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Page 1: As Africa’s main trading partner, China has aawsassets.wwf.org.za/downloads/final__focac_briefing...Extractive industries and infrastructure development In 2011, more than 80% of
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China-Africa cooperation continues to grow. By the end of 2013, the total trade had surged to 210

billion USD, 21 folds compared to 2000 levels. As Africa’s main trading partner, China has an

important role to play in ensuring that its investments in Africa are sustainable and equitable. In

particular, it is crucial that the trade and the governance of natural resources – a major portion of

China-Africa exchanges – bring benefits to the local populations now and for future generations. WWF

has identified the Forum on China-Africa Cooperation (FOCAC) as a key platform for this discussion, in

line with a vision of economies developing ensuring ecological sustainability and social inclusivity.

Established in 2000, FOCAC has made strides in the development of political and economic

relations between China and African countries. The 5th Ministerial Conference of FOCAC in 2012

recognised for the first time environmental degradation and energy security as major global threats. In

addition, it included commitments on social responsibility of Chinese companies operating in Africa,

renewable energy and sustainable forest management.

At the same time, FOCAC agreed to provide 20 billion USD in credit lines for infrastructure,

manufacturing and agriculture projects in Africa. In May 2014, during a trip to Africa, Chinese Premier

Li Keqiang extended this amount to 30 billion USD. He also enunciated new emphasis for China-Africa

cooperation: peace and security, poverty reduction and sustainable development, civil society

exchanges and partnerships with development organisations. He focused on low carbon developments

as well as avoidance of illegal activities and pollution.

Africa is endowed with rich natural resources which form part of its identity and provide vital life

support for its 1.1 billion population. At the 23rd African Union Summit, held in Malabo on 20-27th June

2014, African Heads of State and Government expressed concern over the unsustainable use and

conservation of African wild flora and fauna and on the dramatic escalation of illegal trade in recent

years. They adopted a Decision on African Wild Flora and Fauna Conservation and Illegal Trade in

Wildlife to strengthen law enforcement.

Regarding China, in November 2012 the 18th National Congress of the Communist Party of China

added ecology to the previous four pillars for the achievement of the country development goals

(economic, political, cultural and social) and a new environmental law was adopted in 2014.

WWF believes these are significant developments.

FOCAC provides the opportunity to extend similar approaches to the China-Africa cooperation. As

China and African countries prepare for the 6th FOCAC Ministerial Conference, in 2015 in South Africa,

WWF would like to make recommendations to the competent authorities in the following areas:

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Responsible extraction of natural resources

Sustainable finance

Clean energy

Inclusive FOCAC process.

Sustainable use - and trade - of natural resources is at the interface of conservation and

development. As Chinese imports from Africa focus mainly on energy and natural resources, the

cooperation between China and African countries is particularly important in ensuring that economies

develop following a sustainable path. While poor environmental management leads to depletion of

natural resources, pollution, reduced access to food and safe water, negative health impacts and

conflicts, sound management of natural resources will ensure Africa’s long-term prosperity as well as

China’s return on investment and international reputation.

Forestry

As a global natural resource, forests contribute to African societies’ and economies’ in numerous

ways such as source of income, energy, food and shelter. Whereas Africa accounts for only about 4% of

Chinese imports of forest products, for countries like Mozambique, the Republic of Congo and Gabon,

China is the largest export market (89%, 53% and 37% respectively in 2005). Through FOCAC,

China and African countries can promote legal, responsible and sustainable forest

management and timber trade by:

Chinese and African governments work together to provide incentives, including preferential

tariffs or taxes, better access to financial resources and carbon trading mechanism to

enterprises that apply best practices

Ensuring that China-Africa authorities work together to ramp up cooperation, promotion,

capacity and monitoring of guidelines on sustainable forestry management and timber trade,

including “The Guide on Sustainable Overseas Forests Management and Utilization by Chinese

Enterprises,” co-issued by China’s Ministry of Commerce and State Forestry Administration in

2009 and “The Guideline for Overseas Sustainable Forest Products Trade and Investment by

Chinese Enterprises” which is under development;

Developing and piloting a timber legality verification system (i.e., a system tracing sourcing of

timber products in consumer countries similar to the Voluntary Partnership Agreement of the

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European Union’s Forest Law Enforcement Governance and Trade – FLEGT VPA – aiming to

ensure that only legally harvested wood enters into the market) in cooperation with key timber

trade partner countries in Africa. Such an instrument developed and led by State Forestry

Administration (SFA) of China can play a crucial role to ensure legal and sustainable sourcing of

timber exported to China.

