Laws of the People's Republic of China

State Council

Opinions of the State Council on Accelerating the Development of Recycling Economy

Guo Fa [2005] No. 22

All the people's governments of provinces, autonomous regions and municipalities directly under the central government, all the ministries and commissions of the State Council and all the organs directly under the State Council,

Since the introduction of the reform and opening-up policy, we have made substantial achievements in putting into practice clean production through conservation and comprehensive utilization of resources. Nevertheless, the traditional extensive growth form of high-consumption, high-emission and low-efficiency remains unchanged to a large extent, with the results of low rate of resources utilization and severe environmental pollution. Meanwhile, problems such as incomplete laws and regulations, systems and mechanism and lagged-behind technologies still exist. In the first 20 years of the 21st century, we will be facing a severe reality in terms of resources and environment, as we will be in the phase of accelerated development of industrialization and urbanization. In order to seize the opportunities in the strategic period and realize the strategic objective of building a well-off society in an all-round way, we must attach more importance to the development of recycling economy. We must, in compliance with the principles of "reduce, reuse and resource" and by adopting various effective measures, promote coordinated development between the economy, the society and the environment, and construct a conservation-minded and environment-friendly society, with the most possible economic output, the lowest possible waste emissions, resources consumption and at the lowest possible environmental cost. In view of this, we hereby release our opinions as follows:

1.

The Guidelines, Basic Principles and Major Objectives of the Development of Recycling Economy

(1)

Guidelines. Guided by the Deng Xiaoping Theory and the important thoughts of "Three Represents" and propelled by technological and systematic innovation, aiming at enhanced resources production rate and reduced waste emissions and consolidating our awareness of resources conservation and environmental protection, strengthening the legal construction and perfecting policies and measures, We shall establish and implement a scientific approach to development and bring into full play to market mechanism to promote the development of recycling economy.

(2)

Basic Principles. We shall stick to the path to new-type industry and formulate the production mode and consumption mode that are conducive to resources conservation and environmental protection. We shall push forward the restructuring of economy, speed up technological advancement and strengthen supervision and administration to improve utilization rate of resources and reduce the generation and emission of wastes. We shall, with enterprises serving as main players and through a combination of government regulation, market guidance and public participation, formulate a policy system and social environment conducive to the development of recycling economy.

(3)

Development Objective. We shall strive to build a comparatively perfect set of laws and regulations system, policy supporting system, structure and technological innovation system and stimulative and disciplinary mechanism for the development of recycling economy. We shall build a large number of model enterprises that meet the requirements of recycling economy, substantially enhancing resources utilization rate and greatly reducing the final wastes treatment. We shall advocate ¡®green (conservation-minded) consumption" and perfect the system of recycling and reusing recyclable resources. We shall construct a group of industrial (and agricultural) parks and conservation-minded and environment-friendly cities that meet the requirements of recycling economy.

(4)

Major Targets. We shall attain the targets, by the year 2010, that a GDP growth of 25% generated by the consumption per ton of 15 major resources such as energy, iron ore, non-ferrous metals and nonmetal minerals, and a 18% reduction in energy consumption per 10,000 RMB Yuan GDP, as compared to the figures in the year of 2003. The effective utilization index of agricultural irrigation water will be raised to 05, and water consumption per 10,000 RMB Yuan industrial added value is reduced to 120 cubic meters. The overall recycling rates of mineral resources and comprehensive utilization rate of associated minerals will be raised by 5% respectively. The comprehensive utilization rate of industrial solid waste will be raised to more than 60% and the comprehensive utilization rate of major recyclable resources will be raised by 65%, with the proportion of reused copper, aluminum and lead in production output reaching 35%, 25% and 30% respectively. The storage and treatment of industrial solid wastes will be limited to approximately 4,500 million tons and the growth rate of urban garages will be contained to approximately 5%. (Note: these targets are subject to adjustment in accordance with the 11th five-year plan)

2.

