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North-East Asia 213 Chapter 7 7.1 The economy 7.2 Social development 7.3 Environmental and sustainable development conditions and trends 7.3.1 Energy and climate change 7.3.2 Pollution and waste 7.3.3 Water resources 7.3.4 Land resources 7.3.5 Marine resources 7.3.6 Biodiversity 7.4 Subregional cooperation 7.5 Conclusion CHAPTER 7: North-East Asia

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Page 1: Chapter 7-7 Dec - UN ESCAP › sites › default › files › Part4_07.pdf · Key environmental indicators have shown a reversal of forest losses, increased areas under protection

North-East Asia

213

Ch

ap

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7.1 The economy7.2 Social development7.3 Environmental and sustainable development conditions and trends

7.3.1 Energy and climate change7.3.2 Pollution and waste7.3.3 Water resources7.3.4 Land resources7.3.5 Marine resources7.3.6 Biodiversity

7.4 Subregional cooperation7.5 Conclusion

CHAPTER 7:North-East Asia

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The North-East Asia subregion comprises China, the Democratic People’s Republic of Korea, Japan,

Mongolia, the Republic of Korea and the Russian Federation.1 The area covers a rich array of diverse

ecosystems, from permafrost deserts in Mongolia and the Russian Federation to subtropical islands in

southern Japan. However, a large proportion of the land is still subject to desertification or lies in arid

regions, substantially reducing its carrying capacity.

The North-East Asian countries have made some progress in protecting subregional environmental

resources. Key environmental indicators have shown a reversal of forest losses, increased areas under

protection for conservation purposes, and significant improvements in air quality in several cities. The

consumption of ozone-depleting substances has also declined significantly. However, industrialization,

urbanization, and unsustainable patterns of consumption are the source of significant environmental

pressure. The wealthier countries and China are globally important buyers of several environmentally-

sensitive commodities such as minerals, wood products, and agricultural and fishery products. The

expanding use of energy for the processing of these commodities, in addition to its expanding use in the

transport sector, have been cited as the source of pollution and greenhouse gas emissions. The

economies of the Russian Federation and Mongolia are still significantly dependent on supplying

environmentally-sensitive commodities. The Democratic People’s Republic of Korea’s environmental

situation, as recently described by UNEP,2 has shown that despite its limited economic activity and

substantial resource base, the country still faces challenges common to other developing countries.

Among these, aging and inadequate infrastructure are quoted as factors threatening human health in

rapidly urbanizing Mongolia and the Democratic People’s Republic of Korea.

Despite the high levels of environmental pressure and limited environmental carrying capacity that

characterizes this subregion, there is strong justification for taking an optimistic view of North-East Asia’s

future. The subregion has distinguished itself by having established innovative policy frameworks to move

beyond pollution control towards improving the environmental sustainability of production and

consumption patterns. Japan, in its launch of the 3R initiative in March 2005 has extended the promise

of a sustainable future to the world. Subregional cooperation, though centred very much around

transboundary environmental issues such as protection of marine environments and air pollution, is

strong and still growing. These cooperation frameworks have presented substantial scope for action to

promote more environmentally sustainable patterns of economic growth.

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GDP growth rate,% per annum (1999-2003)

GNI per capita US$ (2003)

Consumer Price Index change, % per annum (1999-2003)

Unemployment rate, % (2003)

Merchandise trade,billion US$ (2003)

Total debt/GNI (2003)

ODA received, million US$ (2003)

Foreign direct investment, net inflows, million US$ (2003)

Structure of GDP,% of GDP(2003)

Table 7.1 Economic indicators: North-East Asia

Ch

ina

DP

R K

ore

a

Jap

an

Mo

ng

olia

Re

p. o

fK

ore

a

Ru

ssia

nFe

de

ratio

n

Exports

Imports

AgricultureIndustryServices

Source: Federal Service of State Statistics (2004). Russian Statistical Yearbook, 2003.Other sources: See Annex V.

Notes:a Data for 2001

8.3

1 086

0.3

4.3

438.23412.76

0.14

1 324.59

53 510

155233

-

494

-

-

--

-

167

-

---

0.9

34 396

-0.65

5.3

472383.45

-

-

6 238

13168

2.8

472

5.92

14.2

0.620.8

1.01

247.14

132

281557

5.6

10 976

3.15

3.4

193.82178.83

0.30

-457.73

100

33562

6.8

2 999

17.88

-

133.7257.42

0.49a

1 254.82

7 958

53461

7.1 The economy

The North-East Asian economies vary in size fromamong the smallest in the region, as in the case ofMongolia, to the largest, that is Japan. While Japanrecorded some of the lowest economic growth ratesin the subregion in the late 1990s, its per capita GDPis roughly 77 times higher than that of Mongolia.With annual GDP growth rates averaging 9.7per cent from 1991 to 2003, China has become oneof the largest and fastest-growing economies inthe world. Three of the four “original” newlyindustrialized Asian economies, Hong Kong, China;Taiwan Province of China; and the Republic ofKorea, are also in the subregion. The main economicindicators are shown in table 7.1.

China, Mongolia and the Russian Federationhave been transitioning to market-basedeconomies. The presence of China as an emergingindustrial power helped facilitate a faster thanexpected recovery from the Asian financial crisis andglobal economic slowdowns of the late 1990s andearly 2000s.

A large segment of the workforce in Japan,the Republic of Korea and the Russian Federationare employed by the services sector, which alsocontributes the highest proportion of GDP. InChina, as in many countries of the region,agriculture employs the majority of the workingpopulation. FDI as a per cent of GDP has increasedin the past decade, a trend spearheaded in China.While China attracts the largest amounts of FDI,Mongolia receives the highest FDI as a proportionof its GDP.

Growth in annual household consumptionexpenditure in China and the Republic of Koreaaveraged almost eight and nine per cent respectivelyin the 1990s; growth in world householdconsumption expenditure averaged only 3.3 per centper annum during this period.3 Expandingconsumption in these countries fuelled the demandfor energy, water, and raw and semi-processedmaterials, including environmentally-sensitivecommodities and the growth in waste. In Mongoliaand the Russian Federation, mineral products,

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State of the Environment in Asia and the Pacific 2005

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including oil and gas, made up 64 and 44 per centrespectively of each country’s total merchandiseexports in 2002.4 Energy use declined between 1990and 2001 in the Democratic People’s Republic ofKorea and the Russian Federation in line witheconomic contraction in this period.5

China is one of the world’s most importanttraders in wood products, with most wood importedfor construction, wood pulp, or used by the furnitureindustry. In the past decades China’s economicgrowth was supported by large-scale deforestation;the lower parts of the Yangtze watershed area lostmost of its forest cover to intensive agriculture,timber and fuel supply activity, and the productionof non-wood forest products. This loss hasexacerbated the impact of annual floods. Thevalue of forest product exports from the RussianFederation, consisting primarily of industrial round-wood and semi-processed material such as sawn-wood increased by almost 60 per cent between 1995and 2004.6 China has increasingly imported woodfrom the Russian Federation’s Siberian forests fortimber.

Agricultural intensification has allowed thesecountries to improve the nutritional status of theirpopulations and boosted export earnings, but is alsoa source of significant environmental pressure.China, Japan and the Republic of Korea have amongthe highest rates of fertilizer applications perhectare of agricultural land in Asia and the Pacific.Improper use of agro-chemicals has been a crucialcause of pollution and land degradation. As in manycountries, fertilizer use has been subsidized in bothChina and Japan. At the same time, both countriesare recognized as global leaders in environmentally-sustainable agricultural innovation. In Mongolia, theenvironmental pressure comes from a different typeof agricultural activity: the production of luxuryfleece for high-income consumers. Overgrazed landshave become sites of accelerated desertificationprocesses which have contributed to the increasingfrequency and intensity of dust and sandstorms.Mongolia’s ongoing transition to a market economyhas been described as a framework for political andeconomic changes that “increased the utilization andexploitation of Mongolia’s natural resources ... which

in turn entailed negative consequences for theenvironment.”7 Despite its negligible contributionto the global agriculture market, Mongolia iscurrently the only net exporter of agriculturalproducts. Most years, Japan has been self-sufficientin rice production, but highly dependent on importsof other foods. China and the Republic of Koreaalso depend on food imports, but to a lesser extent.Economic hardship and drought has affected theDemocratic People’s Republic of Korea, debilitatingits agricultural sector.

The subregion is responsible for approximately40 per cent of regional fish and fish product exports,yet it remains a net importer of these products, as aresult of the importance of fish in the diet of North-East Asian people. China accounts for more thanone-half of the global aquaculture production, andabout one-eighth of global fish consumption.Conversion of agricultural land into aquacultureponds has been restricted for environmental reasons.

