chertow lecture #3
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China, Resources, and the Circular Economy
Center for Industrial Ecology
Yale School of Forestry & Environmental Studies
耶鲁大学森林与环境学院产业生态学中心Prof. Marian ChertowPresentation to:
Mandarin China – Yale Educational TravelOctober 2008
Outline Physical resources and the need to improve
overall efficiency Development models leading to the circular
economy The Circular Economy Promotion Law and
its relationship to industrial ecology Implications for improving resource
productivity based on circular economy and industrial ecology
Great resource productivity – land, labor, and capital = the Chinese economic miracle
World’s largest population with world’s fastest growing economy:
Forty fold increase in international trade between 1978 and 2003.
Since 2002, China has overtaken the US to receive the most foreign investment annually of any country.
The endowment of resources in China is small and distributed
unevenly
China has:
1.8% of the world’s total oil reserves, 0.7% of natural gas, 0.9% of iron ore, 5% of copper ore, and 2% of aluminum
With regard to per capita resources, China has: half the world average in mineral
resources, one-third in arable land and grassland, one-fourth in water resources, one-fifth in forest, one-seventh in energy, and only one-tenth in oil
Information Office of the China State Council 2006
Example of rising consumption and declining resources
Five fold increase in fish consumption/person in the past 25 years according to UN FAO
The catch of wild fish in the Yangtze has declined 75%.
China is the world’s largest producer of aquaculture grown food with fish production increasing approx. 250% in 18 years
China is the only country in which aquaculture provide more fish and aquatic food than wild fisheries.
Liu and Diamond – Nature Vol 435 June 2005
Primary energy consumption, 2007
Source: BP Statistical Review, 2008
Oil, coal, natural gas supply and demand
Oil
Natural gas
Coal
ProductionConsumption
Source: BP Statistical Review, 2008
National People’s Congress – Environmental
Protection & Resources Conservation Committee
On the need for modernization:
“China has been facing serious environmental and resources problems with its economic development since the 1980s, mainly due to inefficient use of resources”
“Industrial ecology is the study of the flows of materials and energy in
industrial and consumer activities, of the effects of these flows on the
environment, and of the influences of economic, political, regulatory, and social factors on the flow, use, and
transformation of resources.”
Defining Industrial Ecology Robert White NAE 1994
11
From a traditional perspective to an -industrial ecology
perspective
IndustrialSystem
NaturalSystem
NaturalSystem
Economic
System
Industry Embedded in Nature
Source: R. U. Ayres, 1993
REALMOF THE
MARKET
water for drinking, washing, cooking & sewage
irrigation water
respiration, transpiration
ozone
for combustion
(carbon cycle, nitrogen cycle)
ph
oto
syn
thes
is
rain
recycling
water forflotation
minerals,fuels
food,fiber nutrient
recycling
to landfills,oceans
ground water, rain
photosynthesissoil organisms, pests, etc.
algaebacteriafungi
wormsinsects
birdsetc.
surface,ground
frompublic orunowned
land
fromprivate property
cultivation &husbandry onprivate land
hunting,fishing,grazing
oncommon
land
air forcombustion
combustionproducts
garbage,refuse,sewage
products,services
AGRICULTURE & FORESTRY
SUN AIR
SCENERY,
"ENVIRONMEN
T
CONDITIONING
”
HOUSEHOLDS
&
"PERSONAL
CONSUMPTION”
WATERMANUFACTURING,CONSTRUCTION,
TRANSPORT DISTRI-BUTION SERVICES
WASTEDISPOSAL
BIOTA
MINING & DRILLING
decayorga-nisms
industrialwastes
processwater
NaturalSystem
Economic
System
NaturalSystem
EconomicSystem
EconomicSystem
NaturalSystem
Evolving understanding of the fundamental question of development
‘‘development is of overriding importance’’
‘‘development is the top priority’’ ‘‘overall, balanced and sustainable
development’’ (2003) “harmonious society”
gradually giving birth to a scientific philosophy of development specific to China
National People’s Congress 3-08 The Scientific Outlook on Development “takes
development as its essence, putting people first as its core, comprehensive, balanced and sustainable development as its basic requirement, and overall consideration as its fundamental approach.”
China must pursue more than simple output growth.
