Thorbjørn Berntsen, Shanghai 9 November

Minister of the Environment Thorbjørn Berntsen
Shanghai 9 November

Your excellencies, distinguished participants;

It is a pleasure for me to address this environmental technology seminar. We meet at a time of unique opportunities to consolidate and expand Chinese-Norwegian environmental co-operation. China' s impressive economic reforms, your serious approach to the country's huge environmental challenges and strong commitment to international co-operation; all combine to make China a positive and promising partner for Norway in our global efforts to achieve sustainable development.

As Minister of Environment in a country of only 4 million people, approaching China of 1995 gives me a feeling of deep respect - for the fundamental environment and development challenges you face as well as the serious manner in which you face them.

With only 7% of global arable land, and with water resources per capita at only 25% of the world's average, housing and feeding 1.2 billion people is a tremendous task - with dimensions stretching far beyond the imagination. The same goes for the impressive economic development record since reforms were launched 15 years ago, and the fact that you since then have managed to lift several hundred million people out of poverty. These are formidable achievements for which China deserves global recognition.

From reading NEPA's 1994 annual environmental report, it is clear that the environmental pressures in many areas are reaching intolerable levels. Increasing discharges of pollutants into air, water and soil create serious health problems at levels that have already led to substantial welfare losses - in environmental as well as human and economic terms. Precious water and soil resources are beeing depleted at an alarming rate, leading to significant reduction of groundwater level and degradation of ecosystems and farmland. Environmental pressures also increasingly stretch beyond China's borders, contributing to acid rain, ozone depletion and global warming. Although per capita emissions are still very low, there is no way to ignore that China in the process of becoming a major world economic power, is also becoming a significant contributor to global environmental problems.

The good news in this situation, however, is the very serious commitment to environmental improvement shown by Chinese policy-makers and industry representatives. Over the last couple of years, I have had the pleasure to meet with the heads of your environmental governance institutions and I have seen many concrete signs of China's strong commitment to sustainable development.

To address China's environmental problems a combination of complementary measures are needed. Targeted environmental policies, including a mix of regulations and economic instruments, will be required to ensure that the environmental benefits of industrial restructuring and economic growth are fully realised. Sustainable development means shifting to technologies that are cleaner and more efficient - as close to "zero emissions" or "closed" processes as possible. Technologies that at the same time minimise consumption of energy and other natural resources. Such modern technologies have been developed by Norwegian companies and have contributed to solving most of the industrial and municipal pollution problems in Norway.

By setting modern environmental standards which require industry to base its development on the best available technology (BAT), you will be able to leap-frog past the most polluting stages of development. This is not, however, only the responsibility of the governments to ensure. The business communities both in China and Norway have a responsibility in this respect.

Our experience shows that successful environmental policy requires the explicit commitment of the whole government, as well as the co-operation of industry, in an open approach to setting priorities and making choices. The greatest contribution to improved environmental management is likely to come from strengthening local and regional institutions within the country - in particular, improving their capacity for identifying priorities, developing policies, ensuring environmental compliance, and operating financial systems.

Norway has through concerted efforts in these areas managed to solve most of our worst environmental problems. Our environmental management system is today one of the best in the world. Through the environmental co-operation agreement between our two countries, our environmental expertise will be made available to assist Chinese authorities in streamlining and improving China's environmental policy.

In our bilateral co-operation we will focus on institutional strengthening of environmental authorities, at national and local level. This co-operation will focus on capacity building in line with the recommendations in Agenda 21 and the development of the required legal framework for environmental protection.

