Saturday, August 18, 2007

China vs. Earth

Elizabeth Economy

The message is clear: Shanghai under water, Tibetan glaciers disappearing, crop yields in precipitous decline, epidemics flaring. These are just some of the dire consequences that Chinese scientists predict for their country this century if current climate change is not addressed. Yet China's leaders pay about as much attention to the issue as does George W. Bush. In fact, a report issued last year by the Climate Action Network-Europe ranks China fifty-fourth out of fifty-six countries for its climate change response, just behind the United States and ahead only of Malaysia and Saudi Arabia.

Beijing knows the costs of inaction: A recent major official study on climate change predicts up to a 37 percent decline in China's wheat, rice and corn yields in the second half of the century. Precipitation may decline by as much as 30 percent in three of China's seven major river regions: the Huai, Liao and Hai. The Yellow and Yangtze rivers, which support the richest agricultural regions of the country and derive much of their water from Tibetan glaciers, will initially experience floods and then drought as the glaciers melt.

Moreover, a one-meter rise in sea level will submerge an area the size of Portugal along China's eastern seaboard--home to more than half the country's population and 60 percent of its economic output. Already climate change-related extreme weather is taking its toll: In 2006 such disasters cost China more than $25 billion in damage. Finally, a study by Shanghai-based researcher Wen Jiahong suggests that the lethal H5N1 virus will spread as climate change shifts the habitats and migratory patterns of birds.

Yet China's leaders show little inclination to move aggressively to forestall such calamities. As a result of China's reliance on coal to fuel its economy, its emissions of the greenhouse gas carbon dioxide have tripled over the past thirty years and are now second only to those of the United States. In late 2006 the International Energy Agency predicted that China would surpass the United States as the largest contributor of CO2 by 2009, a full decade earlier than anticipated. China already uses more coal than the United States, the European Union and Japan combined and is the world's second-largest consumer of oil after the United States. (India, which lags well behind China in its overall consumption of coal, is nonetheless on track to become a major CO2 contributor over the next ten years and is already the fifth-largest contributor of greenhouse gases globally.)

China's development strategy suggests that little will change in the foreseeable future. With plans on the books to urbanize half the Chinese population by 2020, energy consumption will soar. City residents in China use 250 percent more power than their rural counterparts. And China's love affair with the private car is set to rival that of the United States. A conservative estimate by the Asian Development Bank predicts that the number of cars in China could increase by fifteen times present levels over the next thirty years, more than tripling CO2 emissions.

If China's development trajectory continues as planned, its increase in greenhouse gas emissions will likely exceed that of all industrialized countries combined over the next twenty-five years, surpassing by five times the reduction in such emissions that the Kyoto Protocol sought. In short, it's a nightmarishly bad picture.

It would be unfair, however, to characterize China as doing nothing to address climate change. The leadership's worries about both energy security and domestic air pollution--five of the world's ten most polluted cities are in China--are propelling them to set bold targets for reshaping their energy mix and enhancing energy efficiency.

The Chinese government has called for renewable energy to provide 10 percent of the nation's power by 2010 and 15 percent by 2020. Key state-owned enterprises and provincial governors must make 20 percent reductions in their energy intensity (that is, energy consumed per unit of GDP) over the next three years. On that front there is a lot of room for improvement: China's buildings consume 250 percent more energy than buildings in other countries with comparable climates. Beijing has responded with a raft of tough new building codes for energy efficiency. Much like the United States, cities and provinces are now taking matters into their own hands. Shenzhen, for example, has passed a regulation that solar power be used to supply hot water in all new residential buildings under twelve stories.

Already there is some success. With the assistance of the US-based Natural Resources Defense Council (NRDC), China built its first LEED (Leadership in Energy and Environmental Design) certified building. Fittingly, the building houses the Ministry of Science and Technology, in Beijing. Ten stories tall, it uses 70 percent less energy than similar buildings and saves 10,000 tons of water annually through rainwater collection. NRDC energy expert Robert Watson, one of the chief architects of the project, claims that if every new nonresidential building in China matched this one, the electricity savings would equal the amount of energy provided by the Three Gorges Dam.

