Another Possible Consequence of Japan's Nuclear Power Problems: The Rise of Coal?

The world has had only one week to digest the disturbing news about Japan's nuclear power problems. And a week hardly makes a lifetime.

But one thing is for sure -- coal may be on the way back as a power generating fuel source.

The well-regarded "Heard on the Street" business column in a recent issue of The Wall Street Journal (March 18, 2011) put it this way: "Rumors of coal's demise increasingly look premature. The commodity has plenty of critics, concerned about its environmental impact. But even more-pressing safety concerns about nuclear power, after Japan's earthquake, could lead countries to raise coal usage to make up for energy shortfalls."

The column went on to say, "There are clouds to this rapid reassessment of coal's prospects. Natural gas could prove a cleaner, more popular replacement for nuclear power. Nuclear capacity shutdowns might prove shorter than expected. And governments may also seek to promote other sources like wind and solar more strongly, although these remain higher in cost and less reliable than coal."

In the U.S. coal currently provides about half of total generating capacity.

This "reevaluation" of coal's role in U.S. electricity generation follows a piece several days ago in the Financial Times suggesting that renewable energy may also be in a better overall position as a result of the Japanese nuclear disaster.

Another footnote to the usage of U.S. coal -- something which may become much larger than just a footnote as time goes on -- is the rapidly increasing interest in China in importing U.S. coal from Montana and Wyoming (and Canada for that matter). This, too, is not bereft of critics. But China cannot simply rely on its own reserves to fuel, both figuratively and literally, its enormous market growth. Could there possibly be room for China and the U.S., both of which claim to be concerned to some degree about carbon emissions, to work together towards a way to burn coal more cleanly (which benefits both) while providing the U.S. an export market in China? It's probably too early to say with any certainty at this moment.

However, former British Prime Minister Harold Wilson used to say that a week is a long time in politics. One wonders whether this now applies as well to the energy generation sector.

Don Smith
Director
Environmental and Natural Resources Law & Policy Program

Leonardo G. Rodríguez, Argentine Lawyer and 2008 LLM Graduate, Speaks About Argentine Mining Law to Gathering at China Mining Congress & Expo

Leonardo G. Rodríguez, an Argentine attorney who earned his LLM in Environmental and Natural Resources Law at the University of Denver Sturm College of Law, recently presented his latest book, entitled Argentine Law on Mining, at the "Third Seminar on Mining Investment Opportunities in Argentina," held in Tianjin, China.

Mr. Rodríguez, an associate attorney at the Buenos Aires-based firm of Marval O'Farrrell & Mairal, spoke at the 12th Annual China Mining Congress & Expo.

Mr. Rodríguez's book attracted the attention of many lawyers and investors who are considering investing in (or have already invested in) the Argentine mining sector.

He shared a panel with the Argentine Mining Secretary, Eng. Jorge Mayoral, the Governor of the Province of La Rioja, Luis Beder Herrera, and representatives of Chinese companies investing in Argentina, and the Argentine Chamber of Mining Companies.

According to Mr. Rodríguez, who was recognized as the "Outstanding LLM Student of the Year" in 2008 at the Sturm College of Law, "Over the years China Mining has evolved into one of the most influential mineral exploration/extraction trade events in the world, and has come to play a critical role in bringing together top policy makers and leading industry figures."

China Mining Congress & Expo attracted more than 3,500 delegates from 55 countries and featured over 420 booths.

Don C. Smith, Director of the Environmental and Natural Resources Law (ENRL) program at the Sturm College of Law, said, "Leonardo Rodríguez is expanding his reputation from his home country of Argentina to China, one of the most resources 'intensive' countries of the world. Congratulations to him on being asked to speak at this prestigious event with such an impressive panel."

Lucy Daberkow, Assistant Director for the ENRL Graduate Program, said, "Students often ask me how to become more involved in international work. I can point with considerable pride to what Leonardo is doing, and encourage potential graduate students to see what one of our most recognized alumni is doing in the international sphere."

