{"id":20025118,"date":"2018-07-11T12:30:28","date_gmt":"2018-07-11T07:00:28","guid":{"rendered":"https:\/\/www.thethirdpole.net\/?p=25118"},"modified":"2021-01-06T22:06:31","modified_gmt":"2021-01-06T16:36:31","slug":"is-chinas-city-of-the-future-a-replicable-model","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/is-chinas-city-of-the-future-a-replicable-model\/","title":{"rendered":"Is China\u2019s \u2018city of the future\u2019 a replicable model? \u00a0"},"content":{"rendered":"

When its blueprint was unveiled<\/a> just over a year ago, Xiong\u2019an New Area was billed as a showcase for President Xi Jinping\u2019s vision of high-quality urbanisation, a project that would be \u201ccrucial for the millennium to come\u201d.<\/p>\n

Green, innovative and state-of-the-art, Xiong\u2019an has been heralded as a remedy to the \u201curban diseases\u201d that plague China\u2019s major cities: air pollution, water scarcity, and urban sprawl.<\/p>\n

In a recent campaign to rally international support for Xiong\u2019an, Wang Yi, China\u2019s foreign minister, said it will be a model for the next century, a so-called \u201ccity of the future<\/a>\u201d.<\/p>\n

As a testing ground for green urbanisation, the government has vowed that Xiong\u2019an\u2019s population will not outgrow the existing resources<\/a> to support it. The city will be powered by \u201cclean electricity\u201d, which in China does not exclude natural gas. However, at least half the city\u2019s power<\/a> is expected to come from renewable sources.<\/p>\n

With the aim of establishing Xiong\u2019an as a new model for urban planning, the government wants to create a hub for high-tech industry, innovation, and sustainable financing. The city plans to make the most of its trillion-yuan investment for urban infrastructure during the next five years by using green finance<\/a> to ensure transparency and positive environmental benefits.<\/p>\n

And at a street level, Xiong\u2019an is supposed to incorporate large green spaces and smaller street blocks, creating a more resident-friendly urban landscape than Beijing\u2019s grand multi-lane boulevards.<\/p>\n

\"The<\/a>
\nMinister of Foreign Affairs Wang Yi promotes Xiong’an New District to the world. (Image: \u5916\u4ea4\u90e8<\/a>)<\/span><\/p>\n

The making of Chinese ‘eco-cities’<\/strong><\/p>\n

China has never been short of experiments to develop green cities or regions. Yichun city in Jiangxi province announced its intention to become China\u2019s first eco-city as early as 1986; while Guiyang, capital of Guizhou province in the south-west, became the first Chinese eco-city to focus on a waste-free circular economy as early as 2004, according to Austin Williams\u2019 book China’s Urban Revolution: Understanding Chinese Eco-cities.<\/em><\/p>\n

In 2008, Shanghai and the city of Baoding in Hebei province became the country\u2019s first two low-carbon cities<\/a> to foster less carbon-intensive industries and a greener way of life. The country also set up various green industrial zones<\/a> to conserve energy and resources, cut pollution and rein in greenhouse gas emissions.<\/p>\n

As Williams documents<\/a>, the performance of these programmes has been mixed. Some cities have manipulated data and gamed appraisal systems. For instance, some eco-cities keep recorded levels of pollution down by only monitoring emissions within the urban centre, omitting industrial sites on the outskirts.<\/p>\n

A recent assessment<\/a> of officially designated Chinese low-carbon cities, jointly conducted by the Lawrence Berkeley National Laboratory and partners, concluded that: \u201cMany cities still have carbon-intensive economies, and energy intensive industry,\u201d and \u201chave much work ahead to become green and low-carbon\u201d. However, the authors acknowledged the progress made during the 12th<\/sup> Five-Year Plan period between 2010 and 2015.<\/p>\n

Will Xiong\u2019an be different? <\/strong><\/p>\n

China\u2019s green city projects have been led by local governments but Xiong\u2019an is mostly the product of central planning. The prime incentive<\/a> to create the New Area was to take on some of Beijing\u2019s \u201cnon-capital\u201d functions and metropolitan burdens. It is officially designated as the heir apparent to China\u2019s two urbanisation miracles, Shenzhen, and Shanghai\u2019s Pudong New District.<\/p>\n

