China’s Economic Slowdown Offers New Impetus for a Cleaner Climate
Falling trajectories of China’s economic growth maybe be worrying investors around the world, but opinion is warming on its benefits towards the environment.
Announcing last year as growth rates fell to 7 percent below the 10% bench-mark, (experienced for the past three decades) China’s President Xi switched rhetoric from fast export led growth to structural reform, which emphasizes improving the quality of living for many Chinese people, starting with pollution.
Recent figures show a reduction of particulate matter PM2.5 concentrations around problem regions like Beijing and Hebei, however the levels of poisonous particulate in the air remains high above national guidelines of what is advisable for people’s health.
Meanwhile government has been stepping up investment in green energy and conservation, allocating 11.55 billion yuan for the prevention and control of air pollution in 2014, 9.5% up from the previous year.
Several analysts now consider that slower economic growth may be the opportune driver for one of the world’s heaviest polluters to fully shift its weight towards environmental restoration.
Speaking on President Xi’s agreement with President Obama to curb greenhouse gas and carbon emissions before 2030, Director of the Brookings – Tsinghua Centre for Public Policy, Professor Qi Ye says that in the coming years we can expect to see stronger and similar deals from the government towards environmental reform.
“For the next five years we can expect to see Chinese government leaders take action on a so-called “green new deal” that will invest more in green-tech and other areas of environmental protection” said Professor Qi Ye.
However, challenges still lie ahead in achieving a cleaner environment, and the cause roots back to addressing China’s economic downturn. As part of the 13th five year plan, China aims to double its current GDP by 2020 and structural reforms will focus on efficiency by tightening budget allocation at the local level where debt has exacerbated slower growth.
In a statement early this year, Zhou Shengxian Minister of Environmental Protection said these structural reforms may cause challenges for environmental action by weakening the ability of local governments to manage pollution if they have slimmer access to funds.
Additionally environmental groups also question the recent shift of the role of environmental assessment falling under local governments and whether they will take priority in protecting the environment over the needs of economic development.
According to Professor Qi Ye investing in cleaner energy and environmental protection has the potential to solve China’s economic woes where export and investment led growth can no longer perform at a fast scale.
“The Chinese government is considering by investing into this ecosystem restoration and natural resource conservation this will drive investment in many areas of the economy” he said.
China has the potential to grow further in key economic sectors including tourism, services and increasing domestic consumption if progress is made in creating a cleaner environment. It remains to be seen if growing sentiment for environmental protection will match its implementation.
Tsinghua University during pollution with PM2.5 401 versus under blue skies with PM2.5 35