7.2 Social development

The population of North-East Asian countries ispredicted to increase from 1.6 billion in 2000 to 1.8billion by 2030, peaking between 2025 and 2030.8

Population growth in China has slowed. Precededby Japan, China and the Republic of Korea areexpected to face major challenges in the comingdecades, due to their aging population. As elsewherein the region, economic growth is supportingpoverty reduction efforts. In China, the proportionof people living in poverty dropped from 33 to 16per cent, and the total number of poor decreasedby 186 million. However, indicators such as lifeexpectancy at birth, under-five mortality rateand the proportion of the population with dietaryenergy supply below the minimum energyrequirement, still leave considerable room forimprovement in China, the Democratic People’sRepublic of Korea, Mongolia, and to some extent,the Russian Federation (Table 7.2).

Some 48 per cent of North-East Asia’spopulation lives in cities. Urban population growthrates are exceeding overall population growth rates,and changing North-East Asian societies. Thefastest growing urban populations are in China and

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Mongolia with urban population growth rates of 3.2and 1.4 per cent per year respectively.9 Nowhere arethe impacts of the urbanization phenomena moreevident than in China, where labour migrationlinked to industrialization has become the drivingforce for urbanization processes. Infrastructure andhousing development have been hard-pressed to keepup with urban population growth rates, and urbanmigrants have been forced to live in slums lackingaccess to improved water and sanitation facilities.Residents of Ulaanbaatar, Mongolia are facingsimilar problems.

The Gender-related Development Index andkey indicators have shown improvement in genderequality in most countries. Reflecting the subregion’sstatus as a global centre for ICT innovation, access

to these technologies has been among the highestworldwide, in Japan and the Republic of Korea. Thishas contributed substantially to improved access toenvironmental information and by consequence,stakeholder participation in policy development andimplementation.

7.3 Environmental and sustainabledevelopment conditions and trends

The North-East Asian countries have made someprogress in protecting subregional environmentalresources. Environmental indicators show a reversalof forest losses, increased areas under protection forconservation purposes, and significant improvementsin air quality with respect to SO

2 concentrations in

several cities. The consumption of ozone-depleting

Table 7.2 Social indicators: North-East Asia

Ch

ina

DP

R K

ore

a

Jap

an

Mo

ng

olia

Re

p. o

fK

ore

a

Ru

ssia

nFe

de

ratio

n

Source: See Annex V.

Notes: a 1998b 2001c 2002

1 315 844

0.6

38.6

37.8

0.75

94.6

17b

70.9

37

11

77

0.74

0.43

22 488

0.5

61.1

0.7

-

-

-

-

55

36

100

-

0

128 085

0.1

65.4

6.3

0.94

100

-

81.5

4

-

100

0.93

0.75

2 646

1.2

56.7

64.9

0.67

86.6

27a

63.7

68

28

62

0.66

0

143 202

-0.5

73.3

5.6

0.80

-

2c

66.7

21

4

96

0.79

0.5

Total population, thousands (2005 estimate)

Population growth, % (2004-2005)

Urban population, % of total (2003)

Slum population, % of urban (2001)

Human Development Index (2002)

Primary school enrollment rate, % (2001)

Population below US$1 (1993 PPP) per dayconsumption, % (1990-2002)

Life expectancy at birth, years (2002)

Under-five mortality rate, per 1,000 live births (2003)

Population with dietary energy supply below minimumrequirement, % (2000-2002)

Access to an improved water source,% of population (2002)

Gender-related Development Index (2001)

Digital Access Index (2002)

Po

pu

latio

n

47 817

0.5

80.3

37

0.89

99.9

2a

75.4

5

<2.5

92

0.88

0.82

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State of the Environment in Asia and the Pacific 2005

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substances has declined significantly with CFCconsumption down by almost 100 per cent from1995, as compared with a global decrease ofapproximately 70 per cent in the same period.

Comprehensive environmental initiatives haveincluded national strategies and action plans forsustainable development such as China’s TenthFive-Year Plan for National Economic and SocialDevelopment (2001-2005), Mongolia’s NationalAction Programme for Sustainable Development for the21st Century (MAP-21) adopted in 1998 and theRepublic of Korea’s Green Vision 21 (1995-2005)and National Environmental Vision for the NewMillennium. Japan amended the Basic EnvironmentPlan in 2000 and has initiated several new policyframeworks aimed at reducing the resource-useintensity and waste production.

Institutional and legislative frameworks havealso been augmented. The National EnvironmentalProtection Agency of China was upgraded from asub-ministry to a ministry and renamed the State

Environmental Protection Administration in 1998.Similarly, the Environmental Agency of Japan wasupgraded to the Ministry of the Environmentin 2001. Laws and acts addressing a wide range ofenvironmental issues have been adopted orstrengthened in each country.

However, the push for economic growth, highand rising incomes, urbanization, changing lifestylesand relatively high energy intensities in somecountries,10 have been symptomatic of decliningenvironmental sustainability and increasing pressureon the natural environment. The DemocraticPeople’s Republic of Korea, Mongolia and theRussian Federation have been additionally burdenedwith outdated technologies and narrow economicbases. This pressure has been reflected in thepersistence of urban air pollution related totransportation emissions, acid rain, the increasingfrequency of dust and sandstorms, stressedfreshwater systems and biodiversity loss, and theimpacts of climate change.

Table 7.3 Environmental indicators: North-East Asia

Ch

ina

DP

R K

ore

a

Jap

an

Mo

ng

olia

Re

p. o

fK

ore

a

Ru

ssia

nFe

de

ratio

n

Source: See Annex V.

15

15.617.5

17

43

2 142

484

330443

2344

219

Protected areas,% of land area

Forest area,% of land area

Land use,% (2002)

Renewable water resources,m3/capita/year

Water withdrawal,m3/capita/year

Threatened species,numbers (2004)

Access to improved sanitation,% of population

Energy intensity,energy supply(kg of oil equivalent) perUS$1,000(PPP) GDP

2004

19902000

Arable andpermanent cropsPermanent pasture

2003-2007

1998-2002

AnimalsPlants

19902002

2002

2

68.268.2

22

0

3 387

400

413

-59

-

9

63.964.0

13

1

3 365

694

19312

100100

157

14

7.26.8

1

83

13 232

172

390

-59

-

4

63.863.3

19

1

1 454

392

550

--

258

9

50.350.4

7

5

31 653

532

1447

8787

537

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7.3.1 Energy and climate change

Total subregional energy use increased by over 10per cent between 1990 and 2001, more thandoubling in the Republic of Korea and increasingby some 31 per cent in China (Table 7.4). Energyintensities increased marginally in the Republic ofKorea from 1990 to 2002, while China’s energyintensity dropped by 50 per cent over the same timeperiod. The Russian Federation’s energy intensity in2002 was one of the highest in the subregion, andwas almost equivalent to China’s 1990 energyintensity.

China, the Russian Federation, Japan, and theRepublic of Korea have been ranked in the top 10emitters of CO2 among Annex I and non-Annex IParties to the United Nations Framework Conventionon Climate Change. Their total emissions accountedfor approximately 26 per cent of the world total in2001,11 with more than half of total emissions beingattributed to the generation of public electricity(Table 7.5). The producer of the most CO2 in thesubregion, China (Figure 7.1), has taken significantsteps to increase use of natural gas and decreaseeconomic reliance on heavy industry. These effortshave reduced CO2 emissions from industry (Figure7.2). Public electricity continues to be a major sourceof CO2 emissions and the transportation sector’scontribution to the total emissions of CO

2 is

rapidly growing (Figure 7.3).

Apart from Japan and the Republic ofKorea, the countries of the subregion suffer fromenergy supply shortages reflecting both economicand infrastructural limitations. Continued highdependence on imported fossil fuels, rising energyprices and relatively inefficient energy use haveconspired to increase the vulnerability and decreasethe environmental sustainability of theseeconomies. A programme launched in China inJune 2005 aims at reducing energy consumption bynearly 19 million tonnes of coal equivalent, in itsfirst three-year phase. The US$80 million project isco-funded by the GEF, the Government of Chinaand the private sector. While the most urgentpriority of China, the Democratic People’sRepublic of Korea, Mongolia and the RussianFederation is improving the efficiency of energy use

in the short term, renewable energy, in particular,new renewables such as solar and wind energy, areincreasingly being explored as a long-term solution.

China has the highest diffusion of renewableenergy use in the subregion (Figure 7.3), partly areflection of an energy policy agenda which identifiesa target of installed capacity of renewable energy(defined by its Law of Renewable Energy as includingwind, solar, biomass, geothermal and oceanicenergy) of 12 per cent of installed power generationcapacity by 2020. The traditional use of biomass asa fuel source in rural areas of China also continuesto account for a high share of renewable energy usecompared to other countries in North-East Asia.China’s direct investment in renewable energypromotion is about 2.5 billion RMB or US$300

Table 7.4 Total energy use: North-East Asia

Table 7.5 CO2 emissions by sector: North-East Asia, 2001

(million metric tons)

Industry Residential Road &Transport

Publicelectricity

China

DPR Korea

Japan

Republic ofKorea

Russian Fed.