Development needs to go beyond economics, to include political, social and cultural aspects in order to achieve the aim of the CCP of “building a moderately prosperous society by 2020.”
National People’s Congress March 2008 Hu Jintao: promoting balanced
development and promoting a conservation culture by
forming an energy- and resource-efficient and environment-friendly structure of industries, pattern of growth and mode of consumption.
China’s Call for a Circular Economy
The resources and environment in China are not available to provide a growing population with higher standards in a Western lifestyle of consumption.
The challenge for China is to create an alternative to Western development modes which would meet the needs for development while maintaining and even improving the health of ecosystem
A new industrialization model…for reconciling China’s twin goals
To increase economic growth
and social welfare
2000 2010 2020 2050
To decrease resource
consumption and pollution
Revised from: Prof. Zhu Dajian
China’s circular economy: a new economic pattern for future development The circular economy organizes economic
activities towards a closed loop process of:
‘resource – production – consumption – regenerated resource’.
“All materials and energy are used rationally and continuously in sustained economy cycles, and the harmful effects of emissions and pollutants can be reduced to a minimal level.”
Qian Yi, November 2007
Three life-cycle phases of Circular Economy
closed loop materials
Materialsextraction
Material production
Final production distribution
Consumeruse Waste disposal
Material-reuse and recycle
The production phase The use phase
The end of life phase
Path to Passage for CE Law December 2005 NPC Environmental Protection and
Resources Conservation Committee starts to draft law. Collected more than 1,000 suggestions from relevant government departments, colleges, and local people's congresses this year to “perfect the draft.”
August 26, 2007, Circular Economy Law Amendment Bill was submitted for the first time to NPC Standing Committee for consideration. It consisted of 7 chapters and 61 entries. Main theme is “Reduce, Reuse and Recycle.”
August 29, 2008 Circular Economy Promotion Law received third reading and is passed.
Circular Economy operates at three levels Enterprises with cleaner production
Eco-industrial parks/zones/industrial symbiosis
Integration of production and consumption at city/province level
Revised from: Prof. Zhu Dajian
Waigaoqiao Power Plant Power Station
Industrial Activity: Power generation
Footprint/Physical Size: 144 hectares
MATERIAL INPUTS
5.9 million tons/year
high sulfur coal
ENERGY REQUIREMENTS
N/A (Energy producer)
WATER REQUIREMENTS
14*1010 L/year saltwater (cooling)
Freshwater (purified) for steam
PRODUCTS
14.8 Billion kWh per year
Electricity
NON-PRODUCT OUTPUTS/WASTES
CO2 16 million tons/year
SOx 105,000 tons/year
NOx 140,000 tons/year
Elevated temperature wastewater 14*1010 L/year
Fly Ash & Bottom Ash 570,000 tons year
Waste solvents (cleaning)
Waste oil
Enterprise level flows - A profile
Material Chains: Guitang Group, Guigang City, Guangxi Autonomous Region
Source: Q. Zhu and R. Côté, 2004
“In an industrial ecosystem, the consumption of energy and materials is optimized,
waste generation is minimized, and the
effluents from one process serve as the raw material
for another”
R.A. Frosch, and N. Gallopoulos, Strategies for manufacturing Scientific American, 260 (3), 144, 1989
Sludge(treated)
Liquid Fertilizer
Farms
Cement;roads
Fishfarming
Water
Water
Water
Fly ash
Heat
ScrubberSludge
Gas
Steam
Ste
am
Sulfur
A-S Bioteknisk Jordrens
Sludge
Ste
am Coo
ling
wat
er
Statoil Refinery
LakeTissø
Boi
ler
wat
er
Yeast slurry Recovered nickel and vanadium
The Industrial Ecosystem of Kalundborg, Denmark
Energy E2 PowerEnergy E2 PowerStationStation
Pharmaceutical
Municipality of Kalundborg
District heating
Wall-board PlantSludge(treated)
Sample Benefits of Industrial Symbiosis to Kalundborg Participants
Water savings Oil refinery – 1.2 million cubic meters Power station – total consumption reduced by 60%
Input chemicals/products 170,000 tons of gypsum 97,000 cubic meters of solid biomass (NovoGro 30) 280,000 cubic meters of liquid biomass (NovoGro)
Wastes avoided through interchanges 50,000-70,000 tons of fly ash from power station 2800 tons of sulfur as hydrogen sulfide in flue gas from oil
refinery
