The Business of Cleaning Up China's Environment

Beijing's hosting of the 2008 Summer Olympics has brought environmental issues in China into the spotlight. The city has pledged to the International Olympic Committee that it will achieve the air quality of Paris in time for the Games and pledged to invest a total of US$12.2 billion in environmental protection projects in the coming years to 2007. US$3.63 billion has reportedly already been invested in the adoption of cleaner fuels, solid waste management systems, integrated air pollution control and wastewater treatment to help realize Beijing's goal of a "Green Olympics".

While a cleanup of Beijing's environment is clearly a priority, environmental issues have been on the agenda in China for some time. Recent years have seen the adoption by the PRC of a series of forward-looking and realistic environmental laws, standards and policies. Reflected in the new legislation is the government's concern to reach a compromise between achieving a high rate of economic growth while at the same time slowing the deterioration of the quality of the environment and eventually improving it.

As discussed below, in addition to drafting new legislation the government has also given environmental authorities more power and implemented plans such as the Trans Century Green Project Plan, which is specifically geared towards long-term environmental protection. Opportunities for foreign companies investing in environmental planning services, technologies, and design and control projects are expanding rapidly. This is particularly true with the added incentives of WTO accession, the Beijing Olympics and China's ratification of the Kyoto Protocol.