Editor's Note: In the first picture, Mr. Rodríguez in on the left; in the second picture, he is the second person from the right.

New Book Addresses Fundamental Challenges China Faces in Terms of Environment and Natural Resources: Good News & Bad News

A recently published book about China, When A Billion Chinese Jump: How China Will Save Mankind -- or Destroy It, provides for some sobering reading about the impact of China's rapid and continuous market growth over the last several decades.

There is no question that the Chinese have followed a similar growth pattern as western countries have with the consequent environmental impacts. But the larger question is exactly where China goes from here. And does the West have much of a leg to stand on when it comes to criticizing China's industrial performance in relation to environmental degradation bearing in mind their own growth histories.

Consideration of these questions, and many others, provides the basis for a fascinating -- perhaps sometimes even frightening -- view of what the world may look like in future years as China moves steadily on in an economic sense.

Written by Jonathan Watts, who covers east Asia for the London Guardian newspaper, the book seems destined to be one of the pillars of work for those trying to understand where China is and where it is going.

A recent review of the book in the Financial Times ("Nature Will Constrain China's Growth," Oct. 4, 2010) makes this observation:

"Watts' assertion is that China cannot follow the path of other industrializing nations, which polluted first and cleaned up later. 'This model relied on those at the clean-up stage being able to sweep the accumulated dirt of development under a new and bigger rug,' he writes, arguing that there is no rug big enough to accommodate China's future appetites."

Another review in the London Guardian ("When a Billion Chinese Jump by Jonathan Watts," July 17, 2010) suggests:

"We are barely three decades in to China's industrial and consumption revolution. There are still hundreds of millions of poor Chinese who wish to prosper and consume in a country that wastes so much energy that its average per capita carbon emissions already equal those of France. The most worrying thing about the Chinese industrial revolution is not even the appalling damage that Watts meticulously chronicles, but the capacity for more that is still in the system."

Added to all of this is the observation, made just last week at a University of Denver lecture by Professor David Shambaugh who is himself a China expert, that dealing with environmental issues is one of the great political and social challenges ahead for China.

There are no easy answers to all of this. On the one hand, China desires what other sovereign nation states want -- a growing and vibrant economy, unrestrained to any significant degree by the policies of other nation states. The West certainly would not have paid a wit of attention to the Chinese during their industrialized revolution. But on the other hand we now clearly understand that the consequences of slap-dash economic growth can now reverberate across the globe and do so without regard to whether a country or society has enjoyed the benefits of that economic development.

It is no longer enough to now what is going on in one's own backyard or even neighborhood. Key challenges, and opportunities, now lie thousands of miles or kilometers away. Put simply, what happens in Beijing no longer stays in Beijing (to borrow from the saying "What happens in Vegas stays in Vegas.) This fascinating, albeit troubling book confirms that and is worthy of the attention of all of us.

--Don C. Smith

United States Overtaken by China as World's Largest Energy Consumer

The Paris-based International Energy Agency, an intergovernmental organization that compiles research information about energy generation and usage, has announced that preliminary data show that China is now the world's largest consumer of energy. The U.S., which had for many years held the number one stop, dropped to number two.

According to the IEA:

"For those who have been following energy consumption trends closely, this does not come as a surprise. What is more important is the phenomenal growth in demand that has taken place in China over the last decade; also prospects for future growth still remain incredibly strong. Since 2000, China’s energy demand has doubled, yet on a per capita basis it is still only around one-third of the OECD average. Prospects for further growth are very strong considering the country’s low per-capita consumption level and the fact that China is the most populous nation on the planet, with more than 1.3 billion people.

"China’s demand today would be even higher still if the government had not made such progress in reducing the energy intensity (the energy input per dollar of output) of its economy. It has also very quickly become one of the world’s leaders in renewable energy, particularly wind power and solar energy, and paved the way for a big expansion of nuclear power."