But this only reinforces the top-down approach to planning. Cheng Li from the Brookings Institute argues that the New Area may serve as a very public gauge of the efficacy of the Xi administration\u2019s policies.<\/p>\n

More specifically, Xiong\u2019an will be the first test case of the leadership\u2019s ecological vision being applied to a mega-city, in which everything needs to be built from scratch in what was previously an economic backwater.<\/p>\n

Experimenting with green finance<\/strong><\/p>\n

As part of its green initiatives, Xiong\u2019an will become a testing ground for innovative green financing tools to fund projects to clean up local water systems, build energy-saving buildings and public transportation systems.<\/p>\n

These projects are expected to require trillions of yuan in capital, according to Dr Ma Jun, chairman of the China Green Finance Committee, who led research<\/a> on prospects for green financing of the New Area.
\nThe report highlights the massive opportunity to try out unconventional financing mechanisms and to integrate sustainability from the start, presented by Xiong’an. The key to attracting both public and private financing, according to the report, is to make green infrastructure \u201cbankable\u201d.<\/p>\n

\u201cGreen infrastructure investments in Xiong\u2019an are large in scale and have a long investment payback period, with often unclear future revenue streams. This requires the exploration of innovative financing channels outside the government\u2019s usual budget, harnessing the power of both the market and the state to nurture new business models and investment tools,\u201d said the report.<\/p>\n

The report authors also warn that the lack of financial know-how and experienced professionals in the area might be a major obstacle to achieving this green finance vision. Yet the expertise deficit at the local level does not seem to be creating much concern.<\/p>\n

\u201cIt\u2019s no longer Hebei province\u2019s Xiong\u2019an, it is China\u2019s Xiong\u2019an now. The country\u2019s best players in green financing will soon join in to help. In fact, the ball has already started rolling as policy banks and other financial institutions are mulling over projects now,\u201d said an industry insider who asked to remain anonymous.<\/p>\n

Externally, a UK-China Centre for Green Finance, jointly set up by City of London and Ma Jun\u2019s China Green Finance Committee, will also help to develop financial products to fund a number of projects in Xiong\u2019an.<\/p>\n

Charles Bowman, Lord Mayor of the City of London, said Xiong\u2019an \u201chas the potential to become one of the world\u2019s most smart and sustainable cities\u201d.<\/p>\n

\u201cI have seen this first hand,\u201d Bowman said, having visited the area earlier this year, \u201cI look forward to seeing how the new centre can lend support to the project\u201d.<\/p>\n

\"Construction<\/a>
\nConstruction team near <\/span>Xiong’<\/span>an<\/span> Citizen<\/span> Service Centre. (Image: \u989c\u90af<\/a>)<\/span><\/p>\n

Clean electricity for Xiong\u2019an<\/strong><\/p>\n

The plan for Xiong\u2019an\u2019s energy system is brimming with futuristic buzzwords. The State Grid Corporation said<\/a> the city\u2019s electricity supply will be 100% clean through \u201cre-electronification\u201d, a term coined by the state-owned power company to promote upgraded power grids, which can accommodate growth in energy storage technologies and the provision of renewable energy. Integrated solar PV systems, combined with energy storage units and electric vehicle charging are all listed as smart, clean power solutions for the New Area.<\/p>\n

Electricity will take up about 52% of total energy consumption in Xiong\u2019an New Area, the ratio will be higher than in many other metropolitan cities such as Paris and Tokyo. The city also plans to tap into its rich geothermal energy resource<\/a> to provide heat, and supplement the use of natural gas and biomass energy, according to the master plan for Xiong\u2019an\u2019s development that was approved by the State Council in April.<\/p>\n

Yet, locally generated electricity from renewable sources will only cover a small part of Xiong\u2019an\u2019s consumption. The lion\u2019s share will be brought in through an ultra-high voltage transmission network from northern Hebei province and Inner Mongolia, which are both abundant in wind and solar power.<\/p>\n

It is also worth noting that the definition of clean electricity does not guarantee low-carbon, renewable power. Government guidance for green bonds classifies regional gas-fired power generation as \u201cgreen projects\u201d.<\/a> In the case of Beijing and Shanghai, which also receive a large share of electricity from other regions<\/a>, the electricity is generated from fossil fuels.<\/p>\n