Supporting a more sustainable forestry industry in Africa through technology transfer and

investment that increase efficiency of wood use and added-value processing, reduce waste and

promote better management of source forests and improve local economic development.

Chinese forestry companies in Gabon

Since 2011, WWF has provided 3 training sessions on sustainable forest management to a total of 13

Chinese forestry companies in Gabon and has distributed legal texts (e.g. the forest code and the

environmental code) translated into Chinese. In 2014, these companies signed engagement to

collaborate with WWF on sustainable forest management practices, including enhanced social

conditions for workers and improved wildlife conservation.

In cooperation with the Ministry of Water and Forests, WWF has also carried out audits in forest

concessions managed by 6 Chinese companies. The aim was to evaluate performance in relation to the

International Tropical Timber Organization (ITTO) standards and the Gabonese guidelines for

sustainable forest management (with criteria linked to sustainability of resource extraction,

maintenance of ecological processes, contribution to social well-being of workers and local

communities). Performance by Chinese companies was low, with on average a 32% management

efficiency score for the 6 Chinese companies, compared to 54% for non-Chinese operators and 84% for

companies certified by the Forest Stewardship Council in Gabon.

The audits show that there is much need and opportunity for improvement. The need was felt for

direct engagement of the companies’ directors, who have been targeted by the third round of

workshops. This was done in cooperation with China’s State Forestry Administration, the Chinese

Embassy and the Forest Administrations of Gabon. Following the workshop, engagements were made

to develop and monitor activities in line with better practices and also to facilitate dialogue on the

specific needs of the Asian wood markets.

Wildlife conservation

The African continent boasts a rich diversity of wildlife which supports its ecology, economy and

culture. China is one of the 12 globally recognized “Mega-biodiversity” countries and wildlife

conservation is one of the key components of the Ecological Civilization process in China.

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In the last 8 years, Africa has witnessed the dramatic poaching of elephants and rhinos. In 2013

1,004 rhinos were killed in South Africa, compared to only 10 in 2007. Of the 500,000 elephants

remaining in Africa, 22,000 were illegally killed in 2012 according to TRAFFIC, the wildlife trade

monitoring network. At these rates, elephants will be wiped out from the continent over the next

decade, with the situation particularly critical in Central and Eastern Africa.

Illegal wildlife trade is now the fourth largest transnational crime in the developing world and its

revenues fuel terrorist groups. At a summit in Paris in 2013, African Heads of State called traffickers in

endangered species a “threat to peace and security in Africa and worldwide” alongside terrorists, drug

and human traffickers. Several African countries are increasing penalties treating illegal wildlife trade

as serious crimes. In Mozambique, for example, penalties for illegal ivory trade have been increased by

more than 100%. The first session of the UN Environment Programme (UNEP) Assembly in June 2014,

adopted a resolution that calls upon countries to promote and implement policies of zero tolerance

towards all illegal activities including corruption associated with the illegal trade in wildlife. In January

2014 China destroyed for the first time over 6 tons of confiscated ivory. These important actions can be

ramped up by strengthening cooperation and enhancing the implementation of international wildlife

conventions as well as wildlife conservation activities:

Strengthening cooperation to improve public awareness on Illicit Wildlife Trade in both source

and demand countries Undertaking joint efforts to ensure compliance with environmental and

wildlife laws, building capacity in judiciary, enforcement and customs, strengthening

enforcement and regulatory controls over wildlife trade, increasing information sharing,

technology exchange and resourcing for enforcement agencies, establishing joint special wildlife

units in customs or enforcement agencies;

Including wildlife crime in the fight against transnational organised crime in line with bilateral

treaties and international conventions, making appropriate linkages with anti-corruption, anti-

drug trafficking and anti-terrorism activities;

Strengthening information exchange, best practice sharing, capacity building and joint research

on protected area management and eco-tourism to improve wildlife conservation in Africa and

China, and support the establishment of a national park system in China through such China-

Africa exchange and cooperation.