The importance of this announcement was underscored by Fatih Birol, IEA chief economist, who told The Wall Street Journal ("China Tops U.S. in Energy Use," July 18, 2010) that China's rise to number one energy consumer marks "a new age in the history of energy"

However no sooner had the IEA made its announcement than the Chinese government denied its accuracy. According to the Financial Times ("Beijing Denies Energy Use Claim," China called the report "not very credible."

Regardless of whether the IEA report is completely accurate, all agree that China is now consuming enormously more energy than ever before and that the policy and economic implications associated with this development are huge.

In November the World Energy Outlook 2010 will consider the implications of these new trends.

Meanwhile, a story in The Wall Street Journal ("Chinese Firms Snap Up Mining Assets," July 21, 2010) reported on Chinese firms aggressive pursuit of mining assets. "In the global hunt for mining assets," the Journal reported, "China has emerged as the buyer to beat: Just a few years after suffering high-profile failures to close big acquisitions, Chinese buyers of all sizes are sealing more sophisticated deal deals at a higher rate of success."

China is one of the countries that is examined in the Sturm College of Law course "Comparative Environmental Law." China is also discussed in many other environmental and natural resources courses.

Warp Speed Ahead! China’s New Economy and Implications for the Environment: Dr. Catherine Keske Reports From China

In 1994, the government owned virtually all of the cars in China. Latest figures show car ownership rates of approximately 10 people per 1,000.

Although this is far behind the U.S. car ownership rate of 700 per 1,000 people, should China reach similar levels, the number of cars in China would jump from approximately 1.3 million to 910 million! With a nation of 1.3 billion people, the environmental consequences would be tremendous. And this increase is well within the realm of possibility, considering that the ownership rate has increased at a rate of 25% per year during the past decade.

To put this into perspective, only 10% of the Chinese population experiences a similar lifestyle to the “typical” American. With its rapidly rising income and wealth, air pollution is only one potential environmental consequence as this nation ascends into the echelons of prosperity. And who are we, as citizens of one of the wealthiest nations in the world, to say that China is undeserving of a similar lifestyle?

From June 7 through June 22, I had the good fortune of visiting three large cities in China (Beijing, Shanghai, and Xiamen) to learn more about how China balances its economic growth with environmental and agricultural production targets. After delivering lectures at the China Agricultural University and attending several large conferences, I came away with the knowledge that China recognizes that environmental quality standards are important for long-term economic growth and prosperity in its nation.

However, right now, China is prioritizing economic growth and stability. At the top of this agenda is feeding 1.3 billion people, and ensuring that the nation can withstand worldwide shocks to the commodity markets. An example of the latter is the 2008 corn and energy price volatility that was created by the “perfect storm” of worldwide weather fluctuations, financial crisis, and an increased demand for biofuels. The result? Don’t look any time soon for China to implement rigorous environmental standards that rival those of Europe or the U.S.

This is a perfect example of an environmental Kuznet’s curve, in that environmental quality at first declines as a nation’s wealth increases. However, after a point, a nation’s environmental quality increases as the wealth of a nation increases. Furthermore, the case of China evokes intriguing questions about the extent to which wealthier nations are obligated to ensure that the citizens of the world enjoy a certain standard of living…not just for the sake of humanity, but for the sake of the environment.

-Catherine M.H. Keske, Ph.D.

Adjunct Professor, Sturm College of Law

Assistant Professor, Colorado State University

"Africa Oil & Gas" Special Report Published by the Financial Times

As those of you who read this blog know, I am a huge fan of the Financial Times, the London-based business oriented daily that tracks key stories from across the world. If you are only going to read one world newspaper a day, I would suggest it be the Financial Times.

In any case, the FT recently published a special report "Africa Oil & Gas" on June 17, 2010. To see the special report, please click here.

The special report includes an assortment of stories that are in the "must read" category for anyone interested in oil and gas issues on the continent. Among the stories include coverage of the oil and gas sector in Ghana and China's ambitious plans for developing African oil.

