China’s Green Challenge to Europe

The ambitious green goals in China’s new five-year plan are a test for EU leadership, writes Shin Wei Ng.

China’s 12th Five-Year Plan (FYP) will be approved at the end of this week after the annual sessions of the National People’s Congress and Chinese People’s Political Consultative Conference – bodies that meet once a year to discuss and determine national-level policies. Central to the FYP are the government’s aims to accelerate social development, expand domestic demand and develop new strategic industries.

Over the next five years, the Chinese economy is expected to grow by 50% to US$7.5 trillion (49.3 trillion yuan); its working population, however, is also expected to peak around 2015 to 2017. To address the impending challenges and maintain steady economic growth, the Chinese government will shift from a focus on the quantity of growth to the quality of development.

Five-year plans are more than mere political intent – delivery of their targets is a crucial source of political legitimacy for the Chinese leadership. Despite some difficulties, strong top-down measures have meant that the Chinese government has managed to achieve most of the environmental targets set under the 11th FYP. As China starts to deliver on its potential, the 12th FYP will further intensify China’s “green transition”, which is particularly critical in helping China to implement its 40% to 45% carbon-intensity reduction target by 2020.