Editor’s Note: This edition of Green Hops contains an inexplicably frequent number of references to Guangzhou and Guangdong. We wonder why that might be…
Water issues continue to dominate China’s environmental agenda thanks to the recent World Water Forum in Turkey. The forum ended pathetically, failing to recognize water as a basic human right. But in more positive news, Guangzhou (capital city of southeastern Guangdong province) received the “Compromiso Mexico” water prize, which rewards “the best local public policies that have had a positive impact on the drinking water, sewerage and sanitation services in the communities they interact with.” According to Xinhua:
Since 1997, the government launched a number of water initiatives, which greatly improved the once heavily polluted inlets of the city’s Pearl River. The government is expected to allocate 48.6 billion yuan (some 7.11 billion U.S. dollars) for water management in 2009 and 2010, which accounts for one third of its financial budget.
Energy Price Reforms
NDRC announced that it would be removing price caps on coal from next year in a move towards a more market-driven price mechanism. This move comes at an opportune time when coal prices have dropped by 30 to 40% since the summer, but GLF points out an earlier post (see finding #4) on a recent MIT coal report that suggests the upstream coal industry has already moved towards a de facto market price system. Although the NDRC move “is a step in the right direction,” Huang Shengchu, president of Beijing-based China Coal Information Institute says in this interview that government macro-control is still needed to protect the rights of various coal stakeholdres in their contractual dealings with each other, accerlarate industry consolidation of the many small and inefficient mines and to set up a coal price index.
Separately, the proposed auto fuel price reform kicked in earlier than expected. So it turns out that the answer to our confusion (see earlier post) of how the government proposed to hike up taxes and keep fuel prices even was that they would adjust the base fuel price downward, predicated on Read the full story