But China is littered with well-intended demonstration projects that go nowhere. If these new regulations are to have an impact, Beijing's tough rhetoric must be matched by real enforcement, a task that has proved elusive in the past. In 2002 the Chinese government pledged to cut sulfur dioxide 10 percent by 2005. (SO2 is not a greenhouse gas but is a noxious byproduct of coal power that causes acid rain and urban smog; getting rid of it is a good idea.) But SO2 emissions have increased 27 percent. From all accounts, few if any of the coal-fired power plants that China is bringing online almost every week embrace state-of-the-art clean technology. Moreover, Beijing has already missed its first-year target for the 2006-10 plan to increase the energy efficiency of industry.

Why can't this supposed command economy impose solutions if its leadership sees a problem? There are several reasons behind China's consistent failure to meet environmental goals.

First, the central government in Beijing actually has little on-the-ground enforcement capability in the provinces. Local environmental protection officials report to and are beholden to local government officials, not to the State Environmental Protection Administration in Beijing. One of the West's great misconceptions is that what Beijing says goes. In fact, local officials are often in cahoots with factory managers and allow industry to pollute well above legal limits--either because the officials have a financial stake in the enterprise or because they are afraid that closing a factory, or making it more expensive to operate, will diminish local employment and lead to social unrest, which is now a very serious problem all across China.

In other cases, local officials want to do the right thing but are too weak in the face of powerful enterprise managers.

At root, however, China's lax environmental enforcement results from Beijing's failure to create a system of green-oriented incentives and penalties. Pricing of natural resources, pollution levies and promotion incentives for officials should all be geared toward environmental protection. Instead, growth at all costs is the guiding logic. Moreover, China's leaders are afraid to unleash civil society, in the form of the media, the legal system and NGOs, to help hold local officials accountable for wrongdoing. Already there are tens of thousands of mass demonstrations over environmental pollution every year. Officials fear that opposition demands will escalate out of control, unleashing a far more powerful push for broader political reform. So the government relies on its old methods, limiting transparency, accountability and free expression.

On the international stage, China faces pressure and incentives to become more environmentally responsible. Beijing's interest in promoting energy efficiency and the development of renewable energy resources--as well as a desire to be perceived as a constructive global actor--drove China's ratification of the Kyoto Protocol. And China has become an active player in the Protocol's Clean Development Mechanism (CDM), tapping into opportunities for technology transfer and international investment. China already has some seventy CDM projects under way--well over half of which supply foreign investment and/or technology for renewable energy projects. According to an Asian Development Bank expert, China could generate an annual revenue stream of more than $2 billion by participating in externally funded CDM projects.

But without more substantial commitment to meet real targets for radical emissions reductions, China's greenhouse contributions will overwhelm its best efforts.

If there is a meaningful Chinese discussion about tackling climate change, it takes place largely behind closed doors, well out of sight of foreigners. Perhaps recent natural disasters will motivate Chinese leaders: Over just the past year China has suffered floods in the east that have affected more than 10 million people, while drought this spring left 13 million people and 12 million farm animals without enough drinking water.

The Communist Party's argument over the past fifteen years has been: Since China came late to the industrialization game, the core economies, with their significantly greater historical greenhouse gas contributions, must pay for a global transformation away from fossil fuels. Now it is China's turn to develop, so deal with it.

"Development is the first urgent task," said Qin Dahe, a member of the Chinese Academy of Sciences and co-chair of the United Nations Intergovernmental Panel on Climate Change. "It's a firm principle and, moreover, we need good and fast development. Only then will we be able to step by step solve the problem" of climate change. Chinese officials are also quick to point out that on a per capita basis, China's greenhouse gas emissions are dwarfed by those of the developed countries: Per capita discharge is only 61 percent of the world's average and 21 percent of that of OECD (Organization for Economic Co-operation and Development) countries.

A more subtle indication of how China's leaders understand the global climate change regime is revealed by the regulatory framework China has established for the Kyoto-related CDM projects. In essence, Beijing places a higher priority on projects that contribute to the development of the economy and transfer technology to China than on projects that make reductions in greenhouse gas emissions.

When growth and green can be accomplished together, the Chinese government embraces environmentalism. For example, it actively discriminates in favor of CDM proposals that transfer technology and advance the country's capacity in renewables, energy efficiency and methane recovery. But reforestation projects or projects that propose to reduce emissions of HFC-23--a greenhouse gas with global warming potential more than 11,000 times that of CO2--are discouraged because they do not involve enough capital or provide technology transfer. Working within these confines, the Kyoto-related CDM framework offers important ways for OECD countries to nudge China away from fossil fuels.

