<\/p>\n
With this reality, and with the continued pace of economic expansion over the last few decades, it was clear that something had to be done to address China\u2019s pollution problem. In facing this issue head-on with strict new environmental regulations China has begun to make progress in tackling water pollution.<\/p>\n
<\/h2>\nIntroducci\u00f3n<\/strong><\/span><\/h2>\n <\/p>\n
Within the textile industry in China, companies have found themselves in the environmental spotlight as well. \u00a0<\/span><\/p>\nAs the world\u2019s largest producer of textiles, the industry has historically been one of the worst polluters in terms of carbon emissions and water pollution. \u00a0<\/span><\/p>\nIn a January 2018 article in<\/span> Devex<\/span><\/a>, Kurt Kipka, senior project manager at the Natural Resources Defense Council (<\/span>NRDC<\/span><\/a>) attributed 1,715 million tons of carbon dioxide, accounting for 5.4% of the global total, for 2015 alone. \u00a0<\/span><\/p>\nMr. Kipka also stated that these factors make the textile industry one of the<\/span> top five polluting industries<\/span><\/a>. \u00a0<\/span><\/p>\nEven China\u2019s official data from the Ministry of Environmental Protection show that in the same year, 2015, the textile industry in China was the third largest source of wastewater and released 10.1% or<\/span> 1.84 billion tons of wastewater<\/span><\/a> effluent into the environment.<\/span><\/p>\n\n
![\"China](\"https:\/\/cdn2.hubspot.net\/hubfs\/2723484\/China%20environmental%20policy%20industry%20pollution.jpg\")
<\/span><\/p>\n<\/h2>\nCommitting to Change<\/strong><\/h2>\n <\/p>\n
Since the passage of China\u2019s original environmental protection law in 1989, China\u2019s economy has changed drastically and rapidly. <\/span><\/p>\nHowever, the passage of a law is only as good as the commitment and enforcement that go with it. \u00a0<\/span><\/p>\nAnd while the wording was comparable to environmental laws in other industrial countries, the failure came in the lack of enforcement and accountability and in the commitment to implement a true China environmental policy.<\/span><\/p>\nAs the crisis worsened in the early 2000\u2019s, it became apparent that more needed to be done to address the overall issue of pollution and environmental damage before that damage became irreversible. \u00a0<\/span><\/p>\nAs a result, changes and revisions in environmental law have increased year over year since 2014 to implement oversight and enforcement of industrial impact on the environment:<\/span><\/p>\n<\/h3>\n<\/h3>\nChina environmental law in 2015<\/strong><\/h3>\n <\/p>\n
Adopted in April 2014, revisions to China\u2019s 1989 environmental law were designed to begin addressing enforcement issues and to bring civil society and the media into the process through awareness and transparency.<\/p>\n
The revisions went into effect on January 1 2015, and targeted several areas:<\/p>\n
\n- Clarification of Public Interest Litigation<\/i><\/strong>: \u00a0The 1989 law was vague in its wording for who could qualify as a plaintiff in pollution cases. \u00a0The new law clarified the process and definition<\/a> of who could bring cases forward therefore increasing the likelihood that judges would hear the case.<\/li>\n
- Enforcement:<\/i><\/strong> \u00a0Previously, fines for pollution were small and irregular in application allowing offending industries to pay the fine as a cost of doing business rather than purchase equipment to mitigate the pollution itself. \u00a0The revision allowed daily fines and removed the cap<\/a> on environmental fines making the cost of non-compliance more severe. \u00a0The changes also allowed for up to fifteen days of detention for company managers who are careless in following the law or who intentionally circumvent regulations.<\/li>\n
- Transparency<\/i><\/strong>: \u00a0The revision also expanded and strengthened the requirements<\/a> for environmental impact studies and made pollution data available to the public. \u00a0It also implemented a control system for total emissions of certain pollutants and created requirements for emergency control plans.<\/li>\n<\/ul>\n
<\/h3>\n<\/h3>\nChina environmental law in 2016<\/strong><\/h3>\n <\/p>\n
As the new laws and regulations began to take hold, 2016 saw changes in participation, awareness and accountability.<\/p>\n
As the new Environmental Protection Law went into effect, several trends emerged:<\/p>\n