China Leads the World in Clean Energy Investment and Finance According to New Report From Pew Charitable Trusts

China's 2009 clean energy-related investments and finance were the highest of any country in the world according to a new study by the Pew Charitable Trusts. In 2009 China invested nearly $35 billion in the clean energy sector, which was almost twice what the United States invested.

The report, Who's Winning the Clean Energy Race? Growth, Competition, and Opportunity in the World's Largest Economies, also identified the "remarkable growth" in the clean energy sector:

• Since 2005 global clean energy investments have grown by 230 percent
• Over the last five years, clean energy investments have increased by 50 percent by the overwhelming majority of G-20 countries
• In 2009, clean energy investments accounted for more than $160 billion
• In 2010, clean energy investments are expected to reach $200

Phyllis Cutton, the director of Pew's Global Warming Campaign, said, "Even in the midst of a global recession, the clean energy market has experienced impressive growth. Countries are jockeying for leadership. they know that investing in clean energy can renew manufacturing bases, and create export opportunities, jobs, and businesses."

The report noted that countries with "strong nationwide policy frameworks, including renewable energy standards, carbon markets, priority loans for renewable energy projects and mandated clean energy targets" such as Brazil, China, Germany, Spain, and the UK "have the most robust clean energy sectors as a percentage of their economies." On the other hand, the report said that countries -- such as Australia, Japan, and the U.S. -- that lack such policy frameworks "lag behind."

"Ore Struck" as Described by the Financial Times: Rio Tinto's Problems Doing Business in China

Doing business in China is no easy task, particularly when it comes to economic sectors that have been identified by Beijing as being important to the country's future.

A recent article in the Financial Times ("Ore Struck," April 6, 2010) tells a cautionary tale for all who seek to do business in China. The article is about the conviction of several of mining giant Rio Tinto's employees who were working in China.

As the FT explains:

The conviction of miner Rio Tinto's former employees has heightened foreign companies' awareness of the risk of working in sectors strategically important to Beijing.

Reading the story is a must for any one or any company that plans to or is doing business in China. While huge profits may ensue from such activities, the risks are no less daunting.

The Times Are Changing: Royal Dutch Shell and PetroChina Team Up in Pursuit of Large Australian Energy Firm

If someone had said only five years ago that a major European-based energy company would be partnering with an arm of the Chinese government to try to buy an energy asset anywhere in the world, a reasonable person would have said, "That is simply impossible." But not only is it possible, it is happening right now in yet another indication of how the world is becoming much smaller indeed when it comes to energy assets.

Earlier this week Royal Dutch Shell and PetroChina announced plans to pursue Arrow Energy in Australia. As reported in the Financial Times ("Shell and PetroChina Offer to Buy Australia's Arrow," March 8, 2010), "The Australian company [Arrow] is at the vanguard of a handful of projects in the state of Queensland that are investing billions of dollars in a race to convert reserves of coal-bed methane into liquefied natural gas."

It is not clear whether the deal will close, but for now it is enough to be aware of the fact that Chinese government-related companies and large "western" firms see a benefit in working together to pursue energy assets. Making money and securing natural resources appear to be as natural for western firms as Chinese ones. And that will likely mean some very interesting opportunities for those who are prepared to participate in the "new look" related to global energy.

Part II: Dr. Elizabeth Economy Considers China's Environmental Challenges and Looks Ahead

Dr. Elizabeth Economy recently spoke about "China and the Environment" in a lecture at the University of Denver. This posting is the second of two parts about Dr. Economy's observations about China. Dr. Economy is a world recognized expert on the development and rise of this 1.3 billion person country.

Yesterday's posting related to Dr. Economy's comments about where China finds itself today in terms of environmental challenges. It can be accessed by clicking here. In today's posting, Dr. Economy's thoughts about the response of China's leaders, the role the US might play in helping China, and concluding thoughts are the focus.

II. Response of China's Leaders

China's leaders have responded in several ways to the growing environmental threat. First, the national leaders in Beijing have set targets for environmental protection and some of the targets have been "bold," as characterized by Dr. Economy. However, "real environmental protection" takes place at the local level and, generally speaking, local officials have not been very aggressive at implementing or enforcing the central government's targets.

