Liaoning Province Recycling Economy Development Plan By Changhua Wu amd Ernie Lowe Dalian, September 2002

Goal To implement sustainable development strategy while putting through economic restructuring as a mainline improve resource use efficiency as the center build recycling-economy-type enterprises, ecological industrial parks and resource recycling cities; establish recycling economy legal system and scientific/technological support; [try to construct] design a new economic development model and promote the revitalization of Liaoning’s old industrial base

Main Objectives - In 5 Years To establish a group of RE-type enterprises, EIPs and a few RE-type model cities and greatly improve resource use efficiency To build regional resource recovery basis and breed initiate new economic growth points To promote RE concept, create a social atmosphere of having public participation in a RE and primarily establish the mechanisms and framework to develop a RE

Main Objectives - in 10 Years To build a new economic development model, establish improved mechanisms and framework to develop a RE and lead Liaoning’s old industrial bases towards a sustainable development path with growth of production, an improved quality of life and favorable healthy environment

Focus - Enterprises Cleaner production key polluting enterprises, 10 State-level CP demo enterprises Zero wastewater discharge - 20 enterprises Wastes recycling and reuse - large and medium- sized joint enterprises Energy and materials concentration - large and medium-sized joint enterprises Adopting key chain connection technologies - large enterprises with capacity

Focus - EIPs Adopting key chain connection projects Upgrading environmental performance of existing industries Lowering enterprises’ production costs Increasing enterprises’ competitiveness Recycling and reusing of wastes and hazardous wastes Improving infrastructure and services of parks

Focus - Cities Urban gray water reuse Urban garbage classification and recycling Upgrading systems of specially classified wastes recycling and reuse Building regional resource reuse bases

Focus - Policies Speeding up construction of related local legislation Raising charges of urban sewage treatment and charging new fees soon of urban garbage disposal Studying charge policy on some specialized wastes recycling and reuse Strengthening incentives - fully taking advantage of State taxation preferential policies on integrated resource use and used resources recycling Encouraging commercial banks to support RE projects

Targeted Industries Petro-chemial Metallurgical Chemical Power Building materials Paper-making Brewery Pharmaceuticals

Targeted Indicators Coal consumption per 100,000 yuan added industrial value Water intake per 100,000 added industrial value Rate of industrial water Reuse Rate of integrated use of industrial solid wastes Gray water reuse in cities Rate of recycling for used materials/products

Targeted Indicators - continued Waste gas emissions per 100,000 yuan industrial output Wastewater discharge per 100,000 yuan industrial output Industrial solid waste discharge per 100,000 industrial output Total pollutant load emissions control, urban garbage treatment, urban garbage classification and recycling, urban sewage treatment, storage or disposal of hazardous wastes

Recycling Economy Strategy I Improving and relying on legislative and regulatory systems Strengthening economic policy support and establishing pluralistic investment mechanisms, e.g. taxation, fees, credit guarantee, more financing for infrastructure, flexible ownership

Strategy II Strengthening technological R&Ds Increasing space for intermediary organizations to participate in RE activities Building information platforms for more public participation and access to info

Strategy III Strengthening publicity and education and advocating green consumption Strengthening international cooperation Strengthening government’s leadership as a role model Clarifying responsibilities among stakeholders (government, industries and public)

Uncertainties I Vision holistic, but lack of integrated strategies/process to connect the big picture and the patch work of projects Policies geared towards incentives and market-based instruments, but with other related policies, such as enforcement, unclear

Uncertainties II Almost all the major government agencies involved in RE development, but how to make sure that all those agencies would collaborate and integrate is uncertain Inadequate consideration of how to support and encourage public-private partnerships Inadequate consideration of strategy in terms of how to attract FDIs to participate in RE development