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CHINA-UNIDO COUNTRY PROGRAMMING FRAMEWORK
FOR INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT
TIME FRAME 2016- 2020
This Country Programming Framework (CP) is designed to enhance UNIDO’s support to the
Government of China to implement a road-map towards Inclusive and Sustainable Industrial
Development (ISID) as stated in the Lima Declaration adopted on 2 December 2013 during the 15th
session of General Conference of UNIDO. In doing this, UNIDO has aligned the priorities for China to
the 13th
Five Year Plan, building on the achievements of past projects and programmes1
. As
industrialization is a long-term endeavor, involving many stakeholders, efforts will be made to
strengthen synergies and avoid duplication by collaborating with development cooperation partners,
including the private sector in the country. As a framework based on established national priorities, it
will be a useful guide for the selection of UNIDO’s interventions in China over the next 5 years.
On behalf of Government of China Name and Title Signature Date
FANG Aiqing
Vice Minister
Ministry of Commerce
On behalf of UNIDO Name and Title Signature Date
LI Yong
Director General
30 November 2015
1 Reference to Integrated/ Country Programmes, Stand-alone projects if applicable.
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LIST OF ABBREVIATIONS
CCCPF China Climate Change Partnership Framework
CFCs Chlorofluorocarbons
CICETE China International Centre for Economic and Technical Exchange
COD Chemical Oxygen Demand
CSR Corporate Social Responsibility
GDP Gross Domestic Product
GEF Global Environmental Facility
ESCAP Economic and Social Commission for Asia and the Pacific (UN-ESCAP)
EU European Union
FAO Food and Agriculture Organization
FY Fiscal Year
E&E Energy and Environment
EU European Union
HCFCs Hydrochloro fluoro carbons
HDI Human Development Index
HIV/AIDS Human immunodeficiency virus/ Acquired immunodeficiency syndrome
IDF Industrial Development Fund
IFAD International Fund for Agriculture
ILO International Labor Organization
IMF International Monetary Fund
IOM International Organization for Migration
ISEC International Solar Energy Centre for Technology Promotion and Transfer
ICSHP International Centre for Small Hydropower
ITPO Investment and Technology Promotion Office
LDC Least Developed Countries
MDG Millennium Development Goal
MDI Metered Dose Inhaler
MEP Ministry of Environmental Protection
MOFCOM Ministry of Commerce of the People’s Republic of China
NIP National Implementation Plan
NOx Generic term for mono-nitrogen oxides: NO, NO2, NO3
OCHA Office for the Coordination of Humanitarian Affairs
ODA Official Development Aid
POPs Persistent Organic Pollutants
PPP Purchasing power parity
PRP Poverty Reduction Programme
RAC Room Air Conditioning
RMB Results Based Management
RMB Renminbi
SDG Sustainable Development Goals
SMEs Small and Medium Enterprises
SO2 Sulphur dioxide
UCSSIC UNIDO Centre for South-South Industrial Cooperation
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UK United Kingdom
UN United Nations
UNAIDS Joint United Nations Programme on HIV/AIDS
UNCTAD United Nations Conference on Trade and Development
UNDAF United Nations Development Assistance Framework
UNODC United Nations Office on Drugs and Crime
UNDP United Nations Development Programme
UNEP United Nations Environment Programme
UNESCO United Nations Educational, Scientific and Cultural Organization
UNICEF United Nations Children's Fund
UNIFEM United Nations Development Fund for Women
UNFPA United Nations Population Fund
UNHABITAT United Nations Human Settlements Programme
UNHCR United Nations High Commissioner for Refugees
UNIDO United Nations Industry Development Organization
UNOPS United Nations Office for Project Services
UNV United Nations Volunteers
UNWTO United Nations World Tourism Organization
TCB Trade Capacity Building
WFP World Food Programme
WHO World Health Organization
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TABLE OF CONTENTS
Executive Summary
1.0. Country situation analysis
1.1. National context
1.2. Challenges to be addressed
2. 0 UN coordination framework
3.0 Past Cooperation and Lessons Learned
4.0 Country Programme Components
5.0 Management framework
5.1 Coordination
5.2 Monitoring and Evaluation
5.3 Risks and mitigation measures
5.4 The legal Context
6.0 Indicative budget and funding strategy
Annex I: Results Framework
Annex II: List of Ongoing and Pipeline Projects
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Executive summary
In the past three decades, China has delivered exceptional levels of growth and social development
progress, obtaining remarkable results in its effort to achieve the MDGs and create a Xiaokang
(moderately prosperous) society. Nevertheless, three prominent challenges still have to be addressed,
namely:
a. Achieving high quality, low carbon economic growth and transitioning to a green economy,
b. Ameliorating the situation of food safety, and
c. Strengthening International Cooperation on Industrial Development.
