ADB Releases Country Environmental Analysis on China, Recommends Fiscal Reform for Green Growth

ADB15 August 2012: The Asian Development Bank (ADB) has released an updated Country Environmental Analysis of China, titled “Toward an Environmentally Sustainable Future.” The 225-page report details the environmental achievements of China over the last five years, and current challenges including water pollution, water scarcity, and solid waste.

The report proposes options to address core challenges affecting China's complex environmental, which the report identifies as being: the rapid pace of economic growth; the economy's heavy reliance on exports and investment; its strong dependence on coal; and rapid urbanization. It urges the Chinese Government to reform resource pricing and introduce a green taxation system, along with fiscal reform.

The report also calls for a national regulatory framework of “eco-compensation,” under which the government or private sector would pay for ecological services protection by households, communities, or local governments. It also urges legal reform to clarify institutional responsibility, reduce ambiguity and redundancy in regulations, and empower enforcement authorities. [ADB Press Release] [Publication: Toward an Environmentally Sustainable Future, Country Environmental Analysis of China]