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OPINIONS OF THE STATE COUNCIL ON SPEEDING UP THE DEVELOPMENT OF CYCLIC ECONOMY
 
(No.22 [2005] of the State Council promulgated on July 2, 2005)
     
     
SUBJECT : CYCLIC ECONOMY
ISSUING DEPARTMENT : THE STATE COUNCIL OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 07/02/2005
IMPLEMENT DATE : 07/02/2005
LENGTH : 4,254 words
TEXT :
Since the reform and opening-up, China has made positive achievements in boosting resource saving and comprehensive utilization and promoting clean production. However, there is no fundamental change on the traditional extensive way of economic growth, which is of high energy consumption, high discharge and low efficiency, the resource utilization efficiency is very low and environment pollution is serious. Meanwhile, there are such problems as imperfect regulations and policies, unsound systems and mechanisms, and the lagging behind of relevant technical development. In the first 20 years of this century, China will be in a stage of rapid development of industrialization and urbanization, and will face very severe resource and environment situation. In order to grasp the important strategic opportunities, and realize the strategic objective for building an overall well-off society, we shall make great efforts to develop circular economy, and shall, in light of the principle of ¡°reduce, reuse and recycle¡±, take various effective measures to obtain maximum economic output and minimum waste discharge by minimizing resource consumption and environment cost, so as to realize the consistency of economy, environment and social benefit, and build a resource saving and environmentally-friendly society. Therefore, we bring forward the following opinions.



I. GUIDELINES, BASIC PRINCIPLES AND MAIN OBJECTIVES FOR DEVELOPING CIRCULAR ECONOMY

1. Guidelines. We shall, under the guidance of Deng Xiaoping Theory and the important thought of ¡°Three Represents¡±, establish and implement the scientific view of development, and shall, targeting improving resource productivity and reducing waste discharge, and taking technological innovation and systemic innovation as the motivity, enhance the consciousness of resource saving and environmental protection, strengthen construction of legal systems, improve policies and measures, and bring into play the role of market mechanism, so as to promote the growth of circular economy.

2. Basic Principles. We shall stick to taking a new pathway of industrialization, and form a way of production and consumption conducive to resource saving and environment protection; we shall continue to promote the adjustment of economic structure, accelerate technical progress, strengthen supervision and administration, and improve resource utilization efficiency, as well as reduce waste production and discharge; we shall enable the enterprises to become main players, combine government adjustment and control, market guidance and public participation, so as to build a policy system and social atmosphere conducive to boosting the growth of circular economy.

3. Development Objectives. We shall make efforts to establish a more perfect system of laws and regulations, policy support system, institutional and technological innovation system and stimulus and binding mechanism on the growth of circular economy in 2010. We shall greatly improve resource utilization efficiency, greatly reduce the wastes for final disposal in volume, and establish a large batch of typical enterprises complying with the requirements for the growth of circular economy. We shall promote green consumption, improve the system of recycling and reusing of renewable resources. We shall build a batch of industrial (agricultural) parks and zones and resource-saving and environmentally-friendly cities that comply with the requirements for the growth of circular economy.

4. Major Indicators. We shall make efforts to have the GDP from the output per ton of such 15 kinds of important resources improved by 25% compared with that in 2003, including energy, iron ore, non-ferrous metals, non-ferrous metals mine, and etc., and the energy consumption of GDP per 10 thousand Yuan shall be reduced by more than 18%. The average effective utilization coefficient of agricultural irrigation water shall be improved to 0.5, and the quantity of water intake of industrial added value per 10 thousand Yuan is reduced to 120 cubic meters. The total recycling rate of mineral resources and the rate of comprehensive utilization of coexisting minerals shall be improved to 5 percent respectively. The rate of comprehensive utilization of industrial solid waste shall be improved to more than 60%; the proportion of renewable copper, aluminum and lead reaches to 35%, 25% and 30% respectively, and the recycling and reusing of major renewable resources shall be improved to more than 65%. The stacking and disposal of industrial solid waste under control shall be around 0.45 billion tons; and the increasing rate of urban garbage under control shall be around 5%.

