This section shows that climate partnerships, in particular those involving foreign actors or academic institutes, contribute to introduction of emission reduction technology and policy practices in cities in China. Two mechanisms are offered to explain how each is realized. Introduction of new technology occurs either through technology transfer or joint research projects. Introduction of new policy and planning practices is realized through either demonstration followed by market diffusion, or collaborative problem solving followed by internalization. In illustrating these mechanisms, this section draws on information collected through the member check interviews of the study.
7.3.1 Introduction of new technology
To find how important different partnership constellations are to the introduction of new technology in this sample of initiatives, a contingency table was created for “introduction of new technology” and “partnership constellation”. As shown by Table 20, collaboration between companies and international/foreign organizations play an important role in introducing new technology (the correlation is significant on a 100% level). Initiatives involving partnerships with academia also lead to introduction of new technology more often than expected. Common mechanisms of introduction of technology through partnerships include technology transfers and joint research projects.
Table 20: Contingency table for collaboration type & new technology (expected outcomes in brackets)
As discussed in section 7.2.2, many of the partnerships in this sample are formed for the purpose of technology transfers. The most commonly imported types of technology is equipment for large scale wind plants, waste-to-energy plants, co-generation facilities, district heating and cooling technology, and equipment used in upgrades of power plants and steel factories (e.g. energy efficient boilers). As mentioned above, a number of partnerships with the function of technology transfers have been funded by international institutions, ADB and UNFCC through the CDM.
Member check interviews with firms confirm that import of foreign equipment remains a common strategy to realize energy savings and emission reductions. Nevertheless, imports are becoming less important with rising sophistication of domestic research. For example, in the paper and pulp industry, equipment import was a way to raise environmental standards and reduce emissions over the past decade (Interview with domestic paper group, 2016.06.18, Shandong; Interview with domestic paper company, 2016.06.13, Shandong). A manager of a
Partnership constellation Technology introduction
Company + International/foreign organization(s) 22 (9)
Authority + Academia 5 (2)
Company + Academia 5 (1)
Authority + Company 4 (3)
International/foreign organization(s)+ National 1 (0) Authority + International/foreign organization(s) 0 (5) Academia + International/foreign organization(s) 0 (2)
Company + National 0 (1)
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paper and pulp company states that a key reason behind their performance improvement is import of foreign equipment. However, this is now becoming less crucial. This respondent expects domestic equipment and level of environmental research to catch up with Western competitors in a couple of years (Interview with domestic paper company, 2016.06.13, Shandong; Interview with paper industry alliance, 2016.05.22, Beijing). The situation looks similar in the iron and steel industry, where equipment has been imported to raise environmental performance. However, this trend is slowly being replaced by internal technology development. A spokesperson of Shandong Iron and Steel Industry Alliance observes that energy efficiency improvement and emission reduction are key research areas where companies are investing heavily to catch up with the “West” (Interview with Iron and Steel Industry Alliance, 2016.03.04, Shandong).
As domestic innovation is becoming a more important driver of technology development, forging partnerships for innovation is becoming more crucial. The member check interviews confirm that environmental technology development to a large extent is carried out through partnership arrangements between companies, academia and foreign organizations. A representative of China Paper Industry Alliance confirms that research into energy efficiency, emission reduction and waste management often is carried out through private-academic collaboration.21. A manager at a paper and pulp firm describes their involvement in research
partnerships with China Paper Research Institute (CIPRI), CAS, Beijing Forestry University, foreign companies, and foreign universities. Much of this research focuses on improvement of resource conservation and environmental protection (Interview with domestic paper company, 2016.06.13, Shandong). Another paper and pulp company runs five research platforms involving partnership projects with ten academic institutes and collaboration contracts (strategic alliances) with several foreign firms (Interview with domestic paper group, 2016.06.18, Shandong).
