The Second Annual General Meeting of Phase III of China Council for International Cooperation on Environment and Development was held on October 30-November 1, 2003 in Beijing. Thirty-four Chinese and international Council members, nineteen co-chairs of task forces, seven special guests and thirty-nine observers participated in the meeting.

　　On the morning of October 31, Premiere Wen Jiabao met with the Chinese and international Council members and co-chairs of the Council. He listened to the recommendations to the Government of China reported by Mr. Thibault and Mr. Lonnroth, two international vice-chairs of the Council on behalf of the Council, and delivered important speech, in which he expatiated on China's comprehensive, coordinated and sustainable scientific development approach. He emphasized that the relation of the development and environment, urban and rural development, regional development, economic and social development, harmonious development of human being and nature, domestic development and opening up to the world should be coordinated and handled with in an integrated way so as to achieve the target of well-being society. He also pointed out that the capacity building of environmental protection should be enhanced; attention should be paid to the development of medium and small enterprises and the legislation building of environmental protection. Premiere Wen Jiabao fully affirmed the recommendations of CCICED. He expressed his thanks to the Council for the Recommendations, and pointed out the excellent work of the Council for twelve years made helpful contribution to the sustainable development in China. He hoped that CCICED could continue its work and make greater contribution.

　　Mr. Zeng Peiyan, Vice Premiere of State Council and Chair of CCICED presided the morning session on November 1 and delivered important speech, in which he expressed that the Government of China would have serious study on the opinions and recommendations of the Council meeting, and take them into consideration in the actual work. He emphasized that overall plans should be made and all factors taken into consideration; the harmonious development of human being and nature should be promoted; the economic growth approach should be changed fundamentally; a new path with high science and technology component, sound economic benefits, low resources consumption, little environmental pollution and full exertion of human resources should be taken; the international cooperation, the coordinated development of environment and economy should be promoted; the obligation of global environmental protection should be shared reasonably; the barriers to the exchanges of environmental technologies should be removed so as to make sound cooperation situation. CCICED should further improve the quality of the Annual General Meeting, strengthen policy researches, and focus on the study of important topics, so as to make greater contribution to the sustainable development in China.

　　Before the meeting on the morning of November 1, Vice Zeng Peiyan met with the international members of the Bureau of CCICED. He introduced to them the situation of the economic development in China; and pointed out that Chinese government pays high attention to CCICED and has been paying attention to the issues in the field of energy and has noted CCICED's recommendation on energy. There are a lot of domestic and international experts in the Council. The recommendations of the Council based on the discussions are of utmost importance to the future development in China. On behalf of Chinese government, he expressed thanks to CIDA for the financial support to the Council, and hoped to join efforts and make contribution to the environment and development in China and the world.

　　The meeting reviewed and passed the adjustment scheme of the Bureau membership, and domestic and international membership and task forces of the Council. The Council members were encouraged by the fact that Vice-Premiere Zeng Peiyan acts as the chair of the Council, and were confident that under his leadership, the Council would play a greater role in promoting the sustainable development in China.

　　The meeting had in-depth discussion on the theme of "Well-Being Society and Sustainable Industrialization Path", and put forth a lot of valuable opinions and recommendations. Council members pointed out that in the process of achieving well-being target, we should not only pay attention to the indicator of GDP, but also pay more attention to environmental protection, democracy and legislation, the transit of production and consumption pattern, and other indicators so as to promote development on full scale. Otherwise, it will restrict the achievement of well-being target. We should pay attention to cross-sector issues and could learn from the advanced experiences of the international community concerning this issue. We should define and emphasize the ecological environment component of the well-being society and new industrialization path and clarify their relationship. We should, in line with the comprehensive, coordinated and scientific development approach, have correct and comprehensive understanding of well-being target and new industrialization path.

　　During the meeting, Mr. Brende, Chairman of UNCSD made a keynote speech on the situation of global environment and sustainable development. He expressed his hope that the governments of the countries show political willingness and determination on promoting sustainable development, and affirmed the strategic choice of the new industrialization path and well-being society in China. Mr. Topfer, Executive Director of UNEP made a special speech at the meeting. He emphasized the importance of establishing sustainable production and consumption pattern. Only in this way could we promote economy development and improve the environment. Mr. Zhu Qingsheng, Vice Minister of Public Health introduced the experiences and future measures in combating with SARS. Mr. Baying Chaolu, Vice Governor of Zhejiang Province and Mr. Tang Fuping, Deputy General Manager of Anshan Iron and Steel Corporation introduced to the meeting the experiences of setting up eco-province and renovation of old enterprises in line with the concept of circular economy. Mr. Dietmar Nissen, President of East Asia Region of BASF introduced to the Council experiences of reducing energy consumption and developing economy, protection the environment. These speeches enabled the Council members to have more comprehensive understanding on the trend of the sustainable development in the world and the experiences in China.