(The said relevant indicators shall be adjusted correspondingly according to the Eleventh Five-Year Plan)



II. MAJOR WORK AND KEY LINKS FOR THE GROWTH OF CIRCULAR ECONOMY

5. Major Work. Firstly, we shall make great efforts to promote saving and reduce consumption, we shall save resources in production, construction, circulation, consumption and other various fields to reduce the consumption of natural resources. Secondly, we shall promote overall clean production and reduce waste generation from the source, so as to realize the transition from end-of-pipe control to pollution control and production process control. Thirdly, we shall make great efforts to carry out comprehensive utilization of resources, and realize the recycling of wastes and the recycling and reusing of renewable resources to the maximum extent. Fourthly, we shall make great efforts to develop environment protection industries, lay emphasis on developing technology and equipment of ¡°reduce, reuse and recycle¡±, so as to provide technical safeguard for high efficient resource utilization, recycling and reusing and reducing waste discharge.

6. Key Links. Firstly, we shall plan the development of mineral resources as a whole in the link of resource development, popularize advanced and applicable mining technology, technique and equipment, improve the mining recovery rate, and the extraction ration in ore dressing and smelting, and make great efforts to promote the comprehensive utilization of tailings and mullocks, so as to greatly increase the rate of comprehensive recycling and re-utilization of resources. Secondly, we shall strengthen management on the consumption of energy, raw materials, water, and other resources in the link of resource consumption in such key sectors as metallurgy, non-ferrous metals, electric power, coal, petrol-chemical, chemical, construction materials (construction), light industry, textile and agriculture, and etc., and make great efforts to reduce consumption and improve resource utilization rate. Thirdly, we shall strengthen pollution control and process control in the link of waste generation, promote the reasonable extension of industrial chains in different sectors, strengthen recycling and reusing on various kinds of waste, and promote the ¡°zero emission¡± of enterprise waste; we shall speed up the construction of reclaimed water utilization facilities and the reducing and recycling and reusing of urban garbage and sludge, so as to reduce final disposal of waste in volume. Fourthly, we shall make great efforts to recycle and reuse various waste resources in the link of recycled resource generation, and support the reproducing of waste electro-mechanical products; we shall establish the system of separate waste collection and sorting, and perfect incessantly the system of recycling and reusing of renewable resources. Fifthly, we shall advocate greatly ways of consumption that are conducive to saving energy and protecting environment in the consumption link, encourage using products with energy efficiency label, certified products of energy saving and water saving and green label products, green food and organic food, reduce the over-packaging of products for sales and the use of once-off products. The government institutions shall implement green procurement.



III. STRENGTHENING MACRO-CONTROL OVER THE GROWTH OF CIRCULAR ECONOMY

7. The growth of circular economy shall be regarded as the important guideline for compiling relevant schemes. Governments at all levels and the relevant departments concerned shall compile the Eleventh Five-Year Plan and the various regional plans, municipal overall plans and the special plans for the sustainable utilization of mineral resources, energy efficiency, water saving and comprehensive utilization of resources and etc. under the guidance of the theory of circular economy, and make analysis on resource consumption, saving, recycling and reusing, waste emission and environmental status, and clarify the target, emphasis and policies and measures.

8. The evaluation indicators system of circular economy (EISCE) and statistical accounting system shall be established. The National Development and Reform Commission shall, together with the National Bureau of Statistics, State Administration of Environmental Protection and other relevant departments, accelerate the research on establishing evaluation indicators system of circular economy, and have it brought into the national economic and social development plan, and establish statistical accounting system of circular economy. The relevant departments of the local people¡¯s governments at all levels shall positively carry out statistical accounting on circular economy, and strengthen analysis on major indicators of circular economy.

9. The plan for boosting circular economy shall be formulated and implemented. Local people¡¯s governments at all levels shall organize the relevant departments of development and reform and environmental protection, and according to the reality of their own regions, formulate and implement the plan for boosting the growth of circular economy. The relevant departments of the State Council shall make research to formulate the plan for intensive utilization of mineral resources, energy efficiency and water resource saving and utilization and clean production, and plans for boosting the growth of circular economy in key sectors and major fields.