Companies from the iron and steel sector describe a similar relationship with academia. A representative of a steel company explains that the firm has several research centres involving collaboration with universities. In these centres, environmental technology and energy efficiency are prioritized research topics (Interview with steel company, Shandong, 2016.04.19). Research on CCS is raised as an example of technology development carried out through platforms involving universities, companies, government units, foreign authorities and funding from international institutions (Ibid). According to a respondent from Shandong Iron and Steel Industry Alliance, their organization is also involved in cross-sector research partnerships to support research on energy efficiency in the industry (Interview with iron and steel industry alliance, 2016.03.04, Shandong). 22 In sum, multiple connections between the
private sector, domestic academia, foreign research organizations and parastatal research institutes are involved in research on industrial emission reductions in China. These connections are created in a bottom-up fashion and illustrate how multiple-level, horizontal interactions play a key role in introducing new technology on a local level.
7.3.2 Introduction of new policy
To find how different partnership constellations are related to introduction of new policy and planning practices, a contingency table was created for “introduction of new policy and planning practices” and “partnership constellation”. As shown by Table 21, partnerships between a municipal authority and a foreign or international partner is, by far, the most common way to introduce new policy and planning practices (the correlation between international
21 The industry alliance in itself functions as a platform for knowledge sharing between sectors, by collecting and
sharing data, disseminating research and creating forums for communication and collaboration (Interview with paper industry alliance, 2016.05.22, Beijing).
22 As in the paper industry, the iron and steel industry alliance is a semi-governmental organization that provides
spaces for collaboration. The representative explains that “solutions usually require large infrastructure investments to improve systems solutions. To make this easier our association has a platform for developing large-scale solutions. This is a public platform for cooperation” (Interview with iron and steel industry alliance, 2016.03.04, Shandong).
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cooperation and adoption of new policy practices is significant on a 98.3% level). This thesis suggests that two mechanisms explaining introduction of new policy practices through partnerships are demonstration and collaborative problem solving. These two mechanisms are discussed below.
Table 21: Contingency table for partnership and policy innovation (expected outcomes in brackets)
Demonstration followed by market based diffusion
In this sample, the most common way to that new policy and planning practices are introduced is through large demonstration projects. These usually consist of partnerships formed in the construction of eco-city projects and low carbon districts. In online accounts about these projects, a number of policy or planning approaches are self-reported as “new”. 23 This includes
new energy efficiency building standards in Tianjin (Tianjin SSTEC), use of ecological infrastructure and networks of wetlands in Shenzhen (Guangming Low Carbon District), and low carbon zoning codes in Beijing (Changxindian low carbon community). Further examples are transformation of a poor neighborhood into a livable, climate smart urban area, and man- made wetlands for cleanup of polluted river water in Shenzhen (Pingdi International Low Carbon District), and “participatory simulation” as a planning approach to better integrate the views of stakeholders in Wuxi (Sino-Swedish Low Carbon Eco-City). Other examples include natural flood protection, use of unconventional water sources and permeable surfaces, new waste collection and separation systems integrated with waste-to-power systems, and natural ventilation systems. These projects have one thing in common, which is that their process of design and management involve sharing of ideas between a range of partners, allowing for opportunities to introduce new ideas and perspectives. It is argued, therefore, that large demonstration projects are used to test new policy and planning practices.
The question is to what extent these practices travel from spatially delimited projects to other locations or jurisdictions? The member check interviews suggest that one way in which this happens is by practices being absorbed by domestic companies and reproduced through their marketing strategies. Several accounts support this notion. For example, a foreign consultant states that domestic real estate or architectural companies that receive planning advice from a foreign consultancy firm tend to use these in future projects:
For example with the developer X, they will ask us for a demo and then they can learn from this project and then they can copy it and sell it as their own market model! We have seen a lot of this. It makes the practises spread. If they have been part of the whole project, after we finish, some key members will know how the planning done … it is in their interest to learn as they can use it as a selling point (Interview with international consultancy firm, 2016.06.13, Beijing)
The same respondent explains that companies gain a competitive advantage by learning to apply new technologies and system solutions. They are willing to pay for this knowledge to be
23 A reminder from the methodology chapter is that reliance on self-reported evidence most likely creates a bias
towards exaggeration in description of new practices. As these projects are promoted as flagship examples, they aim to showcase new solutions, and therefore have an inherent incentive to refer to policy as new. The cases have been selected according to the best knowledge of the researcher and compared with projects in other cities to find which practices stand out.
