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Geng Et Al. (2008) - Assessment of The National Eco-Industrial Park Standard For Promoting Industrial Symbiosis in China.
Geng Et Al. (2008) - Assessment of The National Eco-Industrial Park Standard For Promoting Industrial Symbiosis in China.
Keywords:
Summary
eco-industrial park (EIP)
eco-efficiency Eco-industrial park (EIP) projects have become more preva-
environmental indicator lent in China. In order to evaluate the performance of such
industrial symbiosis innovative projects, the State Environmental Protection Ad-
industrial ecology ministration (SEPA) has set up a new national standard for
industrial ecosystem
EIPs, the first of its kind globally. This article examines the ap-
plicability and feasibility of the indicator system established in
Supplementary material is available the standard. It first presents the details of this new standard.
on JIE Web site Then benefits and challenges in the standard’s application are
analyzed. The analysis shows that the new indicators are eco-
efficiency-oriented and do not address the essence of the EIP.
In the future, there will be a need to revise this set of indicators
by considering the principles of eco-industrial development
and local realities in order to ensure that the indicators are
indeed used to promote sustainable development of industrial
parks.
c 2008 by Yale University
DOI: 10.1111/j.1530-9290.2008.00071.x
with a concentration of information technology The new program does not provide finan-
industries and other types of advanced manufac- cial or any other kind of support to industrial
turers, and sector-specific zones such as chemical parks. It simply details how an EIP project can
parks and steel parks. Because each type faces be nominated as a national EIP project, with de-
different challenges (Geng and Yi 2005), SEPA tailed criteria and indicators. It is a voluntary
categorized industrial parks into three groups in standard, without any legal liabilities. Industrial
this new regulation, namely the sector-integrated park management can decide to apply for this
group, the venous group, and the sector-specific designation when all the requirements are satis-
group, each with slightly different criteria and fied. Because such designation can improve the
indicators. The sector-integrated group refers to “green” image of a park and given that the com-
those parks with multiple industrial sectors, es- petition among different parks to attract industry
pecially the development zones, which are the is intense, many leading parks are pursuing this
main form of Chinese industrial park (Festel and designation.
Geng 2005). The venous industrial park particu-
larly refers to those resource recovery parks where
Description of Indicators
environmental technology companies and firms
making “green products” coexist. The term ve- Although SEPA prepared three separate
nous reflects its biological usage, in which blood groups of criteria and indicators for three differ-
flow returns to the heart for reuse following ent types of parks, for any type of park, the agency
restoration in the kidney. The sector-specific group categorizes all the indicators into four groups—
refers to parks with primarily one main sector or namely, indicators for economic development,
anchor tenant (i.e., one firm serving as the driver indicators for materials reduction and recycling
of some of the main material and energy flows and (for the venous group, indicators for resource re-
as a possible organization around which the con- cycling and reuse), indicators for pollution con-
trol and management of these flows could be ar- trol, and indicators with respect to park man-
ranged). Usually in such a park there is an anchor agement. The main difference among the three
company, whereas others are suppliers and service types of parks relates to the second category of in-
providers. An example is the Guitang Group in dicators. For sector-integrated parks and sector-
Guigang, China, based on the sugar sector (Zhu specific parks, this category contains indicators
and Côté 2004; Zhu et al. 2007). related to materials reduction and recycling. Key
To apply to become a national EIP demonstra- indicators include energy and fresh water con-
tion project, an industrial park must meet certain sumption per added industrial value, industrial
criteria, as follows: wastewater generation and solid waste genera-
tion per added industrial value, and the industrial
• All the national environmental laws and water reuse ratio and the solid waste integrated
regional environmental regulations must be use ratio. For venous parks, however, this group
enforced effectively within the park; in the contains indicators related to resource recycling
preceding 3 years, no pollution accidents or and reuse. Key indicators in this category include
dramatic events related to ecosystem dam- recycling and reuse ratios of discarded home elec-
age may have occurred. tronic appliances, discarded abandoned vehicles,
• Local environmental quality must meet na- waste tires, and waste plastics. Because most in-
tional environmental standards. No ten- dicators in other groups are similar, just with dif-
ant companies may exceed pollution per- ferent figures, to simplify the descriptions of this
mits individually, and the overall emission national document, we present the standard for
should be below the control target set up by sector-integrated industrial park in table 1 (Duan
SEPA and its regional representatives. et al. 2006).1 In this group, there are 21 indica-
• The EIP plan prepared by industrial park tors categorized into four types. Two indicators
managers must be evaluated and passed by are listed for economic development, seven in-
SEPA and finally approved by the local gov- dicators are listed for material reduction and re-
ernment or Local People’s Congress. cycling, seven indicators are listed for pollution
cleaning polyethylene terephthalate (PET) bottles and glass containers for refilling.
b Middle water is a Chinese term for the recyclable treated wastewater from wastewater treatment plants. This indicator does not need to be assessed if there is no water treatment plant
control, and four indicators are listed for park clarity needed for park managers to assess their
management. own performances.
