TOWARDS CHINA’S

TRANSFORMATION

Rose NiuManaging DirectorUS-China Program

World Wildlife Fund

Ecological Footprint Living Planet Report 2010

Global footprint by component 1961-2007

Source: Global Footprint Network

LPR launch, Bristol

Living Planet Report 2010

China - The Challenge

World’s largest economy in a decade

Major consumer of oil, gas, coal, metals, water and fish – increasingly sourced from abroad

Biggest carbon emitter

Enormous pressure on the environment, in China and around the world

Rapid increase of average ecological footprint

China’s per capita Ecological Footprint (2005)

Relatively small ecological footprint on a per person basis, but...

a big ecological deficit as a whole, and still growing

2003 constant global hectares (millions)global hectares

China 1.6

Brazil 2.3

UK 5.6

US9.7

Why “Go Global”?

Natural resource depletionEnvironment degradationExcess production capacity

To access natural resources To access new marketsTo capitalize on large foreign- exchange reservesTo move up the value chain To ease trade barriers

Imported Imported

Exported Exported

China: Workshop of the World

8.1

10.3

6.1

32.8

17.1

4.3

4.4

13.1

5.7

0.9

0.2

3.8

1.4

0.8

5.6

1.01.3

0.21.1

4.9

1.1

43.7

0.5

0.6

Trade of ecological capacity from imported and exported biomass products(in million global ha in 2007)

China - The Opportunity

•Carbon intensity reduction target of 40-45% by 2020 from 2005

• Piloting low carbon in 5 provinces and 8 cities

• World largest solar PV manufacturer, largest installed capacity of solar water heaters

Leapfrogging is possible

Political willingness: commitments to low-carbon development and environmental targets

Global provider of renewable energy and solutions

Help alleviate energy poverty in Africa through aid and investment

Set example for other emerging economies.

Help China leapfrog into a major player in sustainable development at home and abroad

China for a Global Shift: WWF Global Network Initiative

How Can We Be Effective?

We take a strategic and pragmatic approach and offer real solutions

SHIFT Case Study: Banking and Finance Why Engage Chinese Financial Sector?

The Chinese finance sector has been fueling the growth of China’s overseas investment

15 Key Commoditi

es

WHITEFISHTROPICAL SHRIMP

TUNA

FARMEDSHRI

MP

FISH OIL & MEAL

PULP & PAPER

SAWN WOOD DAIRY BEEF

SUGARCANECOTTONPALM OIL

FARMEDSALMON

BIOFUELS

SOY

Drive supply and demand to nature’s advantage by working with and through markets

AmazonAmazonsoy, beef, cotton, timber, minerals, carbon

Coral TriangleCoral Triangletuna, live reef, fish, aquaculture, carbon

CongoCongoTimber, minerals, carbon

BorneoBorneopalm oil, timber, carbon

E./S. AfricaE./S. Africabiofuels, tuna, carbon

ArcticArcticcod and Pollock, carbon

Global Markets/Habitats

China’s resource quest

China’s Major Source Regions of Key Commodities

Congo Basin:Congo Basin:Minerals, Timber, Minerals, Timber,

Palm oil, BeefPalm oil, Beef

Amazon: Amazon: Soy, beef, Soy, beef, mineralsminerals

Russia:Russia:TTimber/Far Eastimber/Far East

Fish/ArcticFish/Arctic

Coral Triangle: Coral Triangle: FishFish

Borneo: Borneo: Palm Oil, Pulp Palm Oil, Pulp and Paperand Paper

Pinpoint the leverage point: multinationals that hold sway in commodities

25% of demand leverages 40-50% of production

6.9 6.9 billion

consumers?

500500 companies that

control 70% of trade in each commodity?

1.51.5 billion

producers?

Transforming Markets

Beef Cocoa CoffeePalm Oil

Sugar SoyCotto

nShrim

pWhite Fish

Felda

Persero

Beidahuang Group

Andre Maggi

Good news…

Promoting Responsible Forestry

Markets Case Study: ForestryGlobal Forest & Trade Network

ChallengesChallenges• Increased demand for

forest products• Increased illegal

timber trade• unsustainable forest

management

WWF’S ResponsesWWF’S Responses• Supports forest producers

in achieving FSC certification

• Assists buyers in responsibly sourcing forest products

• Facilitates links between committed companies

China plays a pivotal role in global timber trade

More than just logs. It’s habitat for wildlife

Russian Far EastRussian Far East AmazonAmazon

Congo BasinCongo Basin Borneo & SumatraBorneo & Sumatra

Linking Illegal Timber Trade with Conservation

What Have We Achieved So Far?

Every step counts

What We Have Achieved?

Thank you!