The Chinese Government has adopted a strategic, prudent and scientific approach in facing these
challenges, by implementing small initiatives (later scaled up if successful) and by basing policy on
sound evidence and data. Its strategic vision is expressed and synthetized in the 12th
Five Year Plan
(2011-2015) and 13th Five Year Plan (2016-2020). Given China’s most remarkable trends and the
country’s priorities as expressed by the 13th Five Year Plan, UNIDO and several other UN entities
agreed with the Chinese Government on three thematic pillars or “UNDAF Outcomes” for the UNDAF
2016-2020: poverty reduction and equitable development, improved and sustainable environment, and
enhanced global engagement.
Against this background, particular priority is given to three of the country’s most urgent development
needs, namely Promoting Green Industry Development, Ensuring Food Safety and Strengthening
International Cooperation. Therefore, UNIDO proposes a renewed initiative aiming to address these
three issues. In accordance with the pillars of UNDAF 2016-2020, and in line with UNIDO’s Lima
Declaration, Sustainable Development Goals (SDG)-Goal 9 and China-UNIDO Strategic Cooperation
Framework 2014-2016, the China-UNIDO Country Programme 2016-2020 focuses therefore on the
promotion of inclusive and sustainable industrial development (ISID) through convening global forum
for industrial cooperation and standard-setting, providing policy advisory and technical cooperation
services.
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1.0. Country situation analysis
1.1 The National Context
China is the largest developing country, now ranking as the second biggest economy of the world. In
tandem with the rapid economic growth in the past three decades, China’s prospering industries have
taken a heavy toll on the environment causing pollution of air, water and soil.
http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/China-INDUSTRY.html
http://databank.worldbank.org/data/reports.aspx?source=2&country=CHN&series=&period=
http://www.economywatch.com/world_economy/china/export-import.html
https://www.cia.gov/library/publications/the-world-factbook/fields/2103.html
BASIC KEY INDICATORS 2
(non-exhaustive list)
Population 1.364 billion (2014, World Bank)
Age structure:
0-14 years: 17.1% (male 124,340,516/female 107,287,324)
15-24 years: 14.7% (male 105,763,058/female 93,903,845)
25-54 years: 47.2% (male 327,130,324/female 313,029,536)
55-64 years: 11.3% (male 77,751,100/female 75,737,968)
65 years and over: 9.6% (male 62,646,075/female 68,102,830) (2014
est.)
Rural : Urban – 46% : 54%
GDP per Capita (US$) 7,593.9 (2014)
Income group Middle Income
Economic growth in % 7.4% （2014）
Origin of GDP (%): Agriculture: 9.2%
Industry:42.6%
Services:48.2%
Main natural resources coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony,
manganese, molybdenum, vanadium, magnetite, aluminum, lead, zinc,
rare earth elements, uranium, hydropower potential (world's largest)
Main production Steel, coal, cement, farm-use chemical fertilizer, textiles, railway
locomotives, jet planes, computers, inexpensive cotton textiles,
garments, food processing, television sets, bicycles, cars, trucks, and
washing machines.
Competitiveness index Ranked 14th
out of 144 countries （2014）
Trade Primary exports - commodities: electrical and other machinery,
including data processing equipment, apparel, radio telephone handsets,
textiles, integrated circuits
Primary imports - commodities: electrical and other machinery, oil and
mineral fuels, optical and medical equipment, metal ores, motor vehicles
Main trading partners: USA, Hong Kong/China, Japan, Republic of Korea, Taiwan Province of
China, Germany, Australia, Malaysia, Brazil, Russia.
Employment Rate 95.95%
Ratio of female to male labour force participation (%): 81.6% (2013)
Development indicators
HDI score: 0.719 (ranked 91st out of 187 countries)
Literacy Rate: 96.4%
Poverty Ratio: 14.7 (2011)
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In 2002, the Government integrated its drive to meet the MDGs into its efforts to create a Xiaokang
(moderately prosperous) society. Targets have also been set for 2015 that go definitively beyond the
requirements of the MDGs, with particular emphasis being placed on reducing disparities, especially
those of income and access to high-quality health care and education.
The major expression of the Chinese Government’s plans to address these trends is the Five Year
Plan. The new five year plan namely the 13th
Five Year Plan is currently under formulation. The key
elements of the 13th Five Year Plan are summarized below:
Economy as a whole: to maintain GDP growth at a moderate rate; People's quality of life is to be
enhanced and more should be done to tackle problems in education, employment, incomes,
social security, health care and food safety.
Structure of the economy: the economy should be driven by consumption, investment and
exports instead of only by investment and exports. China will shift from relying on secondary
industries alone to reliance on the primary, secondary and tertiary industries, turning away from
resource consumption and toward technological development through innovation.
Ecology and green development: strengthen ecological conservation capacities; coordinated
regional growth and green development must be carried out fully.
Reform: reform should be the ultimate power to cultivate and unlock market potentials and boost
sustainable and healthy growth of the economy and society; and that there should be improved
government efficiency and credibility.