There are some further requirements regarding
resource consumption and pollution emissions
Benefits and Challenges
based on the national environmental protec-
tion plan. Before the year 2010, all the indus- This new program could provide comprehen-
trial parks must reach the objectives listed in sive economic, environmental, and societal ben-
the Eleventh Five-Year Plan. First, total en- efits. First of all, in terms of economic benefits,
ergy consumption per added industrial produc- given that this new regulation encourages more
tion value should be reduced by 20%; second, efficient materials and energy use, cost savings
water consumption per added industrial produc- can be achieved through potentially lower in-
tion value should be reduced by 30%; and third, surance costs as well as reduced environmental
total pollution emissions per added industrial pro- responsibilities. Also, additional financial ben-
duction value should be reduced by 10%. The efits of applying this new standard can include
formulas are as follows: increased revenues from the sale of wastes, in-
creased sales due to “green” and niche marketing
Energy consumption per added industrial and more competitive production methods, and
production value the avoidance of regulatory penalties. Thus, the
= E 2005 × (1 − 0.0436)(i −2005) ; overall competitive capacity of an industrial park
can be increased. Second, ecological benefits of
applying this standard include conservation of
Freshwater consumption per added
natural resources and a reduction of the environ-
industrial production value
mental impact of industrial operations, achieved
= W2005 × (1 − 0.0689)(i −2005) ;
through more efficient material and energy use,
reduced waste discharge, and substitution of toxic
COD or SO2 emissions per added industrial materials. Third, some societal benefits of apply-
production value ing this standard could be also achieved, such
= W2005 × (1 − 0.0209)(i −2005) ; as improved public awareness through capacity-
building programs and improved public health
where i is the year of examination and E 2005 and through reduction of waste emissions. By identi-
W 2005 are the quantities of the same indicator in fying potential synergy opportunities among ten-
2005. ants, industrial park managers could create new
business opportunities and offer more employ-
ment opportunities to the local communities.
Furthermore, because this new standard encour-
Application of Indicators
ages more collaboration among tenant companies
This new regulation provides a detailed de- and between tenants and industrial park man-
scription of the methodology, including how to agement, as well as between industrial parks and
collect data and how to calculate these indicators local communicates, it can help strengthen com-
on the basis of the local situation. The methods munity relations. Table 3 is a summary of key
of data collection are similar to those adopted benefits.
for preparing the urban development statistical Several challenges, however, also exist and
almanac and the environmental protection sta- need more discussion, including a lack of indica-
tistical almanac. SEPA has suggested that refer- tors on industrial symbiosis and diversity; vague-
ence data should come from the local statistical ness in some indicators, which makes evaluation
agency and environmental protection agency to difficult; institutional barriers to implementation;
ensure the quality and reliability of data. The and a lack of indicators on broad collabora-
standard gives defined and detailed calculation tion. Each is discussed in detail in the following
formulas, as indicated in table 2, providing the sections.
20
No. Calculation formula Explanation
FORUM
AIV
1 AIV: Annual added industrial production value
total employees at the end of the year
AI V examination year − AIV last year
2
AIV last year
total energy consumption
3 Energy consumption includes coal, electricity, oil, and other energy consumption (including energy
AIV
consumption for both heating and cooling). Different energy sources are converted to standard coal
equivalent (SCE) according to the coefficients prepared by the National Statistical Bureau.
21
FORUM
Lack of Indicators on Industrial Symbiosis linear transformations of input flows into prod-
and Diversity ucts, whereas natural processes are more cycli-
cal, although some linearity is characteristic of
Although the standard incorporates the re-
immature ecological systems (Lotka 1922a,b).
sults of many researchers and projects undertaken
Such immature systems exist at a developmen-
by many practitioners, there are still some chal-
tal stage, typically concentrating on growth and
lenges that it will meet as it strives for inter-
throughput, with limited developments of mate-
national acceptance. First, a review of the list of
rial cycling efficiency. Most industrial activities
indicators in table 1 indicates that six of these are
conform to this model. By contrast, mature
eco-efficiency indicators. It therefore seems to be
ecosystems are organized as resilient, long-lasting,
appropriate to refer to these parks as eco-efficient
complex, and interrelated communities of plants,
parks. As described by the WBCSD (2000, 9),
animals, fungi, and bacteria that have mas-
eco-efficiency is achieved
tered the principles of optimum—not necessar-
by the delivery of competitively-priced goods ily maximum—production. Organisms in mature
and services that satisfy human needs and ecosystems interact through a complex network
bring quality of life, while progressively re- of relationships and food webs that reduce en-
ducing ecological impacts and resource in- tropy. In these systems, the organisms are more
tensity throughout the life-cycle to a level at
diversified, and their use of resources is more ef-
least in line with the earth’s estimated carry-
fective. Therefore, to improve the sustainability
ing capacity.
