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Beijing–Tianjin–Hebei Air Quality Improvement–Hebei Policy Reforms Program (RRP PRC 49232) Environmental and Social Impact Assessment of the Policy Matrix November 2015 People’s Republic of China: Beijing–Tianjin–Hebei Air Quality Improvement–Hebei Policy Reforms Program

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Beijing–Tianjin–Hebei Air Quality Improvement–Hebei Policy Reforms Program (RRP PRC 49232)

Environmental and Social Impact Assessment of the Policy Matrix

November 2015

People’s Republic of China: Beijing–Tianjin–Hebei Air Quality Improvement–Hebei Policy Reforms Program

I. INTRODUCTION

A. The Program 1. Beijing municipality (Beijing), Tianjin municipality (Tianjin), and Hebei province (Hebei) make up an important economic region (BTH region) in the northern part of the People’s Republic of China (PRC). The BTH region is now experiencing significant air pollution caused by industrial emissions while facing increasing vehicle emissions. The central government is scaling up its efforts for this regional environmental challenge. In 2013, the State Council issued the Action Plan on Prevention and Control of Air Pollution, 2013–2017. In the BTH region, the governments of Beijing, Tianjin, and Hebei formulated their own air pollution prevention and control action plans for 2013–2017. Hebei Clean Air Action Plan (HCAAP) commits Hebei to curb the main sources of air emissions by 2017, including reducing coal consumption by 40 million tons of standard coal.1 The proposed program is designed to support Hebei provincial government (HPG) to strengthen its policy and regulatory framework for air pollution control and energy structure adjustment through the following policy actions. The policy matrix is in Appendix 1. 2. Output 1: Policies and actions to reduce air pollution from key sectors issued and approved. Policy actions will guide future investments to transform Hebei’s economic structure into a more environmentally friendly one. These include policies to (i) adjust energy structure by reducing coal consumption and promote clean energy, (ii) promote public transport in urban areas, and (iii) reduce seasonal stalk-burning and promote clean energy in rural areas. 3. Output 2: Environmental policy and institutional framework for implementation strengthened. Policy actions will assist Hebei to (i) enhance legal and policy framework, (ii) develop comprehensive monitoring and analytical system, and (iii) strengthen regulatory enforcement capacities. 4. Output 3: Employment promotion for inclusive industrial transformation enhanced. The policy action will help Hebei to mitigate potential negative impacts of the HCAAP implementation on labor market by enhancing employment opportunities and services through improved vocational training and a tailored support for workers affected by layoffs. B. Purpose of this Report 5. ADB Safeguard Policy Statement (2009) requires that for policy-based loans, potential direct or indirect environmental or involuntary resettlement impacts, or impacts on Indigenous Peoples associated with policy actions to be supported by program loans are evaluated, and that appropriate mitigation measures to address these impacts are identified and integrated into the program's design.2 6. This report documents the environmental and social impact assessments conducted for the program. A matrix of potential impacts of each policy area (covering both positive and potentially adverse impacts) was prepared, with a qualitative indication of the likely order of magnitude of each impact and a summary of the rationale for the judgment.

1 Standard coal refers to coal with an energy content of 29.39 gigajoules per metric ton, indicated as ton of coal equivalent (tce).

2 ADB. 2009. Safeguard Policy Statement. Manila.

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II. ASSESSMENT OF SOCIAL AND ENVIRONMENTAL IMPACTS OF POLICY ACTIONS

A. Methodology 7. The evaluation of potential environmental and social impacts, both positive and adverse, has been conducted based on (i) available information on the proposed policy actions and supporting studies and reports; and (ii) background research, studies, and reports available in the public domain relevant to the policy areas and actions. Key program stakeholders were consulted by ADB staff with support of international and national social and environmental experts through a series of meetings and workshops conducted from March to September 2015 to discuss initial findings of the environmental and social impact assessment for the seven policy areas and the 17 policy actions.3 Further, statistical data about the socio-demographic and socioeconomic composition of population and labor market have been collected to support the social assessment. Where feasible, outline quantitative analyses have been used to support the evaluation, based on (i) the emissions inventory created by the Clean Air Alliance of Asia for 2012;4 (ii) targets set in draft policy action documents; and (iii) estimates of potential beneficial impacts, in particular emissions reductions of primary particulate matter of less than 2.5 micrometers in diameter (PM2.5) and main PM2.5 precursor pollutants (sulfur dioxide, SO2; mono-nitrogen oxides, NOx; and volatile organic compounds, VOC), indicated in studies and analyses supporting policy actions in the public domain as well as peer-reviewed scientific studies.5 B. Environment 8. Environmental benefits. The ADB supported program will issue new, or amend existing policies which are clearly targeted at realizing environmental benefits. The program contributes greatly to the sustainable development goal 11: Make cities inclusive, safe, resilient and sustainable.6 Based on the initial evaluation of potential impacts conducted using currently available information, implementing the program policies and achieving their targets is anticipated to have clear environmental benefits in terms of reduced air pollutants and greenhouse gas emissions, which are anticipated to contribute to improvements to average

3 The following agencies were consulted during the course of the impact assessment (i) Hebei Province Environment Protection Department (HEPD) and its various divisions on air pollution control, environmental impact assessment, policy, and pollution control; (ii) Hebei Province Environment Science Academy; (iii) Hebei Province Solid Waste Management Center; (iv) Shijiazhuang Municipal Environment Protection Bureau and its various divisions; (v) Hebei Province Agriculture Department; Hebei Province Development and Reform Commission (Energy Administration); Hebei Province Transport Department; (vi) Hebei Province Human Resources and Social Security Bureau; and (vii) Shijiazhuang Municipal Human Resources and Social Security Bureau.

4 Clean Air Alliance of China. 2014. Can Beijing, Tianjin and Hebei Achieve Their PM2.5 Targets by 2017? Beijing. http://en.cleanairchina.org/product/6789.html

5 Including but not limited to: Zhao P.S. et al. 2013. Characteristics of Concentrations and Chemical Compositions for PM2.5 in the region of Beijing, Tianjin, and Hebei, China. Atmos. Chem. Phys. 13: 4631-4644; Lang J. et al. 2013. A Monitoring and Modeling Study to Investigate Regional Transport and Characteristics of PM2.5 Pollution. Aerosol and Air Quality Research, 13: 943-956; Wang, L.T. et al. 2014. The 2013 Severe Haze Over Southern Hebei, China. Model evaluation, source apportionment, and policy implications. Atmos. Chem. Phys. 14: 3151-3173; Tian, C. et al. 2015. Measurements of Emission Factors of PM2.5, OC, EC, and BC for Household Stoves of Coal Combustion in China. Atmospheric Environment 109: 190-196; Satyendra, T. et al. 2013. Emissions from Crop/Biomass Residue Burning Risk to Atmospheric Quality. Int. Res. Earth Sci. Vol. 1(1): 24-30.

