1. Jostein Nygard, EASEN Ge Chazhong, CRAES Wang Jinnan, CRAES Water Pollution Management in China

2. Presentation Overview 1. Context 2. Key Issues in Water Resource and Pollution Management 3. Recommendations

3. 1. Context

4. Current Critical Chinese plans & initiatives;Current Critical Chinese plans & initiatives; – Water Pollution Control Section in 11 th 5-Year Plan – South to North Water Transfer Project Water Pollution Control (WPC) are continuously very critical:Water Pollution Control (WPC) are continuously very critical: – Water quality not much better despite some critical interventions (load reduction vs. quality improvements), – Limited assimilation capacity – Health related effects of heavy water pollution (SEPA, MWR, MoH shared concerns ). China Context

5. China, Air, Land, and Water; Environmental Priorities for a New Millennium. Recommendations;China, Air, Land, and Water; Environmental Priorities for a New Millennium. Recommendations; – Diversified Instrument Application (“three Is”) – Integrated River Basin Management China CAS (’03 – ’05) included specific objective on:China CAS (’03 – ’05) included specific objective on: – Promotion of integrated river basin management – Managing Water Resources (ref. WB CH Water Strategy) Other WB – China related initiativesOther WB – China related initiatives – Hai River and Bohai Sea-basin water management program – North China Water Quality Management Study – Environmental cost model, valuation of environmental health risk World Bank Context

6. Focus: Water quality, pollution, institutionsFocus: Water quality, pollution, institutions Funding: TFESSDFunding: TFESSD Methodology: desk review & dataMethodology: desk review & data collection through two case studies Two critical subjects: WPC inTwo critical subjects: WPC in shallow lakes and river basins Timing: Complete March ’05Timing: Complete March ’05 Chinese Partners: SEPA,CRAESChinese Partners: SEPA,CRAES Beijing University, MWR, YRAES Team: WB, NORPLAN, individual consultantsTeam: WB, NORPLAN, individual consultants Scope & Methodology of Study

7. 2. Key Issues in Water Resource and Pollution Management

8. Total annual renewable water resources 2,800 billion m 3 /year (6 th in the world)Total annual renewable water resources 2,800 billion m 3 /year (6 th in the world) Average per capita availability: 2,187 m 3 /year (1/3 of world average)Average per capita availability: 2,187 m 3 /year (1/3 of world average) 2030: average per capita availability: 1,760 m 3 /year (water scarcity threshold: 1,700 m 3 /year)2030: average per capita availability: 1,760 m 3 /year (water scarcity threshold: 1,700 m 3 /year) Water Demand:Water Demand: – Agriculture (decreasing) – Domestic (increasing) – Industrial (increasing) China’s Water Resources

9. Demand for Water is Increasing Trends driving water consumptionTrends driving water consumption – Population Growth – Urbanization (higher per capita water consumption) Trends driving water pollutionTrends driving water pollution – Economic Growth (aver. annual growth > 7-9% of GDP) – Changing agriculture Increasing use of fertilizer & pesticides Increasing use of fertilizer & pesticides Livestock Production Livestock Production Environmental/ecological need is often neglected Environmental/ecological need is often neglected

10. Distribution of Water (river systems) Water is not evenly distributedWater is not evenly distributed South = Water AbundantSouth = Water Abundant North = Water ScarceNorth = Water Scarce Distribution of population and industry does not match distribution of water resorucesDistribution of population and industry does not match distribution of water resoruces

11. Distribution of Water (river systems) Distribution of water in China’s river systems

12. Water Quality 5 grade water classification system (G1 best)5 grade water classification system (G1 best) – 2000: G1-3 58%, G4 21.6 %, G5 6.9%, G5+ 13.8% Most pollution occurs when water passes through large citiesMost pollution occurs when water passes through large cities

13. Water Quality Water Quality in Main River Basins

14. Sequenced “peaking” of water pollution load by different sectors: Industrial SOE: Peaked in the late 1980s, continued reduction. Industrial SOE: Peaked in the late 1980s, continued reduction. Industrial SME/TVEs: peaked in mid- 1990s, substantive reduction since then. Industrial SME/TVEs: peaked in mid- 1990s, substantive reduction since then. Residential/urban: After continued increase, a leveling off appears. Residential/urban: After continued increase, a leveling off appears. Agricultural non-point: Continuously substantive increase. Agricultural non-point: Continuously substantive increase.

17. Complex Institutional Setup Environment Protection Bureaus (EPBs) Water Affair Bureaus (WAB) Ministry of Agriculture Related Local Level Bodies Related Bodies Leading Agency Various other local level bodies

18. Current Policy Instruments River Basin Water Pollution Control – Continued challenges in inter-agency coordination Pollution Charges – Fees for wastewater flow and fines for exceeding standards Total Load and Discharge Permit System – Total discharges set to meet local carrying capacity (permits) Close Down Policy – GoC has been and still is closing down “serious” polluters Centralized Wastewater Treatment – Joint wastewater solutions at municipality level Environmental Impact Assessment – EIAs used to set critical conditions for pollution prevention

19. Some Key Findings Policies characterized by old command and control structuresPolicies characterized by old command and control structures – Hesitation in moving ahead with economic & voluntarily instruments Complex institutional setComplex institutional set – Lack strong horizontal & vertical co-ordination – Lack of clarity in roles and responsibilities … but, some improvements (common goals) Low level of investmentLow level of investment – Limite private investments

20. 3. Recommendations

21. Establish a long-term strategic approach based on improved inter-agency co- ordination (particularly SEPA & MWR) Establish a long-term strategic approach based on improved inter-agency co- ordination (particularly SEPA & MWR) Promote progress in municipal wastewater treatment and wastewater recycling Promote progress in municipal wastewater treatment and wastewater recycling Establish Integrated (river basin or regional) pollution management processes Establish Integrated (river basin or regional) pollution management processes Establish minimum environmental flow regimes in key river basins (debated). Establish minimum environmental flow regimes in key river basins (debated). Policy Priorities

22. Clarify central and local government roles and responsibilities (inter-agency) in both water quality monitoring and WPC.Clarify central and local government roles and responsibilities (inter-agency) in both water quality monitoring and WPC. (Re-) establish SEPA as an integrated part of the river-basin institutional set-ups (ad- hoc approach not sufficient).(Re-) establish SEPA as an integrated part of the river-basin institutional set-ups (ad- hoc approach not sufficient). Increase investment sources (WTP, collection systems)Increase investment sources (WTP, collection systems) Institutional & Investment Reforms

23. Final issues: Industrial pollution control: Industrial pollution control: - Continue focus on some specific industries with high pollution & low GIOV contribution. Urban & residential pollution control: Urban & residential pollution control: - Underutilized WWT capacities, limited/no collection systems into parts of cities Agricultural non-point pollution control: Agricultural non-point pollution control: - Design plans for how to scale-up from promising WPC pilot programs to e.g. lake- basin wide programs. Need to think and plan LONG TERM Need to think and plan LONG TERM