Totals

924.24

44.22

226.34

81.68

203.9

1 480.38

219.32

0.12

63.57

30.87

156.6

470.48

104.92

1.55

233.32

69.16

108.7

517.65

1 349.23

11.75

332.73

126.79

505.2

2 325.7

Source: IEA (2003). CO2 emissions from fuel combustion

1971 - 2001 (Paris, IEA/OECD).

Energy use(‘000 metric tons

oil equivalent)

Energy use percapita

(kg oil equivalent)

2001% change1990-2001

1990 2001

Mongolia

China

Japan

DPRKorea

Rep. ofKorea

RussianFed.

Total

-

1 139 369

520 729

20 440

194 780

621 349

2 496 667

-

31

19

-38

110

-20

13

-

767

3 534

1 647

2 160

5 211

-

-

896

4 099

914

4 114

4 293

-

Source: World Bank (2004). World Development Indicators

(Washington DC, World Bank).

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State of the Environment in Asia and the Pacific 2005

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Source: OECD (2002). Extended Energy Balances of OECD

Countries (2002 Edition) and Extended Energy Balances of

non-OECD Countries (2002 Edition)(Paris, IEA/OECD).Electronic database accessed in November 2004 from

<http://data.iea.org/ieastore/default.asp>.

Figure 7.3 Energy production from renewables, North-East Asia (excluding hydropower)

China

200,000

205,000

210,000

215,000

1990

1992

1994

1996

1998

2000

kt

oil

eq

uiv

ale

nt

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

kt

oil

eq

uiv

ale

nt

Japan DPR Korea

Rep. of Korea Russian Federation

Figure 7.2 CO2 emissions by sector, North-East Asia

Industry and construction

All transportation (internal)

Source: IEA (2003). CO2 emissions from fuel combustion

1971-2001 (Paris, IEA/OECD).

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

China Japan

DPR Korea Rep. of Korea

Russian Federation

mill

ion

me

tric

to

ns

mill

ion

me

tric

to

ns

0

50

100

150

200

250

300

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

China Japan

DPR Korea Rep. of Korea

Russian Federation

Figure 7.1 CO2 emissions by country, North-East Asia

Source: IEA (2003). CO2 emissions from fuel combustion 1971-

2001 (Paris, IEA/OECD).

0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

China DPR Korea

Japan Mongolia

Rep. of Korea Russian Federation

kt

3,500,000

2,800,000

2,100,000

1,400,000

700,000

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million annually, two-thirds of this for biomass andsmall hydropower, with a substantial focus ondistributed energy technologies such as householdbiogas and solar PV. Overseas development assistanceis a substantial supporter of renewable energytechnology deployment. The ADB’s RenewableEnergy Technical Assistance Project is partiallysupporting the deployment of 35 sets of windturbines. The Clean Development Mechanism,from the total investment point of view is describedas playing a limited role in the development ofrenewable energy projects. However, the incomefrom the sale of certified emission reductions isestimated to potentially contribute to about 30 to50 per cent of project profits, thereby playing animportant role in project sustainability.12

In Japan, a policy encouraging the use ofphotovoltaic panels has created an environment inwhich solar power has become a feasible energysource for certain applications. Japan’s wind energycapacity expanded from 8 MW to 84 MW in theperiod 1999 to 2001.

7.3.2 Pollution and waste

Economic growth based on rapid industrializationand resultant rising incomes has led to increasingproduction of pollution and waste. Japan and theRepublic of Korea are making progress in pollutionand waste control, while China, Mongolia and theRussian Federation are becoming increasinglychallenged to strengthen and enforce waste andpollution regulations.

Air pollution

Continued reliance on coal and fossil fuels as themain sources of energy together with increasedenergy consumption make air pollution one of themost critical environmental challenges facing theregion. Despite the declining emissions of twoacidifying pollutants, SO2 and NO2 observed in theDemocratic People’s Republic of Korea, Mongoliaand the Russian Federation and from 1990 to 2000(Table 7.6) air pollution is still a significant issue inthese countries. Particulate matter is the main airpollutant of concern. In China and other countries,efforts to minimize SO2 and particulate emissions

China

Mongolia

Russian Federation

Table 7.6 Anthropogenic emission of SO2 and NO

2: North-East Asia (thousand metric tons)

SO2

NO2

1990 2000 % change(1990-2000)

1990 2000 % change(1990-2000)

25 369

2 0851 001c

1 364

2 4301 611c

11

17 516

48 77546 872b

34 184

2 597857c

866

4 285951a,c

8.5

9 685

5162646 552b

35

25-14

-37

76-41

-23

-45

6-1b

8 563

2 5872 052c

476

915925c

46

8 762

21 34820 824b

13 804

3 2882 064c

293

2 1401 136a,c

9.6

5 250

24 78522 557b

61

271

-38

13423

-79

-40

168b

Japan

Democratic People’sRepublic of Korea

Republic of Korea

Total

Sources: The Netherlands Organization for Applied Scientific Research (TNO) and the National Institute of Public Health and theEnvironment (RIVM), The Emission Database for Global Atmospheric Research (EDGAR)

<http://www.mnp.nl/edgar/>;OECD (2004). OECD Environmental Data Compendium (Paris, OECD).

Note:a Data for 1999.b Using OECD data for Japan and the Republic of Korea.C Data from OECD (2004). OECD Environmental Data Compendium (Paris, OECD).

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State of the Environment in Asia and the Pacific 2005

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focused on improving fuel quality and installationof scrubbers in electric power plants. Withimproving economic health, subregional emissionsof SO2 and NO2 which, in total did not increasesubstantially from 1990 to 2000, can be expected toincrease by greater amounts in the coming years(Table 7.6). Acid deposition resulting fromemissions of these acidifying gases is thereforestill a major problem in North-East Asia. Such airpollutants are a major component of transboundaryair pollution.

China is the most important SO2 emitter. The

2004 annual “Statement on the Environment”

SO2

Figure 7.4 Urban air pollution: SO2 and NO

2, North-East

Asia

0

50

100

150

200

250

1980 1985 1990 1995 2000

mic

rog

ram

s/m

3

Tokyo KawasakiMatsue SeoulDaegu BeijingShanghai WHO guideline value

issued by the State Environmental ProtectionAdministration (SEPA) noted that there had beensignificant declines in SO

2 emissions in recent years,

but estimated that acid rain still occurred in 54.4per cent of the total 487 cities monitored in 2002.Acid rain, it said, affected more than 30 per cent ofChina’s territory and cost at least 110 billion Yuan(US$13.3 billion) annually.

Although acid rain persists, there have beenimprovements in SO

2 concentrations in many

urban centres (Figure 7.4). The continued increasesin NO

2 emissions have been largely attributed to

fuel combustion for transportation. This trend hasbeen reflected in the urban air concentrations of thispollutant, which exceeded the WHO guidelinethresholds in many cities (Table 7.7 and Figure 7.4).There is some evidence, however that NO

2 concen-

trations may also be slowly declining in a fewcities such as Shanghai, Taipei and Tokyo.13 Oncenotorious for having one of the highest levels of airpollutants globally, Beijing has adopted multiplestrategies to tackle the rising pollution fromvehicles, including more stringent emissions standardsfor pollution from motor vehicles, vehicle inspectionschemes, and setting higher fuel-quality standards.As of October 2004, vehicle emission standards werefurther strengthened by the adoption of the Euro IIstandard. As a result of these efforts, and despite arapid increase in vehicle use in Beijing during the

Table 7.7 Air pollution in large cities: North-East Asia

China

Republic ofKorea

Japan

WHO guideline valuesa

PM10 SO2

NO2

Sources: Clean Air Asia Initiative Secretariat, February 2005;Ministry of Environment, Republic of Korea.

Notes:a WHO guideline values for PM10 (2005), SO

2 (1999) and NO

2

(2005).

BeijingShanghai

SeoulBusan

Tokyo

14197

6955

32

20

6143

1316

10

50

12257

7149

55

40

Annual mean ambientconcentrations(µg/m3, 2003)

NO2

Source: OECD (2003), OECD Environmental Data Compendium

2002 (Paris, OECD); Bentai, Wan (2000). “Ambient Air QualityMonitoring in China,” presented to the Better Air Quality in

Asian and Pacific Rim Cities Conference,16-18 December 2002.

0

25

50

75

100

125

1980 1985 1990 1995 2000

/m3

Tokyo Kawasaki

Matsue Seoul

Daegu Beijing

Shanghai WHO guideline value

mic

rog

ram

s

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same period, the deterioration in air quality slowedafter 1998. NO2 and CO concentrations reportedlydropped by 16.4 and 21.2 per cent, respectivelybetween 1998 and 2001. China went a step furtherto announce that it would give priority to thedevelopment of urban public transportation systemsover a five-year period, starting 2004.