6 The program supports the sustainable development goal 11: “by 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality, and municipal and other waste management”. http://www.un.org/sustainabledevelopment/

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ambient air quality levels within the period of the HCAAP, i.e., up to the end of 2017 and beyond. 9. The ADB program will support Hebei’s strategy to reduce its reliance on coal and diversify its energy mix, which is fully aligned with ADB’s Energy Policy (2009) and Country Partnership Strategy 2011–2015,7 as well as the central government’s energy adjustment strategy.8 Policy actions under policy area 1.1 focus on replacing coal with cleaner energy sources including natural gas, biomass, geothermal and solar renewable energy, as well as improving the energy efficiency of coal use via upgraded heating boilers and energy distribution systems. 10. Of the policy actions covered by the program, preliminary analysis indicates overall reductions in coal use of approximately 12.4 million tons9 of coal equivalent (tce) per year by 2017 (from 2012 levels).10 These reductions are entirely in relation to Output 1 policy reforms, which are focused on energy structure adjustments, and target a 4% reduction of Hebei’s total coal consumption. Coal is anticipated to be replaced with the following main alternative fuel sources (i) biomass briquettes derived from crop stalk waste; (ii) natural gas, a proportion of which is expected to be derived from capture and processing of coke oven waste gas; and (iii) renewable energy, primarily solar photovoltaic, anticipated to be used to replace some coal-fired electrical generation.11 Oil will remain an important energy source in the total energy mix (some 15-20%), but mainly related to the transport sector. 11. Of the Output 1 policies, preliminary estimates indicate that the largest emissions reductions12 are anticipated from implementation of polices that focus on (i) banning of crop stalk waste open burning13, and associated reuse of stalk in energy generation (1.3.1-1.3.3), including net annual reductions of around 108,000 tons of SO2, 25,000 tons of PM2.5, and 13,000 tons of NOx;14 (ii) coal management and energy structure adjustment in 11 municipal governments of Hebei (1.1.4), estimated to result in net annual reduction in coal consumption of 5.4 million tce, NOx emissions of approximately 8,700 tons, SO2 emissions of approximately 75,000 tons, and PM2.5 emissions of approximately 13,000 tons; (iii) implementation of the policy on development of synthetic natural gas from capture and processing of coke oven waste gas (1.1.2), estimated to offset coal consumption by approximately 3.3 million tce, and resulting in net annual emission reductions of approximately 6,000 tons, 53,200 tons, and 10,500 tons for NOx, SO2, and PM2.5, respectively.

7 ADB. 2009. Energy Policy. Manila; ADB. 2012. People’s Republic of China Country Partnership Strategy 2011–2015. Manila.

8 State Council of the People’s Republic of China. 2015. Energy Development Strategy Action Plan (2014–2020). Beijing.

9 All figures for reductions in coal consumption and air emissions are estimates based on a number of assumptions and are indicative only.

10 Tce represents the energy generated by burning one ton of standard coal, that is 29.39 gigajoules or 8.14 megawatt hours.

11 The municipalities’ plans target a share of 6% renewable energy in the energy mix by 2017 (from levels below 2% in 2014). This is anticipated to offset some 1.5 million tons of coal.

12 All emissions reductions figures are per annum, unless stated otherwise (2012 baseline). 13 The amount of on-field burning of stalk still accounted for some eight to nine million tons of stalk waste in 2014 (i.e.,

13–15% of total stalk waste). 14 The use of stalk pellets as compared with coal in household stoves will result in a slight increase of NOx emissions,

but SO2 (106 kilo tons per annum) and PM (25 kilo tons per annum) emissions will significant reduce. The increase in NOx emissions from household stoves will be fully offset by the reduced on-field burning of some 5.9 million tons of stalk per year.

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12. Of the Output 2 policies, which are focused on strengthening environmental regulations and institutional framework, significant emission reductions will be achieved from implementation of policies focused on (i) end-of-pipe pollution control measures that will be necessary under the amended Hebei Air Pollution Prevention and Control regulations (2.1.1),15 with anticipated reductions of approximately 261,000 tons, 310,000 tons and 128,000 tons for NOx, SO2, and PM2.5 respectively; (ii) implementation of Hebei’s new VOC emissions standard (2.1.2), anticipated to result in VOC emission reductions of approximately 70,000 tons if fully complied with. 13. Under current program assumptions, implementation of the policy on promotion of urban public transport development by using a new evaluation approach (1.2.1) is anticipated to result in relatively modest annual emission reductions for NOx and VOCs of under 1,000 tons each. Other policy actions are anticipated to have environmental benefits but their contribution to emission reductions is difficult to quantify. Policy actions focused on enhancing air quality monitoring systems, technical training and capacity building, and environmental accountability (policy actions under the policy area 2.2 and 2.3) will help reduce air emissions by enhancing the regulatory enforcement associated with improved capabilities and environmental supervision. 14. Reductions in CO2 emissions are anticipated in relation to implementation of several policies, most notably the compliance to the agreed quantitative targets by 11 Hebei municipal governments through implementation of relevant actions for coal management and energy structure adjustment (approximately 6.9 million tons of CO2); the banning of crop stalk waste open burning, and associated reuse of waste in energy generation (over 6.7 million tons of CO2); and development of synthetic natural gas from capture and processing of coke oven waste gas (nearly 4.4 million tons of CO2). 15. The full set of estimates for all policies and air pollutant types is shown in Table 1 below. In total, the program is targeting total emissions reductions of 14% for NOx, 33% for SO2, 19% for PM2.5, and 5% for VOC as compared to 2012 total emission figures for Hebei.

Table 1: Estimated Annual Air Emissions Reductions Targeted by the Program Coal

(Mtce/a) NOx (t/a)

SO2 (t/a)

PM2.5 (t/a)

VOCs (t/a)

CO2 (000 t/a)

Policy Actions under Output 1 12.4 28,100 236,000 48,500 1,000 18,100 Policy Actions under Output 2 0 261,100 310,000 127,500 70,000 0 Policy Actions under Output 3 0 0 0 0 0 0 Total 12.4 289,200 546,000 176,000 71,000 18,100 Total consumption/emissions (2012)a

287 2,100,000 1,650,000 950,000 1,350,000 -

Total emission reduction (% of baseline year 2012) 4% 14% 33% 19% 5% -

CO2 = carbon dioxide, Mtce/a = million metric tons of coal equivalent per annum, NOx = mono-nitrogen oxides, PM2.5 = particulate matter of less than 2.5 micrometers in diameter SO2 = sulfur dioxide, t/a = tons per annum, VOCs = volatile organic compounds. a As defined in Clean Air Alliance of China 2014 report (footnote 4). Source: Asian Development Bank.

