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We recently hosted a forum with the Asia Foundation on Philanthropy and Climate change.  We hoped to encourage Asian funders to draw the lines between climate change (something that seems often hard for the individual to grasp) and the more tangible and immediate air pollution, forestry degradation, water scarcity etc.

We also hoped to then get them to think beyond the environment to a wider philanthropic portfolio and to consider the impact of climate change on livelihoods, health, education – even how funders in the arts might get involved to build awareness around the need to act.

Why? We feel that given the enormity of the problem, it’s often hard for the individual funder, the family office foundation, to see how they might act in any way that is impactful.

But what we found was remarkable energy in the room. Rather than despair, we felt that participants left informed and energized by our panelists and keynote speaker, Stephen Heintz of Rockefeller Brothers Fund, which has an excellent environment and health, southern China program, managed by Shenyu Belsky.

Dr. James Hansen, one of the world’s leading climate scientists and head of the New York’s NASA Goddard Institute for Space Studies, provided an overview of climate science – setting the scene for discussion. Dr. Hansen, an advocate for a carbon tax, spoke of our inertia in the face of an emergency, the possible extermination of species, receding glaciers, bleaching of coral reefs, acidification of the ocean, basically that we are a planet out of balance.

Heintz also spoke about urgency, describing climate change as a “planetary threat that knows no bounds.” He emphasized the particular threat in Asia – that of 16 countries facing extreme risk, five are in in this region and they are among the most impacted, low-lying Bangladesh for example.

In all, he said, global warming could cost southeast Asia 6-7 percent of GDP. Clearly, Asia is squarely at the intersection of climate and development and he emphasized the need for new ideas and new ways of thinking, something that accurately reflects current realities and anticipates new needs.

It is easy, Heintz pointed out, to be discouraged by the science, yet philanthropy, government, civil society and the private sector all have roles to play. In reality , it is imperative that we act because, inevitably, climate change will impact every other issue that we are working on.

Global grant-making, Heintz said, has increased dramatically over the past decade yet environmental issues are way behind, receiving only 5 percent of funding. Resources targeting climate change specifically, of course, are far less.

The philanthropy sector, Heintz said, can play a crucial catalytic role, take risk, experiment, support advocacy to change public policy and trigger larger systemic change. Important will be innovative public-private partnerships, helping to develop emerging models of low-carbon prosperity. His was an excellent speech.

Our three panelists, Runa Kahn of Bangladesh’s Friendship, Dorjee Sun of Carbon Conservation and John Liu, an environmental filmmaker and journalist based in Beijing, spoke of the practicalities of working effectively within this context – and they also were inspiring.

Runa spoke about making life possible for the 4 million people living  in impossible circumstances in Bangladesh’s northern chars, John Liu on a massive ecological restoration project in China and showed the results, Dorjee on carbon, community and market solutions for saving forests.

The entire session was expertly moderated by the Asia Business Council’s Mark Clifford who managed to draw together the discussion, keeping an often amorphous and difficult topic moving toward practical solutions and away from fear.

The forum was a private side event to the C40 Climate change conference early this month organized by the Civic Exchange and supported by the Hong Kong government and Jockey Club Charities Trust.

It would be great to hear about other experiences linking climate change with a wider philanthropic portfolio, about nudging funders into action in this arena.

With air pollution at critical levels, the Hong Kong government fails to act to protect public health. After years of study, public consultation and dithering over what to do, there still is no action to revise air quality objectives, last rewritten in 1987.

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In Hong Kong we rightly complain about the state of the air we are forced to breathe and the government’s apparent lack of interest in addressing the pollution challenges – despite  HK$ half-trillion in fiscal reserves this year.

The moribund HK government seems incapable of taking action to protect its citizen’s health despite having the financial resources to do so. Clean Air Network is working hard and successfully to educate the public and stir the government to act, providing the tools and support to do so – hand-holding of sorts.

But perhaps part of the challenge is that in Beijing, from where I am working for three weeks, Hong Kong’s pollution pales by comparison – not that this city should set any standard!

Here, my eyes are a constant rimmed-red, a smog headache challenges concentration and my sinuses are in revolt. Here, the clouds are but a memory and weather is either cold or hot but never sunny, it seems, but there is only a steady grey. The near distance fades into a smog that anywhere else would be unbelievable.