　　The meeting listened to the Issues Paper and report on the co-chair meeting by the LEs, and had in-depth discussion. Five task forces reported to the meeting – Enterprise Development and Environment, Energy Strategy and Technologies, Environmental Industry, Financial Mechanism of Environmental Protection, and Circular Economy. The meeting had wide range and in-depth discussion on the policy recommendations of the task forces. The main policy recommendations of the task forces are as follows:

　　1. The circular economy is based on the most effective utilization of natural resources and environmental protection, and fits in with the requirements of new industrialization path. It should be promoted actively step by step. There is great potential in improving the efficiency of energy, land and water resources. Relevant work should speed up.

　　2. The small and medium sized enterprises should participate in the process of new industrialization. Attention should be paid to the use of economic, legal and administrative instruments. Marketized mechanism should be used in phasing out enterprises with low competition capacity and with serious pollution so as to promote the industrial restructuring;

　　3. Attention should be paid to the study of energy development strategy. According to the situation in China, advanced coal technology with the use of poly-generation technology as the core is an important choice of national energy development strategy. In the meantime, various factors such as economic cost, technical feasibility and environmental protection should be taken into consideration;

　　4. The environmental industry market should be promoted and regulated. The legislation should be enhanced and local protectionism should be avoided. To encourage technology development and transfer, and pay attention to the development of environmental services sector;

　　5. To follow the principle of polluter pays, and set up multi-channels of environmental investment mechanism. To pay attention to the financial channels such as bank loans and bonds of municipal infrastructure construction. To formulate environmental financial policies preferential to sustainable development, set up risk funds and pay high attention to environmental infrastructure construction and pollution prevention in small and medium enterprises.

　　6. To enhance the cross-sector policy coordination. In the process of formulating policies, programs and construction of key projects, various sectors and departments should strengthen coordination and cooperation, and take comprehensive consideration of the economic, social and environmental factors. Requirements of sustainable development should be integrated into governmental procurement, and the financial input of the financial system;

　　7. To enhance environmental education and training, speed up information modernization, increase transparency of information, improve public environmental awareness, and set up public supervision and participation mechanism. To improve legislation and enhance enforcement, and raise the sustainable development capacity of local governments.

　　At the closing ceremony on the morning of November 1, Mr. Xie Zhenhua, Vice Executive Chair of CCICED made a summary of the meeting on behalf of the Bureau, and announced that according to the decision of the Bureau meeting: in accordance with the principle that the theme of the AGM should focus on the prioritized fields of the government of China; the theme of the AGM in 2004 is preliminarily identified as "Coordinated Development of Agriculture, Rural Economy and Environment"; and the theme for the AGM of 2005 is "Urbanization and Environment". The AGM of 2004 will be held in Beijing in October. Local side-visits will be organized for Council members and experts so as to have further understanding of the situation in China. He requested the Secretariat and the LEs to further revise the policy recommendations to the government of China. The five task forces reporting to the Council should formulate reports based on the research results of the task forces. The reports will be submitted to the State Council and delivered to relevant leaders, departments and local governments.

　　On October 22 – 29, the Secretariat organized a side-visit to Hubei, and Sichuan Provinces, Chongqing and Beijing. Mr. Lonnroth, Vice Chair of the Council and Mr. Auken participated in the side-visit. The international Council members had further understanding of the situation of regional environmental protection and economic development in China, and highly appreciated the measures and achievements of the sustainable development strategy in these areas.

　　On the afternoon of November 1, Ministry of Commerce and CIDA co-chaired the project coordination meeting of CCICED. Mr. Xu Qinghua, Vice Secretary-General of CCICED participated in the meeting. Representatives from Canada, Sweden, Switzerland, Germany, UK, and Japan participated in the meeting. At the meeting, the progress of CCICED was reviewed and information on donation of the funds was released. Reports on the finance in 2003 and budget for 2004 were made. The core funding mechanism and other issues were also discussed at the meeting.