The Perilous Hunt for Apec Blue: The Difficulties of Implementing Effective Environmental Regulations in China

Abstract

During the 2014 Asia Pacific Economic Conference (APEC) meeting, Beijing’s notorious pollution had settled and the city was gifted with uncharacteristically clear, blue skies. So blue were the skies that the people of Beijing now use the term “APEC blue” to describe any abnormally pristine day. However, these clear skies were not the result of mere chance, but were instead obtained through the careful planning of the Chinese Communist Party (CCP). In order to reduce the pollution during the event, the CCP established a six-day holiday for all governmental and quasi-governmental offices and implemented an even-odd license plate system designed to cut traffic congestion by 35%. Nonetheless, these measures could not last forever, and by the end of the conference, the city’s infamous smog began to return. As the sky became hazier, Chinese President Xi Jinping and U.S. President Barack Obama met in the Great Hall of the People to announce that the two had concluded an agreement on the need to combat the effects of climate change. Here, President Xi announced for the first time that China will stop emissions growth by 2030, signaling to the world that China was serious about improving its environment. Chinese policies under President Xi further show that his declaration that day was not an accident or mere empty words. For example, in 2013 China implemented a carbon tax, and in 2014, revised its Environmental Protection Law. This revision increased fines for polluters, gave regulators more enforcement powers, and increased transparency. China also released the “Integrated Reform Plan for Promoting *597 Ecological Progress” in 2015. This plan formally expresses China’s intention to phase out subsidies for fossil fuels, protect natural resources, and establish a nationwide carbon trading system. However, no matter how serious the Chinese government is about improving its environment and how well intentioned its policies are, real barriers stand in the way of the implementation of meaningful reform. This paper attempts to show that regardless of Beijing’s goals, China will need major legal and economic reforms if any effective environmental policies are to be put into place. Section one will explore the history of environmental regulation in modern China and will detail recent legislative efforts. Section two will examine the difficulties of implementation, including problems with China’s institutional capacity, the reliability of data, and the inadequacies of the Chinese regulatory structure in general. Section three will discuss the government’s encouragement of public involvement in environmental enforcement and section four will describe the economic difficulties of widespread reform. China’s political and regulatory system is unique and complicated. This paper is but a mere snapshot of the institutional and legal difficulties any effective environmental reform effort will face. A truly complete accounting of China’s serious economic, political and legal challenges can only be done in book form and not in this short journal piece. It should also be noted that this paper is not meant to be a critique of China’s current government, nor is it meant to imply that its leaders are disingenuous. Instead, this paper is meant to highlight the complexity of the Chinese system and will hopefully serve as a guide to those wishing to do business in China or conduct further research on its institutions and regulatory systems.