This important article from China Dialogue describes a new document issued by China’s Ministry of Ecology and Environment (MEE), Guidelines for ecological and environmental protection of foreign investment cooperation and construction projects. The authors describe the guidelines as “the most comprehensive document by any country regulator to guide environmental management of overseas projects”. Guidelines include adopting international standards or China’s stricter standards for environmental protection in host countries; actively cutting pollution of all kinds; strongly favouring clean energy; and reconsidering projects with high potential biodiversity costs. The authors note that these guidelines are not enforceable, but that they “send clear signals to China’s state-owned and private enterprises.” As such, they form an important milestone towards a Green Belt and Road.
This January, less than six months after publishing the “Green development guidelines for overseas investment and cooperation”, China’s ministries of commerce and of ecology and environment issued another set of recommendations with a similar name: “Guidelines for ecological and environmental protection of foreign investment cooperation and construction projects”.
How is this document different to last year’s? And how does it add value?
Simply put, the latest release reaffirms recommendations made in the earlier guidelines but has more focus on specific issues of environmental risk management throughout the whole lifecycle of Belt and Road projects. It provides more robust direction to manage environmental risks in specific sectors, such as energy, transport and mining.
It also reflects wider developments in recent months. Since the publication of last year’s guidelines, in July, China has made important commitments to support green overseas development. Notably, President Xi pledged China would no longer build new coal-fired power plants abroad, and would support green low-carbon energy in developing countries. In November, he further elaborated that China is exploring the establishment of an early warning and assessment system for overseas project risk.
Continue reading Understanding China’s latest guidelines for greening the Belt and Road