10. The adjustment of economic structure shall be speeded up and the regional overall arrangement shall be optimized. We shall strengthen macro-control, curb blind investment and low-level repeat construction, and restrict the development of industries that are of high energy consumption, high water consumption, and serious pollution. We shall make great efforts to develop high technological industry, accelerate innovation on traditional industries with high and new technology and advanced and applicable technology, discard backward technique, technology and equipment, and realize the upgrading of traditional industries; we shall promote the reorganization of enterprises, improve the industrial concentration and scale benefit and make great efforts to develop intensive agriculture. The National Development and Reform Commission shall lose no time in formulating the Interim Provisions on Industrial Structural Adjustment, Catalog of Guidance to Industrial Structural Adjustment and the guiding opinions on accelerating the development of service industries, so as to optimize and upgrade industrial structure. Meanwhile, we shall guide regional development, industrial transformation and renovation of old industrial bases in light of the theory for development of circular economy according to the resource and environmental conditions and regional characteristics. We shall make planning, construction and renovation on development zones and heavy and chemical industries intensive areas in light of the request of circular economy, bring forward requirements on the enterprises that enter into the said areas for their utilization of land, energy and water resources and the comprehensive control over waste discharge or emission, and develop the relevant industries surrounding the core resources, as well as bring into play the effect of industry centralization and industrial ecology, so as to form an industrial chain with high efficiency resource utilization, and improve the output efficiency of resources.



IV. ACCELERATING THE TECHNICAL DEVELOPMENT OF CIRCULAR ECONOMY AND THE BUILDING OF STANDARD SYSTEM

11. The technical development of circular economy shall be accelerated. The relevant departments of the State Council and those of the local people¡¯s governments at all levels shall increase the input of technological undertakings to support the research and development on the commonness and key technologies of circular economy. We shall actively introduce, digest and absorb advanced circular economic technology overseas, organize the development of the technology for comprehensive utilization of coexisting mineral resources and tailings, energy saving and substitute technology, technology for gradient utilization of energy, technology for comprehensive utilization of waste, technology for extension of industrial chains and the linking of relevant industries in the growth of circular economy, zero-emission technology, technology for substitute of poisonous and harmful raw materials, technology for recycling and reusing materials and for the recycling and disposal thereof, green remanufacture technology and the technology for development and utilization of new energy and renewable energy, and etc., so as to improve the technical support ability and innovation ability of circular economy.

12.The technical policy of circular economy shall be formulated without losing time. The National Development and Reform Commission shall, together with the relevant departments of science and technology and environment protection, make research and formulate technical policies and technological guidance directory for developing circular economy, and the directories of energy efficiency, water saving and environmental protection as are encouraged to develop by the state.

We shall support the introduction of core technology overseas for developing circular economy, and accelerate the popularization and application of new technology, new technique and new equipment.

13. The technological consulting service system of circular economy shall be set up. All the regions and all the departments shall positively support the establishment of information system of circular economy and the technological consulting service system thereof, so as to publicize in a timely manner the relevant information concerning the technology, management and policies of circular economy, and carry out information consultation, technological popularization, and publicity and training, and etc.. We shall bring into full play the role of industrial associations, energy saving technological service centers, clean production centers and other intermediary institutions, as well as scientific and research entities and colleges and universities.

14. The standard system for promoting circular economy shall be formulated and perfected. We shall speed up the formulation of standards for market access of industries that are of high energy consumption, high water consumption and serious pollution and the conformity assessment system, and shall formulate the evaluation indicators system of clean production of key sectors and the relevant pollution control standard concerning circular economy. We shall strengthen the work for saving energy and water and other standardization of resource saving, perfect the standard for major energy utilization equipment and energy efficiency of constructions, and the standard for water intake quota of key water utilization industry and the criterions for energy or water saving design in the main energy and water consumption industries. We shall establish and perfect the system of marks of energy efficiency of compulsory products, marks of recycling products, marks of energy saving buildings, and green label system, and carry out certification on energy efficiency, water saving, and environmental protection products and the certification on environmental management system.



V. ESTABLISHING AND PERFECTING THE POLICY MECHANISM ON PROMOTING THE GROWTH OF CIRCULAR ECONOMY

15. Great efforts shall be made to support the investment in circular economy. The competent department of investment at all levels shall, when formulating and implementing investment plans, give more support to the development of circular economy. For the major projects for developing circular economy and the model projects of technical development and industrialization, the governments shall give such support as direct investment or capital subsidy, or discount interests of loans, and etc., and bring into play the role of guidance of government investment to social investment.

The various financial institutions shall give financial support to the major projects for boosting the growth of circular economy.