The health effects of dust and suspendedparticulate matter resulting from incompletelycombusted fossil fuels and biomass, as well as otheraerosols, are still a matter of serious concern. Inurban areas, suspended particulate matter has had aserious impact on human health. Concentrations ofPM10 in the large cities of Japan and the Republicof Korea in 2003 did not meet the most recentlyestablished WHO guideline value (Table 7.7). Manyother large cities in the subregion, particularly inChina, are still exposed to PM10 concentrations thatare much higher than guideline values. Monitoringof air pollution in urban centres is still weak inthe Democratic People’s Republic of Korea andMongolia. Air pollutant concentrations are knownto be particularly high in the winter months inMongolia. Dust and sandstorm events are discussedunder “land degradation”.

E-waste

One of the fastest-growing waste streams is e-waste,that is, discarded electronic appliances such ascomputers, refrigerators, televisions, air conditioners,cellular phones and stereos. Across Asia and thePacific, rising household consumption and thereforeexpanding market sizes, rapid innovation andchanging consumer preferences have all beenresponsible for the fast growth in this sector.However, in North-East Asia, this trend has beenaccelerated by the fact that China, the Republic ofKorea and Japan are major producers of electronics,and that Japan and the Republic of Korea have someof the highest levels of ICT use, globally. E-wastecontains, among other substances, lead, cadmium,mercury, chromium, polyvinyl chloride (PVC),brominated flame retardants, barium and beryllium.When improperly handled, all of these substancesare highly toxic and hazardous to human health. Thecontent of valuable recoverable material (which

includes gold and copper) is an incentive to informalrecycling activity which involves burning of wastesin the open and acid extraction carried out withlittle regard to environmental health. The resultantpollution impacts the health of those involved inrecycling, and others. China was one of the firstproponents of the Basel Convention on TransboundaryMovement of Hazardous Waste, and banned theimportation of e-waste in 2002. However, it is still avictim of illegal trade in these materials.

Industrial waste and pollution

Industrial waste accounts for the major portion ofwaste in the subregion. In the Republic of Korea,approximately 80 per cent of generated waste comesfrom industrial sources.14 The Russian Federation’soil and gas extraction industries are significantsources of pollution and waste, and along withradioactivity and nuclear waste, compound wasteburdens.

The production of hazardous waste increasedby over 50 per cent in the Republic of Korea andthe Russian Federation during the 1990s,15 with theRepublic of Korea also importing substantialamounts of hazardous and other wastes (Table 7.8).Legislation enacted in 2002 in the Russian Federationlegalizes the importation of hazardous wastefor treatment, the proceeds of which are earmarkedby the federal government for environmentalimprovements. In Japan, treatment ofpolychlorinated biphenyls (PCBs) and control ofdioxin emissions has received much attention in the

Table 7.8 Trade in hazardous and other waste:North-East Asia, 2000 (thousand metric tons)

Imports

China

Democratic People’sRepublic of Korea

Japan

Mongolia

Republic of Korea

Russian Federation

Sub-Total

Exports

3 346

-

1 539

-

60

96 988

101 933

-

-

3 924

-

17 380

8 083

29 387

Source: Secretariat of the Basel Convention, data asreported by parties.

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media. Production, import, and use of PCBs, whichare mostly used in the manufacture of chemicalequipment, have been prohibited since 1974.Action to reduce PCB emissions has beensuccessful; discharges of PCBs in 2002 were 90 percent lower than in 1997. However, prior to thisaction large quantities of PCBs were inappropriatelydisposed of and still present a threat.

Ozone-depleting substances

In keeping with the provisions of the 1987Montreal Protocol on Substances that Deplete theOzone Layer, efforts have been made to phase-outchlorofluorocarbons (CFCs). As a result, mostcountries in the subregion have cut back CFCproduction, demonstrating the success of domesticpolicies (Figure 7.5). However, the subregion stillaccounts for 60 per cent of the CFCs consumed inAsia and the Pacific.

Among the national responses to improve themanagement of air pollution and waste are:

• The Democratic People’s Republic of Korea’senergy strategy that focuses on improvementsin energy efficiency;

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

OD

P m

etr

ic t

on

s

China DPR Korea

Japan Mongolia

Rep. of Korea Russian Federation

Figure 7.5 Consumption of ozone-depleting substances(all CFCs), North-East Asia

Source: United Nations Environment Programme (UNEP),GEO Data Portal, compiled by the Ozone Secretariat,

<http://geodata.grid.unep.ch/>.

• China’s “Directive on the Restriction of theUse of Certain Hazardous Substances inElectrical and Electronic Equipment” (see box7.1). China’s revision of the Law of AirPollution and Control was issued in 2000 toinclude amendments to define pollutiondischarge standards, establish the totalcontrol system and discharge permit system,

Box 7.1 Trade solutions to the e-waste problem

As one of the world’s largest exporters of electronic goods, China has been looking for solutions to tackle theupcoming EU waste electrical and electronic equipment (WEEE) regulations. China’s Restriction of the Use ofCertain Hazardous Substances in Electrical and Electronic Equipment Directive (China RoHS) is expected toprovide incentives for the development of cleaner replacement technologies. These initiatives not onlyprotect the environment, but by taking steps to comply with the regulations of their trade partners, China is alsoseeking to protect its competitiveness in the global market. The China RoHS Directive is expected to stronglyinfluence other Asian countries and trade markets. By introducing the China RoHS and WEEE directives, Chinais applying extended producer responsibility principles in production policy.

The initial China RoHS draft, entitled “Management Methods on the Prevention and Control of Pollution Causedby Electronic Information Products”, underwent detailed review and discussion up to the final stages ofratification. It was approved at the end of 2004, and took effect on 1 July, 2005. Modelled on the EU RoHS, itaims at reducing and restricting the use of mercury, lead, cadmium, chromium, polybromide biphenyl, andpolybromide biphenyl ether over the product life-cycle. These substances are to be phased out by July 2006. Italso requires manufacturers to provide product information on packages, including the names of hazardoussubstances and their contents. (Articles 10, 13, 14). In addition, it mentions producer responsibility on‘take-back’ and recycling of waste electrical and electronic equipment (WEEE) (article 16). Accordingly, Chinais in the process of developing “Management Regulations on Recycling and Treatment of Waste and UsedHousehold Electrical and Electronic Products”.

Sources: China Environmental Protection Net, “Management Methods on the Prevention and Control of Pollution Causedby Electronic Information Products,” <http://www.ep.com.cn/cgi-bin/dbfg/doc.cgi?id=1849> (in Chinese); China Court

(2004). “The Law on Management Methods on the Prevention and Control of Pollution Caused by Electronic InformationProducts to be Implemented Next July,” <http://www.chinacourt.org/public/detail.php?id=123675> (in Chinese); National

Development and Reform Commission, “Management Regulations on Recycling and Treatment of Waste and UsedHousehold Electrical and Electronic Products (Draft for Comment)”,

Draft as of September 17, 2004

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establish the charge rates based on totalpollutant discharge, focus on air pollutionprevention and control in major cities,strengthen the control of pollution fromvehicles, strengthen the control of urban dustpollution and cement legal liabilities;16

• Japan’s “Special Measures for Total EmissionReduction of Nitrogen Oxides and ParticulateMatter from Automobiles in Specified Areas”,adopted in 2002,17 which include restrictionson the use of high pollution vehicles (especiallydiesel automobiles), and the promotion ofpublic transportation. Japan’s Clean Air Acttargets a specified quantity for reduction ofdioxin and PCB emissions, and has successfullydecreased PCB emissions from incineratorplants. Furthermore, a system for theappropriate treatment of stored PCBs has beenestablished, which is expected to facilitate thetreatment of all PCB waste by 2016;

• Mongolia’s Waste Reduction Programmeand efforts to improve waste disposal inUlaanbaatar.18 Mongolia has also introducedregulatory measures along with economicinstruments to address air pollution, withinternational assistance, although insufficientmonitoring and weak capacity have reducedthe effectiveness of these initiatives;

• The Republic of Korea’s long-term air pollutioncontrol plan called Blue Sky 21, provides thelegal basis for introducing total emission-loadcontrol, emission trading and mandatorypurchasing of low emission vehicles. TheRepublic of Korea’s 2002 Law on the Promotionof Saving and Recycling Resources mandates thecollection of used products by manufacturers.Products designated for collection are batteries,tires, lubricating oil, electrical appliances andfluorescent lights. Cellular phones and audioequipment also became items for collectionunder this law in 2005; and

• The Russian Federation’s initiatives on cleanerproduction, starting in the early 1990s withthe establishment of the Russian-NorwegianCleaner Production Centre. Over 1,650

specialists from 500 enterprises have participatedin the training and technical assistanceprogramme.

