WORLD BANK ACTIVITIES IN CHINA TO PROMOTE AIR QUALITY MANAGEMENT

1. WORLD BANK ACTIVITIES IN CHINA TO PROMOTE AIR QUALITY MANAGEMENT Graham Smith Beijing 27 September 2006

2. World Bank Activities Four Sectors • Energy • Transport • Urban • Environment Four Key Activities • Lending for Project Investments • Policy Analysis and Advisory Services • Technical Assistance • Training Programs

3. World Bank Activities Activities initially addressed only local pollutants, but now include Greenhouse Gases (CO2, CH3 (Methane), CFC), through various Global Environment Facility Programs and Carbon Finance.

4. ENERGY Key AQM Challenges • Manage the environmental impact of coal • Diversify energy mix by increasing the proportion of gas, hydro, nuclear and other renewable • Increase the efficiency of energy production, transformation and consumption While ensuring energy supply security to meet demand growth

5. ENERGY World Bank Assistance • Aggressive implementation of energy efficiency policy and measures • Harnessing indigenous clean energy services • Optimizing the supply and use of coal • Promoting clean use of coal and mitigating environmental impact of coal use

6. ENERGY Instruments • Analytical/advisory work and technical assistance • Lending to renewable energy, energy efficiency, coal bed methane, district heat supply • GEF support to capacity building, technology improvement, legal and regulatory system building • Carbon finance transactions

7. Analytical & Advisory Work • Energy Strategy • Sustainable Coal Sector • Coal-Bed Methane Strategy • Demand Side Management • Clean Coal Policy • Power Sector Reform • Heat Sector Reform • Climate Change Strategy

8. ENERGY Lending for Projects • Energy Conservation I & II • Renewable Energy Development • Renewable Energy Scale-Up Program • Shandong power plant flue gas desulfurization installation • Liaoning Heat Supply • Shanxi Coal Bed Methane Development • Energy Efficiency

9. ENERGY GEF Projects • Energy Conservation I & II • Renewable Energy Development • Renewable Energy Scale-Up Program • Heat Pricing and Reform China’s GEF Energy Sector allocation under climate change in the next 5 years is around US$135 million • Coal-fired Power Plant Rehabilitation ($20 m) • Energy Efficiency ($15 m) • IGCC Demonstration Plant ($ 15-18 m)

10. ENERGY GEF-Funded Power Plant Rehabilitation Three Components: • Policy and regulation • Technology improvement • Demonstration project

11. ENERGY Carbon Financing • Coal Mine Methane Recovery • Renewable Energy (Wind, Hydro) • Energy Efficiency (waste gas recovery) • Land-fill Gas Recovery and Utilization • HFC23 Destruction

12. Urban Transport Key AQM Challenges: • Increasing motorization • Increasing urbanization • Increased use of motorized means of transport, more trips and longer trips by car and other motorized means Leading to increasing local pollution and global pollution (CO2) – and energy security concerns

13. Urban Transport World Bank Assistance • AAA work with SEPA on Motor Vehicle Emission Control Strategies (MVECS). • Lending for development and implementation of MVECS in UT Projects, improving public transport, and facilities for pedestrians and cyclists • GEF OP 11 Program – Initial $ 12 million – Full Program $ 60 million. • City level AQM Training Program

14. 世界银行在中国的城市交通项目 World Bank Urban Transport Projects in China 公交优先 城市扩张 市民参与、弱势人群的需求 交通管理 规划管理能力建设 总体规划

15. Urban Transport Main AQM Objective of Transport Projects Ensure growth of local and global pollutants is minimized by • ensuring attractiveness of non-motorized transport (NMT) and public transport (Investments and TA) • encouraging an integrated approach to planning, design and financing of investments (TA) • encouraging compact city design (TA) • MVECS programs to reduce and mitigate effects of locally emitted pollutants

16. Urban Transport - MVECS • Strengthening Air Quality Monitoring • Ambient • Road-side • Development of AQM Centers, bringing into a single organizational unit: • Air quality monitoring and databases • Policy formulation and implementation • Establishing and maintaining regulatory frameworks • Monitoring of vehicle inspection programs • Institutional Strengthening and Training

17. Urban Transport - MVECS Vehicle Inspection and Maintenance (I/M) Programs: • Establish/increase capacity of test centers • Upgrade testing methods and equipment • Facilitate non-government finance and operation • Establish/expand roadside testing • Link to vehicle registration database • Promote high-use private fleet I/M programs

