Wednesday, March 9, 2011

And further to your understanding of what's happening, Mr Abbott...

China’s challenge to Europe – Shin Wei Ng

March 07, 2011

“The ambitious green goals in China’s new five-year plan are a test for EU leadership, writes Shin Wei Ng.


“China’s 12th Five-Year Plan (FYP) will be approved at the end of this week after the annual sessions of the National People’s Congress that meets once a year to discuss and determine national-level policies.

The 12th FYP is also meant to cover a critical shift in China’s development model: the economy will move towards higher value-added sectors and create Chinese companies that are global players. In particular, the green and low-carbon sectors have been identified as the core part of a new industrial strategy and an important pillar for growth. Despite China’s environmental aspirations, continuous rapid economic growth may threaten its ambition – local governments striving for high GDP growth over the next five years will cast a long shadow on China’s future carbon and energy-intensity targets.

There are both quantitative and qualitative differences between the new FYP and its predecessor. A significant change is the role of the market – the Chinese government will create new markets and encourage the use of market mechanisms, potentially including emissions-trading or a carbon tax, to achieve its environmental goals”.

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