China Has Officially Started A “War on Pollution”
A so-called “War on Pollution” would seem like something the United States would do, but surprisingly enough, this new policy actually comes from China. Now, it is true that China is the leading country in the world when it comes to pollution, followed by the United States. So, in this sense, it is kinda logical for China to have a War on Pollution, but we have to keep in mind that, even though China pollutes twice as much as the US does, China also has four times more people than the US.
Nevertheless, at least China has started down this road and we are thankful to them for that. The way they will go about it is to launch five “green finance” pilot zones. These zones will promote and then finance the $440 billion budget proposed for this “War on Pollution”.
Financial institutions in each of these zones will be authorised to offer incentives and special funds to businesses that will take a more environmentally friendly approach to their way of doing things. With this program, the Chinese government hopes to speed up the development of green forms of insurance, with the banks finding new ways of financing these businesses, such as water use permits or emissions trading.
Now, China is large and diverse and each of its zones will need to focus on different policies that it needs to implement. Guangzhou, for instance, is the capital of a heavily industrialised region and will develop its policies such that it will support the reduction of greenhouse gas emissions and energy reduction. Guizhou, on the other hand, is a largely rural area and its focus will be on financing agricultural waste treatment and other related issues. Xinjiang is important for the nation’s One Belt One Road initiative, and its focus will be on developing regional ties, and will better bridge the overseas efforts with the financial institutions.
The hurdles China needs to face are big, and the country is expected to need $400 billion every year, for the next five years in order to achieve its goals. We wish them all the best, and hopefully, we will also follow suit.