15 The regulations cover a wide range of measures, including both structural adjustments and end-of-pipe measures. For the purpose of this analysis and to minimize double-counting of impacts, the focus is limited to end-of-pipe measures, and reference is made to estimates from the Clean Air Alliance of China report of 2014 (footnote 4).

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16. The degrees of reductions were translated and compared with international coal and energy consumptions. The following observations can be made:

(i) Hebei’s total coal consumption in 2012 was 287 million tce. This amounts to 12% of the total amount of coal produced in the PRC (some 2.6 billion tce), and represents some 90% and 45% of the coal production of Australia (340 million tce) and the United States (670 million tce), respectively.16

(ii) The coal use reductions that are targeted by the program (i.e., some 12.4 million tce reduction per year) are equivalent to the total energy demand of countries such as Sri Lanka (16.1 million tce) or Nepal (14.4 million tce); 40–50% of the total energy demand of countries like New Zealand (27.0 million tce), Switzerland (36.5 million tce); and 3–5% of the total energy demand of countries such as Canada (358 million tce), Germany (444 million tce), and the United Kingdom (274 million tce).

(iii) The CO2 reduction that the program targets (some 18 million tons per year) is comparable with the total CO2 emissions of countries such as Mongolia or Sri Lanka (14.2 and 15.9 million tons per year, respectively);17 25% of CO2 emissions of the Philippines (79 million tons per year); and 40–50% of CO2 emissions of Norway and Switzerland (36 and 41 million tons per year, respectively).

(iv) The PM2.5 reduction targeted by Outputs 1 and 2 (some 176,000 tons per year) is approximately twice as much as the total PM2.5 emissions of the United Kingdom (82,000 tons per year, 2013).18

17. Potential adverse environmental implications. The policy reforms supported by the ADB program will not have adverse impacts on the environment, and as such do not trigger ADB’s Safeguard Policy Statement (2009). The program is categorized as C for environment safeguards. The HPG may pursue actions and activities that may have safeguards implications of which HPG will be responsible to assess and address. Likely activities will relate to the policies and plans drafted or issued under Output 1, such as public and private investments in infrastructure and facilities, including the construction of new or upgraded facilities (which may include but not limited to natural gas distribution network and storage facilities, district heating systems, boiler retrofitting and upgrading, and briquette production facilities). These activities could result in adverse impacts in terms of air emissions, noise, soil and/or water pollution during construction and operation of those facilities. The energy structure adjustments promoted under policy area 1.1 are likely to result in coal-fired heating facilities that are no longer used and that may require decommissioning and remediation. This could involve handling and disposal of hazardous wastes and the rehabilitation of contaminated sites, with risks to environment, health, and safety. The review of Hebei’s environmental safeguard system concluded that it is fully aligned with national safeguards requirements, largely consistent with the intent of ADB’s Safeguard Policy Statement (2009), and able to address potential adverse environmental impacts of infrastructure projects that will be required to achieve the targets defined in policies and actions developed under the program, as discussed below.

16 International Energy Agency. 2014. Key World Energy Statistics. Paris. (2013 figures) 17 CO2 emissions from fuel combustion. 18 United Kingdom Department for Environment, Food and Rural Affairs (Defra). 2014. Defra National Statistics

Release: Emission of air pollutants in the UK, 1970 to 2013. London.

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18. New infrastructure projects proposed in Hebei must go through early screening and detailed assessment of potential environmental impacts as required by PRC’s Environmental Impact Assessment Law (2002) and the “Three Simultaneities” in the Environmental Protection Law (2014).19 Public engagement is mandated through requirements for public disclosure of environmental assessments, through requirements for stakeholder consultation, and through establishment of an environment hotline system to address grievances, managed by the Hebei Environmental Protection Department (HEPD). PRC’s comprehensive environmental impact assessment technical guidelines detail the requirements and procedures for assessing air quality, noise, water quality, and ecological and biodiversity impacts; and relevant environmental and emission standards if exceeded would require avoidance, mitigation, or compensation to mitigate potential impacts. Environmental management planning is part of the domestic environmental impact assessment process. Workers’ occupational health and safety are regulated under PRC’s Labor Law (1994), Occupational Disease Prevention and Control Law (2011) and Safe Production Law (2002, amended in 2014). Cultural resources are protected under PRC’s Cultural Relics Protection Law (2002) and Cultural Relics Protection Law Implementation Ordinance (2003). The assessment also confirmed that technical management capacity of provincial and municipal environment protection authorities for construction-related environmental impacts and risks is generally adequate. 19. HPG has strengthened in recent years safeguard requirements and procedures for relocation of industrial facilities and site cleanup that are fully aligned with the national regulatory framework and international good practice (such as the risk-based American Society for Testing and Materials environmental site assessment procedures).20,21 HEPD currently relies on a pool of national experts to conduct the actual assessments and post-cleanup audits, and is in the process of building up local expertise and capacities through the conduct of specialized training to environment protection authorities and design institutes, as well as interested and registered social organizations. In parallel, HEPD is conducting a comprehensive soil quality baseline survey in the province that will help identify location and magnitude of future soil remediation needs. The systematic disclosure of ongoing and completed environmental site assessments on the HEPD website is considered a very good practice. 20. The due diligence also confirmed that HPG’s capacity to handle hazardous waste is adequate and in compliance with the national regulatory framework.22 Some 60 companies are currently authorized to handle, transport, treat, and dispose different types of hazardous waste, with the exception of mercury and fly ash which are still exported to other provinces for final disposal. A new state-of-the-art treatment and disposal facility is currently being constructed, which will be completed in 2016 and operated by an international company. HEPD has established an information technology-based hazardous waste management system which allows province-wide reporting and tracking of hazardous waste.

19 The “Three Simultaneities” policy requires the design, construction, and operation of environmental protection measures to occur simultaneously with the project design, construction, and operation.

20 Key national documents include, but are not limited to (i) State Council of the PRC. 2014. Guidance on the Relocation and Transformation of Urban Old Industrial Areas (document No. 9); Ministry of Environmental Protection (MEP). 2014. Notice on Strengthening Pollution Prevention and Control for Development and Utilization of Industrial Enterprises Closure, Relocation and Site Reclamation. (document No. 66); (iii) MEP. 2014. Guidelines for the Assessment and Rehabilitation of Brownfields in Industrial Enterprises (document No. 78, trial implementation); (iv) MEP. 2012. Notice of Environmental Safety in the Brownfield of Industrial Enterprises (MEP document No. 140).