This is the price of China’s progress, and, to be fair, of pulling an estimated 600 million people out of poverty over the past two decades by fulfilling our Western need to consume ever-more products. According to the ADB, over the past 20 years, China’s poverty rate fell from 85% to 15.9% – a huge challenge for any government and unmatched anywhere, anytime.

Still, what we hear more about in the West is the fantastic progress machine that is China, the well-oiled production centre for the world’s consumers.

The flip side of that for China’s citizens is the polluted rivers, the smog-filled air, the cancer villages in evidence countrywide, the drained aquifers, the contaminated land. All of these will be the Beijing government’s newest challenges if it is to keep its population healthy and maintain social stability, which is the utmost goal.

Highly polluted areas near factories have shown increasing cases of cancer.  Southern China is replete with communities that recycle electronic waste and here people are exposed to toxic heavy metals such as cadmium and mercury.  The country’s myriad chemical factories produce carcinogens that enter the water and soil, also contaminating food grown on the land.

According to a recent Guardian article, in 2007, cancer was responsible for one in five deaths, and Chinese farmers are more likely to die of liver and stomach cancer than the world average.

Water supplies are polluted and aquifers significantly drained, something leading environmental activist Ma Jun warned about ten year’s ago in his book, China’s Water Crisis, which considered the local equivalent of Rachel Carson’s Silent Spring.

The Qinghai-Tibet plateau area suffers from environmental degradation that is threatening three major rivers: the Yangtze, Yellow and Mekong. Melting permafrost and glaciers in the surrounding mountains are also eroding the grasslands and wetlands, causing the ground to lose its capacity to absorb water, according to AFP.

Xin Yuanhong, a government scientist quoted by the news agency says that at the current rate, 30 percent of the region’s glaciers could disappear within 10 years.

Climate change is also affecting the 580 million people living in these river basins.  This crisis also affects food security; drought and drying up water sources are severely lowering crop yields in the area.

By all accounts, the government increasingly understands the severity of the challenge. Careful Chinese environmentalists are being allowed to speak out. Indeed, many seem to be encouraged by the government to highlight bad practice by companies breaking local laws by emitting pollutants into the water, air and ground. Information disclosure has taken leaps forward in recent months.

Ma Jun and his Institute of Public and Environmental Affairs over the past several years have divulged information in online databases of air and water violations by factories throughout China. He has created a groundbreaking “blacklist” of polluters. At last count, IPE databases listed more than 60,000 air and water violations.

To be removed from the list, companies must take corrective action and accept IPE-supervised environmental audits of their Chinese factories. Ma is also a champion of increasing access to environmental information, which he believes will bring public pressure on companies to operate more responsibly.

In Yunan Province, Yu Xiaogang, another courageous environmentalist I met with recently, is also using information disclosure, to gain bank data. He and his group, Green Watershed, along with a network of nine other NGOs, are compiling information on loans granted to development projects that are damaging to local populations.

The group recently published the environmental record of 14 Chinese banks, looking at their policies, regulations, investments and loan portfolios, noting which were connected with environmentally damaging projects.

Yu is also working with communities to help them open channels with local financial institutions to discuss social and environmental impact ahead of any loan being granted to a large development initiative.

That Beijing seems to be backing the sort of discussion underway in China is certainly encouraging. It seems Hong Kong should be setting standards in the environmental arena not lagging behind its severely challenged neighbour.

Asia Water Project: China

Lisa Genasci —  February 25, 2010 — 1 Comment

The ADM Capital Foundation and Civic Exchange today launched in beta the Asia Water Project: China and AWP’s first piece of commissioned research, Water in China: Issues for Responsible Investors, authored by the independent research company Responsible Research, which is Singapore based.

Feels great to get the water portal birthed and visible, even if it’s only in testing phase ahead of the official launch on March 18 in Hong Kong. That will happen with IPE’s Ma Jun, who was the inspiration behind the water portal. It was a desire to translate Ma Jun’s data from the IPE website that names and shames water and air polluters in China, (see Jan. blog) that first inspired ADMCF to create AWP. Ma Jun, who wrote the first major book on China’s water crisis in 2000, uses only government emissions and penalties data on his site and in that way has been allowed to work relatively unimpeded in China.