Extractive industries and infrastructure development

In 2011, more than 80% of China’s imports from Africa consisted of crude oil, raw materials and

natural resources. Extractive industries and their associated infrastructure development for access and

transport have potential to contribute to sustainable development if well-managed and governed. At

the 5th FOCAC Ministerial Conference, it was agreed that China and the African Union establish a

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Programme for Infrastructure Development in Africa. It is essential that conservation and development

planning are integrated to ensure maximum social, environmental and economic benefits to African

countries. In these sectors, China and African countries can work together to promote best practices for

sustainability by:

Cooperating on building the capacity for more effective use of planning and decisions making

tools (such as Strategic Environmental Assessments, sustainability appraisal, land use planning,

spatial planning, etc.). This is important particularly within economic corridors where large-

scale, multi-sectoral developments and associated infrastructure are concentrated, often linked

to or including extractive industries. Good planning and management of these corridors will

help reduce land use conflicts, strengthen stakeholder engagement, ensure cross-sector

engagement and integrated land and water planning. China can provide technical assistance in

planning, and both sides can foster learning on integrated development that ensures social

benefits, protection of biodiversity and ecosystem services and economic growth;

Identifying and mapping areas of high conservation value for socio-economic or ecosystem

service benefits (i.e. services ecosystems provide to society, such as drinking water and flood

protection), and agree to refrain from extractive and large-scale infrastructure investment in

these areas;

Providing investment guidelines for the extractive sectors (mining, oil, gas) ensuring that social

and environmental considerations are “up-streamed” into decision-making to ensure maximum

benefits for government, investors, companies, civil society and the country as a whole;

Ensuring and monitoring the application of international performance standard guidelines and

best practices (such as Environmental and Social Impacts Assessment and Environmental

Management Plans);

Providing training to enterprises on application of best practices and inclusion of environmental

and social aspects early in decision-making; sharing experiences and lessons learned,

developing learning groups and other mechanisms to advance best practices;

Building on the experiences of African civil society networks, fostering participation of various

stakeholders involved in planning and monitoring of investment in extractive industries.

Mining versus tourism in Tanzania

Tanzania has an array of minerals, such as gold, diamonds, coal, uranium and gemstones (including

tanzanite which can be found only in Tanzania). While representing over half of the national exports,

the mining sector contributed 3.3% of the country’s Gross Domestic Product (GDP) in 2013, leading to

concerns that it generates benefits mostly outside the country. The Government hopes to increase the

percentage to over 10% by 2025.

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Tanzania is renowned for world-famous conservation areas, such as the Serengeti National Park or

the Selous Game Reserve. Indeed, over 44% of the country’s territory falls in some form of protected

area, e.g. national parks, game reserves, Wildlife Management Areas. These contributed to attracting

over 1.1 million tourists in 2013, which contributed to 17% of GDP. The environment also supports the

livelihoods of most Tanzanians, as 75% of a population of 40 million is dependent on subsistence

agriculture. In a country where 33% of the population lives below the poverty line, any investment in

infrastructure and mining must take into account development and sustainability needs and ensure

that these activities can coexist with other important economic sectors.

With presence in 14 African countries, WWF can assist in the roll-out of such commitments with

experience and expertise in training, awareness raising events and material, environmental planning,

regulatory frameworks and international best practices, as well as research, management and on-the-

ground knowledge of conservation areas.

At the 5th FOCAC Ministerial Conference (2012), China committed 20 billion USD in credit lines for

infrastructure, manufacturing and agriculture projects in Africa doubling the commitments made in

2009. Although it is a small portion of China’s total investment in Africa, the way such money is

deployed provides a strong signal of the kind of collaboration China seeks to have with African

countries, especially since projects are implemented mostly by state-owned companies. Africa’s long-

term prosperity depends on efficient and sustainable land use, water and food security as well as

resilience to climate change. These long-term investments will shape Africa’s development path and

opportunities for the future generations, so it is fundamental that consultation, coupled with the best

environmental and social standards underpin their completion.

