered by the Council Secretariat (SERI) in Beijing or by the Secretariat International Support Office (SISO) situated at Simon Fraser University in Canada. SISO manages CIDA and AusAID funds and some donors’ funds allocated to meet the international costs of specific task forces, representing approximately 40 percent of total funding. In a few instances, donors manage their contributions through their own offices.

During 2008, the Secretariat and SISO issued Guidelines on the use and management of funds used to meet international costs related to task forces. These Guidelines established standards and limits for reimbursable costs, which were based in turn on the regulations and other conditions set by major donors on the use of their funds, and were designed to ensure consistency across all task forces. In addition, a number of procedures and contract and other templates were developed to facilitate task force financial management.

Expenditures August 1 2007 – September 30 2008

Phase IV Expenditures from 1 August, 2007, to 30 September, 2008 (the last month when posted data is available) are summarized, by donor, on Table 2.

Management, Annual General Meeting, Roundtable, and Chief Advisor costs account for a higher proportion of total expenditures during the first year of Phase IV, which was devoted in large degree to organization and planning, than will be the case in future years, when the proportion of expenditures related to task forces and other policy studies will continue to rise.