21 ASTM International. ASTM E1527–13. Standard Practice for Environmental Site Assessments. 22 Key national regulations include the Measures for the Management of Hazardous Wastes (2004) and the Chemical

Safety Management Regulations (2011) issued by the State Council.

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21. Measures to further strengthen Hebei’s environment safeguard system have been identified and incorporated in the policy matrix. The program’s Output 2 directly targets to strengthen the environmental regulatory framework as well as environmental compliance monitoring and enforcement capacities through improved environment protection regulations (the policy area 2.1); enhanced air quality monitoring, modeling, and early warning capabilities (the policy area 2.2); and enhanced regulatory enforcement capacities including training and capacity building of provincial and city environment protection authorities (the policy area 2.3). 22. Climate risk to the project. The impacts of global climate change on regional air quality are potentially significant and may adversely affect the HPG’s efforts to improve air quality. Particulate matter that the program is targeting is one of the pollutants most likely to increase under climate change scenarios. This may partly offset the full benefit of the PM2.5 emission reductions and air quality improvements targeted under the program. However, the relevance and importance of the proposed policy actions will not be affected by future climate conditions. As a result, the climate vulnerability of the program is considered low. In addition, the climate change mitigation benefits of the project (annual CO2 reduction of 18 million tons by end of 2017) will contribute to national efforts to reduce greenhouse gas emissions, a major contributor to climate change. C. Social 23. Positive social impacts. Based on the assessment, it is concluded that the social impacts of the program are overwhelmingly positive. The agreed policy reform will directly benefit the people through (i) reducing socioeconomic and health risks for local people and (ii) providing improved employment support and social protection for workers. In the long-term, the agreed policy reforms are expected to bring number of potential indirect benefits, including (i) better access to improved public services; (ii) potentially new employment opportunities; and (iii) improved living environment and public health. 24. Public health benefits. The program contributes greatly to the sustainable development goal 3: Ensure healthy lives and promote well-being for all at all ages.23 The negative impact of fine particle air pollution (PM2.5) on public health and its impacts in PRC is well established.24 The policy actions supported by the program are anticipated to result in clear overall reductions in primary PM2.5 as well as SO2, NOx and VOC emissions, which will in turn contribute to improved air quality (Table 1). The program will also contribute to enhanced capacity to forecast and early respond to severe haze events, including early warning of affected communities. As a result, in the long term, public health and safety is expected to be substantially improved. Meantime, household expenses on air pollution-related diseases and the time for care of household sick members will decrease significantly.

23 The program support the sustainable development goal 3: “by 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination”.

24 Recent research found that outdoor air pollution is responsive for 3.3 million premature deaths globally, out of which 41% are in the PRC: Lelieveld, J. et al. 2015. The Contribution of Outdoor Air Pollution Sources to Premature Mortality on a Global Scale. Nature. Vol. 525 (367-371); Zhang F. et al. 2011. Study on the Association between Ambient Air Pollution and Daily Cardiovascular and Respiratory Mortality in an Urban District of Beijing. Int. J. Environ. Res. Public Health 8 (2109-2123); Guo S. et al. 2009.The association between fine particulate air pollution and hospital emergency room visits for cardiovascular diseases in Beijing. Sci. Total Environ. 407 (4826-4830); Kipen H. et al. 2010. Measurement of inflammation and oxidative stress following drastic changes in air pollution during the Beijing Olympics: a panel study approach. Ann. N.Y. Acad. Sci, 1203 (160-167).

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25. Increased access to improved basic services. Natural gas distribution network plan (1.1.1) aims to expand the access to natural gas supply of cities, towns, and counties thereby encouraging provincial-wide fuel switch. Over 20 counties which have no access to natural gas are the remote, mountainous, and poor areas where natural gas enterprises have limited interests to invest in. The plan will provide HPG’s approach and projected timelines to gradually develop the distribution network of natural gas. By showing the commitment at the provincial level, the action plan will provide guidance to the lower levels of the government (e.g., municipal, district, and county governments) to timely finance appropriate natural gas pipeline network within their administrative boundaries to ensure access of the people and industries. In medium- and long-term, the policy actions will accelerate the governments to provide safer and cleaner public services to the people. The natural gas network action plan (1.1.1) will call for stronger commitments by the local governments to accelerate their policy formulation and actions. Promotion of centralized and non-coal fired heating services (1.1.4) will contribute to increased access to safe and clean centralized heating, targeting, amongst others, nationally and provincially designated poor counties. Promoting urban public transport development (1.2.1) will raise the awareness of municipal governments and their decision makers on the importance of public transport in the city, therefore, in the long-term, enhance access to more convenient, rapid, safe, and clean public transport services for the local people. 26. Access to potential new employment opportunities. Policy actions focused on the promotion of natural gas distribution (1.1.1), clean energy utilization in rural areas (1.3.2, 1.3.3), and public transport (1.2.1) will encourage various levels of governments and their decision makers to invest on fuel switch, cleaner heating services, and urban public transportation. This may indirectly result in the creation of some new job opportunities for local people when the construction works and operations start. Moreover the stalk utilization (1.3.2) will promote reuse of agricultural biomass waste, so that it may increase rural household income by selling stalk to livestock breeding farms, stalk briquette production companies, and/or biogas plants. 27. Potentially negative social implications. The implementation of the coal-fired boiler management action plan (1.1.3) may have negative impact on boiler workers. The worker may be redeployed to newly constructed boilers with cleaner energy sources. However, some may be retrenched and need to find a new job. The review of the social protection system in Hebei concluded that the HPG has already issued policies to strengthen the social security programs, i.e., the unemployment insurance and support enterprises to retain their employees. Also, HPG has strengthened the financial basis for those policies by expanding the use of the employment fund and the newly created entrepreneurship fund. The policy action (3.1.1) will further strengthen the HPG’s policy framework on reemployment support by providing quality vocational training and administrative supports for opening and managing small businesses. 28. Affordability. The policy reform included exploring options for incentive schemes to promote clean energy heating service in Hebei (1.1.5). This includes design of an appropriate heating tariff structure and its affordability for the people, particularly poor households. Similarly, the policy reform of appropriate financial incentives to promote clean energy utilization in rural area (1.3.3) will look into an affordability of rural households as it is a key aspect of designing appropriate financial incentives to promote biomass utilization in rural areas. The policy reform will ensure that the use of cleaner energies will be the people’s preferred options. D. Involuntary Resettlement and Indigenous Peoples 29. The policy reforms will not trigger involuntary resettlement safeguards. At this point, the ADB focus would be the promotion of fuel switching rather than infrastructure construction, so there is unlikely to be involuntary acquisition of land or house demolition. Therefore, the program has been categorized as C for involuntary resettlement.

