China Export Hub Can Cut Emissions by 12-24% Annually

May 20, 2009

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Carbon dioxide in the Pearl River Delta (PRD) could be reduced by 74 million metric tons a year if factories across the region implement energy efficient and greenhouse gas emission (GHG) standards, through WWF’s new program for low carbon manufacturing (LCMP).

A LCMP pilot study last July on three companies in the garment, plastics and electronics sectors, conducted by the global conservation group, shows that annual emission reductions of between 12 to 24 percent were possible at a low cost with quick returns.

Karen Ho, business engagement leader at WWF Hong Kong says the PRD represents about 30 percent of the China’s total exports and the world’s highest concentration of manufacturing infrastructure. She also states the “new WWF standard helps factories in the region unlock huge potential to increase energy efficiency and reduce emissions while bringing significant cost savings and a competitive edge to their business in a carbon constrained world.”

Ho says the carbon reductions of 74 million metric tons can be achieved each year if LCMP measures are scaled up to all factories in the region.

WWF Hong Kong, together with Bowen Capital Asia Green Dragon Fund, Ecofys and the Hong Kong Productivity Council (HKPC), has designed the LCMP to provide manufacturers with a four-tier carbon accounting and labeling system, which includes a standard approach to measure and analyze the carbon performance of their factories. The program also provides software and checklists to help factories manage their carbon emissions and apply technologies to reduce them.

The Guangdong and Hong Kong governments agreed in 2002 to implement emission reduction targets by 2010, including cuts of 40 percent for sulfur dioxide emissions, but environmental groups have been critical of the limited cuts, reports Reuters.

It been reported that Chinese factories have been moving inland from coastal regions to provinces such as Hunan, Guangxi, Zhejiang and Jiangxi to escape tighter environmental scrutiny.