Major Works and Procedures in the Development of Recycling Economy

(5)

Major Works. The first is to push forward the conservation and cut down on consumption to reduce the consumption of natural resources in the areas of production, construction, circulation and consumer consumption. The second is to implement clean production in all industries, reducing the generation of wastes from the sources, so as to realize a transition from final stage treatment to prevention and control in the whole process of production. The third is to advocate comprehensive utilization of resources in order to realize the maximal resourcing of wastes and the maximal reuse of recyclable resources. The fourth is to further develop environmental protection industry, furnishing technological guarantee for the high-efficiency utilization, recycling and reuse and reduced waste emission through emphases on the development of technologies and equipments to "reduce, reuse and resource".

(6)

Major Procedures. The first is to conduct an overall planning of mineral resources in the resources exploitation phase for a greatly enhanced comprehensive recycling and reusing rate of resources, extending the use of advanced applicable exploitation technologies, techniques and equipments to improve the reclaiming rate in mining, selecting and smelting, and the comprehensive utilization of tailings and waste rock. The second is to make efforts to reduce the consumption and enhance utilization rate in resources consumption through management in the major industries of metallurgy, non-ferrous metals, electrical power, coal mining, petrochemical, chemical, construction (materials), light industry, textiles and agriculture. The third is to strengthen the prevention and whole process control in the phase of waste generation, and promote the reasonable extension of production chain in various industries, in order to better recycle and reuse wastes and reach the aim of "zero waste emission" by enterprises. Also to be emphasized are the construction of reuse equipment of used water and the reduction and reuse of urban wastes and sludge, to reduce the amount of final treatment to wastes. The fourth is to make further efforts to reclaim and recycle various used resources in the generation phase of recyclable resources, with special support to the remanufacturing of waste machineries, and to establish a classified collection and selection system of waste for the continuous improvement of reclaiming and recycling system of recyclable resources. The fifth is to advocate the consuming modes in the consumer consumption phase that are conducive to conservation of resources and protection of environment, encouraging the use of Energy Efficiency Label products, products verified as energy and water saving, Environment Label products, Green Label foods and Organic label foods, and cutting down on excessive packaging and the use of disposable articles. Government organizations shall implement the Green Procurement.

3.

Strengthening the Macro Guidance for the Development of Recycling Economy

(7)

We shall take the development of recycling economy as important guiding principles in compiling relevant plans. Governments at all levels and relevant departments shall compile the "Eleventh Five-year" plan, all kinds of regional plans, overall urban planning, and specific plans for the sustainable utilization of mineral resources, energy and water saving and the comprehensive utilization of resources, by drawing on the concept of recycling economy. They shall also analyze the conditions in the consumption, conservation and recycling of resources, in waste emissions and of environment, for clearer objectives, emphases, policies and measures.

(8)

We shall establish the evaluative index system and the statistic costing system for recycling economy. The National Development and Reform Commission shall join efforts with the National Bureau of Statistics and the State Environmental Protection Administration to speed up the establishment of evaluative index system and the statistic costing system for recycling economy, including which into the plan of national economy and social development. The people's government at all local levels shall actively conduct the statistic and costing work for recycling economy, for a better analysis of the major indices of recycling economy.

(9)

We shall formulate and implement propelling plans for recycling economy. The people's government at all local levels shall, in consideration of the local realities, lead the departments responsible for reform (economy and trade) and environmental protection to formulate and implement propelling plans for recycling economy. Relevant departments of the State Council shall study and formulate propelling plans for the development of recycling economy in the intensive utilization of mineral resources, conservation and utilization of energy and water, clean production, and in the key industries and key areas.