Paradoxically, another reason climate change is not a bigger issue in China has to do with local pollution. Anyone who has visited an inland Chinese city knows how terrifyingly bad the air is. Chinese media are replete with horrifying statistics: An estimated 400,000 people die prematurely from respiratory diseases related to air pollution each year; one-quarter of China's land is desert, and the desert is advancing at the rate of 1,900 square miles per year, producing tens of thousands of environmental migrants; and in China's north and west, severe and growing water scarcity is impinging on economic growth, limiting agricultural and industrial output. As a result even the burgeoning environmental nongovernmental sector in China discusses climate change only as an afterthought. Strangely, few outside the scientific community make the connection that climate change may be exacerbating and exacerbated by these "domestic" problems.

The world's most industrialized countries started the climate crisis, but China might well finish the job. Not having China on board for a more stringent post-Kyoto accord is simply not an option.

In late April the Chinese government is expected to release a national plan on global climate change. From all accounts, the document will reinforce the government's commitment to energy efficiency and renewables while also setting forth prevention policies for natural disasters. What it will not do, unsurprisingly, is embrace any targets or timetables for greenhouse gas emission reductions. For that to happen, two things are necessary. First, the United States, preferably with Australia and India in tow, must agree to aggressive emission reductions, perhaps along the lines currently pursued by California. Without a strong US commitment, the international community has no credibility in pressuring the Chinese.

Second, OECD countries will have to be far more generous and comprehensive in compensating China in its struggle to enforce tougher energy efficiency and renewable standards. That can be done with both financial incentives and technology transfers. What finally brought the Chinese on board with Kyoto and previous international environmental agreements was the attraction of getting paid to do the right thing. If the United States joins the fight against climate change--and if the price is right--there is every reason to believe that China can commit to doing the right thing again.

Fixing the College Loan Mess

from New York Times


Congress has reacted to the college loan scandal with several strong proposals that would go a long way toward ending corruption while making loans more affordable for students and taxpayers. The House has passed a bill that would make it a crime for lenders to solicit business by offering college officials anything of value and force lenders to disclose any existing deals. And both houses are on the verge of approving legislation that would cut some $19 billion in wasteful subsidies to the Federal Family Education Loan Program.

Under that program, the government pays commercial lenders to make loans to students and protects them from defaults. The money saved by cutting subsidies would be spent on Pell Grants, need-based loans, scholarships for aspiring teachers and loan forgiveness for graduates who go into public service. The bill would also lift federal student loan borrowing limits and cap payments at 15 percent of the borrower’s taxable income.

Another important proposal by Representative Tom Petri, Republican of Wisconsin, would trigger a study of an auction system in which lenders would compete for the right to issue loans. If successful, it could drive down costs to both taxpayers and borrowers and eventually lead to the end of subsidies.

Senator Michael Enzi, Republican of Wyoming, has offered a worthy proposal that would phase out a lucrative and clearly unethical program that permits colleges to skim off loan profits while serving as middlemen for the lenders. Created at a time when it seemed that the college loan business might not be profitable enough to attract real lenders, this program is no longer necessary. It’s also prone to exploitation by for-profit schools that accept unqualified students solely to strip them of the money they receive through federally backed grants and loans.

The truth about recycling

Jun 7th 2007
From The Economist print edition


IT IS an awful lot of rubbish. Since 1960 the amount of municipal waste being collected in America has nearly tripled, reaching 245m tonnes in 2005. According to European Union statistics, the amount of municipal waste produced in western Europe increased by 23% between 1995 and 2003, to reach 577kg per person. (So much for the plan to reduce waste per person to 300kg by 2000.) As the volume of waste has increased, so have recycling efforts. In 1980 America recycled only 9.6% of its municipal rubbish; today the rate stands at 32%. A similar trend can be seen in Europe, where some countries, such as Austria and the Netherlands, now recycle 60% or more of their municipal waste. Britain's recycling rate, at 27%, is low, but it is improving fast, having nearly doubled in the past three years.