Seeking to promote the development of moreeco-efficient economies and more sustainablesolutions to the problem of waste and pollution,China has stated its intention to build a resource-efficient society as an underlying principle of itseconomic and social development plans. Thisvisionary objective has been built into the EleventhFive-Year Plan (see chapters 3 and 4). A consensuson cleaner production has also been reached inChina. At the Second National Conference onIndustrial Pollution Control in 1993, cleanerproduction was officially proposed and promotedas part of China’s sustainable developmentplanning.19 On 29 June 2002, the National People’sCongress approved the Cleaner Production PromotionLaw. This law has been identified as one of the mostsignificant initiatives adopted by the Governmentof China.20 Interim guidelines for cleaner productionaudit, cleaner production indicators for three keyindustries, and cleaner production guidelines for keyindustries have been issued. China has also begundeveloping “Green GDP” in an attempt to measurethe environmental costs of development activity.

Japan’s 3R Initiative outlines an action planto promote waste-reduction, recycling and reuseglobally. This initiative has been supported byJapan’s ongoing work on monitoring material flowaccounts and resource productivity. The initiativewent a step beyond cleaner production and betterproduct design which has already taken root. Betterproduct design based on life-cycle assessments andan emphasis on easily recyclable materials has alreadybegun to green the production process. In Japan,clean production integration into environmentalpolicy is mature; the Eco-Town Project is a keyexample of Japanese cleaner production efforts(Box 7.2). Japan has also established the FundamentalLaw for Establishment of a Material-cycle Societyin 2000, accompanied by laws such as the WasteManagement and Public Cleaning Law, the Law forthe Promotion of Effective Utilization of Resources andthe Container and Packaging Recycling Law. In addition,the End-of-life Vehicle Recycling Law was passed

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in 2002 as a companion law, which defined theresponsibilities and roles of automobile manufacturersand related agencies.

The Republic of Korea’s cleaner productioninitiatives began with the introduction of twopolicies in the 1990s. The first, the Deposit-RefundSystem (1992) placed the burden of responsibilityfor waste recovery on producers and importers, whileproviding incentives that promoted the recovery ofrecyclable materials. The second, the Waste ProductionCharges System (1993) aimed at suppressing theconsumption of products with high waste-treatmentcosts and poor characteristics for recycling. Inaddition, the Extended Producer Responsibility (EPR)System holds producers accountable for the entirelife cycle of their products and set mandatoryrecycling targets. It has been in force since 2003.

Green procurement stimulates and supportscleaner production initiatives and relies heavily oncredible ecolabelling schemes. Japan and theRepublic of Korea have both expanded greenprocurement activity through legislative action.

Japan’s green purchasing law was enacted in April2000 and revised in March 2004 to expand the listof items targeted for green purchasing. It requiresthe public sector to promote procurement of productsand services that contribute to reducing the negativeimpact on the environment. It also obliges nationalgovernmental bodies to formulate green procurementpolicies and to publicly disclose this information.The result, reported by the Ministry of theEnvironment in 2003, was that more than 95 percent of procurement in 2002 met eco-friendlyprocurement requirements; significant increases ingreen procurement activity in uniforms and air-conditioners, have been recorded.21 The Republicof Korea’s 2004 green purchasing law placed similarrequirements on the public sector and is projectedto result in an expansion of the domestic “green”market from US$2 billion to US$5 billion dollarsbetween 2004 and 2006.22

Ecolabelling schemes are the basis for creatingvibrant markets for environmentally friendly goodsand services. The ecolabelling system of the Republic

Box 7.2 Eco-industrial development and waste reduction: zero-emission eco-town projects in Japan

Since 1997, the Government of Japan has provided both technical and financial support to local governmentsto promote “Eco-town projects” under what has been one of the most successful policy programmes toaddress Japan’s serious waste management crisis.

Eco-towns are areas in which zero-emission concepts are put to practical application. Once the Ministry ofEconomy Trade and Industry approves a development plan, local governments and companies receive fundingto support the establishment of ecologically sound industrial activity that applies a holistic approach tomaterial flow through the area. Waste reduction is promoted through process changes and recycling, andwaste and final products are used as inputs for other industries or processes in the area. Such efforts maximizeefficiency of resource-use, reduce waste and emissions and result in tangible economic benefits. Consequently,by-product exchange and zero-emissions efforts are now perceived as a potential source of economic value,rather than a burden on businesses needing to comply with strict regulations.

Local governments can also use government funds to develop and implement comprehensive plans for thearea and attract companies that will actively facilitate recycling and waste and energy use reductionprogrammes. Up to 50 per cent of the project cost, including both managerial activities, such as planning orpromotion, and technical costs, such as recycling facilities or new technologies, can be financed by the funds.Eco-town projects have been initiated in 26 areas, mainly in former chemical industrial zones including:

• Chiba Prefecture (eco-cement plant, environmental engineering complex)• Gifu Prefecture (recycling industry complex, environmental research and education facility)• Akita Prefecture (electronic recycling facility and promotion of sustainable energy)• Kitakyushu City (eco-industrial complex, recycling park, research center)

The tangible economic benefits of eco-town projects include reduced costs of waste disposal and energy.Even in cases where eco-town projects have not been found to be financially viable, they have neverthelessmade important contributions to reducing the environmental impact of industrial activity. In one low-tech.example, the eco-cement plant in Chiba Prefecture uses ash, the by-product of incineration processes, tomake cement by adding natural limestone. The result is significant waste reduction, reduced costs of wastedisposal and reduced expenditure on purchase of virgin aggregate.

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of Korea includes four certification schemes: (i) theEco-label (life-cycle environmental performance); (ii)the GR Mark (quality and recycled materialcontent); (iii) the Energy Mark (energy efficiency);and (iv) the EDP-Label (most recently established,certifies the reliability of environmental declarationof products based on the life-cycle assessment). Asof May 2005, more than 2,000 products had receivedcertification. The 2003 market size of greenproducts was reported as being equivalent to 0.2 percent of the GDP of the Republic of Korea, or someUS$1.5 billion, with fluorescent lamps, paint andwater faucets having claimed the largest marketshares.

7.3.3 Water resources

Water scarcity, contamination and pollution harmhuman health, reduce food security and damagevaluable ecosystems. Japan’s per capita freshwaterwithdrawals for 2000 were approximately five timesthat of Mongolia, and the largest in the subregion.The annual water withdrawal of China is expectedto reach 764 km3 by 2025, or almost twice thevolume as in 1970.23

Many factors have been driving the increasein water demand in the subregion. Agriculture hasbeen the largest consumer of water in all North-EastAsian countries, except in the Russian Federation.In the Russian Federation, hydroelectric power andindustry use more water than any other sector.However, with the declining efficiency ofoutmoded irrigation systems built in the 1950s and1960s, water losses have been increasing.24

Rapid large-scale urbanization andindustrialization has resulted in localized shortagesof freshwater resources in China, Japan, Mongoliaand the Republic of Korea, particularly in times ofdrought. Lakes in Xinjiang, eastern Qinghai-tibetplateau, and Yunnan, China have all shrunk in thepast 200 years, as a result of accelerated evaporationand increased water consumption by industry andagriculture. Groundwater exploitation has loweredwater tables by up to dozens of metres since the1960s.25 Responses to the shortages, such asregulating the overexploitation of groundwater,introducing cascade use of secondary treated water,

and improving rainwater harvesting with moderntechnology have recently been promoted in Japanand the Republic of Korea.

Although well-endowed with water, waterpollution has advanced water resources managementon the development agenda of the DemocraticPeople’s Republic of Korea.26 Freshwater resourcesare increasingly polluted in China and Mongolia,reducing the availability of water of suitable quality,and increasing the costs of treatment. Low access tosanitation and high rates of urbanization inMongolia and China, together with limited ordeclining treatment of wastewater, added to the loadof organic pollutants from the industry. Mongolia’spopulation, with the lowest levels of access to safedrinking water in both urban and rural areas, isincreasingly at risk from environmental healthproblems. Water treatment plants treated around 96per cent of all wastewater at the end of the 1980s,but 10 years later, less than 50 per cent was treated.27

Mining is another major source of water pollutionin Mongolia.

China is facing serious water quality problemsin both surface and groundwater. Industrialwastewater as the main pollutant until the late 1990s,has been replaced by domestic sewage. From 1998to 2002, the volume of wastewater discharged fromdomestic sources increased by almost 20 per cent, ascompared with a four per cent increase in the sameperiod for the industrial sector. Likewise, CODdischarge from industry decreased during thisperiod by some 30 per cent, while domesticdischarges of COD increased by 13 per cent,topping the discharges from industry by one third.In the seven river basins (Liao River, Huai River,Hai River, Songhua River, Yellow River, Pearl River,and Yangtze River), approximately half of the rivers,lakes and groundwater are seriously polluted.Industrial accidents (see chapter 2, section 2.4) areserious threat to water quality in China. Theunregulated disposal and recycling of e-wastes alsohas a potentially severe impact on water quality inlocalized areas of China.

