China May Cut Export Rebates for Polluting Chemicals (Update1)
By Li Yanping
bloomberg.com
Feb. 26 (Bloomberg) -- China's environmental watchdog proposed halting export-tax rebates for polluting chemicals to deter manufacturers from industries that damage the environment.
Rebates should be withdrawn for 39 types of products, including pesticides, paint, batteries and chemicals, according to the State Environmental Protection Administration's proposal to the commerce ministry and customs bureau. As many as 141 products are listed as ``highly polluting and environmentally risky,'' the agency said today.
``Given the environment watchdog's limited power and jurisdiction, pushing other responsible agencies to work together is more effective,'' said Yang Ailun, Climate and Energy Campaign Manager at lobby group Greenpeace China in Beijing.
Premier Wen Jiabao, battling to ease public concern over polluted water and poisoned food, has made environmental protection and poverty reduction cornerstones of his policies in the next five years. Emissions of climate-altering gases by China, the world's fastest-growing major economy, may more than double to 11.4 billion tons by 2030, prompting new laws to force industries to improve their environmental record.
``Companies have sacrificed the environment for profits because environmental costs are barely reflected in the prices and taxes on products,'' the agency said in its statement. The 141 products listed either cause ``serious irreparable pollution during production,'' or are ``hazardous to public health and the environment,'' the agency said.
Chemicals Produced
China's chemical industry produces at least 500,000 tons per year of calcium chromate, a cancer-causing material, adding to the 4 million tons already left untreated, the environmental watchdog said. Regular contact with cadmium in the making of batteries can cause lung and kidney damage and arsenic solution in animal feed pollutes the water and soil, the agency said.
``The government's environmental drive is getting better results as more local officials come to realize their performance will also be evaluated based on pollution reduction,'' Yang at Greenpeace said.
Dumplings and Buns
Pesticides and other chemicals have also found their way into food, including seafood, dumplings and buns, raising global concerns about the safety of China-made products. South Korea's government last week ordered a Chinese company to recall frozen eels after traces of cancer-causing fungicide malachite green were found.
``The agency is expected to issue more such specific rules to strengthen pollution control and push other government agencies to help achieve more eco-friendly growth,'' said Guo Dongmei, a researcher affiliated with the agency in Beijing. ``More such lists may be issued in the future.''
China also asked companies to increase spending to use less energy, reduce their emission of pollutants and treat effluents. Executives of companies causing severe pollution will be fined half their annual income under draft legislation, state-run Xinhua News Agency reported.
The environmental agency yesterday issued a ``green securities'' guideline to limit the ability of companies that fail pollution standards from raising funds in initial public offerings. As much as 10 billion yuan ($1.4 billion) of stock sales by 10 companies were blocked last year because of failure to comply with environmental rules, the agency said in a statement on its Web site yesterday. |