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30. The policy reforms will not trigger Indigenous Peoples safeguard. The poverty and social impact analysis was carried out to assess direct and indirect, and positive and negative impacts on ethnic minorities. The program does not have any direct adverse impacts on ethnic minorities (Hui, Man, or Mongol) as it is designed to strengthen HPG’s policy and regulatory framework for air pollution control and energy structure adjustment through a series of policy actions. Ethnic minorities will derive some direct benefits (improved rural energy supply) and indirect benefits (improved air quality and public transport) from the program but there will be no differential impacts on ethnic minorities. The ethnic minorities will equally and directly benefit from improved air quality, new job opportunities, and improved public services. Therefore, the program has been categorized as C for Indigenous Peoples.

III. IMPACT MATRIX 31. The matrix of impacts below sets out an evaluation of potential social and environmental impacts, both positive and negative, that are anticipated to arise during the plan period from implementing the policies and/or achieving their targets. Where relevant, measures to mitigate anticipated negative effects, as well as enhance positive effects, have also been outlined (Table 2).

10 Table 2: Impact Matrix of Policy Actions Supported by the ADB Program

Policy Reform Areas

Agreed Policy Actions (2015–2016) Social Impact Environmental Impacta Mitigation Measures

Output 1: Pollution from key sectors fundamentally reduced 1.1 Adjustment of

energy structure by reducing coal consumption and promoting clean energy

1.1.1. Natural gas network expansion plan with time-bound investment approach to accelerate its implementation drafted by Hebei energy administration and issued by Hebei provincial government (December 2015)

1.1.2. Enabling regulation to

encourage capture of synthetic natural gas from coke oven flue gas and allow its injection into the natural gas distribution network drafted by Hebei development reform commission and issued by Hebei provincial government (December 2015)b

1.1.3. Action plan for accelerated

decommissioning of decentralized heat only boilers and substitute them with centralized combined heat and power plants with enhanced emission reduction measures drafted by Hebei development and reform

Positive. Expanded coverage of natural gas supply to some 584,000 additional households, including towns (short- to medium- term). Public health improvement and decrease of household medical expenses from improved air quality by reducing the use of raw coal and promoting the use of cleaner fuels (medium- to long-term). Negative. Potential labor retrenchment caused by closure of small boilers and reduced coal mining and handling. In medium- and long-term, new tariff structure may be proposed due to the policy reforms include explore options for incentive schemes to promote clean energy heating service. Involuntary resettlement. The policy actions will not trigger involuntary resettlement safeguards as there will be no involuntary acquisition of land or house demolition. The ADB actions would focus on the promotion of fuel switch rather than infrastructure construction. Indigenous Peoples. The policy actions will not trigger Indigenous Peoples safeguard as there will be

Positive. Policy actions in this area will promote the shift from coal to cleaner forms of energy in urban areas, with a potential of 26.2 million tce total cumulative coal reduction from all sources in 2015–2017. This is anticipated to result in approximate reductions in PM2.5 of 70,000 tons and SO2 of 400,000 tons, NOx of 44,000 tons, as well as CO2 reduction of 33 million tons in 2015-2017. Negative. No direct negative impacts from policies. The Government’s pursuit of promoting cleaner fuels and/or achieving policy targets, will require private or/and public investments in (i) new facilities, including centralized heating plants and natural gas pipelines and storage facilities, etc. with potential effects (air emissions, noise, soil/water pollution, safety issues) during construction and operation; and (ii) decommissioning of coal-based heat and power facilities with potential environmental implications (soil and water contamination, hazardous wastes, structures and other facilities).

Social. No involuntary resettlement nor Indigenous Peoples measures are required. Environment. All infrastructure projects that the government may initiate to achieve that targets policy actions must comply with EIA regulatory framework to effectively mitigate construction-related effects, or comply with national policy regulatory framework for industrial site remediation (in case of decommissioning and cleanup activities).

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Policy Reform Areas

Agreed Policy Actions (2015–2016) Social Impact Environmental Impacta Mitigation Measures

commission and issued by Hebei provincial government (2015, completed)

1.1.4. All 11 municipalities

adopted policy on quantitative targets for raw coal reduction and promotion of centralized and non-coal fired heating service (December 2015)c

1.1.5. Hebei development and

reform commission engaged an institute to explore financial and market-based incentive schemes for urban and rural heating service from low-carbon and low-emission cleaner energy sources (March 2016)

no adverse impacts and no differential positive benefits on ethnic minorities.

12 Policy Reform

Areas Agreed Policy Actions

(2015–2016) Social Impact Environmental Impacta Mitigation Measures

1.2. Promotion of public transport in urban area

1.2.1. Provincial policy on evaluating performance of investment and institutional framework of promoting urban public transport in all 11 municipal governments drafted by Hebei transport bureau and submitted for the government approval (March 2016)d

Positive. Improved public transport services for urban residents, with long-term public health and safety benefits. Negative. None. Involuntary resettlement. The policy actions will not trigger involuntary resettlement safeguards as there will be no involuntary acquisition of land or house demolition. The ADB actions would focus on promotion and planning of public transit options and rather than construction. Indigenous Peoples. The policy reforms will not trigger Indigenous Peoples safeguard as there will be no adverse impacts and no differential positive benefits on ethnic minorities.

Positive. The policy action will provide guidance and incentives to municipalities to promote public transport in Hebei, thus contributing to reduced air pollutant and greenhouse gas emissions due to modal shift to less energy intensive (per travel km) and potentially cleaner fuelled (CNG, biofuels) public transport, relative to private motorized transport. This is anticipated to result in relatively modest annual emissions reductions for NOx and VOC of under 1,000 tons each. Negative. No direct negative impacts from the policy. Potential minor short-term effects (air emissions, noise, traffic disturbance) if new public transport facilities are constructed in cities.

Social. No involuntary resettlement or Indigenous Peoples measures are required. Environment. All public transport projects that the municipalities may initiate must comply with Hebei EIA regulatory framework.

