Environment-Related Innovation in China

China’s attitude towards nature and the environment can be divided into four different stages: pre-1949, 1949-1978, 1978-2004, and 2004 forward. Prior to 1949, the idea of nature-human harmony promoted by the Confucianism and the Buddhist doctrine that all living beings are of Buddha spirit had far reaching impact on Chinese economic activity and life style. When Chairman Mao assumed power in 1949 through 1976 the sense of closeness with, respect for and fear for nature was replaced by the call for conquering nature. Since 1978, nature and the environment have been considered as means of production at the disposal of the Chinese people. Although an environmental governance system has been gradually put in place, the period from 1978 to 2004 witnessed the transition to a market economy, rapid industrialization and urbanization, and associated unprecedented environmental degradation. As noted in the Review of Innovation Policy in China, China’s economic growth has induced high demand for energy and raw materials. Rapid economic growth, industrialisation and urbanisation are leading to environmental degradation and damaging the population’s health. Ecological challenges may eventually limit China’s further economic development.After 2004, the central government switched to a new paradigm characterized by “a scientific approach to development,” “harmonious society,” “cleaner production,” “circular economy,” and “energy conservation and pollution reduction.” This shift responds to domestic and international demands for a cleaner environment in China, with the goal of striving for a more sustainable development path. Science, technology and innovation, in particular environment-related innovation, can contribute significantly to this objective.The report highlights instruments in China which contribute to this new perspective by supporting the development and deployment of environment-related innovations in China. The report reflects Chinese national priorities on energy security, energy efficiency, and a more environment-friendly model of development. Accordingly, it is focused on technologies for renewable energy, for energy efficiency and for pollution prevention and control; initiatives taken to promote a circular economy are also highlighted as they illustrate (sometimes non-technological) eco-innovations. Eco-cities projects are particularly emphasised. A short section presents selected information on measures to support the deployment of technologies to abate pollution. The report is not comprehensive: policies to support clean production, climate change mitigation and adaptation, and a low-carbon economy are not systematically covered although they may support eco-innovation.The report has four sections. Section 1 identifies institutions playing a major role in eco-innovation policies in China. Section 2 inventories mechanisms that support public investment in environmental R&D. Section 3 presents the tools and mechanisms that promote eco-innovation in the three areas identified above (renewable energy, energy efficiency, and circular economy).