Sustainable lending

In 2012 the China Banking Regulatory Commission issued the Green Credit Guidelines, a voluntary

framework to promote sustainability in lending practices of Chinese banks both for domestic and

overseas investments. Based on such framework, banks will assess, monitor, control and mitigate

environmental and social risks of projects and disclose relevant information. Local governments and

civil society have a role to play in providing feedbacks. African countries have the possibility to support

and benefit from these measures and to develop specific financial instruments to support sustainable

economic development:

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Ensuring that the Green Credit Guidelines are applied to all investments deployed under

FOCAC, including the China-Africa Development Fund;

Linking the financing of projects to the application of best practices and sustainable investment

guidelines;

Establishing a financial facility that specialises in renewable energy and supports investments in

programmes established by African countries to promote renewable energy development

especially for peri-urban and rural area that still lack access to energy in Africa.

WWF has partnerships with public and private financial institutions worldwide, including the

African Development Bank, to promote green lending practices and has experience organising training

programmes in this regard. In China, WWF has worked with the China Banking Regulatory

Commission, organising 5 training that have reached 27 banks, and therefore can assist in the roll-out

of such commitments with advice and capacity building.

The production of renewable energy and energy efficient technology is growing in China. At the

same time, the demand for energy efficient products and services is increasing in Africa although

energy access remains a problem. In 2011 in sub-Saharan Africa 68% of the population did not have

access to electricity and 79% relied on traditional biomass for cooking. The need for energy is therefore

huge. It is important to make sure that such need is met by clean and renewable energy (wind, solar,

small hydropower and sustainable forms of biomass) and avoid locking the future on fossil fuel

infrastructures. Despite the enormous potential, renewable energy accounts for only 1% of Africa’s

energy mix, while 80% is based on fossil fuels. As more than 60% of Africa’s population live in rural

areas where it is difficult and expensive to connect to national electricity grids, renewable energy

provides a promising alternative. There is great potential for China and African countries to work

together to promote sustainable energy access to all.

Renewable energy technology

In the past Ministerial Conferences FOCAC has already made provisions on cooperation for clean

energy and renewable resources. These can be taken to the next step, building partnerships at different

levels to ensure that economic development and local livelihoods are powered by renewable energy and

addressing energy access in a financially and environmentally sustainable manner by:

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Engaging with the African Union to facilitate trans-border solutions and to support cooperation

between African governments and the private sector; Integrating sustainable energy as a key

theme into the Energy Forum under FOCAC and using the forum as a platform to promote

cooperation in public and private sectors;

Identifying and developing joint renewable energy demonstration projects in Africa that

support livelihoods and local industrial development – exploring economically sustainable

model for renewable energy projects that can be replicated and scaled up across Africa;

Strengthening technological cooperation on clean technology, including promotion of

technology transfer through R&D cooperation, cooperation on development of energy efficiency

standards, promotion of localized manufacturing and skills transfer to increase African

countries capacity to roll-out renewable energy and the manufacturing of energy efficiency

products.

Efficient and affordable lighting in Madagascar

WWF Madagascar initiated a multi-partners project for the promotion of good quality efficient

lighting at affordable prices in Madagascar. Due to the lack of regulations and low purchasing power,

high-quality Compact Fluorescent Lamps (CFLs) have long remained out of reach for the majority of

people. The risk was the dissemination of low-quality CFLs or, even worse, incandescent light bulbs

which have already been banned in several countries. By the end of 2014, 540,000 high quality CFLs

will be distributed to approximately 140,000 households in the capital Antananarivo. This will allow

the reduction of the peak power demand of about 20 MW, thus allowing the national electricity

provider (JIRAMA) to save around 6 million USD per year on fuel and households to save 7% on their

electricity bill. The reduction of power demand will reduce CO2 emission under a programme certified

by Gold Standard (a standard for high-quality emission reductions projects in the UN Clean

Development Mechanism), thereby providing additional funding for the establishment of a regulatory

framework for high quality efficient lamps and for the collection and proper disposal of low quality

CFLs.

WWF, via its global expertise and its country offices in Africa, can help identify regulations and

policy needs in the renewable energy sector; facilitate stakeholder participation, training and capacity

building; promote research; and build on country-specific opportunities to promote projects ready for

development.