18. Urban Transport - MVECS • Promote cleaner fuels (CNG & LPG) and conversion programs for high-use fleets (buses, taxis, municipal and other fleets) • Upgrade and enforce motor vehicle emission standards and fuel standards • Vehicle retirement programs for older vehicles • Promote public transport and bicycle usage • Public education

19. Which Emits more Pollutants, Energy or Transport? In small cities vehicle emissions are not a major issue yet, but basic control measures (i.e. complying with national emission requirements) and long-term integrated approach (infrastructure planning focused on public transport and non-motorized means) should be encouraged to prevent problems experienced by big cities. In medium & large cities, a shift from stationary type pollution to a mixture (stationary + mobile emissions) is already under way, therefore more comprehensive vehicle emission controls should be introduced (i.e. improve inspection & maintenance, cleaner vehicles, traffic management) All these considerations should be based on understanding of pollution phenomena (a network of ambient and roadside monitoring stations + interpretation capacity)

20. Recommendations for SEPA • Strengthen vehicle emission standards and their enforcement • Promote fuel quality improvement • Promote technology advancement • Provide guidelines for • criteria/standards for pollution reduction policies • (road side) monitoring capacity • standard methodology for emission inventories • Inspection & maintenance programs, data management • cooperation among different bureaus • Supervise their enforcement by the cities • Conduct health impact studies

21. Recommendations for Cities • Set up/optimize transport pollution monitoring capacity • Enforce national guidelines / promote site-specific measures • Promote cleaner fuel vehicles • Improve capacity of emission testing and enforcement by Portable Emission Measurement System • Air Quality + Urban Transport integrated management • Strengthen institutional system for MVECS (human resources, capacity building) • Facilitate cooperation among different bureaus (police, transport, land use, environment, health, industry) • Promote public participation through outreach of air pollution information

22. Recommendations for WB • Clear directions/indications to cities and national authorities through training • Circulate experiences in different cities • Make sure that these considerations reach the right decision makers in WB • Train upper-level decision makers in cities : they are the ones taking decisions • Macro-scale guidelines on long-term AQM/MVECS • Encourage/support health impact studies

23. Future Steps • Training opportunities based on above recommendations • Help build capacity at national level to promote sound energy & urban transport policies • GEF assistance to develop and carry out energy and urban transport projects with emission-reducing objectives

24. Xi’an Urban Transport Project - Air Quality Management Component Objective Prevent air pollution against increasing vehicle traffic by enhancing City’s capacity for vehicle emission inspection, data collection/utilization and policy making. Elements • Xi’an Municipal Ambient Air Supervising and Monitoring Center • Vehicle emission inspection and control system • Air quality monitoring system • Air quality information management and data analysis system • TA for system design and development and implementation of motor vehicle emission control strategies

25. Air Quality Management Training Courses in China Organizations： WB and SEPA (Sponsors), IGES, Sino-Japan Friendship Center for Environmental Protection, SEPA/FECO (Organizers) Objectives: • Capacity building for improved AQM in Chinese cities • Assistance for the formulation of AQ improvement action plan in Chinese cities Target cities: 113 key cities, Member cities of CAI-Asia China Project Training schedule: First training: September 18-20 in Urmqi Second and Third in November and December in Beijing

26. Scoping Study on Air Quality Management (AQM) and Motor Vehicle Emissions Control Strategies (MVECS) Objective • Identify priorities, institutional arrangements, and constraints/gaps • Serve as a basis for the development of policy guidance in the future Methodology Review of readily available information and Case studies in selected Chinese cities (Shanghai,Beijing, Guangzhou, Wuhan, Xi’an, Shijiazhuang, Jinan, Urumqi) Expected Outputs Preliminary recommendations to cities, SEPA and the Bankon how to prioritize the AQ efforts, what lacks in terms of regulations and standards, how to address AQ in UT projects, etc.

27. Liaoning Province I/M Pilot Program First Stage – to start mid-2007 • 6 pilot cities • 12 test-only centers with 58 lanes • Dynamometer simple drive cycle (IG195) • Separate Certified, private-sector Repair Centers • Integrated database for reporting and control World Bank giving support • Review and advice, • Assistance with • QA/QC, • Training, • Outreach • Systems etc

28. Key Opportunities and Challenges • Unique opportunity to develop a country-wide World-Class I/M program • Strategic framework meets international best-practice criteria for an effective program • Program is well defined at policy level • But needs much more attention to detail, which requires: • Staffing • Funding • Top-level commitment • Strong opportunity for more State (SEPA) involvement and leadership Greater commitment and effort in working out the details can deliver a Pilot that could be proudly replicated country-wide