1.3. Reduction of seasonal stalk-burning and promotion of clean energy in rural area

1.3.1. Policy on promotion of crop stalks utilization and prohibition of agricultural biomass burning in rural area drafted by Hebei agriculture bureau and issued by the standing committee of Hebei provincial people’s congress (2015, Completed)

Positive. The improved stalk utilization will promote better agricultural biomass reuse practice. In the medium- and long-term, an increasing demand on agricultural biomass may give more choices for rural farmers to sell/use agricultural biomass, increasing their income. Decrease of respiratory diseases and related medical expenses resulting from improved ambient

Positive. Reduced air emissions from (i) avoidance of open burning of stalks, (ii) 11.1 million tce consumption offset by use of biomass briquettes, representing 15% of total stalk crop waste (or some 7.8 million tons per year) in energy generation (largely for space heating in rural areas). This is anticipated to result in approximate reductions in PM2.5 of 60,000 tons, SO2 of 325,000 tons,

Social. No involuntary resettlement or Indigenous Peoples measures are required. Environment. Hebei government to ensure that national biomass briquette/pellet

13

Policy Reform Areas

Agreed Policy Actions (2015–2016) Social Impact Environmental Impacta Mitigation Measures

1.3.2. Provincial crop stalk utilization plan with higher energy recovery target of 15% of the collected amount drafted by Hebei agricultural department (December 2015)

1.3.3. Supporting policy on

cleaner energy in rural area with appropriate financial and market-based incentives to promote biomass-based fuel production, storage, transportation and utilization for raw coal replacement drafted by Hebei agricultural bureau and issued by Hebei provincial government (December 2015)e

and indoor air quality (i.e., rural household stoves). Negative. Possible financial burden on rural households, especially for the poor and vulnerable, to shift from coal to cleaner fuels. Involuntary resettlement. The policy actions will not trigger involuntary resettlement safeguards as there will be no involuntary acquisition of land or house demolition. Indigenous Peoples. The policy actions will not trigger Indigenous Peoples safeguard as there will be no adverse impacts and no differential positive benefits on ethnic minorities.

NOx of 39,000 tons, and CO2 reduction of 20 mn tons from 2015 to 2017. Negative. No direct negative impacts from the policy. Potential emissions, e.g., dust, processing chemicals, related to the briquette production process, and emissions as replacement fuel in rural stoves. (NOx, PM2.5).

production regulations and biomass briquette/pellet quality standard are being complied with.

14 Policy Reform

Areas Agreed Policy Actions

(2015–2016) Social Impact Environmental Impacta Mitigation Measures

Output 2: Environmental policy and institutional framework for implementation strengthened. 2.1.Enhancement

of legal and policy framework

2.1.1. Amendment of the Hebei Air Pollution Prevention and Control Regulations improved and drafted with clear and binding provisions on (i) volatile organic compounds (VOCs) control, (ii) BTH air quality management coordination mechanisms, and (iii) accountability for environmental performance by Hebei environment protection department and submitted to Hebei Provincial People’s Congress review (January 2016)f

2.1.2. Provincial VOCs emission

standard for key industries drafted by Hebei environment protection department and issued by Hebei provincial government (Dec. 2015)g

2.1.3. Hebei environment

protection department engaged an institute to assess air pollution control strategies for heavy diesel trucks (March 2016)

Positive. Long-term public health benefits by improving air pollution regulations including VOC emission control. Negative. None Involuntary resettlement/Indigenous Peoples: Policy formulation will not lead to any involuntary resettlement and Indigenous Peoples impact.

Positive. Long-term air quality improvement benefits by improving air pollution regulations including VOC emission control. End-of-pipe measures that will be required to comply with the amended Hebei Air Pollution Prevention and Control Regulations will result in significant annual reductions of SO2 (310,000 tons), NOx (260,000 tons), and PM2.5 (128,000 tons). The VOC emissions regulation targets the reduction of some 70,000–100,000 tons per year of VOC air emissions from key industrial sources by 2017. Negative. Likely to be minimal.

Social. No involuntary resettlement or Indigenous Peoples measures are required. Environment. Positive effects could be enhanced with further support to strengthening VOC emission monitoring and enforcement, e.g., training for environment protection authorities.

15

Policy Reform Areas

Agreed Policy Actions (2015–2016) Social Impact Environmental Impacta Mitigation Measures

2.2.Development of comprehensive monitoring and analytical system

2.2.1. Hebei environment protection department allocated budget for upgrading the ambient air quality monitoring capacity (including for emergency air quality forecasting) in its 2016 annual work plan (December 2015)h

2.2.2. Hebei environment

protection department increased the number of monitoring equipment to verify compliance with air emission standards of key polluting sources (January2016)i

Positive. Air quality forecast and prevention of air quality related emergency situations for the local residents through a better monitoring of the key air pollution sources. Negative. None. Involuntary resettlement/Indigenous Peoples. Monitoring will not lead to any involuntary resettlement/Indigenous Peoples impact.

Positive. Reduced air emissions due to enhanced prioritization, scheduling, planning, and management of regulatory enforcement, together with enhanced management of emergency response. Increased emission compliance monitoring capacity, covering some 90% of total point-source emissions from key polluting sources. Negative. Likely to be negligible.

Social. No involuntary resettlement or Indigenous Peoples measures are required Environment. Positive effects likely to be enhanced if closely coordinated with enhancement of regulatory enforcement capabilities (in particular relevant and effective training in air quality monitoring technologies, systems, procedures and data analysis, and use of monitoring outputs for air quality modelling and other planning analysis).

16 Policy Reform

Areas Agreed Policy Actions

(2015–2016) Social Impact Environmental Impacta Mitigation Measures

2.3. Enhancement of regulatory enforcement capacities

2.3.1. Provincial policy on ecological and environmental accountability measures drafted by Hebei environment protection department and issued by Hebei provincial government (December 2015)

2.3.2. Hebei environment

protection department approved and allocated budget for training plans on (i) air quality monitoring, modeling, and forecasting, and (ii) regulatory enforcement in counties and townships (March 2016)j

Positive. Improved stakeholders’ accountability and public participation mechanisms. Negative. None. Involuntary resettlement/Indigenous Peoples. Capacity enhancement will not lead to any involuntary resettlement/Indigenous Peoples impact.

Positive. Reduced air emissions due to enhanced regulatory enforcement associated with enhanced monitoring capabilities and environmental supervision. Negative. No obvious potential negative effect.

Social. No involuntary resettlement or Indigenous Peoples measures are required. Environment. None required.

Output 3: Employment promotion for inclusive industrial transformation enhanced. 3.1 Provision of

good quality training and support for reemployment of workers affected by HCAAP

3.1.1. Provincial government opinion on improvement in employment and entrepreneurship drafted by Human resources and social security bureau and issued by Hebei provincial government (2015, completed)

Positive. Support employment of workers in Hebei. Negative. None. Involuntary resettlement/ Indigenous Peoples. Vocational training will not lead to any Involuntary resettlement/ Indigenous Peoples impact.