While there have been some marginalreductions in phosphorus levels in major lakes inJapan and the Republic of Korea, rising nitrogen

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Figure 7.7 Pollutant concentrations: major lakes inJapan and the Republic of Korea

Nitrogen

-

mg

pe

r lit

re

1995 1999

Chunghan (R

OK)

Paldong (R

OK)

Chooncheon (R

OK)

Kasum

igaura

(JAP)

Biw

a (South

) (JA

P)

Biw

a (North

) (JA

P)

3.0

2.5

2.0

1.5

1.0

0.5

1995 1999

Kasumigaura

(JAP)

Paldong (ROK)

Biwa (S

outh) (JAP)

Chunghan (ROK)

Chooncheon (ROK)

Biwa (N

orth) (

JAP)

mg

pe

r lit

re

0.100

0.080

0.060

0.040

0.020

0.000

Phosphorus

Source: OECD (2003). Environmental Data Compendium

2002 (Paris, OECD).

Figure 7.6 Fertilizer use intensity, North-East Asia

Source: FAO FAOSTAT online database, accessed on 9December 2004 from <http://faostat.fao.org>.

0

100

200

300

400

500

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

China Japan

DPR Korea Rep. of Korea

Russian FederationMongolia

kg

of

fert

ilize

r p

er

km

2 a

gric

ultu

ral l

an

d

levels in the Republic of Korea are the result ofagricultural pollution and domestic sewerage.(Figure 7.6, figure 7.7 and figure 7.8).

In semi-closed areas along the coasts of thesecountries, red tides and eutrophication continue tooccur as a result. BOD levels have declined in mostof the major rivers in both the Republic of Koreaand Japan, with technological improvements andmore stringent regulations (Figure 7.8). In Japan,on the whole, there has been an improvement inwater quality. Hazardous substances such as cadmiumand mercury have been drastically reduced andheavily contaminated areas have been cleaned up.28

The ability of the subregion, and in particular,China and Mongolia, to meet its water needs maybe further compromised by the impacts of climatechange, which are already changing localized rain-fall patterns in China. Warming air temperatureshave decreased glacial areas by some 17 per cent andincreased evaporation rates. Long-term studies ofprecipitation dynamics over the Gobi region ofMongolia, comprising some 44 per cent of thecountry’s land area, showed a decrease in averageprecipitation of some 10 per cent over 50 years.Mongolia’s annual surface run-off decreased by some40 per cent from 1999 to 2000; in the last five years,about 683 rivers, 1,484 springs and 760 lakes havereportedly dried up.29

1995 1999

Han (ROK)

Kum (ROK)

Nakdong (ROK)

Tone (J

AP)

Young son (R

OK)

Yodo (JAP)

Chikugo (JAP)

Ishikari (

JAP)

6.0

4.8

3.6

2.4

1.2

0.0

mg

O2 p

er

litre

Figure 7.8 BOD concentrations: major rivers in Japan andthe Republic of Korea

Source: OECD (2003). Environmental Data Compendium

2002 (Paris, OECD).

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7.3.4 Land resources

Desertification is particularly severe in the westernand north-western parts of China, as well as inMongolia. In China, the total land area affected bydesertification has reached 267 million hectares, orabout 28 per cent of the country’s total land area.Desertification is estimated to claim as much as onemillion hectares per year, affecting approximately400 million people. Reforestation efforts have yetto halt China’s spreading deserts.30

Forest cover varies markedly across thesubregion. The Democratic People’s Republic ofKorea, Japan, the Republic of Korea and theRussian Federation are relatively rich in forestresources. In 2000, forests covered over 60 per centof the Democratic People’s Republic of Korea,Japan and the Republic of Korea, and about 50 percent of the Russian Federation. In contrast,Mongolia has only 6.8 per cent forest cover. China’stotal forest area increased from 145.4 millionhectares to just under 163.5 million hectares duringthe period 1990 to 2000. In the 1990s, the forestcover increased by some 18 million hectares, due tonatural forest protection and plantation programmes,particularly in China. Despite the overall reversalof forest loss, forest degradation/loss issues stillrequire further attention and constant monitoring.Reforested areas were often also planted asmonocultures, lacking in biodiversity andvulnerable to disease and climate change.

Forest degradation, climate change, and inMongolia, over-grazing, have been the driving forcesfor severe land degradation that affected an estimated27 per cent of the region’s land area, with over 30and 40 per cent in China and the Republic ofKorea, respectively. The result has been decreasingproductivity of arable land, an increase of dry andsandy areas, extreme weather events, and increasingfrequency of dust and sandstorms (DSS). Forestresources are critical to the protection of theenvironment, as well as maintaining and securinglocal and regional ecosystems and livelihoods.Forest degradation and loss directly affects thelivelihoods of people working in the logging industry,as well as those in the wood dependent industriesand consumers of timber products. Forest degradation

also deprives society of the forests’ ecosystem servicessuch as water resource conservation, moderation ofharsh climate, mitigation of desertification, carbonsequestration and biodiversity conservation. The1998 flood in the Yangtze River basin had a strongimpact on the forest management policy of China,and resulted in strengthening forest protection andreforestation programmes.

The frequency of seasonal DSS has increased,rising from an average of eight in the 1960s to 23 inthe 1990s. In 2001, 32 DSS events were recorded.31

As many as 72 events were recorded in Chinaduring the period 2001 to 2004, and almost onemonth per year was recorded as “dust days” inMongolia.32 These potentially devastating masses ofairborne particulates originate in the desert marginsand transition zones between pastoral andagricultural cropland in the northern regions ofChina and in southern Mongolia. DSS aretransboundary phenomena; dust from these stormshas been carried by strong winds as far away asBeijing, Ulaanbaatar, Seoul, and Fukuoka, and asfar as North America. DSS cause health problemsby raising the risk of respiratory ailments, causeextensive crop damage, remove topsoil, and resultin economic losses by impacting a range of economicactivities. In March 2002, a three-day DSS eventcovered 67 per cent of Mongolia’s land area and left“three people and 53,000 animals dead, 83 housesdamaged, 24 communication lines and six powertowers destroyed.” The direct economic loss toMongolia’s economy was estimated at morethan US$2 million.33 This event also caused thecancellation of 70 domestic flights in the Republicof Korea. On 9 March 2004, a severe DSS engulfedLanzhou City, the capital of arid Ganzu Province inNorth-West China along with the surroundingregion including Hexi Corridor, Baiyin City, theNorth part of Ningxia Hui Autonomous Region,and West and Central parts of Inner MongoliaAutonomous Region. Visibility dropped to 400metres and wind velocity was as high as 21m/s.34

The increasing frequency of DSS signals awidespread deterioration of rangeland and cropland,linked to desertification processes, increasingpopulations (both human and livestock), a policy of

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promoting food self-sufficiency in DSS-pronedrylands, changes in herders’ lifestyles and grazingpatterns and, changes in the mix of animals inresponse to the demand for cashmere. The numberof sheep grazed in China’s pastures is estimated toexceed the carrying capacity by 124 per cent. InMongolia, livestock population increased by some50 per cent between 1988 and 1999, following which12 million head of cattle were lost during thewinters of 1999-2000.35 While describing thevarious climatic and geological features of thenorthern regions of Mongolia and China that makethe area susceptible to DSS, ADB has emphasizedthat “environmental factors often take the blame fordegradation, where serious problems could lie else-where in the structure of the rural economy.”

National action to mitigate DSS hasprimarily focused on slowing land degradationprocesses, and included reforestation policy,legislation covering the use of water, the agriculturalsector and the use of grasslands. However, it has beennoted that the underlying principle for many ofthese legislative frameworks has been the conceptthat economic development takes precedence overenvironmental management.36 China continues toimplement its 1998 natural forest converstionprogramme and 2001 anti-desertification law. InMongolia, dust and sandstorms are monitoredand the management of dryland ecosystemspromoted to mitigate DSS events. In May 2005,the Green Wall Eco-Stripe Programme was approvedto promote revegetation and tree planting in a 2,000km-long strip of desertification-affected areas inMongolia.

7.3.5 Marine resources

The marine environment is being degraded byextensive coastal development, pollution of riversthat flow to the sea, oil spills and eutrophication.Red and blue tides have harmed fisheries anddegraded coastal recreation areas. Red tides havebecome a major concern in Japan, the Republic ofKorea, and China, and have severely damagedmarine-based aquaculture activities.

The most serious environmental threat toNorth-East Asia’s marine environment and coastal

economies has been oil spills from tankers andoffshore oil rigs. Higher volumes of tanker traffichave increased the likelihood of oil spills (Figure 7.9).On 2 January 1997, the hull of the Russian-flaggedNakhodka failed as it was sailing off the Oki Islandsnear Shimane Prefecture, Japan resulting in thesecond largest spill in Japanese history, with aboutone third of the Nakhodka’s 19,000 metric tons offuel oil being spilled. Gradually increasing inviscosity as it absorbed water, the oil drifted widelyand reached nine prefectures along the Sea of Japancoast. By the end of 1999, the total amount ofcompensation sought was about 35.1 billion yen.