Partnership constellation Introduction of policy/planning practice
Authority + International/foreign organization(s) 13 (3)
Authority + Company 3 (2)
Academia + International/foreign organization(s) 3 (1) Company + International/foreign organization(s) 1 (6)
Company + National 1 (0)
Authority + Academia 0(2)
Company + Academia 0 (1)
International/foreign organization(s) + National 0 (0)
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able to provide “show-off” projects, such as low carbon districts or CBDs with an eco-profile (Interview with foreign consultancy firm, Beijing, 2016.06.13). Another respondent claims that using a green image is a way for companies to respond to government policy, which in return provides better investment opportunities (often cheaper land). Real estate companies also pursue eco-city building to create an image of being forerunners and green pioneers (Interview with international consultancy firm, 2013.04.10, Beijing; Interview with energy consultant, 2014.02.25, Hong Kong). Real estate developments with a green image can also create a higher property value. Companies “make a profit out of ecological/low-carbon development, as it creates a high land price” (Interview with domestic policy research institute, 2013.03.08, Beijing). An official at a domestic policy institute observes that in high-level projects (such as eco-cities), the prestige motivates companies to accept higher costs. At the same time, the companies learn to meet higher sustainability performance indicators (Interview with domestic planning institute, 2016.05.02, Beijing).
The limitation of this mechanism is that solutions of a technical nature are preferred, whereas complicated system solutions less often are copied. A foreign planning consultant points out that complex planning approaches that require collaboration between several actors (waste, energy, spatial planning) are especially unlikely to be reproduced. One reason is that these require cooperation with municipal departments, which takes up too much time and trouble (interview with foreign consultancy firm, Beijing, 2016.06.3). New planning procedures, such as participatory planning approaches, are also unlikely to be copied, as these carry no obvious profit for domestic firms (Ibid).
Further, most companies only improve their energy use profile or if it leads to cost cuts. 24 A
consultant involved in eco-city planning confirms this view, stating: “if we give them 24 criteria they will just take the one that are economically beneficial and forget the rest… The environmental and ecological calculations are a basis for our planning, but the cost analysis is the basis for them” (Interview with international consultancy firm, 2013.04.10, Beijing). On average, companies only consider energy conservation solutions that contribute directly to cost cuts (e.g. district heating in large public projects), and these incentives are limited due to the low energy costs (Interview with foreign consultancy firm, Beijing, 2016.06.3).
In conclusion, replication of policy strategies introduced through flagship demonstration projects can be realized through market diffusion. However, it is not a potent mechanism for spreading system solutions and policy strategies of a non-technical nature.
Collaborative problem solving followed by internalization
The second mechanism through which partnerships introduce new policy practices is collaborative problem solving. This mechanism is realized when municipal authorities seek external advice from academic/expert organizations, bilateral partners or international institutions to solve a specific urban issue. Through pragmatic absorption of successful solutions, these policy strategies can be internalized by local administrations. Cases from the sample of initiatives illustrate that this mechanism is realized through different partnership constellations.
For example, Guangzhou E-core is a planning approach introduced to protect ecological areas in the city centre of Guangzhou Municipality. This design uses a greenway convergence strategy that connects green areas and at the same time aims to support species diversification, limit the use of elevated highways and employ elevated green walkways. The planning strategy thereby tackles issues of habitat fragmentation and biodiversity protection. The plan was
24 When questioned about driving forces behind energy and emission improvements, company representatives refer
to economic aspects. A representative of a steel company states that considerable savings have been realized through energy efficiency upgrades (Interview with steel company, Shandong, 2016.04.19). A paper company manager makes a statement about their improved energy profile, as the new recycling systems allows the factory to rely on their own electricity production (Interview with domestic paper company, 2016.06.13, Shandong). Improved resource efficiency can also create a competitive edge relative to companies with poor energy performance (Interview with iron and steel industry alliance, 2016.03.04, Shandong).