(10)

We shall accelerate the adjustment of economic structure and the optimization of regional distribution. We shall strengthen the macro-control, contain blind investment and low-level redundant projects and restrict the development of high energy and water consuming, high pollution discharging industries. We shall further develop hi-tech industries to upgrade the traditional industries through the renovation of traditional industries with the application of high technologies and advanced applicable technologies, eliminating laggard techniques, technologies and equipments. We shall push forward to enterprise reshuffle, aiming at elevated industrial concentration and scale merit, and further develop intensive agriculture. The National Development and Reform Commission shall expedite the formulation of the "Interim Provisions on Industrial Structure Adjustment", the "Catalog for Guiding Industrial Structure Adjustment" and the opinions guiding the faster development of service industry, so as to propel the optimization and upgradation of industrial structure. In the meanwhile, it shall guide the regional development, industrial transformation and the reform of old industrial bases, in consideration of the features of resources and environment of the region and in accordance with the concept of recycling economy. Development zones and areas where heavy and chemical industries concentrate shall plan, construct and reconstruct according to the requirements of recycling economy and set comprehensive requirements in land-use, energy and water resources utilization and waste emission for the entering enterprises. They shall also, bringing into full play of the effects of industrial convergency and industrial ecology, develop the relevant industries that are centering on core resources, and foster a production chain that recycle and utilize resources efficiently, in an effort to enhance the output efficiency of resources.

4.

We shall accelerate the technological development and the construction of standard system for recycling economy.

(11)

We shall speed up the technological development for recycling economy. Relevant departments of the State Council and the people's government at all local levels shall increase the investment in science and technology to support research and development of the general and key technologies. They shall actively introduce, assimilate and absorb advanced foreign recycling economy related technologies, engaging in the organization and development of technologies in terms of the comprehensive utilization of associated minerals and tailings, conservation and substitution of energy, stepwise utilization of energy, comprehensive utilization of wastes, production chain extension and linkage with relevant production chains in recycling economic development, "Zero Emission", poisonous and hazardous raw materials substitution, recyclable materials reclaimation and treatment, Green remanufacturing, and the development and utilization of new-type and recyclable energy sources, so as to enhance the technology sustaining ability and innovative ability of recycling economy.

(12)

We shall expedite the formulation of technology policies for the recycling economy. The National Development and Reform Commission shall join efforts with relevant departments responsible for science and technology and environmental protection, to study and formulate the technology policies, technology guidance catalog, and the catalog of energy and water saving and environmental protecting equipments that are under the State encouragement, for the development of recycling economy. The introduction of foreign key technologies for development of recycling economy is encouraged to speed up the generalization and application of new technologies, new techniques and new equipments.

(13)

We shall establish a technology consultancy service system for recycling economy. All regions and departments shall actively support the establishment of information system and technology consultancy service system, releasing relevant information to society regarding recycling economy, its administration and policy, and conducting works of information consultancy, technological generalization and publicity and training. They shall also bring into full play the functions of intermediary agencies of the trade associations, technology service centers for energy conservation, clean production centers, as well as scientific research and higher education institutions.

(14)

We shall formulate and perfect a standard system simulative to recycling economy. We shall expedite the formulation of the market entry standard and qualification appraisal system for industries that are high energy and water consuming, high pollution discharging, the clean production evaluation index system for major industries and the relevant pollution control standard concerning recycling economy. We shall consolidate the standardization in conservation of resources such as energy and water saving, perfect the energy-efficiency standard for major energy-consuming equipments and buildings, the water-consumption quota for major water-consuming industries and the energy (water)-saving designing standard for major energy (water)-consuming industries. We shall also establish and perfect the compulsory system of energy-efficient product label, reused product label, energy-saving building label and environment label, and conduct the verification of energy and water saving products, environmental protecting products and environment management system.

5.

We shall establish and perfect the policy mechanism stimulative to the development of recycling economy.

(15)

We shall render greater support in the investment into recycling economy. All administrative departments responsible for investment shall render their support to the development of recycling economy in formulating and implementing investment plans. To the key projects, technological development and industrial demonstration projects in the development of recycling economy, the government shall render support in the forms of direct investment, fund subsidies and discount loans, exercising the guiding function of governmental investment over social investment. Financial institutions of various kinds shall render financial support to key projects stimulative to the development of recycling economy.