ADMCF saw there was space to fill a lacuna in information relating to China’s water supply, management and pollution and at the same time better inform investors. We see there are both risks and opportunities in China’s growing crisis. Informed investors can help shape how companies respond to water challenges. Ina Pozon, who has built and manages AWP and ADMCF environment director, Sophie Le Clue,  have worked tirelessly in recent weeks with freelance writer, Pua Mench, to get the site in shape. Still work to do but today we are a big step closer!

Bloomberg sponsored today’s event, which featured Christine Loh of the CE, Lucy Carmody of RR and Guo Peiyuan of Beijing’s SynTao, an AWP partner and participant in the RR water research.

The research, found here: http://www.asiawaterproject.org, showed that China may be looking at trade-offs between access to clean water and economic growth. At the national level, China’s water shortages are thought responsible for direct economic losses of US$35 billion every year.  This is 2.5 times the average annual losses due to floods.

The report points out that sectors where China dominates globally, such as in steel, textile, paper and forest products, are heavily water intensive. Fluctuations in quantity and quality of water supply in these industries carry significant potential risks to earnings.

The new report draws on case studies from ten industries that have the most impact on water in China including agriculture, forest products, textiles and beverages. As water becomes increasingly material to investors in China, they will need to be more pro-active in looking at how listed companies are addressing supply issues.

While there is some understanding of water-related risks to companies and investors, “a key barrier is the lack of reliable, comprehensive information on water issues in China,” according to Ina. “The Asia Water Project has a unique role to play in fast-tracking this trend, through its commissioned research and its new web-based information portal.”

Earlier this month, the Chinese government released the findings of a pollution survey that show water pollution levels in 2007 were more than twice the official estimate, in part because previous reporting had failed to take agricultural contamination of water supplies into account.

Christine Loh reads this as good news that the Chinese government has done its homework and now understands that “the problem is as big as it is urgent.” She anticipates that “there will be more dialogue and debate in China this year” as government plans require reductions in wastewater pollution that are not easy.

The new investor report  also highlights some shocking statistics: 70 percent of China’s rivers and lakes are “significantly” contaminated, 50 percent of the country’s cities have polluted groundwater and over 30 percent of China is affected by acid rain.

Hong Kong’s air quality is among the world’s worst for a city of comparable income levels. Here, the pollution we breathe negatively affects everyone. Not surprisingly, the poor are disproportionately impacted because they are unable to move out of some of the city’s most congested, polluted areas.

Since 1987, the World Health Organization has issued Air Quality Guidelines (”AQG”) to help governments protect public health. These AQGs are periodically revised to take into account the latest scientific research on the health impact of bad air. Currently, however, Hong Kong’s Air Quality Objectives (“AQO”) permit emissions that exceed the WHO’s latest AQGs by two to four times.  The AQOs, which are non-binding, were last updated in 1987. This year, the Government is reviewing the AQOs for the first time in more than 20 years.

Over the past two decades there has been insufficient action to mitigate air pollution in Hong Kong. We have often heard from government officials that there is little that can be done to change the quality of our air because much of the pollution drifts across the border from Guangdong.

Yet, research by the Hong Kong University of Science and Technology has shown that 53% of the time (192 days per year in 2006), most pollution affecting Hong Kong is from LOCAL SOURCES.

Some alarming facts about Hong Kong air pollution:

  • By WHO standards, Hong Kong’s air is only safely breathable 41 days a year.
  • Hong Kong air pollution causes three (avoidable) deaths a day, or more than 1,100 per year.
  • Hong Kong’s air is three times more polluted than New York’s and more than twice as polluted as London.
  • Although overall emissions tonnage has fallen in the past 15 years, roadside pollution has not improved. Because of its high concentration in close physical proximity to us, roadside pollution poses the biggest threat to human health.
  • 40% of roadside emissions come from buses.

It is therefore incorrect to believe that Hong Kong-based pollution abatement measures would make no or little difference in improving the local air quality.

We believe the Government could and should act immediately to improve the quality of air we breathe. Many cities worldwide have successfully taken action to clean their air and we believe that with tight AQOs and an appropriate plan of action could similarly clean up our air and improve the lives and health of residents

The Clean Air Network (www.hongkongcan.org) was formed to educate the public about the health impacts of air pollution and mobilize support for clean air in Hong Kong.

CAN is a NETWORK, bringing together and amplifying the voices of individuals, groups and organizations.

CAN’s overarching goal is to work with the Government to implement a stricter and more proactive air quality management regime.

Watch the CAN video here: http://bit.ly/86Md2r

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