China to enact law on circular economy

Updated: 2007-08-26 19:45

BEIJING, August 26 -- The draft law on recycling economy of China, made to boost sustainable development through energy saving and reduction of pollutant discharge, was deliberated for the first time by lawmakers on Sunday.

The draft law was submitted to the 29th session of the Standing Committee of the National People's Congress (NPC), China's top legislature, for the first reading.

The draft stipulates governments at all levels should make plans on the development of circular economy, establish systems to control energy use and pollutant emission, strengthen management of companies with high energy and water consumption, and make policies to divert capitals into environmentally friendly industries.

The draft also introduces reward and punishment systems for companies, encouraging them to develop recycling economy and making them responsible for the recycling of their products.

"China has been facing serious environmental and resources problems during the economic development since the 1980s, which were mainly caused by the low resources efficiency", said Feng Zhijun, vice chairman of the NPC Environmental Protection and Resources Conservation Committee.

He said the average energy consumption per unit product for high energy-consuming industries, such as steel, electric power and cement, in China was 20 percent higher than the advanced international level.

The committee started to draft out the law on recycling economy in December 2005 and collected more than 1,000 suggestions from relevant government departments, colleges, and local people's congresses this year to perfect the draft.

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