Second, China is cautiously approaching the concept of "rule of law," a situation Dr. Economy described as in a "nascent stage."

China's leaders have enthusiastically engaged the international community. For instance, China has signed many environmental-related treaties.

However, the greatest hope, according to Dr. Economy, over the next five to 10 years is the non governmental organization (NGO) sector. Despite the fact that many of the NGOs have some relationship to the Chinese central government, there are independent NGOs. "They are developing and expanding" and will likely play a greater role as China moves towards the future, she predicted.

III. China, the US and Environmental Issues

There are several elements to the China-US relationship in the context of environmental issues, Dr. Economy explained, beginning with the need for the US to "lead by example." However, in some cases the US is simply not leading. For instance, "The fact that the US has not pursued greenhouse gas legislation cuts against [US efforts to influence China]," she said.

On the other hand, the US can seek to help China by assisting with "capacity building" in the areas of the law, regulations, and pricing systems. She pointed out that one third of China's factories have modern pollution prevention equipment, but simply don't use it. There is no economic-related incentive to do so, she pointed out. Fines in some cases do not exist or are so inconsequential as to reduce the industries' incentive to actually run the pollution equipment.

But in the final analysis, she said, "The [environmental] issue is really China's to solve."

IV. Conclusion

Dr. Economy is pessimestic in the short term about China's willingness and ability to take the steps necessary to prevent further environmental degradation. "The way China is developing is extremely negative on a global level," she said. However, in the longer term, Dr. Economy harbors some level of optimism. "The Chinese people are becoming aware of and concerned about the environment," she said noting that typically the richer a society becomes the more seriously are its concerns about environmental protection.

Part one appeared yesterday.

New Law in China Bolsters Renewable Energy Industry

In late December China's legislative body, the National People's Congress, passed an amendment to the country's renewable energy law under which electricity grid companies, which are owned by the state, will be required to buy all renewable energy output generated in China.

State-owned grid companies that refuse to abide by the new law will be "fined up to an amount double that of the economic loss of the renewable energy company," the Xinhua News Agency reported ("China Amends Law to Boost Renewable Energy Law," Dec. 26, 2009). While in 2008 China generated the fourth largest amount of wind power in the world, about one-third of it never reached the grid, Xinhua reported.

"Renewable energy power in the country's resource rich, underdeveloped northwestern region must be sent to the resource-scarce, prosperous coastal area," Wang Zhongying, Energy Research Institute head of renewable energy development, told Xinhua.

Bearing this in mind, one of the major challenges facing China is the absence of a "smart grid" that could obviate some of the transmission issues associated with bringing more renewables to load centers. This observation has been made by many including, most recently, an article in The Wall Street Journal ("Chinese Law Aims to Increase the Use of Renewable Energy," Dec. 28, 2009), in which reporter Shai Oster writes, "China's electricity-grid operators need to develop a smarter network to handle how to dispatch electricity generated by wind or solar energy, which fluctuates widely depending on weather patterns, and to relate it to demand for power, which swings in different cycles."

The transmission issues sounds rather familiar, don't they. There is a great deal to be done -- whether in the China, the EU, or the U.S. -- to address the transmission issues.

Chinese Firms Finalize Investments in Ecuadorian and Kazakhstan Copper Interests

China's investment in the natural resources sector continues to boggle (at least non-Chinese) minds. This week two more deals of major importance have been announced.

In one deal, the China Railway Construction Corporation and Tongling Nonferrous Metals Group Holdings agreed to pay nearly $700 million Canadian in cash to purchase Vancouver-based Corriente Resources, which owns the mining rights to several copper deposits in Ecuador.

No sooner was that deal announced, than London-traded Kazakhyms, another copper producer, received a $3 billion loan from the Chinese Development Bank and a Kazakh sovereign wealth fund. According to the Financial Times, the loan will allow Kazakhyms to fully develop a copper project located in northern Kazakhstan ("Kazakhyms Gets Funding From China," Dec. 30, 2009). In 2009, the total Chinese investment in Kazakhstan reached $13 billion, the FT reported.