16. The growth of circular economy shall be promoted by making use of price leverage. We shall adjust the comparable price relationship between recycling products and end products, smooth out the price of natural resources, and establish step by step the price mechanism that can reflect the relationship of supply and demand of resource products. The National Development and Reform Commission shall actively adjust the price policies of water, heat, power and natural gas, and etc. to promote the reasonable development, saving and utilization, high efficiency utilization and effective protection of resources. We shall improve the price of water supply for water conservancy projects step by step, improve the method for calculation and collection of agricultural water rate, adjust the price of urban water supply, and reasonably determine the price of recycling water, and make great efforts to push forward the system of gradient water price and the system of raising the price for using water exceeding plan and quota. We shall extend the scope of implementing the peak and valley electricity rates and the electricity rates in abundant water period and drought period, and enlarge the price difference, as well as accelerate the step for implementing peak electricity rate and seasonal electricity rate in districts that have conditions; we shall strictly implement the policy of different electricity rate formulated in light of the state industrial policies for the projects in the categories of discarding and restrictions in the high energy consumption industries. We shall put more efforts to reform the heat supply system and heat supply price, and establish a heat price formation mechanism consisting of basic heat price and metrological heat price jointly, and implement different heat price and policy of joint response of coal and heat. We shall smooth out step by step the comparable price relationship between natural gas and other products, and establish the mechanism of linking the price of natural gas with the price of renewable energy. The competent department of price of the local people¡¯s governments at all levels shall make research to formulate and implement various price policies that may promote the growth of circular economy.

17. The revenue and charge policy for supporting the growth of circular economy shall be formulated. The department of finance shall actively arrange capital to support policy research, technological popularization, model pilot and publicity and training on the growth of circular economy, and shall actively implement the special funds for clean production together with the relevant departments. The departments of finance and environment protection at all levels shall arrange capital for pollutant discharge, and increase the input into the project of pollution control of enterprises that complies with the requirements of circular economy. The relevant departments shall speed up research to establish encouragement policies for promoting the popularization of energy efficiency and water saving products and energy saving and environmentally-friendly automobiles, as well as energy saving and land saving buildings. We shall continue to improve the preferential tax policies for comprehensive utilization of resources, adjust and perfect tax policies conducive to the recycling and reusing of renewable resources, speed up the establishment of the charging system of recycling and disposal of large waste resources. We shall enact fuel oil tax duly and improve the consumption tax system. We shall make research on methods for the collection of compensation fees for mineral resources based on the volume of resources, and further enlarge the scope of collection of charges for water resources and properly improve the charging standard, improve in priority the standard for collection of urban sewage disposal charges, and begin to collect overall urban garbage disposal charges. We shall make research to improve policies that restrict the export of resources in short supply at home and of the products with high energy consumption. We shall, on the basis of smoothing out the existing channels for charges and capital sources, actively probe into establishing and perfecting the recovery and compensation mechanism of enterprise ecological environment. The energy efficient, water saving, and environmentally-friendly certified products shall be taken into consideration in priority by the government procurement directory.



VI. BOOSTING THE GROWTH OF CIRCULAR ECONOMY ACCORDING TO LAW

18. The construction of regulation system shall be strengthened. We shall, in combination with the situation of our country, speed up the research on establishing and perfecting the system of laws and regulations on circular economy. At present, we shall lose no time in formulating regulations and rules on energy efficient, water saving and comprehensive utilization of resources and the regulations and rules for promoting the efficient utilization of resources and the recycling and reusing of waste home appliances, electronic products, waste tires, wastes of buildings, packaging waste, and agricultural waste. We shall make research on the establishment of the system for extension of producer¡¯s obligations, and clarify the legal obligations of manufacturers, sellers, and entities for recycling and utilization and consumers for the recycling, disposal and reuse of waste.