(16)

We shall make avail of the price lever to promote the development of recycling economy. The price relation between resource products and final products should be adjusted for the rectification of the prices of natural resources and the gradual establishment of a price mechanism reflecting the supply and demand relation of resource products. The National Development and Reform Commission shall actively adjust the price policies on water, heat, electricity and natural gas to promote the reasonable exploitation, conservative and efficient use and effective protection of resources. The price of water supplied from water projects should be gradually raised and the calculation and collection method of agricultural water cost should be perfected. The price for urban water supply should be adjusted, the price of recycled water should be reasonably determined, and the system of stepwise water prices and added prices for extra-plan and extra-quota water. The application scope of electricity price differences of peak-valley prices and seasonally-different prices should be extended with increased differences to eligible regions at a higher speed. The differentiated electricity prices stipulated according to relevant State industrial policies should be strictly applied to the projects in the catalog of elimination and restriction in high energy-consuming industries. The reform in heat-supply system and heat-supply price should be deepened, for the gradual establishment of the heat price-forming mechanism consisting of basic heat cost and measured heat cost, and the implementation of policies of differentiated heat prices and linkage of coal and heat prices. The price relations between natural gas and other products should be straightened out and a mechanism linking the prices of natural gas and substitutable energy should be established. The administrative departments responsible for price of local people's governments at all levels shall study, formulate and implement the price policies stimulative to the development of recycling economy.

(17)

We shall formulate financial, taxation and fee-collecting policies supportive to the development of recycling economy. Financial departments shall actively allocate funds to support the policy research, technology promotion, demonstrative pilot projects, publicity and training for the development of recycling economy, and join efforts with other relevant departments in the procurement of special fund for clean production. Financial and environmental protection departments at all levels shall allocate effluent fund, investing more in the enterprises' pollution prevention projects that meet the requirements of recycling economy. Departments concerned shall speed up the study and establishment of stimulative policies for promoting energy and water saving products, energy-saving and environment-friendly automobiles and energy and land-use saving buildings. They shall continue to perfect the preferential taxation policy for the comprehensive utilization of resources, adjust and perfect the taxation policies conducive to the promotion of reclaimation and reuse of recyclable resources and expedite the charging system on the reclaimation and treatment of large-size used resources. They should unveil policy on fuel tax as a step to perfect consumption taxation. They shall actively engage in studying the collecting method for mineral resources compensation fee, which are based on the amount of resources, extend the collection scope of water resources fee at a properly raised rate, first applying this to urban sewage treatment fee, and begin to collect urban garbage fee nationwide. They shall study and perfect the restrictive policy on the export of critical resources and high energy-consuming products. They shall also explore to establish and perfect the ecological and environmental recovery and compensation mechanism for enterprises on the basis of straightening out the current channels of fee-collecting and fund-raising. Government procurement shall give priority consideration to energy and water saving products and environmental protection verified products.

6.

We shall adhere to the lawful development of recycling economy.

(18)

We shall strengthen the construction of regulation system. We shall speed up the study, establishment and perfection of the law and regulation system in recycling economy. The present task is to formulate regulations and rules promoting the effective utilization of resources such as energy and water saving, comprehensive utilization of resources, and the resource and reuse of used electric appliances, used electronic products, used tires, construction waste, packaging waste and agricultural waste. We shall study and establish the system of manufacturer's liability extension, and specify the legal obligations of manufacturers, sellers, reclaiming and reusing agents and consumers in their reclaimation, treatment and reuse of used merchandises.