of industrial systems, government should encour-
This translates into using less water, less en- age industrial symbiosis activities among compa-
ergy, and less material per unit of product or per nies. Thus, the next step for SEPA’s EIP standard
unit of added economic value. It also translates should be to set up new indicators that assess the
into less solid waste, less wastewater, fewer air levels of symbiosis and diversity within indus-
emissions, and less dangerous waste per unit of trial parks. Several ecologically oriented indica-
product or per unit of added economic value.2 tors within the EIP literature might be given some
Such eco-efficiency indicators are a good start— consideration (Côté and Hall 1995; Côté and
in fact, they are critical for encouraging businesses Smolenaars 1997; Côté and Cohen-Rosenthal
to clean up their production processes—but they 1998). These include
will not be adequate to reduce the overall envi-
ronmental impact of growing human and indus- • public transport use per population,
trial production and consumption (see Hukkinen • percentage of energy supplied by renewable
2001; Huesemann 2004). sources,
Natural systems exhibit certain characteris- • percentage of buildings adopting the LEED3
tics that, if introduced in an analogous way in standard or other green standard,
industrial systems, could enhance the perfor- • economic value per land area,
mance of EIPs. Industrial processes are usually • diversity of sectors represented,
• connectivity among industries, and the selection of the informants and the qual-
• number of scavengers and decomposer busi- ity of their answers. Responses are likely to dif-
nesses. fer due to particular sectoral perspectives. They
represent one individual’s views and cannot re-
We think, however, that these ecologically- flect the comprehensive perspectives of the whole
oriented indicators need improvement to assess EIP project. When the informants know the pur-
the performance of EIPs. For instance, a higher pose of such a survey, they may give more posi-
level of connectivity among industries does not tive answers to help their park become an EIP,
always deliver the best environmental outcomes. which may bias responses. Even so, setting up
The great diversity of sectors could also result such indicators may still help the stakeholders of
in the lack of economy of scale for realizing a park improve their awareness. Actually, some
the particular by-products exchange or recovery leading parks have already initiated their own
technology. capacity-building projects by considering local
realities. For instance, the Tianjin Economic De-
velopment Area (TEDA) administrative com-
Vague and Intricate Indicators
mission published a weekly newspaper designed
In addition, the criteria for a few indicators are to communicate environmental news, publicize
vague and difficult to evaluate. For instance, the local and national environmental policies and
indicators on waste collection systems and facili- regulations, popularize green knowledge, instill
ties for waste treatment and disposal require that an awareness of environmental values in the lo-
they should both be available but do not describe cal population, and register people’s complaints
the breadth in terms of the types of wastes treated. concerning environmental pollution and degra-
Under such a situation, some parks may choose dation (Song et al. 2006). As such, a variety of
to physically establish these facilities to reach publicity programs and activities could be orga-
these two indicators but may not effectively oper- nized and undertaken to further improve people’s
ate the facilities (Lo and Chung 2003). Likewise, awareness. Training workshops, media articles,
another example is the criterion for an environ- and public forums are typical examples.
