Sunday, October 28, 2012

China’s water crisis



Severe water shortage and pollution problems have affected China’s economic development and citizens. 

Some of the problems are highlighted in a recent article by the People’s Daily: (1)

§  UP to 40 percent of China’s rivers were seriously polluted last year after 75 billion tons of sewage and waste water was discharged into them
§  20 percent of rivers were so polluted their water quality was rated too toxic even to come into contact with
§  Nearly 300 million rural residents lack access to drinking water
§  The per capita of water resources is only 2,100 cubic meters annually, or about 28 percent of the world’s average
§  About two-thirds of Chinese cities are ”water-needy”

Any regulation that tries to protect the water would likely come in the expense of economic development. 

The government of Nanning, the capital city of Guangxi province in Southern China, pledges to compensate residents along one of China's most scenic rivers whose livelihoods have been affected by new rules to protect the waterway.

The regulations are adopted to protect the 437-kilometer Lijiang River in Guangxi’s autonomous region of the Zhuang Nationality. The rules, which ban fishing, private rafting and restaurants along key sections of the river, are expected to set a benchmark of protecting overexploited tourism resources in China.



Rafts scattered at a harbor in Xingping township, the Guangxi Zhuang autonomous region, January, 2012. (China Daily Photo)

The government plans to invest 4 trillion yuan (US$634.9 billion) in water conservationprojects over the next 10 years, of which 1.8 trillion yuan will be spent during the2011-2015 period.

Convincing the Chinese government to sacrifice economic and industrial development to conserve the environment is no easy task.  Achievements such as above did not come without a strong push from NGOs such as Green Water, and the IPE (Institute of Public & Environmental Affairs).

Although it is nice to see NGOs stepping up for the water problem, the effort is not enough.  Like carbon trading, water trading is a new idea that is forthcoming.  Water trading, also called water access right, is for user the trade on the right to use water resources.  Financial institutions and international institutions can team up and set examples of water trading in China.  It is always hard to start something completely new.  It can start with a voluntary program, and gradually steer it into a mandatory one for those companies who rely heavily on water resources.

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