Even so, when a city introduces a kerbside recycling programme, the sight of all those recycling lorries trundling around can raise doubts about whether the collection and transportation of waste materials requires more energy than it saves. “We are constantly being asked: Is recycling worth doing on environmental grounds?” says Julian Parfitt, principal analyst at Waste & Resources Action Programme (WRAP), a non-profit British company that encourages recycling and develops markets for recycled materials.

Studies that look at the entire life cycle of a particular material can shed light on this question in a particular case, but WRAP decided to take a broader look. It asked the Technical University of Denmark and the Danish Topic Centre on Waste to conduct a review of 55 life-cycle analyses, all of which were selected because of their rigorous methodology. The researchers then looked at more than 200 scenarios, comparing the impact of recycling with that of burying or burning particular types of waste material. They found that in 83% of all scenarios that included recycling, it was indeed better for the environment.

Based on this study, WRAP calculated that Britain's recycling efforts reduce its carbon-dioxide emissions by 10m-15m tonnes per year. That is equivalent to a 10% reduction in Britain's annual carbon-dioxide emissions from transport, or roughly equivalent to taking 3.5m cars off the roads.Similarly, America's Environmental Protection Agency estimates that recycling reduced the country's carbon emissions by 49m tonnes in 2005.

Recycling has many other benefits, too. It conserves natural resources. It also reduces the amount of waste that is buried or burnt, hardly ideal ways to get rid of the stuff. (Landfills take up valuable space and emit methane, a potent greenhouse gas; and although incinerators are not as polluting as they once were, they still produce noxious emissions, so people dislike having them around.) But perhaps the most valuable benefit of recycling is the saving in energy and the reduction in greenhouse gases and pollution that result when scrap materials are substituted for virgin feedstock. “If you can use recycled materials, you don't have to mine ores, cut trees and drill for oil as much,” says Jeffrey Morris of Sound Resource Management, a consulting firm based in Olympia, Washington.

Extracting metals from ore, in particular, is extremely energy-intensive. Recycling aluminium, for example, can reduce energy consumption by as much as 95%. Savings for other materials are lower but still substantial: about 70% for plastics, 60% for steel, 40% for paper and 30% for glass. Recycling also reduces emissions of pollutants that can cause smog, acid rain and the contamination of waterways.


The China question

But the practice of shipping recyclables to China is controversial. Especially in Britain, politicians have voiced the concern that some of those exports may end up in landfills. Many experts disagree. According to Pieter van Beukering, an economist who has studied the trade of waste paper to India and waste plastics to China: “as soon as somebody is paying for the material, you bet it will be recycled.”

In fact, Dr van Beukering argues that by importing waste materials, recycling firms in developing countries are able to build larger factories and achieve economies of scale, recycling materials more efficiently and at lower environmental cost. He has witnessed as much in India, he says, where dozens of inefficient, polluting paper mills near Mumbai were transformed into a smaller number of far more productive and environmentally friendly factories within a few years.

Still, compared with Western countries, factories in developing nations may be less tightly regulated, and the recycling industry is no exception. China especially has been plagued by countless illegal-waste imports, many of which are processed by poor migrants in China's coastal regions. They dismantle and recycle anything from plastic to electronic waste without any protection for themselves or the environment.

The Chinese government has banned such practices, but migrant workers have spawned a mobile cottage industry that is difficult to wipe out, says Aya Yoshida, a researcher at Japan's National Institute for Environmental Studies who has studied Chinese waste imports and recycling practices. Because this type of industry operates largely under the radar, it is difficult to assess its overall impact. But it is clear that processing plastic and electronic waste in a crude manner releases toxic chemicals, harming people and the environment—the opposite of what recycling is supposed to achieve.

Under pressure from environmental groups, such as the Silicon Valley Toxics Coalition, some computer-makers have established rules to ensure that their products are recycled in a responsible way. Hewlett-Packard has been a leader in this and even operates its own recycling factories in California and Tennessee. Dell, which was once criticised for using prison labour to recycle its machines, now takes back its old computers for no charge. And last month Steve Jobs detailed Apple's plans to eliminate the use of toxic substances in its products.