Fish catches in North-East Asia increaseddramatically from three million metric tons in 1950to 19 million metric tons in 2001, due largely toincreased exploitation by China. However, morerecent data shows a general decline in fish catchesthroughout the subregion (Figure 7.10). Thefishing capacity of Chinese boats working in the EastChina Sea increased by a factor of 7.6 between 1960and 1990, and the catch per unit effort (CPUE), anindicator of the abundance of fisheries resources,fell by two-thirds. In coastal areas of the East ChinaSea and the Yellow Sea, fish catches shifted fromlarge, high-value fish to comparatively small fish oflittle value.37 The impacts of over-fishing havecontributed to a loss of critical habitat for breedingfish-stocks. China lost almost 50 per cent of itsmangrove forests from 1990 to 2000.38

Figure 7.9 Frequency of oil spills, North-East Asia

Source: Northwest Pacific Action Plan Marine EnvironmentalEmergency Preparedness and Response Action Center

Website, “List of Oil Spill Accidents,” accessed on 20 July2005 from <http://merrac.nowpap.org/html/i_1.html>.

0

2

4

6

8

10

12

14

16

1990 1991 1992 1993 1994 1995 1996 1997

China Rep. of Korea Japan

nu

mb

er

of

spill

s

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7.3.6 Biodiversity

North-East Asia’s biodiversity is under increasingpressure from the conversion of natural forests andgrasslands. The value of biodiversity continues tobe underestimated and efforts to address theissue remain inadequate. China is the third mostbiologically-diverse country on earth. With morethan 30,000 species of higher plants and 6,347 typesof vertebrates, China accounted for 10 per cent and14 per cent respectively of the world’s total.39

The IUCN’s annual Red List of ThreatenedSpecies paints a stark picture. There has been anincrease in the number of threatened species between1997 and 2002 in each country. While some of theincrease may be attributed to improvements inmonitoring capacity, it underscores the precarioussituation of biodiversity in the region. Examples ofspecies in the critically endangered category fromthe subregion include the Changjiang Dolphin andthe Yangtze Sturgeon which are threatened largelyby loss of habitat and water pollution. Freshwaterhabitats appear to be particularly threatened; inChina’s seven major rivers40 high biodiversity losseshave been observed.

Wetlands have long been considered to beworthless and have been reclaimed for developmentand for dumping of solid wastes. However, attitudes

may be changing in some countries. In the 1990spublic support for the protection of tidal flats resultedin the protection and sustainable management oftidelands such as Fujimae and Sanbanse in Japan.

Establishment and expansion of protectedareas are among the most important measures forhalting biodiversity loss. Recognizing this, manycountries in the subregion have designated protectedareas within the frameworks of the RamsarConvention on Wetlands, the United NationsConvention on Biological Diversity, and theConvention Concerning the Protection of the WorldCultural and Natural Heritage.

Mongolia adopted the Law on SpecialProtected Areas and the Law on Buffer Zonesof Special Protected Areas in 1994 and 1997respectively. This strengthened legislative frameworkfor designating protected areas, and for promotingthe appropriate management of biodiversity hasresulted in an expansion of protected area, whichreached 14 per cent of its land area in 2004. Chinahas established the Compensation Fund for ForestEcological Benefits, to be used for protection andmanagement of forest resources, includingshelterbelts and special forests providing ecologicalbenefits. China’s increase in forest cover isattributed to resources made available through thisfund and various projects.41

Despite efforts to protect biodiversity atlocal, national, and international levels, the demandfor land occupied by biologically diverse virginforests and wetlands has eroded past achievementsin habitat protection. In the Russian Federation, thetransportation of oil across vast territories hasbecome a new threat to habitats.

7.4 Subregional cooperation

Transboundary environmental issues and moreconducive political climates have fostered significantsubregional cooperation initiatives over the lastten years. Major intergovernmental cooperationmechanisms include initiatives such as theNorth-East Asian Subregional Programme onEnvironmental Cooperation (NEASPEC), theNorth-East Asian Conference on EnvironmentalCooperation (NEAC), and the Tripartite

Figure 7.10 Capture production by country: marine fish,North-East Asia

Source: FAO (2003), FISHSTAT Plus: Universal software for

fishery statistical time series, Version 2.3, available on-line at<http://www.fao.org/fi/statist/FISOFT/FISHPLUS.asp>;

Aquaculture Production dataset, Rome.

0

China JapanDPR Korea Rep. of KoreaRussian Federat ion

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12,000,000

9,600,000

7,200,000

4,800,000

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Environment Ministers Meeting (TEMM).Subregional countries, with the exception of theDemocratic People’s Republic of Korea, alsoparticipate in the cooperation programmes thatextend to other countries of the region such asthe Acid Deposition Monitoring Network for EastAsia (EANET), focusing on acid deposition, thePartnership in Environmental Management forthe Seas of East Asia (PEMSEA) and the East AsiaRegional Seas programme.

Intergovernmental cooperation framework -NEASPEC

NEASPEC is the first comprehensive intergovern-mental cooperation mechanism in the subregion.It was initiated in 1993 as a forum for intergovern-mental discussion on environmental issues. Themember states, China, Japan, Democratic People’sRepublic of Korea, Mongolia, Republic of Korea andthe Russian Federation fully support NEASPECproject activities, and interim secretariat services havebeen provided by ESCAP. Since its inception,Meetings of Senior Officials (SOM) have been heldannually. The first SOM identified three priorityareas: energy and air pollution; nature conservation;and capacity building. On the basis of the decision,NEASPEC has undertaken projects for reducing airpollution from coal-fired power plants, as wellas environmental data collection and analysis. Theprojects have carried out on-site training anddemonstration activities, the development ofmethodologies for air pollution monitoring, and thecompilation of the monitoring data through thecreation of the North-East Asian Center forEnvironmental Data and Training. NEASPEC hasalso begun a project in 2005 for the creation of aFramework for Nature Conservation Programme inNorth-East Asia. The scope of NEASPEC activitieshave been expanded to examining the nexus betweenthe environment and economy by initiatingsubregional dialogue on eco-efficiency since the 11th

SOM in 2005.

Subregional dialogue - NEAC and TEMM

NEAC, established in 1992 and TEMM, establishedin 1999 are forums for dialogue on environmental

issues. The former includes participation ofgovernment officials, local governments, NGOs andresearchers from China, Japan, Mongolia, theRepublic of Korea and the Russian Federation, andhas helped promote domestic environmentalpolicies and facilitated bilateral and multilateralcollaboration. TEMM facilitates high-level dialoguebetween the environment ministers of China, Japanand the Republic of Korea. This forum hasdeveloped projects on environmental education andhas paid special attention to DSS.

Marine environments - NOWPAP

In addition to these forums, multilateral andbilateral cooperative programmes such as the North-west Pacific Action Plan (NOWPAP) have beenestablished. NOWPAP, established in 1994, addressesmarine environmental issues under the initiative ofUNEP and is a comprehensive response to thechallenges facing the Sea of Japan and the YellowSea. Participating countries include China, Japan,the Republic of Korea, and the Russian Federation.Japan and the Republic of Korea are co-hosts to theRegional Coordination Unit (RCU) which functionsas NOWPAP’s secretariat. NOWPAP regionalactivity centres have been established in eachcountry and manage projects in the area ofmonitoring and data gathering, marine environmentemergency preparedness and response, and coastalenvironmental assessment. NOWPAP’s programmefor the future includes assessment and managementof land-based activities.

Dealing with DSS

Recognizing the transboundary nature of the DSSproblem, the environment ministries of China,Japan, the Republic of Korea and Mongolia proposedthat ADB, UNCCD, ESCAP, and UNEP jointlydevelop an expanded technical assistance project tobe co-financed by ADB and GEF. The result was aten-year programme endorsed by the GEF Councilin 2002, to be implemented by China, Japan, theRepublic of Korea and Mongolia, ADB, ESCAP,UNCCD and UNEP. The project has conductedin-depth analysis of DSS, as well as developed aRegional Master Plan which includes a monitoring

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programme and early warning network. Inaddition, the project has also formulated aninvestment strategy, and is in the process ofidentifying demonstration projects in both Chinaand Mongolia. National counterparts in Mongoliaand China have agreed to the development of ademonstration project that will use renewableenergy to pump water for irrigation to supportre-vegetation.

New initiative on energy cooperation

The first session of the Senior Officials Committeeon Energy Cooperation in North-East Asia washosted by the Ministry of Fuel and Energy of theGovernment of Mongolia in collaboration with theKorea Energy Economics Institute and convened byESCAP in November 2005. The governments of theNorth-East Asia subregion adopted the proposed“Collaborative Mechanism on Energy Cooperationin North-East Asia.” The vision of the mechanismis “improved energy security in North-East Asiathrough energy cooperation in a sustainablemanner” by 2020. Its objectives are to:

(i) increase the supply of energy in North-EastAsia, lessening its dependence on energyimports from outside of the subregion;

(ii) optimize the economy and efficiency ofsupply and use of energy; and

(iii) minimize the environmental impact ofenergy production and consumptionthrough improved energy mix and greaterenergy efficiency.