\n- Local and regional Government Action<\/i><\/strong>: \u00a0As the revisions took hold, local and provincial governments began to increase involvement with most providing an environmental report<\/a> for their region and many provinces creating environmental protection plans. \u00a0Spending by these local governments on environmental protection initiatives also increased.<\/li>\n
- Law Enforcement and Courts<\/i><\/strong>: \u00a0As the understanding of the new laws became clearer, courts began to accept cases based on the new EPL at a rate 2.5 times the rate<\/a> of previous years. \u00a0In addition, direct actions taken in over 22,000<\/a> cases brought before courts in 2016 included equipment seizures (44%), work stoppage (25%), daily fines (4%), detentions (18%) and in some cases, criminal charges (9%).<\/li>\n
- The Paris Accord<\/i><\/strong>: In September of 2016 China fully committed to the Paris accord and set forth intentions to reduce fossil fuel use by 20%.<\/li>\n
- Environmental Impact Assessment<\/i><\/strong>: \u00a0This change strengthened penalties and simplified the process to peg penalties to the overall value of the project cost. \u00a0Penalties could be levied for up to 5% of the total project cost, a considerable amount for large-scale projects.<\/li>\n<\/ul>\n
<\/h3>\n<\/h3>\nChina environmental law in 2017<\/strong><\/h3>\n <\/p>\n
This year saw changes to the law that began to specifically target certain types of pollution and increase penalties for non-compliance:<\/p>\n
\n- Construcci\u00f3n<\/i><\/strong>: \u00a0Revisions were added for construction firms requiring an environmental impact study<\/a>. \u00a0Local governments were tasked with the responsibility of reviewing and approving the study and assuring compliance.<\/li>\n
- Local Accountability<\/i><\/strong>: \u00a0Additional changes in 2017 put the focus on local government officials making them accountable for assuring full implementation of the EPL law and regulations by businesses. \u00a0Local and provincial officials could now be held directly accountable for environmental issues.<\/li>\n<\/ul>\n
<\/h3>\n<\/h3>\nChina environmental law in 2018<\/strong><\/h3>\n <\/p>\n
As 2018 dawned, additional revisions and restrictions were made to existing law to further strengthen the China environmental policy:<\/p>\n
\n- Environmental Protection Tax Law<\/i><\/strong>: \u00a0This law replaced the emissions discharge fee and moved all tax proceeds to the local government<\/a>. \u00a0Local and provincial governments may set rates applicable to their conditions to promote compliance and fund initiatives.<\/li>\n
- Water Pollution Prevention and Control Law<\/i><\/strong>: \u00a0This law defines responsibilities for government officials along the waterway and holds them jointly responsible for pollution control and maintenance. \u00a0The law is designed to encourage officials to pool resources to work toward environmental control instead of addressing only the concerns for their specific area. \u00a0The law also vastly increased fines for illegal discharge into a waterway.<\/li>\n<\/ul>\n
<\/p>\n
<\/h2>\nThe Environmental Protection Law\u2019s Impact on Textiles<\/strong><\/h2>\n\n
![\"China](\"https:\/\/cdn2.hubspot.net\/hubfs\/2723484\/China%20environmental%20policy%20textile%20industry.jpg\")
<\/strong><\/p>\n\n
As China\u2019s new environmental policy matures and as companies, state and provincial governments, and civic organizations begin to gain experience in their new roles there has been a resulting impact on the textile industry. \u00a0<\/span><\/p>\nThe stringency of the laws and regulations are such that whole industrial sections of cities or regions are being temporarily shut down for inspection. <\/span><\/p>\nOfficials can conduct surprise inspections to assess compliance and those companies found in violation may find themselves subject to heavy fines, production curtailment, equipment seizure and work stoppage and in extreme cases where flagrant violations are found, company executives and principals can be detained or even charged criminally.<\/span><\/p>\nAs companies rush to become compliant with ever-increasing statutory stringency, production costs have increased as well. \u00a0<\/span><\/p>\nCapital must be expended to upgrade equipment, training must be conducted for staff, and the costs are being passed down to consumers. <\/span><\/p>\nMoreover, if the upgrades and training must take place during a production limitation or work stoppage due to inspection, the entire supply chain is threatened as mills<\/span> struggle to meet quoted lead times<\/span><\/a>.<\/span><\/p>\nThe additional impact to textile enterprises include:<\/span><\/p>\n\n- \u00a0<\/span> Over 90% of China\u2019s textile companies are small to medium enterprises (SME). \u00a0With only a three-year deadline to meet water pollution targets, many of these companies will not be able to raise the capital expenditures required to upgrade their equipment. \u00a0That deadline drops to two years for those companies that reside in a water-challenged area where currently<\/span> 80% of China\u2019s yarn and cloth<\/span><\/a> are made.<\/span><\/li>\n