mental management system (EMS). The new reg-
ulation just requires industrial park managers to
Institutional Barriers on Implementing
establish their EMS according to the ISO 14001
this Standard
standard, but this standard does not stipulate the
rate or level of environmental improvement ex- The implementation of this standard could
pected. Additionally, an ISO 14001 registration also be compromised by the relatively weak po-
only lasts 3 years (Conway 1996). The effective- sition of environmental protection bureau. To
ness of an EMS also depends on the degree of implement an EIP project, the park managers
commitment of local government and zone man- often nominate their environmental protection
agers. Given budgetary limits, lower environmen- bureau to play the leading role. Within the park’s
tal awareness, and the strong pro-growth orienta- administrative commission, however, the envi-
tion of industrial park leaders in China, perhaps ronmental protection bureau is usually one of the
the EIP designation should also be reviewed on a weaker institutions, with a lower bureaucratic sta-
3-year basis. tus. Thus, it is difficult for them to secure active
The last two indicators are based on desig- cooperation from other agencies, especially those
nated questionnaires that are unique (Duan et al. associated with polluting industries. Like their
2006). Understanding the degree of awareness counterparts in the municipal governments, it is
and satisfaction of local stakeholders on such an challenging for environmental protection bureau
EIP project could become important in provid- staff to promote EIP projects, as economic, plan-
ing park managers with the necessary ammuni- ning, trade, and industrial bureaus often work to-
tion to take further action. But the results of gether to prevent the adoption of tough measures
such a survey may be questionable given that and undermine strict enforcement of standards
the value of a questionnaire is dependent on (Geng and Liu 2006). Consequently, it is difficult
for environmental agencies to gain any powerful bridging such a gap. There are still some problems
extrabureaucratic allies to counter strong bureau- with regard to the new indicators, however, and
cratic resistance. In addition, in many cases, the further revisions are needed. Although we use
park managers formulate and decide EIP-related those indicators on the sector-integrated parks
policies without public consultation. In the ab- for analyzing the benefits and challenges, the cri-
sence of public participation, accountability in tique would apply equally to the two other types
the EIP regulatory process is almost nonexistent. of EIPs described in the section on descriptions
Under such a political system, it is difficult for of indicators, because most indicators are quite
park managers to effectively engage the public similar. Nevertheless, this new program can at
while evaluating the performance of their parks. least encourage industrial park practitioners to
improve their economic performance, environ-
mental quality, and social development.
Lack of Indicators on Broad
Collaboration
Last, EIP projects aim to develop sustainable Acknowledgements
industrial communities, but sustainable islands in
This study was sponsored by the Nat-
an unsustainable world are not possible. Sustain-
ural Science Foundation of China (Grant
able development should involve all stakehold-
70772085); the Huo-Yingdong Education Foun-
ers and requires that standards be formed and
dation (Grant 104001); the Dalian Science
implemented in the local context. The EIP in-
Foundation for Returned Overseas Scholars
dicators developed will only be beneficial if they
(Grant 2005J22JH015); the Scientific Research
promote local sustainable development. The eco-
Foundation for Returned Overseas Chinese
efficiency-oriented indicators described here are
Scholars, State Education Ministry (Grant 2007–
designed to focus only on the designated indus-
24); and the National Institute for Environ-
trial parks; they fail to include elements linking
mental Studies, Japan. We also acknowledge
the park to the surrounding areas. Thus, more
Reid Lifset and Rene Van Berkel for their kind
indicators are needed to clarify how designated
suggestions.
industrial communities are linked to other areas
and how they contribute to regional sustainable
development efforts. Indicators that reflect the Notes
efficiency of infrastructure shared with nearby ar- 1. Tables summarizing the indicators for the venous
eas and that examine the industrial synergy level and sector-specific parks are presented in Supple-
with local communities are examples of demand- mentary Appendix S1 on the Web.
ing but necessary extensions. 2. Editor’s note: For an extensive discussion of eco-
efficiency, see the special issue of this journal
on efficiency and industrial ecology, volume 9,
Conclusion number 4, www3.interscience.wiley.com/journal/
With rapidly growing industrialization and 120129122/issue.
urbanization, experiences gained from eco- 3. LEED stands for Leadership in Energy and Envi-
ronmental Design. It is a rating system for build-
industrial demonstration projects are of critical
ing design developed by the U.S. Green Building
importance for sustainable industrial develop-
Council (see www.usgbc.org/leed).
ment in China. A big challenge facing decision
makers, however, is how to evaluate the overall
eco-efficiency of such projects, given that prob- References
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Geng, Y., M. Haight, and Q. H. Zhu. 2007. Em-
pirical analysis of eco-industrial development Yong Geng is a professor in the Institute of
in China. Sustainable Development 15: 121– Applied Ecology at the Chinese Academy of
133. Science in Shenyang, China. Pan Zhang is a
Huesemann, M. H. 2004. The failure of eco-efficiency Ph.D. student in the Institute for Eco-Planning
to guarantee sustainability: Future challenges and Development at the School of Management,
for industrial ecology. Environmental Progress 23: Dalian University of Technology, in Dalian,
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China. Raymond P. Côté is an emeritus pro-
Hukkinen, J. 2001. Eco-efficiency as abandonment of
fessor in the School for Resource and Environ-
nature. Ecological Economics 38: 311–315.
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Hong Kong Press. ies, Tsukuba, Japan.
Supporting Information
Additional Supporting Information may be found in the online version of this article:
Appendix S1
Table S1. Indicator standards for sector-specific eco-industrial parks in China.
Table S2. Indicator standards for venous eco-industrial parks in China
Appendix S2
Table S1. Questionnaire of public satisfaction with local environmental quality
Table S2. Questionnaire on degree of public awareness of eco-industrial development
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