Green Growth: New Momentum of Economic Growth in Asia-Pacific Dr. Li Wentao APEC Study Center of China 2011 APEC STUDY CENTERS CONSORTIUM CONFERENCE September, 2011 San Francisco, USA

 Background  What’s Green Growth?  Main Progress of APEC Cooperation  Challenges & Impediments  APEC Cooperation’s Impact on China  Conclusion CONTENTS

Background  One Earth One Family  Economic Development and Growth Paradigm

Background  Natural Resource Wastage  Climate Change and Deterioration

Top Five Energy Consumers in APEC (2009) （ million Oil Equivalent ） Country % of World U.S.A China Russia Japan Canada APEC World Resource: BP Statistical Review of World Energy, June 2010.

Fossil Fuel Production share of World (%) Consumption share of World (%) Proven Reserves share of World (%) Coal Oil Natural gas The Reserves, Production and Consumption of Fossil Fuel in Asia- Pacific Region(2009) Resource: BP Statistical Review of World Energy, June 2010.

Top Five CO2 Emission Countries in APEC (2009) （ million tons ） Country % of World China U.S.A Russia Japan Korea APEC World Resource: BP Statistical Review of World Energy, June 2010.

Background  The U.K. -- to constitute the low carbon green economy as the national development strategy; to implement “Green New Deal” to create 100 thousand new jobs from August 2010  The U.S.A. -- to invest US$ 150 billion to develop clean energy within 10 years in order to create 5 million new jobs  Japan -- to enlarge the market scale of “environment industry” to 100 trillion Yen, and let total employment reach to 2,200,000 by 2015

Background  The Republic of Korea -- to implement “the Green Vision of 21 Century” which stipulates the green growth as the axes of long- term development strategy from 2008; to implement “the Law of Low Carbon Green Growth” in 2010  China -- to put forward the concept of “green development” and stipulate it as one of the core contents of “the Twelfth Five-Year Plan for Economic and Social Development”  Malaysia -- to constitute the green growth as the fundamental paradigm of the future economic development in “2020 Vision”

What’s Green Growth  To achieve environmentally sustainable economic growth that focuses on reducing the increasing environmental pressure arising from economic growth, thus enabling economic growth to reduce the poverty of the current generation while maintaining the carrying capacity for future generations ---“Seoul Initiative on Green Growth ”, ESCAP,

What’s Green Growth?  To foster economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. ---“Towards Green Growth”, OECD Ministerial Council Meeting,

What’s Green Growth?  To sustain economic growth while ensuring climatic and environmental sustainability, which focuses on addressing the root causes of these challenges while ensuring the creation of the necessary channels for resource distribution. New ideas, transformational innovations and state-of-the-art technology will become the major drivers for growth. ---“Green Growth in motion”, GGGI,

What’s Green Growth?  To improve human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. It is low carbon, resource efficient and socially inclusive. --- “Green Economy Initiative ”, UNEP,

What’s Green Growth?  To realize economic growth meeting growing energy demands while minimizing negative environmental consequences. It can do so by facilitating the diffusion of clean energy technologies and systems. Adaptation to climate change impacts is also critical. --- “The APEC Leaders' Growth Strategy”, APEC,

Economic Growth Elements of Green Growth Green Growth Environment Biodiversity Natural Resource Protection

Main Progress of APEC Cooperation  Cooperation in Climate Change  Cooperation in EGS

Cooperation in Climate Change  Environmental protection and Climate Change firstly became the core issues of APEC regional economic cooperation -- “Sydney APEC Leader’s Declaration on Climate Change, Energy Security and Clean Development” -- Put forward the “Action Plan of Climate Change Cooperation in Asia-Pacific”

Cooperation in Climate Change  Implement decisive and effective long term cooperation under the UNFCCC, in accordance with the principle of common but differentiated responsibilities and respective capabilities -- Establish the Asia-Pacific Network for sustainable Forest Management and Rehabilitation, and China commit to further financial support for this initiative

Cooperation in Climate Change  Reiterate APEC 's concern on environmental issues, and incorporate it into the APEC’s new growth strategy -- Enforce the international cooperation to realize sustainable growth through the transition to green economy -- Efforts to address climate change are consistent with international trade obligations and start the APEC Environmental Goods and Services (EGS) Work Programme

Cooperation in Climate Change  Formulate the APEC Leaders' Growth Strategy which seeks growth compatible with global efforts for protection of the environment and transition to green economies -- Focus efforts in the following actions: ◆ Enhance energy security and promote energy-efficiency and low- carbon policies ◆ Develop a low-carbon energy sector ◆ Promote green jobs education and training ◆ Promote private investment in green industries ◆ Promote conservation and sustainable management of agriculture and natural resources

Cooperation in EGS  Formulate “the APEC Environmental Goods and Services (EGS) Work Programme” -- Develop and implement a set of concrete actions to increase utilization and dissemination of EGS -- R educe existing barriers and refrain from introducing new barriers to trade and investment in EGS -- E nhance capabilities of economies to develop their EGS sectors -- R ationalize and phase out over the medium term fossil fuel subsidies

Cooperation in EGS  facilitate the diffusion of climate-friendly technologies, including through ECOTECH and capacity building activities -- advance work on sharing best practices in energy efficiency with a view to deploying cleaner and more efficient technologies, and implement the voluntary APEC Peer Review on Energy Efficiency -- encourage publication on a regular basis, timely, accurate, and complete data on oil production, consumption, refining and stock levels as appropriate

Cooperation in EGS  Implement the APEC EGS Work Program, including by taking steps to address non-tariff barriers to environmental goods -- Explore greater alignment of energy efficiency standards -- Promote trade and investment in EGS -- Facilitate the diffusion of climate friendly and other EGS technologies

Challenges & Impediments  Reluctant to transfer advanced technology by developed members  Uncertainty of world and regional economic growth  Members’ divergence in Cooperative target and foundation  Absent coordinating mechanism and executive power

APEC Cooperation’s Impact on China  Contribute to the transformation of Chinese economic growth model  energy saving and emission reduction pressure from international society  Relieve the technology and fund constraint in green growth  Domestic pressure on regulatory reform in environmental protection and IPR

Conclusion  Recognize the Necessity and Take Substantive Actions  Improve Technology Transfer and International R&D Cooperation  Promote Mechanism Construction of Collaboration  Enlarge Official Development Assistance  Capacity Building and Best Practice

Thank You! Dr. Li Wentao APEC Study Center of China