The enormous internal demand in China for infrastructure-related development is driving the country, and its state-related firms, to acquire the rights to more and more natural resources.

Stay tuned. It seems likely that the Chinese have only just started their purchasing spree. And for those more interested in China, the "Comparative Environmental Law" course I teach beginning in January 2010 will focus in part on environmental and natural resources developments in China.

China Becoming a Center for Green Technology?

The New Yorker magazine this week (Dec. 21 & 28, 2009, issue) has an article about the country that it says has taken the lead in clean energy technology.

The article must then be about the U.S. But it isn't. Then it must be an editing slip up and the article is talking not about a "country" per se, but about the economic powerhouse known as the European Union. Wrong again. Hum...Brazil maybe? Not a chance.

The country that the article ("Green Giant: Beijing's Crash Program for Clean Energy") refers to is China, and if you are interested in key developments in green energy then this article is a must read.

A few of the article's key observations:

"As [Chinese] President Hu Jintao...put it in October of this year, China must 'seize preemptive opportunities in the new round of the global energy revolution." (page 54)

"David Sandalow, the U.S. Assistant Secretary of Energy for Policy and International Affairs, has been to China five times in five months. He [said], 'China's investment in clean energy is extraordinary.' For America, he added, the implication is clear: 'Unless the U.S. makes investments, we are not competitive in the clean-tech sector in the years and decades to come.'" (page 55)

"China is already buying and installing the world's most efficient transmission lines - 'an area where China has actually moved ahead of the U.S.,' according to Deborah Seligsohn, a senior fellow at the World Resources Institute. In the next decade, China plans to install wind-power equipment capable of generating nearly five times the power of the Three Gorges Dam, the world's largest producer [of power]." (page 56)

While the article points out that China is now spending $70 billion each year on research and development, it also explains that China has enormous energy challenges and it faces a pollution problem like no other country in the world.

If nothing else, the policy makers in Brussels and Washington, D.C., better be giving careful consideration to what Beijing is doing. On the other hand, the more innovation the better since ultimately does the market really care whether a good idea comes from China, Brazil, the EU, the U.S. or anywhere else?

U.S., EU Vie for Inside "Energy" Track in China

The United States and the European Union are actively competing for energy-related attention from China.

The two economic superpowers obviously see a significant future in working with China to address that country's enormous energy challenges.

The U.S. attention was on full display earlier this week when President Obama and President Hu introduced a "far-reaching package of measures" (White House characterization) aimed at increasing energy cooperation between the two countries.

Among other things, China and the U.S. agreed to the following:

• Establishment of a U.S.-China Clean Energy Research Center, which will facilitate joint research and development involving clean energy technologies.

• Establishment of the U.S.-China Renewable Energy Partnership to facilitate development of "roadmaps for wide-spread renewable energy development." A working group from both countries will be formed to consider how to modernize the grid in both countries.

• A 21st Century Coal Initative, which will include large-scale carbon capture and storage demonstration projects.

• A Shale Gas Initiative, to use experience gained in the U.S. to assess China's shale gas potential.

Meanwhile, across the pond (the Atlantic one), there was yet another indication of Europe's interest in China. In a report published earlier this week, the Centre for European Reform (CER), a London-based think-tank, said:

"Effective EU-China cooperation is critical to delivering a good deal at [the UN Climate Change Conference in] Copenhagen and to ensuring ongoing progress towards global decarbonization. Europe and China are economically and politically interdependent, and have strikingly similar energy and climate change policies. As its largest investor, trade partner and provider of technology, Europe has a strong stake in China's success."

Currently EU firms invest more than $2 billion annually in Chinese projects to lower emissions of greenhouse gases through the Clean Development Mechanism, according to the CER report.

For a deeper look at the EU-China relationship, check out this blog posting by Stanley Crossick, a long-time expert on EU affairs and a senior fellow at the Brussels Institute of Contemporary Chinese Studies.

