China will launch its first nationwide investigation into the sources of
environmental pollution beginning in 2008, according to the top environmental
"It will take three years to ascertain how much pollution is discharged all
over the country," Zhou Shengxian, minister of the State Environmental
Protection Administration (SEPA), told the first national work conference on
environmental policies and the legal system, which was held on Wednesday in
A list of products likely to cause heavy pollution is being drafted. The list
is expected to provide a reference for the government to exclude certain items
from export rebates, levy higher customs duties on them or set limits on
Zhou said the number of complaints and protests from the public over
pollution accidents had increased at an annual rate of 30 per cent in recent
years mainly due to slack law enforcement.
Ministry figures show that pollution caused losses of 511.8 billion yuan
(US$64 billion) in 2004, which was 3.05 per cent of the 16 trillion yuan (US$2
trillion) gross domestic product (GDP) that year.
The victims, government and society had to endure most of the losses because
of inadequate compensation.
To better protect the interests of environmental victims and help enterprises
share the risks, SEPA plans to promote environmental insurance in co-operation
with the China Insurance Regulatory Commission.
"We will monitor industries of high risk and heavy pollution or factories
located in environmentally fragile areas," said Bie Tao from the department of
policies, laws and regulations of SEPA. "Enterprises of hazardous chemical
products will be obliged to buy insurance."
The People's Insurance Company of China (PICC) confirmed that promotion of
environmental insurance is under development.
"Some of our liability insurance already covers compensation for
environmental accidents, but PICC will put forward a special environmental
insurance," a researcher with the liability department of PICC said.
Zhang Jianyu, a visiting scholar to Tsinghua University, said, however, that
without a clear and enforceable regulatory framework to help quantify risks,
insurance companies might be reluctant to offer such insurance policies.
Normally, the fine for non-compliance is capped at 200,000 yuan (US$25,300),
according to the current air pollution law, regardless of its seriousness or
(China Daily 12/15/2006 page3)