No obvious potential environmental effects.

Social. No involuntary resettlement or Indigenous Peoples measures are required. Environment. None required.

CO2 = carbon dioxide, EIA = environmental impact assessment, EPD = environmental protection department, HCAAP = Hebei Clean Air Action Plan, PM2.5 = particulate matter less than 2.5 micrometers in diameter, NOx = mono-nitrogen oxide, SO2 = sulfur dioxide, tce = tons of coal equivalent, VOC = volatile organic compound. a All figures for reductions in coal consumption and air emissions are initial draft estimates.

17 b The policy action targets 50% of current coking production to be converted to coke oven gas capture by 2017, resulting in production of 2.5 billion cubic meter of synthetic

natural gas. c The policy action will result in clear commitments on emission reduction targets for each of the 11 municipal governments in Hebei Province for 2016 and 2017, including (i)

amount of raw coal reduced, (ii) coverage of centralized heating service in urban and rural areas, and (iii) number of households to switch from coal to natural gas or electricity for their heating service (the household not covered under [ii]).

d The policy will include evaluation indicators that promote (i) infrastructure investment on urban public transport and non-motorized transport, (ii) improvement of accessibility and bus service quality, (iii) renewal of bus fleet with low emission vehicles, and (iv) strengthening of governments’ responsibility and capacity.

e The policy will regulate subsidies for (i) price difference between coal and stalk briquettes with flexible pricing scheme that aligns with market price of coal; (ii) stalk briquette production; and (iii) stalk collection, storage, and transportation.

f The regulation describes (i) plans and targets in air pollution prevention and control; (ii) prevention and control measures; (iii) how to deal with heavy pollution weather; (iv) unified prevention and control in Beijing, Tianjin, and key regions; (v) supervision and inspection; and (vi) legal responsibilities of county level and above government departments and bureaus in air pollution prevention and control.

g The standard will regulate VOC emissions from key industries (pharmaceutical manufacturing, petroleum refining, petrochemical, organic chemical, coking, iron and steel smelting and rolling processing, wood processing, furniture manufacturing, transportation equipment manufacturing, surface coating, and printing and packaging.

h The action will prioritize strengthening ambient air quality monitoring system by clearly indicating the activity in the EPD 2016 annual work plan to ensure good progress in 2016 and completion in 2017

i The policy action will support the expansion of the CEM coverage to 1,300 key polluting sources. j This will include at least 50 people from Hebei Environmental Monitoring and Forecasting Centers receiving training with at least 50 officers from local counties and townships

receiving training by December 2016. Source: Asian Development Bank.

18

IV. CONCLUSIONS AND RECOMMENDATIONS 32. The program will generate multiple substantial environmental and social benefits. It will issue or amend existing policies which will not occasion direct involuntary resettlement or have adverse impact on Indigenous Peoples or the environment. The program is classified as category C for resettlement, Indigenous Peoples, and environment. 33. Environmental impacts of the program are overwhelmingly positive. Proposed policies are focused on energy structure adjustments and will strengthen the provincial regulatory framework and institutional capacities for air pollution control, contributing to significant annual coal consumption reductions (12.4 million tce), as well as annual emissions reductions of PM2.5 (170,000 tons), SO2 (546,000 tons), NOx (285,000 tons), VOC (71,000 tons), and CO2 (18 million tons). The assessment of the environmental safeguard system in Hebei confirmed that it is fully aligned with national requirements and is able to address adverse environmental implications that may result from investments and activities that the HPG may pursue as a response to policies and plans supported by the program. Individual projects that may be implemented by the private and/or public sector will be subject to Hebei’s environmental impact assessment (EIA) framework and consultation with affected persons. The EIA framework has been enhanced to comply with the recently issued Law in Environmental Protection (2015). Significant improvements were also made to Hebei’s regulatory and management system for industrial site decommissioning and brownfield remediation, as well as for hazardous waste management, ensuring alignment to the national regulatory framework and international best practice. Environmental monitoring and supervision capacity building measures have been incorporated into program design. 34. Social impacts of the program are anticipated to be positive, especially in the longer term, as current levels of air pollution impose significant socioeconomic and health risks for local people. The policy actions are not expected to trigger social safeguard implications. The proposed policy reforms will promote improved access to cleaner and safer energy and heat sources (including natural gas and renewable resources) and district heating services; promote urban public transport; and provide new employment opportunities. Proposed actions under 1.1.3 may have labor retrenchment implications (i.e., closure of small boilers) and could affect affordability of household energy use. The program includes measures to address these impacts. Particularly, the policy matrix includes several measures (1.1.5) to directly promote clean energy deployment and ensure affordability. Policy area 3.1 will help the government to enhance the redeployment of affected workers through strengthening vocational training, and providing further administrative supports for opening and managing small businesses, especially for rural migrant workers. 35. Recommendations. The following actions are recommended to be acted upon by the relevant authorities in HPG to strengthen the program and its safeguard systems, or supplement some of the policy actions of the program:

(i) Secure formal commitment to adhere to safeguards regulations. The HPG, in its function as executing agency, should commit to ensure that the preparation and implementation of all policy actions supported by the program, as well as activities and investments that HPG may pursue to respond to these actions, comply with all applicable national or provincial laws and regulations relating to environment, health and safety.

(ii) Activities supported by the program should not trigger any of ADB’s safeguards. HPG should be requested to ensure that no loan proceeds are used

19

for expenditures for items listed in Appendix 5 (prohibited investment activities) to ADB’s Safeguards Policy Statement (2009) or for expenditures for direct infrastructure development, or land use adjustments and redevelopment, that has potentially adverse environmental, involuntary resettlement or Indigenous Peoples impacts within the meaning of ADB’s Safeguard Policy Statement (2009).

(iii) Conduct multi-stakeholder program evaluation. The conduct of a multi-stakeholder (e.g. HPG, central government, ADB, KfW) review and assessment of the Program is recommended in 2017 to assess the impact and outcome of the Program, its adherence to program assurances, and the findings and recommendations of this initial assessment.