As noted above, it is difficult to predict with any level of certainty where the two big Atlantic powers are headed in terms of respective relationships with China. But this much is clear -- when the Europeans and the U.S. point their compasses in the same direction (i.e., China) there seems a real likelihood of something big happening.

More Energy News From China: Plans for 4th Generation Nuclear Power Plant and Investing in the U.S.

Last week brought two major energy-related announcements from China. The country announced plans to build the first "fourth generation" nuclear power plant in two to three years time. Second, a Chinese-based wind turbine manufacturer has gained exclusive rights to supply a huge wind farm in west Texas. No one should pretend that China does not face enormous energy-related challenges, but it is also worth bearing in mind that China is hardly standing still when it comes to these challenges.

The potentially more interesting of the two announcements involved the wind farm in west Texas. The U.S. Renewable Energy Group and Cieclo Wind Power LP have signed a joint venture framework agreement with China's Shenyang Power Group, which will supply 240 2.5 megawatt wind turbines that will be manufactured in China. The 600 megawatt wind farm will spread over 36,000 acres in west Texas. The wind farm is expected to generate enough electricity for 180,000 homes. Shenyang Power is expected to begin shipping turbines in the first quarter of 2010.

It is expected that the $1.5 billion project cost will be financed through commercial banks in China.

The historic agreement marks the first time that Chinese and U.S. firms have agreed to jointly develop a utility-scale wind power project. The agreement, as reported in The Wall Street Journal, is "a sign of how Chinese firms are aggressively capitalizing on America's clean-energy push ("Chinese-Made Turbines to Fill U.S. Wind Farm," Oct. 30, 2009)."

While this is the first announcement of its kind, it seems likely that it will not be the last. The need for clean energy knows no political boundaries. And, it is worth noting, clean energy will be at the top of the agenda when President Obama visits China later this month.

Prof. Rock Pring Speaks to Chinese Environmental Law Judges; Scheduled to Speak in China Again in November

Prof. Rock Pring, an internationally known DU law professor in the environmental law and natural resources program, recently has been busy with projects that have taken him to China.

In late September, Prof. Pring and his wife and research partner Kitty, spoke to a conference of Chinese environmental law judges in Guiyang in southwest China. The event was sponsored by the American Bar Association Rule of Law Initiative Program in China and Wuhun University.

According to Prof. Pring, "We co-presented the keynote session on our study 'Specialized Environmental Courts and Tribunals (ECTs): A Global Study' and participated in other sessions including 'Remedies in Environmental Cases.'" Held at China's Olympic Training Center for Water Sports on Hongfeng (Red Maple) Lake, the conference was attended by over 40 judges, government officials, and academics.

Looking ahead, Prof. Pring has been invited to present the results of the ECT study at the International Union for Conservation of Nature's Academy of Environmental Law Annual Symposium at Wuhan University on Nov. 2. The week-long conference of environmental law professors from around the world also includes a trip to study the controversial Three Gorges Dam, the world's largest electricity-generating plant of any kind. Stay tuned for more information from Prof. Pring on this topic.

To view a mid-April video in which the Prings talk about their ground-breaking ECTs study, click here.

China Becoming Serious About Environmental Challenges According to China Expert Stanley Crossick

The Chinese central government is "well aware" of the environmental challenges it faces and, as a consequence, has begun the process of addressing these challenges, according to Stanley Crossick, a China expert with whom I chatted recently in Brussels.

Mr. Crossick is particularly well positioned to comment about China since he has close and personal contacts with many of the country's most influential leaders and thinkers. Mr. Crossick, a well known and highly respected figure in European Union matters, is also a Senior Fellow at the Brussels Institute of Contemporary China Studies. His interest in China dates back some years when he became acquainted with China's then ambassador to the European Union.

In late September, Mr. Crossick was part of a roundtable discussion that took place in Shanghai, China. The discussion focused on China's 60th birthday, which is taking place this fall.