Environmental challenges<\/strong><\/p>\n

Whilst the commitment to sustainable development is commendable, the real environmental benefits of Xiong\u2019an\u2019s green experiments are questionable considering the area suffers from chronic water scarcity and severe ecological degradation. Numerous small-scale but heavy polluting plants handling waste plastics, non-ferrous metals, tanning and garments have propped up the local economy.<\/p>\n

\u201cThere are environmentally fragile hotspots in Xiong\u2019an. Banks and financial institutes need to consider these social and environmental risks when developing financing products to fund projects there,\u201d said the above-mentioned industry insider.<\/p>\n

Zhang Kai, project manager with Greenpeace East Asia, pointed out two flaws within China\u2019s infant green finance sector \u2013 project criteria and transparency. If these are not properly addressed they could hinder real environmental benefits from Xiong\u2019an\u2019s ambitious green finance plans.<\/p>\n

China\u2019s existing criteria for projects eligible for a green label are yet to align with international standards, allowing projects with potential hazardous climate and environmental impacts to be classed as green. The country is expected to release an updated version of the appraisal criteria later this year.<\/p>\n

In the long-term, Xiong\u2019an will most likely face water stress. The Chinese Academy of Sciences has warned<\/a> that the Xiong\u2019an area is already suffering from severe groundwater depletion, although it borders Baiyangdian Lake, northern China\u2019s largest freshwater wetland. Land subsidence caused by over exploitation of groundwater significantly worsened over the past decade in all three counties that make up Xiong\u2019an.<\/p>\n

Scientists also warn that changing weather patterns<\/a> caused by climate change could worsen the situation between 2026 and 2046, when prolonged drought seasons are expected in northern China.<\/p>\n

 <\/p>\n

The Xiong\u2019an model<\/strong><\/p>\n

Although Xiong\u2019an faces very particular challenges, the project could have wide-ranging impacts on the rest of China. As a key part of the leadership\u2019s vision, Xiong\u2019an will become a model for a new type of urbanisation in China. Along the same lines, Ma Jun with the China Green Finance Committee has said that the green finance experiments in Xiong\u2019an could also spread. This includes along the Belt and Road Initiative, where China plans to fund and build infrastructure in developing countries across Asia, Europe, Africa and beyond.<\/p>\n

Yet the unique political support, as well as the subsequent resources and expertise it has brought, may end up making Xiong\u2019an an exceptional case that proves hard to reproduce elsewhere.<\/p>\n

\u201cIn terms of green finance, I don\u2019t think Xiong\u2019an\u2019s model could be replicated in other cities.\u201d said Zhang with Greenpeace. For him, pilot programmes, such as those set up last year in Guangdong, Guizhou, Jiangxi, Zhejiang and Xinjiang, that lack the sort of high-level political blessing that Xiong\u2019an has received are more accurate barometers of whether green finance can achieve widespread adoption.<\/p>\n

Similarly, Xiong\u2019an will have no problem meeting the clean electricity target because it can turn to imports,if needed, thanks its deep pockets and strong political backing. \u201cJust like Beijing and Shanghai,\u201d said Lin Boqiang, director of Xiamen University\u2019s China Center for Energy Economics Research. He added: \u201cAs it is being built from scratch, Xiong\u2019an will be an ideal place to experiment with fancy new concepts, such as smart grids and distributed solar power buildings. Yet, it is hardly replicable elsewhere\u201d.<\/p>\n

More generally, the creation of Xiong\u2019an has been compared to predecessors elsewhere by Chinese academics and media commentators. For example to Milton Keynes in the United Kingdom and Tsukuba in Japan. Both were established in the 1960s with the aim of alleviating pressure on London and Tokyo. Tsukuba, in particular, had a similar ambition as Xiong\u2019an to become a “pilot model city”, and a regional “technopolis” that clusters universities and research institutions. Yet neither was a complete success story. Some urban planners have argued<\/a> that the rigid nature of central planning is not up to the task, whereas a less regulated and more open system brought about success in the case of Silicon Valley.<\/p>\n

The Xiong\u2019an experiment is being undertaken in a completely different political system from those of the UK and Japan, so it may tell a different story. It could be a few decades before we know for sure.<\/p>\n

This article was first published on chinadialogue.net<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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