(19)

We shall further enforce the lawful supervision and administration. All regions and all departments shall seriously implement the "Law of the People's Republic of China on Conserving Energy", "Law of the People's Republic of China on the Renewable Resources", "Law of the People's Republic of China on the Promotion of Clean Production", "Law of the People's Republic of China on Prevention of Environmental Pollution Caused by Solid Waste" and "Laws of the People's Republic of China on Evaluation of Environmental Impact", strengthen the supervision and administration of intensive utilization of mineral resources, energy and water saving, comprehensive utilization of resources and reclaimation and utilization of recyclable resources in accordance with these laws, guiding enterprises in building up the awareness of coordinated development of economy and environment and in formulating the management system for resources conservation. Environmental protection departments at all levels shall closely integrate the environmental protection into the development of recycling economy, with strict implementation of the environmental impact evaluation system and the "Three-Simultaneous" system. They shall gradually implement the effluent permit system to strengthen the supervision and administration of enterprises' effluent discharge and treatment, strictly controlling the total amount of effluent discharge and reducing the effluent intensity. Eligible enterprises are encouraged to voluntarily apply for environmental management system verification.

(20)

We shall promote clean production. We shall seriously implement the "Law of the People's Republic of China on the Promotion of Clean Production", speed up the examination and approval of clean production enterprises by actively carrying out the examination and approval plan of clean production. As for enterprises whose effluent discharge exceeds the rate or total amount laid down in the State or local regulations, and the enterprises which use poisonous and hazardous raw materials or discharge poisonous and hazardous substances in their production, we shall forcibly carry out the examination and approval of clean production and supervise the implementation of clean production plan. The National Development and Reform Commission and the State Environmental Protection Administration shall organize the nationwide activity of building model enterprises of clean production and environment-friendly enterprises to guide the enterprises for a faster implementation of clean production.

7.

We shall strengthen the organization and leadership in the development of recycling economy.

(21)

We shall strengthen the leadership. With intensified urgency and responsibility, all regions and all departments shall, assuming a strategic and holistic viewpoint and fully comprehending the significance of recycling economy, formulate detailed plans with practical and effective measures for its implementation, so as to expedite and promote the development of recycling economy. The National Development and Reform Commission shall, acting as an initiator, join efforts with relevant departments such as the State Environmental Protection Administration to build a coordination mechanism of organization, coordination, guidance and promotion to push forward the recycling economy, timely resolving major problems arising from the course of recycling economy. Departments concerned shall actively implement various policies and measures in their respective scope of responsibilities to push forward the development of recycling economy. Local people's governments at all levels shall assign a local leading official to be responsible for the development of recycling economy, with clearly defined division of responsibilities for relevant departments, responsibilities assigned to each level and supervision for the implementation at each level.

(22)

We shall conduct demonstrative pilot experiment of recycling economy. The National Development and Reform Commission shall join efforts with relevant departments such as the State Environmental Protection Administration and provincial governments to conduct pilot experiments in major industries, major domains, industrial parks and cities, so as to explore an effective mode for the development of recycling economy. Through the pilot experiments, they shall put forth the major domains of technologies and projects for the development of recycling economy and the concept to plan, construct, reconstruct industrial parks and develop resource-conservative, environment-friendly cities in accordance with the development mode of recycling economy. In doing this, they shall set up a group of models to serve as a demonstration for accelerating the development of recycling economy.

(23)

We shall strengthen the publicity and training. All regions and all departments shall, by mobilizing resources from all aspects of society, forcefully conduct various publicity activities for resources conservation and environmental protection, aiming at an increased social awareness of the significance of recycling economy, turning resources conservation and environmental protection into the conscious action of all citizens. We shall include into textbooks the contents regarding the establishment of resource-conservation and environmental protection awareness, and conduct the education of national conditions, resource-conservation and environmental protection in primary and secondary schools. We shall organize training courses for relevant administrative and technology personnel, to increase their awareness and improve their relevant knowledge and skills. We shall, though various forms of practical activities and compilation of consumer behavior guidelines and resource conservation convention, guide reasonable consumption and regulate consumer behavior, so as to gradually formulate a consuming mode of resource-conservation and environmental protection. The National Development and Reform Commission shall join efforts with relevant departments such as the State Environmental Protection Administration to supervise and examine the work of local governments and departments in their development of recycling economy, and shall report matters of importance to the State Council timely.

The State Council of the People's Republic of China

July 2, 2005