A Working Group on Energy Planning andPolicy was established to coordinate activities withinthe framework of the collaborative mechanism. Itsactivities began in 2006.

7.5 Conclusion

Growing demand for land and water resources,deteriorating air and water quality owing tounsustainable consumption and production patterns,and large volumes and changing nature of wastesare the major environmental challenges in North-East Asia. North-East Asia’s carrying capacity isbeing eroded by a combination of deterioratingenvironmental conditions and climate change

factors, particularly in China and Mongolia. TheNorth-East Asian economies which are transitioningto market-economies are at the crossroads of theirdevelopment. They can continue the old patterns ofdependence on natural resources, or can invest increating new, more environmentally sustainabledevelopment patterns that will meet the needs ofpeople while protecting the natural resource base.

This means tapping and developing vibrantmarkets in environmentally-friendly goods andservices, and building on the examples of countries,such as Japan and the Republic of Korea. Expandingaccess to energy across these economies is needed tosupport poverty alleviation efforts, but may proveto be both an economic and environmental liabilityif needs are not met in a more environmentallysustainable manner. Efficiency of resource use, inparticular water resources, as well as investment inthe natural systems which sustain the water cycle toensure continued access to fresh-water resources hasbecome increasingly critical.

Subregional cooperation is still very muchfocused on traditional environmental protection andpollution control measures. There have been somevery positive initiatives by the governments ofJapan and the Republic of Korea to improve thesustainability of production and consumptionprocesses which could be further enhanced. China’sefforts to improve the environmental sustainabilityof its energy use has already borne fruit, and furtherprogress can be expected in other areas of resourceuse. These initiatives should impact positively, notonly in China, but in the long run, also on theenvironmental situation in those countries which aresuppliers of environmentally sensitive commodities.

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End Notes1 ESCAP is the secretariat for the North-East AsiaSubregional Programme on Environmental Cooperation,an intergovernmental initiative of which thesecountries are members. For this reason, the compositionof this subregion is not consistent with the standardESCAP-designated subregion.

2 UNEP (2003). DPR Korea: State of the Environment2003 (Pathumthani, UNEP RRCAP), accessed on 12October 2005 from <http://www.unep.org/PDF/DPRK_SOE_Report.pdf>.

3 Based on data from World Bank (2004). WorldDevelopment Indicators 2004 (Washington DC, WorldBank).

4 Based on data from World Bank (2004), ibid.

5 Based on data from World Bank (2004), ibid.

6 FAO (2004). Selected Indicators of Food and AgricultureDevelopment in Asia-Pacific Region: 1993-2003 (Bangkok,FAO Regional Office for Asia and the Pacific).

7 ADB (2004). “Prevention and Control of Dust andSandstorm in North-East Asia,” RETA 6068 Draftworking paper, July 2004, accessed on 20 October 2005from <http://www.asiansandstorm.org/WORKING%20DRAFT%20RETA%206068.pdf>.

8 Based on United Nations Population Division datafrom World Urbanization Prospects: The 2001 Revision(New York, United Nations).

9 United Nations (2003). World Population Prospects:The 2003 Revision, United Nations publication, Sales No.E.04.XIII.6 (New York, United Nations).

10 Energy intensities, or energy used per unit GDP, area measure of the use of energy across the economy. Thevalues reflect energy efficiency levels and also economicstructures; a high energy intensity indicates relatively lowenergy efficiency or high contribution of energy-intensive economic activity to GDP.

11 Based on International Energy Agency data from IEA(2003). CO2 emissions from fuel combustion 1971 – 2001(Paris, IEA/OECD).

12 Gao, Li (2005). “Promotion of Renewable Energy:China’s practice,” presentation at the InternationalConference on Sustainable Development in Asia and thePacific: Common issues for effective implementation,Bangkok, Thailand, 18 July 2005.

13 Based on data from the Clean Air Initiative AsiaSecretariat, February 2004.

14 Based on data from the Ministry of Environment,Republic of Korea, accessed on 2 November 2005 from<http://eng.me.go.kr/user/statistics/5_waste.html?msel=d5>.

15 Based on OECD data, available through the GEOData Portal <www.http://geodata.grid.unep.ch/> UnitedNations Environment Programme/DEWA/GRID-Geneva.

16 Xin, Zou (2001). The Second Revision of the Law ofAir Pollution Prevention and Control, “Top News onEnvironment in Asia,” (Hayama, Institute forGlobal Environmental Strategies), accessed on 20 April2004 from <www.iges.or.jp/en/pub/pdf/asia2000/e-3.pdf>.

17 Ministry of the Environment of Japan (2003). WhitePaper for Recycling-based Society FY 2004.

18 UNEP (2002). State of the Environment Mongolia2002 (Pathumthani, UNEP RRCAP).

19 State Economy and Trade Commission (undated).Cleaner Production in China website “The CleanerProduction Knowledge Series: Preface andAcknowledgements,”accessed on 20 October 2005 from<http://www.chinacp.com/eng/cptools/cpt_book00.htm>.

20 National Development and Reform Commission ofChina (undated). Cleaner Production in China website“Environmental Legislation,” accessed on 20 October 2005from <http://www.chinacp.com/eng/cnenvleg.html>.

21 See Japan for Sustainability website “InformationCentre”. “National Government Achieves 95% GreenPurchasing in FY 2002 for Most Goods,” article postedon 20 January 2004, accessed on 20 August 2005 from<http://www.japanfs.org/db/database.cgi?cmd=dp&num=576&dp=data_e.html>.

22 Seok, Sung-Woo (2004). “The Laws and Experiencesof Green Purchasing in Korea,” presentation at theInternational Conference on Sustainable Developmentin Asia and the Pacific: Common issues for effectiveimplementation, Bangkok, Thailand, 18 July 2004.

23 Shiklomanov, Igor (1999). World FreshwaterResources and Their Use (database), State HydrologicalInstitute (Russian Federation), accessed on 2 Septemberfrom <http://webworld.unesco.org/water/ihp/db/shiklomanov/index.shtml>.

24 FAO (2004). Food and Agriculture Organization ofthe United Nations, AQUASTAT: FAO’s InformationSystem on Water and Agriculture database, accessed on5 August 2005 from <http://www.fao.org/ag/agl/aglw/aquastat/main/index.stm>.

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25 Dahe, Qin (2005). “Climate Change andEnvironmental Evolution in Western China andResponse Strategy,” presentation at the Fifth MinisterialConference on Environment and Development in Asiaand the Pacific, Symposium on Global Change,Environment and Development, 24-25 March 2005,Seoul, Republic of Korea.

26 UNEP (2003), op. cit.

27 UNEP (2002), op. cit.

28 Ministry of Environment, Japan (2004). Commentson first draft.

29 Adyasuren Ts.Borjigdkhan (2005). “Impacts ofGlobal Climate to the Environment and Developmentof Mongolia,” presentation at the Fifth MinisterialConference on Environment and Development in Asiaand the Pacific, Symposium on Global Change,Environment and Development, 24-25 March 2005,Seoul, Republic of Korea.

30 UNCCD Secretariat (2004). Prevention and Controlof Dust and Sandstorms in North-East Asia: ADB JSF-GEF Regional Technical Assistance Project (RETA-6068)Newsletter. Vol. 2, Issue 1 (January – March 2004).(Bankgok, UNCCD Secretariat Asia Regional CoordinatingUnit).

31 Graham Dwyer (undated). ADB website, “Cooperatingto Combat Dust and Sandstorms in Northeast Asia”,accessed on 18 November 2005 at <_4/combat_dust.asp”ht tp : / /www.adb.org/Documents /Per iodica l s /ADB_Review/2003/vol35_4/combat_dust.asp>.

32 ADB (2005). “Prevention and Control of Dust andSandstorms in North-East Asia. An Investment Strategyfor Prevention and Control of Dust and Sandstormsthrough Demonstration Projects, Volume 3” (Manila,ADB).

33 ADB (2005), ibid.

34 UNCCD Secretariat (2004), op. cit.

35 Adyasuren Ts.Borjigdkhan (2005), op. cit.

36 ADB (2004).“Prevention and Control of Dust andSandstorm in NE Asia”, RETA 6068 Draft workingpaper, July 2004, accessed on 20 November 2005 from<http://www.asiansandstorm.org/WORKING%20DRAFT%20RETA%206068.pdf>.

37 FAO (2003). The State of World Fisheries and Agriculture(Rome, FAO).

38 Based on FAO data.

39 State Environmental Protection Administration ofChina (2002). Report on the State of the Environment inChina 2002 (Beijing, State Environmental ProtectionAdministration of China), accessed on 20 May 2005 from<http://www.zhb.gov.cn/english/SOE/soechina2002/water.htm>.

40 Liao River, Hai River, Huai River, Pearl River,Songhuajiang River, Yellow River and Yangtze River.

41 UNEP (2004). Sustainable Development Priorities forNortheast Asia (Nairobi, UNEP).

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