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Implications of China’s Central Environmental Inspection Team Criticizing the National Energy Administration

On January 29, 2021, China’s Central Environmental Inspection Team (CEIT) released an inspection report criticizing the National Energy Administration (NEA). The report claims that the NEA has failed to implement environmental protection policies properly. High-level central government agencies have rarely been inspected and openly criticized for numerous failures related to environmental protection and sustainable energy development. Environmental degradation is a common concern of China and the United States, the two biggest emitters of CO2 in the world. Sustainability initiatives could bring China and the United States closer, promoting the establishment of a friendly bilateral relationship.

This report demonstrates that President Xi Jinping aims to discourage coal usage by increasing the availability of electricity. Xi’s effort to impose strict environmental policies also signals that China is becoming a global leader in sustainability. The CEIT, created by Xi Jinping in 2015, evaluates environmental protection agencies. It reports directly to the central government and cracks down on entities that do not enforce environmental regulations properly. It successfully fulfills its duty by pointing out the failure of the NEA, presenting it to the central government, and urging the NEA to make progress. Although empowered by Xi, speaking against a central agency was unprecedented. The CEIT could face threats, but it was safe because it received the approval of the State Council and the Central Committee before releasing the report.

The report highlights three failures of the NEA. Firstly, the NEA did not value environmental protection as it should. Secondly, NEA policies place no heavy regulations on the coal industry.  Lastly, the NEA failed to implement policies that require conservation of the environment while regulating the industry. Admittedly, the CEIT claims that the NEA did strive to protect the environment. However, there is a discrepancy between the NEA’s current performance and the provisioned policy implementation devised by the Central Committee, the State Council, and Xi Jinping’s thoughts on ecological civilization.

The CEIT then articulates specific problems of the NEA. For instance, the NEA’s regulatory entities did not pay attention to environmental protection. When regulations on the usage of coal were placed, NEA’s inspection procedures were not in place, allowing some key areas to continue implementing coal projects while not adhering to the existing rules. The NEA also changed the language in its policy from “prohibiting” to “limiting” the import, sale, and burning of coal that fails to meet quality standards. At the end of the report, it states that the NEA should formulate a rectification plan, and submit it to the Central Committee and the State Council within 30 working days. The rectification plan and the implementation of rectification shall be disclosed to the public.

The NEA’s laissez-faire attitude to regulating the coal industry gave prohibited projects an opportunity to take off. In particular, between 2017 and 2020, the coal power quota for Eastern provinces placed by the NEA far exceeded the amount planned by local governments. The amount of coal power machines in 12 provinces of the area with severe atmospheric pollution continued to increase. 

Besides ignoring a rise in the number of coal power machines, the NEA did not demonstrate the ability to complete its missions. The projected scale of electric transmission channels for the 9 major coal power bases should be 88 million kilowatts, but at the end of August 2020, the scale was only around 42 million kilowatts. Moreover, the NEA did not properly implement the Air Pollution Prevention and Control Action Plan and the Three-Year Action Plan for Winning the Blue Sky Defense. In particular, the NEA failed to put 12 power transmission channels into operation, which were designated to operate by the end of 2017. Also, at the end of 2019, the power received from outside of the Beijing-Tianjin-Hebei and Yangtze River Delta regions has only increased 4.1% and 2.7% compared to 2017, a miniscule improvement. In 2015, the local government submitted the Shanxi Huodong Mining Area Plan, which did not mention measures to protect the Huoquan Springs. Despite these faults, the NEA did not reject this plan during the review. After the release of the environmental impact report of the planning of the mining area that mentions this issue, the NEA did not follow up with any related policies to preserve the Huoquan Springs. 

On March 15th, Beijing was hit by a sandstorm. The city experiences sandstorms coming from Southern Mongolia every year, but this one was the worst in a decade. On that day, Beijing could be the perfect filming location for Blade Runner 2049 if it were to have sequels. These storms are caused by large-scale deforestation. The PM2.5 particle measurements average of that day was 200 micrograms, exceeding the average daily PM2.5 concentration of 25 micrograms recommended by the World Health Organization. Particulate Matter (PM) is a mixture of solid and liquid particles that are suspended in the air. PM2.5 are particles that have a diameter of fewer than 2.5 micrometers. They are pollutants emitted from coal-burning power plants and cars. Exposure to these matters can cause a variety of problems, including premature death in people with heart or lung disease. 

Prior to this sandstorm, heavy smog also appeared in Beijing during this year’s spring festival, and it peaked on February 11. Around 40 percent of air pollution in the Beijing-Tianjin-Hebei area came from fireworks. Although Beijing banned fireworks, there were no heavy regulations in cities around Beijing, so air pollution generated outside of Beijing traveled to the city, and air quality in this area dropped. However, China’s official news agency, Xinhua News Agency said the smog was caused by unfavorable weather conditions. If the NEA continues to ease regulations and fails to complete sustainable projects, environmental degradation is bound to accelerate, and air pollution will increase. 

What does this report imply about the future trajectory of China’s domestic environmental governance? It appears that the central government has become increasingly dedicated to ensuring the enforcement of environmental regulations. It also shows that Xi aims to place strict rules on the coal industry. This gives reason to expect more environmental protection policies to emerge and less presence of coal.

The NEA quickly responded to the CEIT’s inspection report by holding a special meeting on the day the report was released, aiming to study and deploy ecological environmental protection inspection and rectification work. On February 3, the NEA released an update showing the result of the meeting. The meeting highlights that the inspection report is an examination of the NEA’s work, pushes the energy industry to learn Xi Jinping’s thoughts on ecological civilization, and advances harmonious advancement of the energy industry and environmental condition. To actively take responsibility, quickly solve issues, and facilitate rectification work, the National Energy Administration’s Ecological And Environmental Protection Inspector Rectification Work Arrangement was passed. The CEIT effectively advances Xi’s goal by releasing reports to make changes.

Xi aims to establish China as a global leader in sustainable development. He also signaled a strong willingness to cooperate with the United States, since both countries consider environmental degradation a serious concern. On February 25, Xie Zhenhua was appointed as a special climate envoy, a move to rebuild climate diplomacy with the United States. His long-standing relationship with his American counterpart Todd Stern was essential for the creation of the Paris Agreement. At the U.S.-China meeting in Anchorage, Alaska on March 18, although U.S. Secretary of State Antony Blinken and head of China’s foreign office Yang Jiechi expressed contrasting views on the definition of human rights, they agreed to collaborate to promote sustainability. After the talk, Xinhua News Agency said China and the U.S. would set up a working group on climate change, indicating China’s intent to build a stronger Sino-American relationship. 

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