NGOs assist global environment drive

Testing these methodologies in the field and building up experience through learning-by-doing will help establish both the credibility of proposed measures as well as ensuring that they can be practically deployed. In order for markets to succeed, the transactions costs associated with producing, marketing, verifying, registering, and selling emissions reductions need to be minimized so that the benefit to buyers and sellers is maximized. NGOs with their not-for-profit mission are ideally suited to the challenge of grinding these costs down while preserving core environmental integrity.

Even after the approval of methodologies, there will be a substantial need for verification services so that both buyers and the government are confident that the claims of sellers are met. NGOs can play a big part in helping to build up the necessary human capital through targeted training programs ultimately leading to licensing. This type of third party verification has been a key ingredient in the success of these markets elsewhere. Carbon market services are an emerging new industry.

Carbon markets are built on the same foundation that has powered the dramatic reform and opening-up over the last 30 years in China. One of the hallmarks of this success has been the opportunity to tap opportunities wherever they can be found. Carbon markets will open up the same space for environmental entrepreneurs. For example, Environmental Defense Fund in partnership with the State Council's poverty alleviation office has been linking greenhouse reduction with poverty reduction by helping farmers to change production practices to improve efficiency.

These are examples of how civil society can be engaged in the business of helping to construct effective environmental management systems in China. It is critical for China and the world that these new policy experiments succeed. At a time when the economic slowdown is forcing governments and businesses to review all expenditures more carefully, marshaling all available resources to propel environmental progress is in all of our interests. While government must set the rules of the game and businesses must meet the new requirements, NGOs can help all parties by bringing new creative energies to bear. We need all of the help we can get if the next 20 years of environmental progress are to be different from the last.

The author is vice-president of the Environmental Defense Fund.

(China Daily 07/20/2012 page8)