1. TOWARDS CHINA’S TRANSFORMATION Rose Niu Managing Director US-China Program World Wildlife Fund

2. Ecological Footprint Living Planet Report 2010 Global footprint by component 1961-2007 Source: Global Footprint Network LPR launch, Bristol

3. Living Planet Report 2010

4. China - The Challenge  World’s largest economy in a decade  Major consumer of oil, gas, coal, metals, water and fish – increasingly sourced from abroad  Biggest carbon emitter  Enormous pressure on the environment, in China and around the world  Rapid increase of average ecological footprint

5. China’s per capita Ecological Footprint (2005) Relatively small ecological footprint on a per person basis, but... a big ecological deficit as a whole, and still growing 2003 constant global hectares (millions) global hectares China 1.6 Brazil 2.3 UK 5.6 US 9.7

6. Why “Go Global”?  Natural resource depletion  Environment degradation  Excess production capacity To access natural resources To access new markets To capitalize on large foreign- exchange reserves To move up the value chain To ease trade barriers

7. Imported Exported China: Workshop of the World Trade of ecological capacity from imported and exported biomass products (in million global ha in 2007)

8. China - The Opportunity Carbon intensity reduction target of 40- 45% by 2020 from 2005 Piloting low carbon in 5 provinces and 8 cities World largest solar PV manufacturer, largest installed capacity of solar water heaters Leapfrogging is possible Political willingness: commitments to low-carbon development and environmental targets Global provider of renewable energy and solutions Help alleviate energy poverty in Africa through aid and investment Set example for other emerging economies.

9. Help China leapfrog into a major player in sustainable development at home and abroad China for a Global Shift: WWF Global Network Initiative High level political engagement to promote ‘footprint’ reduction policies Policy Green financing oriented towards sustainability Finance Responsible trade, aid and investment overseas Trade, aid, investment Green solutions from China to alleviate energy poverty in Africa Green tech

10. How Can We Be Effective? We take a strategic and pragmatic approach and offer real solutions Cultivate and capitalize on the emerging political willingness for sustainable development Political willingness Focus on selected key actors in policy and regulation to leverage their resources for a multiplier effect Key actors Target industry-leading players in China's overseas investment and trade to create new champions for a ripple effect Champions Explore solutions of leapfrogging the conventional development model Leapfrogging

11. SHIFT Case Study: Banking and Finance Why Engage Chinese Financial Sector? The Chinese finance sector has been fueling the growth of China’s overseas investment The scale and influence of China’s financial sector is growing rapidly Increasing scale Increasing number of China’s banks are operating globally and are also global in size Going global Banks’ lending policies can work as effective leverage for China’s investment overseas Greening lending

12. 15 Key Commoditi es WHITEFISHTROPICAL SHRIMP TUNA FARME DSHRI MP FISH OIL & MEAL PULP & PAPER SAWN WOODDAIRYBEEF SUGARCANE COTTON PALM OIL FARMED SALMON BIOFUELS SOY

13. Drive supply and demand to nature’s advantage by working with and through markets Amazon soy, beef, cotton, timber, minerals, carbon Coral Triangle tuna, live reef, fish, aquaculture, carbon Congo Timber, minerals, carbon Borneo palm oil, timber, carbon E./S. Africa biofuels, tuna, carbon Arctic cod and Pollock, carbon Global Markets/Habitats

14. China’s resource quest China’s Major Source Regions of Key Commodities Congo Basin: Minerals, Timber, Palm oil, Beef Amazon: Soy, beef, minerals Russia: Timber/Far East Fish/Arctic Coral Triangle: Fish Borneo: Palm Oil, Pulp and Paper

15.  Pinpoint the leverage point: multinationals that hold sway in commodities 25% of demand leverages 40-50% of production   6.9 6.9 billion consumers? 500 500 companies that control 70% of trade in each commodity? 1.5 1.5 billion producers?                                                            Transforming Markets

16. BeefCocoaCoffee Palm Oil SugarSoy Cotto n Shrim p White Fish Felda Persero Beidahuang Group Andre Maggi Good news…

17. Promoting Responsible Forestry Markets Case Study: Forestry Global Forest & Trade Network Challenges Increased demand for forest products Increased illegal timber trade unsustainable forest management WWF’S Responses Supports forest producers in achieving FSC certification Assists buyers in responsibly sourcing forest products Facilitates links between committed companies

18. China plays a pivotal role in global timber trade More than just logs. It’s habitat for wildlife Russian Far East Amazon Congo Basin Borneo & Sumatra Linking Illegal Timber Trade with Conservation

19. What Have We Achieved So Far? Every step counts Expanded and strengthened partnerships with key central government agencies, including CCICED, MOFCOM, CBRC, PBC, MEP, and SFA Political support Conducted researches and published reports on China’s ecological footprint, sustainable financing, international environmental practice in green lending, in cooperation with strategic partners Tangible results Facilitated and supported a large Chinese timber company to adopt FSC certification for its business operations in Africa Pilot Projects Organized two study tours to Africa and Europe for Chinese financial regulators and bank executives to learn best practice in sustainable financing; sponsored FED forum for knowledge sharing among key stakeholders Awareness building & knowledge sharing Built a dedicated team across the WWF network that works both in China and in source countries, at the policy level and on the ground Team

20. What We Have Achieved?

21. Thank you!