20 Appendix 1: Policy Matrix of the ADB Program

Policy Reform Areas Agreed Policy Actions (2015–2016)

Monitoring Indicators in 2016 and Responsible

Agency Donor

Coordination Output 1: Pollution from key sectors reduced 1.1. Adjustment of energy

structure by reducing coal consumption and promoting clean energy

1.1.1. Natural gas network expansion plan with time-bound investment approach to accelerate its implementation drafted by Hebei energy administration and issued by Hebei provincial government (December 2015)

1.1.2. Enabling regulation to encourage capture of synthetic natural gas from coke oven flue gas and allow its injection into the natural gas distribution network drafted by Hebei development reform commission and issued by Hebei provincial government (December 2015)

1.1.3. Action plan for accelerated decommissioning of decentralized heat only boilers and substitute them with centralized combined heat and power plants with enhanced emission reduction measures drafted by Hebei development and reform commission and issued by Hebei provincial government (2015, Completed)

1.1.4. All 11 municipalities adopted policy on quantitative targets for raw coal reduction and promotion of centralized and non-coal fired heating service (December 2015)

1.1.5. Hebei development and reform commission engaged an institute to explore financial and market-based incentive schemes for urban and rural heating service from low-carbon and low-emission cleaner energy sources (March 2016)

2.5 billion cubic meter (m3) of synthetic natural gas produced from the coke oven flue gas in 2016 (baseline = 0 from 2013)

Raw coal reduction at from 2015 to 2016 will reach in total of 8.0 million tons from all 11 municipal governments (baseline = 0 from 2013).

Centralized heating service coverage rate in urban area in all 11 municipalities increased to more than 80% (baseline = less than 70% for all 11 municipalities in 2013).

Development and Reform Commission/Energy Administration

ADB-KfW: Policy-based lending for the BTH air quality improvement program

1.2. Promotion of public transport in urban area

1.2.1. Provincial policy on evaluating performance of investment and institutional framework of promoting urban public transport in all 11 municipal governments drafted by Hebei transport bureau and submitted for the government approval (March 2016)

The first evaluation results for urban public transportation issued in December 2016 (baseline = NA)

Transport Department

ADB-KfW: Policy-based lending for BTH air quality improvement program

21 Policy Reform Areas Agreed Policy Actions (2015–2016)

Monitoring Indicators in 2016 and Responsible

Agency Donor

Coordination 1.3. Reduction of seasonal stalk-

burning and promotion of clean energy in rural area

1.3.1. Policy on promotion of crop stalks utilization and prohibition of agricultural biomass burning in rural area drafted by Hebei agriculture bureau and issued by the standing committee of Hebei provincial people’s congress (2015, Completed)

1.3.2. Provincial crop stalk utilization plan with higher energy recovery target of 15% of the collected amount drafted by Hebei agricultural department (December 2015)

1.3.3. Supporting policy on cleaner energy in rural area with appropriate financial and market-based incentives to promote biomass-based fuel production, storage, transportation and utilization for raw coal replacement drafted by Hebei agricultural bureau and issued by Hebei provincial government (December 2015)

Percentage of collected agricultural stalk for energy recovery reached 12% in 2016 and 15% in 2017 (baseline = less than 10% in 2014).

Agriculture Department

ADB-KfW: Policy-based lending for BTH air quality improvement program World Bank: Program-for-results for the Hebei clean air action plan

Output 2. Environmental policy and institutional framework for implementation strengthened 2.1. Enhancement of legal and

policy framework

2.1.1. Amendment of the Hebei Air Pollution Prevention and Control Regulations improved and drafted with clear and binding provisions on (i) volatile organic compounds (VOCs) control, (ii) BTH air quality management coordination mechanisms, and (iii) accountability for environmental performance by Hebei environment protection department and submitted to Hebei Provincial People’s Congress review (January 2016)

2.1.2. Provincial VOCs emission standard for key industries drafted by Hebei environment protection department and issued by Hebei provincial government (December 2015)

2.1.3. Hebei environment protection department engaged an institute to assess air pollution control strategies for heavy diesel trucks (March 2016)

11 key industrial sectors will be targeted under the new provincial VOCs standard by December 2016 (baseline = NA).

Environment Protection Department

ADB-KfW: Policy-based lending for BTH air quality improvement program

22

Policy Reform Areas Agreed Policy Actions (2015–2016)

Monitoring Indicators in 2016 and Responsible

Agency Donor

Coordination 2.2. Development of

comprehensive monitoring and analytical system

2.2.1 Hebei environment protection department allocated budget for upgrading the ambient air quality monitoring capacity (including for emergency air quality forecasting) in its 2016 annual work plan (December 2015)

2.2.2 Hebei environment protection department increased the number of monitoring equipment to verify compliance with air emission standards of key polluting sources (January 2016)

The air quality monitoring networks in the Hebei Provincial Environmental Monitoring Center and in 11 cities are upgraded with (i) at least 1 station each to monitor ammonia, VOCs, heavy metals, and elemental/organic carbon; (ii) a total of 30 monitoring stations located in Hebei industrial parks; and (iii) a total of 6 background and regional transport monitoring stations by December 2016. (baseline = NA).

Additional 1,000 key pollution sources will be equipped with on-line continuous emission monitoring by December 2016 (baseline = 270 pollution sources in 2014).

Environment Protection Department

ADB-KfW: Policy-based lending for BTH air quality improvement program World Bank: Program-for-results for the Hebei clean air action plan

2.3. Enhancement of regulatory enforcement capacities

2.3.1 Provincial policy on ecological and environmental accountability measures drafted by Hebei environment protection department and issued by Hebei provincial government (December 2015)

2.3.2 Hebei environment protection department approved and allocated budget for training plans on (i) air quality monitoring,

At least 50 people from Hebei Environmental Monitoring and Forecasting Centers receive training on (i) and at least 50 officers from local counties and townships receive

ADB-KfW: Policy-based lending for BTH air quality improvement program World Bank:

23 Policy Reform Areas Agreed Policy Actions (2015–2016)

Monitoring Indicators in 2016 and Responsible

Agency Donor

Coordination modeling, and forecasting, and (ii) regulatory enforcement in counties and townships (March 2016)

training on (ii) by December 2016 (baseline = NA).

Environment Protection Department

Program-for-results for the Hebei clean air action plan

Output 3. Employment promotion for inclusive industrial transformation enhanced 3.1. Provision of good quality

training and supports for reemployment

3.1.1. Provincial government opinion on improvement in employment and entrepreneurship drafted by Human resources and social security bureau and issued by Hebei provincial government (2015, Completed)

More than 100,000 workers reemployed and redeployed after receiving the training in 2015–2016 (baseline = 50,500 workers in 2013–2014)

Human Resources and Social Security Bureau

ADB-KfW: Policy-based lending for BTH air quality improvement program

ADB = Asian Development Bank, BTH = Beijing–Tianjin–Hebei, EPD = environment protection department, m3 = cubic meter, NH3 = ammonia, VOC = volatile organic compound. Source: Asian Development Bank.