Checks and balance

Editor's note: On the eve of this year's Spring Festival, Premier Wen Jiabao invited teams of foreign experts to celebrate the occasion, among them was Daniel Dudek, chief economist of the US-based Environmental Defense Fund, who addressed Wen and his cabinet as many regions of China were hit by the worst snowstorms in decades. The following is a transcript of Dudek's speech, exclusive to China Business Weekly:

"Honorable Premier Wen, distinguished guests, ladies and gentlemen, On behalf of the more than 600,000 members of Environmental Defense Fund, let me extend our profound sympathy to the Chinese citizens suffering in this terrible weather. I would also like to express my admiration for your personal care, attention and concern for people's welfare.

This type of extreme and cruel weather illustrates the uncertainty and burden upon people that scientists expect to be the norm under a changed climate should we fail to control greenhouse gas emissions.

China is doing a lot in this regard and is commended for what it has done. However, the context is changing and there is greater urgency. Recent reports and China's own national assessment have painted a grim picture of the future. In addition, the US will act to control its emissions certainly by 2010. China's actions are a hot topic in Washington at this moment as national legislation is being crafted.

This is the time for China to build a response capacity. For example, I note that the No.1 central document issued by the government this year again focuses on rural issues. I'd like to suggest a new rural focus. Eco-compensation can be expanded to include climate change. China can link poverty alleviation and climate change by creating incentives for China's vast army of farmers to improve production methods while reducing emissions and increase revenues at the same time by selling the reductions in greenhouse gases. Greenhouse gases emitters would pay farmers for their reductions to compensate for their emissions.

My organization has projects in cooperation with the provincial governments of Xinjiang and Sichuan to demonstrate the opportunity. We hope to begin work in Shaanxi soon.

While government plays the key role in establishing the framework, the business sector is the leading force in determining environmental outcomes. Business responds best to an environmental policy built on hard targets, the flexibility to respond and hard penalties which would harness the power of the market to perform and innovate in the service of environmental protection rather than against it. On greenhouse gases, China could begin with voluntary emissions reductions acquired by companies.

Managing these changes as well as reforms initiated by the 17th Party Congress will require an environmentally friendly management system.

Perhaps you recall that in 2006, I led one China Council for International Cooperation on Environment and Development (CCICED) task force and made the recommendation to you that the State Environmental Protection Administration be elevated to full ministerial status. I think that this is a move that could embed environmental considerations in the most important decisions made by the nation through insuring that the environmental point of view is formally represented in all discussions.

My organization, the Environmental Defense Fund, started to work actively in China in 1997. However, without the open minds and spirits of those we have worked with, it would not have been possible to produce any results and make any contribution.

In this regard, I also recognize the key role played by the State Administration of Foreign Experts Affairs. Without the help and encouragement they offer foreign experts coming to China, the challenge of doing anything meaningful would be almost insurmountable.

Premier Wen, your declaration to become an "environmental premier" during your meeting with our CCICED council members on Nov 29, 2007 triggered a flashback for me to 1988 when then-candidate George HW Bush said he wanted to be the environmental president. As the leader of the Environmental Defense Fund team invited by the government to participate in the development of the US sulfur dioxide control program, President Bush's environmental legacy, I was fortunate to witness the entire process. You told us that you will continue your unwavering focus on China's environmental problems and expressed your resolve in raising awareness of the severity of these issues and their high priority for the government in solving them. These commitments will truly earn you the title of the environmental premier. I know that this dedication is driven by a deep care for the welfare of the Chinese people.

I would like to express my deepest appreciation to one and all, my warmest greetings for a happy new year, and especially my wish for every success for the Olympics this summer, which I will attend with my two Chinese daughters."

The author is China Daily's columnist and can be reached at DDudek@environmentaldefense.org. The views expressed are his own.

(China Daily 03/03/2008 page4)