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At the FOCAC Ministerial Conferences representatives of China and African countries make

decisions that affect the development of African societies and China. Broad societal support is therefore

key to the success of the China-Africa cooperation, as well as is the involvement of all involved

Ministries. The Africa-China cooperation on environment has been strengthened in June 2014 with the

organisation of a dialogue between ministers of Environment during the first session of the UN

Environment Programme (UNEP) Assembly, in Nairobi. The quality and long-term sustainability of the

FOCAC deliberations can be enhanced by:

Establishing a platform to systematically integrate environmental and social sustainability in

China-Africa cooperation, ensuring that national delegations are cross-sectoral and include

Ministries in charge of environment;

Enabling a formal and meaningful contribution of civil society organisations (CSOs) in the

FOCAC process, expanding possibilities of access from the current China-Africa People’s Forum

and including international groups;

In addition to the FOCAC Declaration and Action Plan, publishing and regularly updating a

FOCAC monitoring plan for FOCAC follow-up actions.

Case study: In September 2013, WWF organised the first multi-sector and multi-stakeholder

meeting on Chinese investments in Madagascar, with a focus on the extractive sector. Two Ministers

and 70 participants from the government, civil society and businesses attended, including Chinese

firms. It was the first occasion for all parties to discuss the environmental and social sustainability of

Chinese investments in the country and to deepen mutual understanding among civil society, Chinese

businesses and the local administration. The workshop, however, was instrumental in addressing the

issues at stake and in establishing more positive communications channels. The presence in remote

areas of civil society organisations and their ability to monitor activities on the ground can be a useful

resource for decision-makers to get the pulse of the situations and make decisions accordingly.

WWF has a long experience in convening and participating in multi-stakeholder processes, as well

as in programme monitoring, and can make its experience available to FOCAC members.

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Based on the 2012 Beijing Declaration, WWF proposes the following changes (in bold) for the

Declaration of the 6th Ministerial Conference of the Forum on China-Africa Cooperation:

4. We believe that the development of the new type of strategic partnership between China, the

largest developing country, and Africa, the largest group of developing countries, is of great

significance for the peace, stability and sustainable development of the world and serves the

fundamental and strategic interests of both sides.

8. […] We believe that countries around the world should work to pursue peace, promote

sustainable development and resolve differences through cooperation, with a view to achieving

economic and social progress respecting the limits of the natural environment.

10. […] We call on the international community to, under the leading role of the UN, take seriously

the inefficient implementation in the field of sustainable development, show the political will and

commitment to build consensus, and reach agreement on the implementation of the post-MDG

framework of sustainable development. We support for the Post-2015 Development Agenda,

a single set of goals that are universal, cross-cutting, integrated and sustainable.

13. We have followed closely the question of increased threats and challenges brought by global

issues such as climate change, environmental degradation, energy and resource security, major

infectious diseases and massive natural disasters. We expect the outcomes of 2015 United

Nations Climate Change Conference comply with all principles and provisions of

the United Nations Framework Convention on Climate Change, so as to ensure effective

and sustained implementation by all relevant parties. In accordance with the principles of

equity and “common but differentiated responsibilities”, we urge developed country take the

lead by sticking to existing commitments, and increasing climate ambitions on all the

pillars of Durban Platform for Enhanced Action - mitigation, adaptation, finance,

technology development and transfer, and capacity-building; whilst, developing

country ready to play their roles. To jointly promote international cooperation on climate

change we are willing to take voluntary actions in China-Africa cooperation through

deploying renewable energy, low carbon and climate-resilient development.

15. […] We call on the international development partners to draw on each other’s strength and

have sound interactions in Africa to jointly promote peace and sustainable development.

16. [alinea 4] […] Building on the achievements we have made, we will deepen our cooperation in

trade, investment, poverty reduction, clean energy, infrastructure building, environmental

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protection, capacity building, human resources development, food security, hi-tech industries and

other areas, and elevate our cooperation to a higher level by applying sustainable practices in

all areas.

Based on the 2012 FOCAC Action Plan, WWF proposes the following changes (in bold) for the

Action Plan of the 6th Ministerial Conference of the Forum on China-Africa Cooperation:

2.3.4. The two sides will further promote exchanges and cooperation between ministries as well

as local governments, promoting the establishment of multi-sectoral delegations and

platforms, including ministries in charge of environment, to discuss all aspects of the

China-Africa cooperation (e.g. social and environmental sustainability).

2.4.3. The two sides commit to fighting transnational organized crime, including illicit

wildlife trade, in accordance with bilateral treaties and multinational conventions, strengthening

cooperation in judicial, law enforcement and legislative fields.