- \u00a0<\/span> China\u2019s environmental policy has placed textiles in a list of industries that are required to develop \u201c<\/span>circular economies<\/span><\/a>\u201d. \u00a0In this model, the industry focusses on reuse, remanufacture and on completely closing the loop so that little is lost in the way of resources. \u00a0This represents not only an increased cost but an entirely new paradigm for manufacturing and how goods are sourced and produced. When coupled with daunting capital expenditure requirements, many firms are facing higher costs and in some cases, consolidation with other firms to share costs or closure if the company cannot take on the additional burdens to meet the requirements.<\/span><\/li>\n
- \u00a0<\/span> Public reputation may suffer if<\/span> litigation by NGOs<\/span><\/a> progresses after a complaint or published lack of compliance. \u00a0The result could affect brand awareness for end-use consumers and impact the entire supply chain and profit structure as customers abandon the brand in favor of greener and more sustainable goods.<\/span><\/li>\n<\/ol>\n
<\/h2>\nMeeting the Challenge<\/strong><\/h2>\n <\/p>\n
China\u2019s new environmental policy represents a major shift in pollution mitigation and control. There are, however, proactive steps that textile manufacturers and importers can take to achieve compliance:<\/span><\/p>\n\n- Understand the EPL<\/i><\/strong>: \u00a0A key step for all companies should be in understanding the Environmental Protection Law and all the year over year changes and being vigilant to additional changes as they occur. \u00a0This not only applies to the national law but also to local municipal and regional differences as well. The 2018 Environmental Protection Tax Law and the Water Pollution Prevention and Control Law as well as other regulations adopted in the last four years allow regional and local differences that could result in higher standards than those required by the national law. \u00a0Understanding the law will reduce the chance of a company making a good faith but costly mistake.<\/li>\n
- Assess the Company\u2019s Financial Position<\/i><\/strong>: \u00a0As most textile companies in China are SMEs, a full understanding of what a company can financially accomplish ahead of deadlines will help define their path. \u00a0Relocation, mergers and strategic outsourcing through a compliant company outside of China could reduce the burden of a looming deadline and allow a company to allocate scarce funds wisely to more critical aspects of moving to compliance.<\/li>\n
- Partner with and Centralize Abatement<\/i><\/strong>: \u00a0As one of the most water-intensive industries, textile companies may find some help by locating within industrial parks with a centralized water treatment facility. \u00a0While not a panacea, this allows the company to operate within an area designed to address pollution on a scale with large manufacturing facilities and prevents the burden from falling onto a single entity. \u00a0It is more controllable and more cost-efficient.<\/li>\n<\/ul>\n
<\/h3>\nWant to learn more about how SgT can assist you to
\nbecome to more sustainable?<\/h3>\n
<\/p>\n
China is moving aggressively away from a passive environmental policy that existed mostly in name only prior to 2015. \u00a0<\/span><\/p>\n
<\/p>\n
Within the textile industry in China, companies have found themselves in the environmental spotlight as well. \u00a0<\/span><\/p>\n As the world\u2019s largest producer of textiles, the industry has historically been one of the worst polluters in terms of carbon emissions and water pollution. \u00a0<\/span><\/p>\n In a January 2018 article in<\/span> Devex<\/span><\/a>, Kurt Kipka, senior project manager at the Natural Resources Defense Council (<\/span>NRDC<\/span><\/a>) attributed 1,715 million tons of carbon dioxide, accounting for 5.4% of the global total, for 2015 alone. \u00a0<\/span><\/p>\n Mr. Kipka also stated that these factors make the textile industry one of the<\/span> top five polluting industries<\/span><\/a>. \u00a0<\/span><\/p>\n Even China\u2019s official data from the Ministry of Environmental Protection show that in the same year, 2015, the textile industry in China was the third largest source of wastewater and released 10.1% or<\/span> 1.84 billion tons of wastewater<\/span><\/a> effluent into the environment.