In a paper, which focused on the China-EU strategic relationship, Mr. Crossick called attention to the "conflict between economic development and environmental protection." While the paper, which can be accessed by clicking here, considered a wide range of issues, what it said about environmental issues was of interest to me.

According to Mr. Crossick, the International Strategic Research Centre of the Chinese Communist Party Central Party School, has identified "five major serious social problems the party now faces." One involves the matter of environmental protection and economic development. Mr. Crossick makes the observation that the press in China can play "a valuable role in exposing corruption and non-enforcement of laws, in particular in the consumer/food safety and environmental protection policy areas."

As noted above, Mr. Crossick's paper involves a host of fascinating issues involving the strategic relationship between China and the EU. The paper is well worth the time of anyone interested in China and what the future might hold for this increasingly powerful country.

Moreover, those interested in EU-related matters should be sure to check out Mr. Crossick's blog by clicking here. You will not be disappointed.

Chinese Firms Moving Towards Corporate Social Responsibility? Maybe, if Only Slightly

The China Beijing Environment Exchange, an emissions trading firm, has registered its first purchase by a Chinese company of carbon emissions credits. Does this mark an important symbolic step in the country's efforts to address climate change? Or is it merely just a footnote from a county that is now a (if not the) the world leader in greenhouse gas emissions?

While it is difficult to tell, to be sure, a recent article in The Economist ("Carbon Markets in China: Verdant?" Aug. 20, 2009) suggests that "the concept of corporate social responsibility is no longer entirely foreign in China." This month a firm called Tianping Auto Insurance purchased emissions credits equivalent to more than 8,000 tons of carbon emissions.

The emission credits were voluntary in the sense that they were not mandated by the Chinese government (and heretofore I had been under the impression that China and the U.S. took very different stances on many environmental issues; the U.S. government yet to establish that a mandatory system is preferable to a voluntary one).

Before anyone gets really excited about this development, it is worth noting that the purchase price for the credits was only $40,000. However, it may suggest that Chinese firms believe that there is good to be achieved from being perceived by the wider public as having "green credentials."

For now what we do know, according to The Economist, is that China will be a major venue for certified emission reduction credits (CERs). Despite the rather small step the Tianping purchase represents, anything China does in terms of addressing climate change is worth bearing in mind. It is likely to have the largest economy in the world in one or two more generations.

China Establishes "Experimental Environmental Courts"

China, a country with enormous environmental challenges largely related to the rapid development of its economic basic, has established several experimental environmental courts.

According to a report in a recent issue of the BNA Daily Environment Report ("Experimental Environmental Courts in China Start to Take Shape as New Legal Authorities," June 26, 2009), the country has set up test courts in the provinces of Guizhou, Jiangsu, and Yunnan.

An attorney in the Natural Resources Defense Council Beijing office, Gao Jie, told the Daily Environment Report:

"Looking back at the original intention for establishing environmental courts in places like Guizhou, we can see that the institutions began with a highly experimental nature.  Good results could then lead to wide implementation, and any problems and challenges revealed by the first set of environmental protection courts could influence directional changes and policy modifications."  

The entire article is worth reading for those interested in how these courts are working.

One thing is for sure: there will be no lack of work for these courts.  

China Set to Spend $400 Billion on Renewables?

An official from China's National Energy Administration says the country may spend more than $400 billion on renewable energy projects between now and 2020.

According to a draft proposal -- that still needs approval by the country's influential National Development and Reform Commission -- more than $130 billion is earmarked for wind projects, nearly $20 billion for solar projects, and $30 billion for biomass, the BNA International Environment Daily has reported ("Chinese Draft Plan Calls for $440 Billion in Spending on Renewable Energy by 2020," May 18, 2009).

China's rapid economic development has been undertaken at the expense of the environment.  Government officials are not under any illusions that this can be sustained, but they chaff at calls from western governments to improve China's energy generation mix (i.e., reduce greenhouse gas emissions) with the response that no one put any limits on western energy use in the 1800s and 1900s.