3.5. […] The two sides will urge the relevant parties to earnestly act on the second commitment

period of the Kyoto Protocol, the Green Climate Fund, technical mechanism and adaptation, and will

make a joint effort to advance the international cooperation on climate change. Similarly, they

will address carbon emissions and climate change by promoting cooperation,

investment and training in renewable energy, low carbon and best available energy

efficiency technologies.

4.2.5. […] China will encourage enterprises joining the zones to increase links with local

enterprises and communities, strengthen technology and experience sharing, support investment

and training in renewable energy and the manufacture of energy efficiency products

that enhance technology transfer and job creation.

[new] The two sides will cooperate on setting up and implementing guidelines to

direct and incentivise extractive enterprises to implement best practices aligned with

the Africa Mining Vision.

4.3.1. […] China and African partners will support investment aligned with integrated

plans that ensure ecological and infrastructure connectivity, committing to

consideration of environmental factors alongside economic and social factors in all

strategic decisions about policies, plans and programmes. China will provide

preferential loans, technical assistance and capacity building in integrated

development planning.

4.3.3. The Chinese government will continue to encourage capable Chinese enterprises and

financial institutions that apply China’s Green Credit Guidelines to participate in

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transnational and trans-regional infrastructure construction in Africa and provide preferential loans

to support infrastructure building in Africa.

4.5.2. China will expand its cooperation with Africa in investment and financing to help boost

Africa’s sustainable development. China will provide a credit line of US$20 billion to African

countries to mainly support the development of infrastructure, agriculture, manufacturing, and

development of small and medium-sized enterprises in Africa. China’s Green Credit Guidelines

will apply.

[new] Financial institutions from the two sides will also strengthen cooperation in

investment for green industries.

4.6.1. […] the two sides will encourage and support joint development of demonstration

projects in renewable energy and the efficient use of energy and natural resources. They will

consider the establishment of a China-Africa energy forum under the framework of FOCAC to

promote China-Africa energy exchanges and cooperation.

4.6.3. The two sides will actively advance cooperation in clean energy and renewable resources

projects, including with specific financial mechanisms, in keeping with the principles of

mutual benefit and sustainable development.

4.9.2. The two sides will continue to step up bilateral exchanges and cooperation in tourism and

conduct cooperation in information sharing, eco-tourism development, planning and

management of protected areas, skills training, tourism safety and quality guarantee.

4.9.3. The two sides will build awareness with tourists on the local natural environment

and on international conventions on illegal wildlife trade.

[new] Efforts will be made to reduce demand for ivory and illegal wildlife products

in China.

5.1.3. China will make active use of the grants, interest-free loans and concessional loans to help

the sustainable development of African countries.

5.6.2. The two sides will advance cooperation in forest protection and management, scaling up

assistance, investment and capacity in the development of a sustainable forest industry

and ensuring the legality of trade in wood products.

6.4. Exchanges between Civil Society, Academia and Think Tanks.

[new] Encourage and support exchanges and input in the FOCAC process of civil

society organisations.

7.2 The two sides noted with satisfaction that important progress has been made in the building of

sub-forums under FOCAC and agreed to set up new sub-forums under FOCAC or promote the

institutionalization of existing sub-forums, and the establishment of a system to regularly

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monitor the implementation of the FOCAC deliberations in the light of needs of both sides so

as to broaden China-Africa cooperation and bring out new dynamism of China-Africa cooperation.

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CITES, IUCN, TRAFFIC. (2013). Status of African elephant populations and levels of illegal killing and the illegal trade in ivory: A report to the African Elephant Summit.

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Haken, J. (2011). Transnational Crime In The Developing World. Global Financial Integrity. [PDF] http://www.gfintegrity.org/storage/gfip/documents/reports/transcrime/gfi_transnational_crime_web.pdf

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WWF is in over 100

countries, on 5

continents. 16 offices are

in Africa.

WWF was founded in

1961.

WWF has been

working in China

since 1980. WWF

China is

headquartered in

Beijing and has 9 field

offices across the

country.

Our goal: by 2015

China’s trade, aid

investment policies

integrate solid

environmental

principles.

Why we are here

To stop the degradation of the planet’s natural

environment and

to build a future in which humans live in harmony with

nature.

www.wwfchina.org

© 1986 Panda symbol WWF-World Wide Fund For Nature (formerly known as World Wildlife Fund) ® “WWF” is WWF Registered Trademarks