Norway has funded a cleaner production programme in which 15 enterprises in the Beijing region participated. Such programmes contribute to reducing waste and emissions from industry by introducing recycling, modification of processes, substituting materials and employing better monitoring and process control. Experience shows that such projects can reduce emissions greatly at low cost. In fact most of the required investment is very small. An example that can illustrate this is the Beijing Chemical Works No. 3. The company participated in the first Norwegian -Chinese cleaner production programme and the result was as follows: 6 cleaner production measures with no hardware investments gave a yearly saving of 740 000 yuan and reduced the COD effluent (organic pollution load) by 80% or 5.5 tonnes per year. These measures are under implementation. In addition, 2 short-term investment options were identified with investments of 660 000 yuan and annual savings of 460 000 yuan which will reduce the COD pollution by another 1.25 tonnes per year. These options are minor technological changes as changes in the heating system, tank sizes, etc.

We will expand this programme to cover other enterprises and in addition contribute to capacity building within environmental management and auditing in Chinese industry.

An area where Norwegian companies already are involved in China, is water supply treatment and waste water treatment including industrial waste water treatment. The combination of skilled execution of projects, high quality products and co-operation with major process industry partners, is an asset giving Norwegian enterprises a significant competitive edge.

Norway is a major producer of metallurgical products, chemicals, pulp and paper. Strict pollution control legislation combined with technological development helped not only restore the water and air quality in Norway, but also provided an early launch for several Norwegian companies producing filtering and processing equipment for emissions and waste from the process industries. These efforts have placed several Norwegian equipment companies as front-runners.

Both China and Norway have responsibility for management of huge marine and coastal resources. Fishing and fish farming industries have done their part. Technology which minimises waste from fish processing both onboard and onshore has been developed. Norwegian researchers have developed fish farming facilities, techniques and vaccines which have made it possible to dramatically reduce the need for disease treatment. If aquaculture is to occupy the place many foresee in the food production of tomorrow, we are dependent upon monitoring systems which provides real time data that are used to detect algae and various types of chemical pollutants. Such systems developed by Norwegian companies are already available and are being used in several countries.

To contribute to the reduction of emissions of ozone depleting substances new solvents for cleaning of electronics have been developed. Another ozone-friendly innovation is a new fire-fighting system which uses a fine-water spray rather than the ozone-damaging gas Halon.

Of particular interest to Norway are actions aimed at reducing global environmental problems. We will initiate several co-operation projects within the area of energy. Of particular importance is to develop pilot projects for Activities Implemented Jointly (AIJ) within the framework of the Climate Convention. Cleaner, more efficient energy technologies can significantly reduce pollution and greenhouse warming contributions from fossil fuels. Focus could be on improving energy efficiency of heating boilers, use of renewable energy sources, fuel-switching (from coal to gas) and measures to improve the grid network. Within these areas Norwegian companies have considerable expertise. I am pleased to note that several Norwegian firms are already involved in projects that will reduce the emissions of greenhouse gases.

At this seminar some of the best Norwegian environmental technology companies are represented. Norwegian environmental management and technology is the very best of what we have to offer. We have moved from conceptualising to implementation, step by step, demonstrating that the economy and the environment can both prosper from change and investment. Technology co-operation illustrates the interaction of the economic, human, environmental, and technological dimensions in achieving sustainable development.

As a response to Agenda 21's call for increased capacity building and transfer of technology within the field of environment I have recently established what is known as the Norwegian Environmental Assistance Network (NorEnv). The overall objective is to promote sustainable development by providing technical assistance for capacity building and transfer of know-how and technology to developing countries and countries with economies in transition. NorEnv will draw upon expertise from the Norwegian Ministry of Environment and its subordinate agencies as well as environmental research institutes and other institutions providing services within environmental fields. Representatives from consulting firms and enterprises will also be invited to participate. I hope that through NorEnv Chinese environmental institutions can be strengthened so as to meet the need for environmental expertise.

The genuine commitment and openness with which China approaches the international environmental community, gives me a strong sense of optimism concerning the prospects for Chinese-Norwegian environmental co-operation. Too often, international environmental co-operation consists of nice words that are seldom put into effect. Gathered here today, however, I can see an audience committed to immediate action.

I hope that this seminar will lead to strengthened co-operation between China and Norway, to capacity building, to technology transfer - and that we thereby will make a contribution to a safer, more prosperous future.

Thank you.