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developed in collaboration between Tongji University in Shanghai and Guangzhou Urban Planning Bureau. This example illustrates how public-academic partnerships produce horizontal linkages for mobilization of knowledge and information in urban planning processes. There are also examples of initiatives led by domestic research institutes in cooperation with international organizations, such as Guangzhou Sustainable Transport Plan. This is a comprehensive low carbon development plan developed by Guangzhou Municipality in partnership with Institute for Transportation and Development Policy (ITDP), an international non-profit organization. This plan is cited as innovative through its seamless connections between BRT system, railway system, large-scale bike-sharing stations, and cycle paths. The plan is cited as contributing to pollution and emission reductions, and congestion alleviation, while at the same time being socially inclusive. A similar example is the partnership between Kunming Municipality and the foreign charity foundation China Sustainable Cities Program (CSCP), which has produced a Transit-Oriented Development (TOD) plan in Kunming. An example from the industrial sector is Qingdao DRCs partnership with ADB and WRI (and international NGO) in the establishment of an emission accounting system used to develop an emission reduction development plan. The plan introduces a systematic approach to emission reduction control, by creating an inventory of the city’s energy use, sector scenarios, and a technology roadmap. At the same time, the emission reduction strategy claims to improve cross-sectoral coordination, information sharing, public participation and public opinion supervision mechanisms. In the formulation of this ambitious strategy, ADB and WRI drew together an international researcher team that contributed technical advice throughout the process. These three examples illustrate how partnerships between public actors and foreign NGOs introduce new planning approaches on a local level in China.
Another partnership constellation is collaboration between Chinese authorities and foreign municipalities. This takes the form of participation in transnational networks, as demonstrated by Wuxi’s participation in the Low Carbon Future Cities project. Through the project, the municipality has cooperated with the German organization Wuppertal Institute in formulating industrial emission reduction plans. This has involved dialogue between local stakeholders and representatives from Dusseldorf to identify new solutions. Concrete action plans resulting from this partnership include establishment of a database and online information system used to estimate the capacity of renewable energy development in Wuxi’s urban region. Wuxi has also developed a policy tools for successful emission reduction in the industrial sector. Another example is Kunming Municipality’s EcoPartnership with the city of Portland as part of the program “We Build Green Cities”. Through the project, planning and design experts from Portland have helped Kunming to promote new planning practice in transit development, primarily by introducing walking and cycling paths. The aim of these strategies have been both to lower carbon emissions and alleviate traffic congestion.
Finally, partnerships between Chinese authorities and bilateral partners can contribute to introduction of new policy strategies. An example of from the transport sector is Shenzhen Municipality’s cooperation with the German development agency GIZ to develop improved parking management strategies. The aim was to tackle issues of congestion, pollution and emissions. The project took the shape of a pilot project introducing parking charges in four zones. Due to the effectiveness of the approach it was up-scaled to the whole city. A similar project was carried out in Beijing, where transport demand management (TDM) and parking management programs were piloted in partnership with GIZ. The aim was to develop evaluation toolkits for TDM. These two examples illustrate how partnerships formed through traditional development assistance contribute to local policy development in China.
These examples demonstrate that municipal authorities in China are actively seeking novel ways to solve urban emission reduction challenges. In their quest for solutions, they create links across sectors and across borders, which mobilize ideas, tools and information. The result is the establishment of networks of knowledge populated by public actors, researchers, and experts
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at international institutions. These networks represent new loci of authority that extend beyond public borders and in part remove policy directions from the top-down structure of China’s political system.