<\/span><\/p>\n \n <\/p>\n Since the passage of China\u2019s original environmental protection law in 1989, China\u2019s economy has changed drastically and rapidly. <\/span><\/p>\n However, the passage of a law is only as good as the commitment and enforcement that go with it. \u00a0<\/span><\/p>\n And while the wording was comparable to environmental laws in other industrial countries, the failure came in the lack of enforcement and accountability and in the commitment to implement a true China environmental policy.<\/span><\/p>\n As the crisis worsened in the early 2000\u2019s, it became apparent that more needed to be done to address the overall issue of pollution and environmental damage before that damage became irreversible. \u00a0<\/span><\/p>\n As a result, changes and revisions in environmental law have increased year over year since 2014 to implement oversight and enforcement of industrial impact on the environment:<\/span><\/p>\n <\/p>\n Adopted in April 2014, revisions to China\u2019s 1989 environmental law were designed to begin addressing enforcement issues and to bring civil society and the media into the process through awareness and transparency.<\/p>\n The revisions went into effect on January 1 2015, and targeted several areas:<\/p>\n <\/p>\n As the new laws and regulations began to take hold, 2016 saw changes in participation, awareness and accountability.<\/p>\n As the new Environmental Protection Law went into effect, several trends emerged:<\/p>\n <\/p>\n This year saw changes to the law that began to specifically target certain types of pollution and increase penalties for non-compliance:<\/p>\n <\/p>\n As 2018 dawned, additional revisions and restrictions were made to existing law to further strengthen the China environmental policy:<\/p>\n <\/p>\n \n \n As China\u2019s new environmental policy matures and as companies, state and provincial governments, and civic organizations begin to gain experience in their new roles there has been a resulting impact on the textile industry. \u00a0<\/span><\/p>\n The stringency of the laws and regulations are such that whole industrial sections of cities or regions are being temporarily shut down for inspection. <\/span><\/p>\n Officials can conduct surprise inspections to assess compliance and those companies found in violation may find themselves subject to heavy fines, production curtailment, equipment seizure and work stoppage and in extreme cases where flagrant violations are found, company executives and principals can be detained or even charged criminally.<\/span><\/p>\n As companies rush to become compliant with ever-increasing statutory stringency, production costs have increased as well. \u00a0<\/span><\/p>\n Capital must be expended to upgrade equipment, training must be conducted for staff, and the costs are being passed down to consumers. <\/span><\/p>\n Moreover, if the upgrades and training must take place during a production limitation or work stoppage due to inspection, the entire supply chain is threatened as mills<\/span> struggle to meet quoted lead times<\/span><\/a>.<\/span><\/p>\n The additional impact to textile enterprises include:<\/span><\/p>\n <\/p>\n China\u2019s new environmental policy represents a major shift in pollution mitigation and control. There are, however, proactive steps that textile manufacturers and importers can take to achieve compliance:<\/span><\/p>\n <\/p>\n China is moving aggressively away from a passive environmental policy that existed mostly in name only prior to 2015. \u00a0<\/span><\/p>\n<\/span><\/p>\n<\/h2>\n
Committing to Change<\/strong><\/h2>\n
<\/h3>\n
<\/h3>\n
China environmental law in 2015<\/strong><\/h3>\n
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<\/h3>\n
<\/h3>\n
China environmental law in 2016<\/strong><\/h3>\n
\n
<\/h3>\n
<\/h3>\n
China environmental law in 2017<\/strong><\/h3>\n
\n
<\/h3>\n
<\/h3>\n
China environmental law in 2018<\/strong><\/h3>\n
\n
<\/h2>\n
The Environmental Protection Law\u2019s Impact on Textiles<\/strong><\/h2>\n
<\/strong><\/p>\n\n
<\/h2>\n
Meeting the Challenge<\/strong><\/h2>\n
\n
<\/h3>\n
Want to learn more about how SgT can assist you to
\nbecome to more sustainable?<\/h3>\n