19. Great efforts shall be made to make supervision and administration according to law. All regions and all departments shall carefully implement the Energy Saving Law of the People¡¯s Republic of China, Renewable Energy Law of the People¡¯s Republic of China, Law of the People¡¯s Republic of China on Promotion of Clean Production, Law of the People¡¯s Republic of China on Prevention and Control of Environment Pollution by Solid Waste and the Environment Impact Assessment Law of the People¡¯s Republic of China and the relevant laws and regulations. We shall strengthen the work for the supervision and administration of intensive utilization of mineral resources, energy efficient, water saving, and comprehensive utilization of resources, and recycling and reusing of renewable resources, and guide enterprises to establish consciousness of coordinated development of economy with resources and environment, and establish and improve the resource saving management system. The departments of environmental protection at all levels shall combine closely the development of circular economy and the work for environmental protection, and strictly implement the environment impact assessment system and the ¡°Three Meantime¡± system, and implement the system of pollutant discharge license step by step; we shall strictly control the volume of pollutant discharge, strengthen supervision and administration on the discharge and disposal of enterprise waste, reduce the discharge capacity, and encourage the enterprises that have conditions to carry out certification on environment management system on the basis of their free will.

20. Clean production shall be pushed forward according to law. We shall earnestly implement the Law of the People¡¯s Republic of China on Promotion of Clean Production, accelerate the examination on clean production of enterprises, and actively implement the scheme for the examination of clean production. Any enterprise whose pollutant discharge exceeds the standards as prescribed by the state and the local regions or exceeds the indicator of volume control, or any enterprise which carries out production by using toxic and harmful materials or discharges toxic and harmful substances in the production shall be subject to the examination of clean production as implemented forcibly according to law, and the clean production scheme of the enterprise shall be implemented under supervision. The National Development and Reform Commission and the State Administration of Environmental Protection shall organize to carry out activities for establishing advanced enterprises of clean production and environmentally-friendly enterprises within the whole country, so as to guide the enterprises to accelerate the carrying out of clean production.



VII. STRENGTHENING ORGANIZATION OF AND GUIDANCE TO THE WORK FOR CIRCULAR ECONOMY

21. Organization and leadership shall be strengthened. All regions and all departments shall, from the height of strategy and overall situation, fully understand the great significance of developing circular economy, strengthen urgency and sense of responsibility, and shall, in combination with the reality of their own regions and departments, lose no time to formulate concrete implementation scheme, and take actual and effective measures to boost the growth of circular economy. The National Development and Reform Commission shall take the lead, and together with the State Administration of Environmental Protection and the relevant departments, to establish and improve the coordinated work mechanism for boosting the growth of circular economy, and do a good job for organization and coordination and guidance, and solve major issues encountered in boosting the growth of circular economy in a timely manner. The relevant departments shall, within their own scope of functions, actively implement the various policies and measures, and speed up the growth of circular economy. The local people¡¯s governments at all levels shall assign a leader to be responsible for the work for the development of circular economy, clarify the division of duties of the relevant departments so that all levels of departments shall have their own responsibilities and implement the work level by level.

22. The model pilot for circular economy shall be carried out. The National Development and Reform Commission shall, together with the State Administration of Environmental Protection and the relevant departments, as well as the provincial people¡¯s governments, carry out the trial work for circular economy in key industries, major fields, industrial parks and zones and cities, probe into the effective model for development of circular economy, and shall bring forward major technological and project fields for developing circular economy through trial, and further improve policies and measures for promoting the recycling and reusing of renewable resources, and reducing the pollutant discharge capacity, as well as propose the thought for planning, constructing and renovating industrial parks and zones in light of the model of circular economy and building resource saving and environmentally-friendly cities, so as to establish a batch of advanced typical models to provide models for speeding up the development of circular economy.

23. Publicity and education and training shall be strengthened. All regions and all departments shall motivate all the social sectors to carry out various forms of publicity activities for energy saving and environment protection, and improve the understanding of the whole society to the great significance of developing circular economy, so as to have the resource saving and environment protection become the self-consciousness act of all the citizens. The relevant contents in respect of establishing energy saving and environmental protection consciousness shall be compiled into the teaching materials for carrying out education on state situation, resource saving and environmental protection in primary schools and middle schools. The carrying out of knowledge training on relevant management personnel and technicians shall be organized so as to strengthen their consciousness, and have them master the relevant knowledge and skill. We shall compile guiding rules for consumption acts and conventions on resource saving to guide reasonable consumption and regulate the consumption acts. We shall carry out various forms of practical activities to form step by step the ways of consumption of resource saving and environmental protection.

The National Development and Reform Commission shall, together with the State Administration of Environmental Protection and the relevant departments, conduct supervision and inspection on the conditions of each region for boosting the growth of circular economy, and shall report to the State Council any important information in a timely manner.
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