Far less controversial is the recycling of glass—except, that is, in places where there is no market for it. Britain, for example, is struggling with a mountain of green glass. It is the largest importer of wine in the world, bringing in more than 1 billion litres every year, much of it in green glass bottles. But with only a tiny wine industry of its own, there is little demand for the resulting glass. Instead what is needed is clear glass, which is turned into bottles for spirits, and often exported to other countries. As a result, says Andy Dawe, WRAP's glass-technology manager, Britain is in the “peculiar situation” of having more green glass than it has production capacity for.

Britain's bottle-makers already use as much recycled green glass as they can in their furnaces to produce new bottles. So some of the surplus glass is down-cycled into construction aggregates or sand for filtration systems. But WRAP's own analysis reveals that the energy savings for both appear to be “marginal or even disadvantageous”. Working with industry, WRAP has started a new programme called GlassRite Wine, in an effort to right the imbalance. Instead of being bottled at source, some wine is now imported in 24,000-litre containers and then bottled in Britain. This may dismay some wine connoisseurs, but it solves two problems, says Mr Dawe: it reduces the amount of green glass that is imported and puts what is imported to good use. It can also cut shipping costs by up to 40%.

The future of recycling

This is an unusual case, however. More generally, one of the biggest barriers to more efficient recycling is that most products were not designed with recycling in mind. Remedying this problem may require a complete rethinking of industrial processes, says William McDonough, an architect and the co-author of a book published in 2002 called “Cradle to Cradle: Remaking the Way We Make Things”. Along with Michael Braungart, his fellow author and a chemist, he lays out a vision for establishing “closed-loop” cycles where there is no waste. Recycling should be taken into account at the design stage, they argue, and all materials should either be able to return to the soil safely or be recycled indefinitely. This may sound like wishful thinking, but Mr McDonough has a good pedigree. Over the years he has worked with companies including Ford and Google.

An outgrowth of “Cradle to Cradle” is the Sustainable Packaging Coalition, a non-profit working group that has developed guidelines that look beyond the traditional benchmarks of packaging design to emphasise the use of renewable, recycled and non-toxic source materials, among other things. Founded in 2003 with just nine members, the group now boasts nearly 100 members, including Target, Starbucks and Estée Lauder, some of which have already begun to change the design of their packaging.

Sustainable packaging not only benefits the environment but can also cut costs. Last year Wal-Mart, the world's biggest retailer, announced that it wanted to reduce the amount of packaging it uses by 5% by 2013, which could save the company as much as $3.4 billion and reduce carbon-dioxide emissions by 667,000 tonnes. As well as trying to reduce the amount of packaging, Wal-Mart also wants to recycle more of it. Two years ago the company began to use an unusual process, called the “sandwich bale”, to collect waste material at its stores and distribution centres for recycling. It involves putting a layer of cardboard at the bottom of a rubbish compactor before filling it with waste material, and then putting another layer of cardboard on top. The compactor then produces a “sandwich” which is easier to handle and transport, says Jeff Ashby of Rocky Mountain Recycling, who invented the process for Wal-Mart. As well as avoiding disposal costs for materials it previously sent to landfill, the company now makes money by selling waste at market prices.

EPAIt does get recycled, honest

Evidently there is plenty of scope for further innovation in recycling. New ideas and approaches will be needed, since many communities and organisations have set high targets for recycling. Europe's packaging directive requires member states to recycle 60% of their glass and paper, 50% of metals and 22.5% of plastic packaging by the end of 2008. Earlier this year the European Parliament voted to increase recycling rates by 2020 to 50% of municipal waste and 70% of industrial waste. Recycling rates can be boosted by charging households and businesses more if they produce more rubbish, and by reducing the frequency of rubbish collections while increasing that of recycling collections.

Meanwhile a number of cities and firms (including Wal-Mart, Toyota and Nike) have adopted zero-waste targets. This may be unrealistic but Matt Hale, director of the office of solid waste at America's Environmental Protection Agency, says it is a worthy goal and can help companies think about better ways to manage materials. It forces people to look at the entire life-cycle of a product, says Dr Hale, and ask questions: Can you reduce the amount of material to begin with? Can you design the product to make recycling easier?

If done right, there is no doubt that recycling saves energy and raw materials, and reduces pollution. But as well as trying to recycle more, it is also important to try to recycle better. As technologies and materials evolve, there is room for improvement and cause for optimism. In the end, says Ms Krebs, “waste is really a design flaw.”