Identifying Circular Flows in Tianjin TEDA
Circular Economy Promotion Law as of August 29, 2008 (1)
Close monitoring of energy consumption and pollutionin heavy consuming and polluting industries (steel and non-ferrous metal production, power generation, oil refining, construction, printing)
Gov’t promote recycling and improving energy-saving and waste-reutilization standards; develop policies to divert capital into environment- friendly industries
Adoption of renewable products in new buildings Requires enterprises to make comprehensive use of coal
mine waste, coal ash, and other waste materials Encourages farmers to recycle straw, livestock waste, and
farming by-products to produce methane
Source: Xinhua News, 2008
Circular Economy Promotion Law as of August 29, 2008 (2)
Central govt will allocate funds and capital to enterprises to encourage innovation in recycling technologies, and provide tax breaks to enterprises introducing and using energy-efficient technologies
Companies using prohibited technologies will face fines of 50,000 yuan ($7295.86) to 200,000 yuan
Source: Xinhua News, 2008
Final version of law vs. draft to be enacted January 1, 2009 Deleted:
Article 26.1: implementation of system of graduated increase of prices and fees for electricity, gas, tap water
Article 40: Owners of scrapped motor vehicles shall sell and deliver the vehicles to enterprises engaged in recovering such vehicles
Article 14.3: The State Council and local governments above the county level shall report progress of recycling economy.
Addition: Article 46: The state adopts a price policy that will encourage
conservation of water, electric power, gas, and other resources. Article 29: An environmental impact assessment shall be
conducted before any industrial park or zone is built or rebuilt, and measures for ecological protection and pollution control shall be taken.
Source: Xinhua News 2008, McElwee, Charlie. (2008) China Environmental Law blog
第二十七条 【服务业节约】Article 27 Saving in Service Industry
餐饮、娱乐、宾馆等服务性企业,应当优先采用节能、节水和环境友好的产品,减少使用或者不使用浪费资源、污染环境的产品。
Catering, entertainment enterprises, hotels and other service enterprises shall adopt energy saving, water saving and environmental friendly products in priority to reduce the use or not to use any products that squander resources and pollute environment.
Compatibility of circular economy
and industrial ecology
Circular economy as policy and strategy Industrial ecology as providing essential intellectual
underpinnings for circular economy
CE Implications: China Iron Cycle 2004
Data Source: Tao Wang, Yale Univ.Design: B. Reck
37
Per capita iron stocks in industrialized countries provide clues about future iron use
Müller et al., PNAS, 44, 16111-16116, 2006)
E-waste recycling in Guiyu – the nightmare
MFA Taizhou Chiho-Tiande Metals in 2006
250,000 tons scrap electric motors
150,000 tons steel scrap
45,000 tons copper scrap
20,000 tons scrap silicon steel sheets
30,000 tons secondary aluminum2% solid residues
to be disposed of
E-waste recycling in China: not whether but how
E-waste recycling is ultimately a labor-intensive business and thus China has a comparative advantage.
China needs an ever growing supply of raw materials and secondary materials have both resource scarcity and energy dividends in satisfying the demands.
Therefore the question is not whether China will recycle E-wastes from developed countries but how to do it in a sustainable manner.
Shi Han April 2008
Program on Industrial Ecology in Developing Countries Received funding for start-up of a new program
under Yale’s Center for Industrial Ecology and funding for projects in China
Work with international colleagues to adapt industrial ecology theory and practice to the realities faced in rapidly industrializing developing countries related to the co-mingled problems of global warming, energy efficiency, water quality and quantity, material reuse, and waste management.
Doing Circular Economy Planning in Tianjin Binhai New Area
Industrial Ecology and the Circular Economy
“ 产业生态学试图根据我们对自然生态系统的认识(资源循环利用、食物网等),对产业生态系统进行重建……”
—— Erkman and Ramaswamy, 2003
“The aim of industrial ecology is to restructure the industrial system, inspired by our understanding of biological ecosystems (cyclic use of resources, food webs, etc)…”
物盡其用Wu(4) Jin(4) Qi(2) Yong(4)
人盡其才Ren(2) Jin(4) Qi(2) Cai(2)
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