Moreover, the Chinese government has emphasized the importance of constructing a “circular
economy” as the major way of achieving an “ecological civilization”. The establishment of a
circular utilization system of resources has been made one of the goals of building the Xiaokang
society in all respects. The notion of a circular economy embodies the principles of “ecological
civilization”, namely respecting nature, complying with nature, and protecting nature.
1.2. Challenges to be addressed
Notwithstanding these considerable achievements, there remain a number of significant national
development challenges, and new concerns, that need to be addressed for China to achieve SDG
2030 targets and retain and equitably distribute the benefits of the remarkable gains achieved in
recent years. The sheer size of China and its population of 1.3 billion make these challenges
complex and diverse, often requiring action at national, regional and local levels. Three development
challenges require greater attention:
a. Achieving high quality, low carbon economic growth and transitioning to a green economy in the
face of heavy reliance on non-renewable energy. Hand in hand with the move to a green economy
will be the need to ensure broader environmental sustainability and the sustainable use of natural
resources, with particular reference to the need for energy efficiency, increased environmental
safeguards, preventing degradation of eco-systems and protecting biodiversity, tackling industrial
pollution, and facilitating adaptation to the impacts of climate change.
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b. Ameliorating the food safety situation. China’s food safety level is restricted by the shortage of
qualified laboratory staff and institutional arrangements. China’s food safety management system
needs to be strengthened in standardization, compliance monitoring and enforcement, interagency
cooperation, and the overall food safety governance performance needs to be improved. The country
makes great efforts to meet international standards for food export, and to safeguard people’s health
and ensure safety of life.
c. Strengthening international cooperation on industrial development. Through south-south
cooperation, triangular cooperation and inter-regional cooperation along the land and maritime Silk
Road (the Silk Road Economic Belt and the 21st Century Maritime Silk Road), China will support
the common development of other developing countries. The lessons and experiences drawn from
China’s industrial and socio-economic development can be shared with other countries. In the same
vein, the advanced management techniques and practices of developed and developing countries in
international development and cooperation can be introduced to China.
2.0 UN Coordination Framework
Given the trends outlined above and the priority areas in the 13th
Five Year Plan, but also the UN’s
comparative advantages in China (seen primarily as the ability to bring to China the best of global
experience and expertise), UNCT-China3 and the Government agreed to the following three thematic
pillars or “UNDAF Outcomes” for the UNDAF 2016-2020.
UNDAF Outcome 1: More people, particularly the vulnerable and disadvantaged, enjoy improved
living conditions and increased opportunities for economic, social and cultural development.
UNDAF Outcome 2: More people enjoy a cleaner, healthier and safer environment as a result of
improved environmental protection and sustainable green growth.
UNDAF Outcome 3: The effectiveness of China’s engagement in international cooperation is
enhanced for the mutual benefit of China and the world.
3.0 Past Cooperation and Lessons Learned
An important aspect of implementing the new Country Programme will be to take into account the
recommendations of the Country Evaluation4, undertaken in 2011 by UNIDO. The Evaluation Team
3 The following UN entities took part in the elaboration of the UNDAF: ESCAP, FAO, IFAD, ILO, IOM, OCHA, UNAIDS,
UNCTAD, UNDP, UNEP, UNESCO, UNFPA, UNHABITAT, UNHCR, UNICEF, UNIDO, UNIFEM, UNODC, UNOPS,
UNV, UNWTO, WFP, WHO. The IMF also took part. 4 The results and operation of the Country Programme 2008-2010 were evaluated as part of the overall country evaluation
conducted by UNIDO’s Evaluation Office in January 2011. The Evaluation Team’s main recommendations were as follows:
The UNIDO project activities outside the environmental area should gradually be concentrated on fewer thematic
areas. Furthermore, UNIDO should concentrate more geographically and on projects that can be used as “pilots” or
“models” for future replication and upscaling by Chinese authorities and partners.
The Country Programme should in the future be used as a strategic tool also to plan the use of China’s Industrial
Development Fund and UNIDO Seed Funds in a more “targeted” way. The Regional Office’s role in project
identification could be strengthened. “Calls for proposals” in targeted thematic/geographical focal UNIDO areas
should be considered.
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recommended that UNIDO’s project activities outside the environmental area should gradually be
concentrated on fewer thematic areas. In particular, an increased focus on the sector of Food Safety
and Green Industry are recommended, while the focus of poverty alleviation should be sharpened
and more profoundly addressed. These recommendations have been taken into account in the design
of the new Country Programme.
During implementation, attention will also be given to implement the Evaluation Team’s
recommendation to concentrate more geographically and on projects that can be used as “pilots” or
“models” for future replication and upscaling by Chinese authorities and partners.
4.0 Country Programme Components
UNIDO’s Lima Declaration on inclusive and sustainable industrial development (ISID), adopted by the
member states on 2 December 2013, aims to harness the full potential of industry’s contribution to the
achievement of sustainable development, and lasting prosperity for all. The Lima Declaration states that
UNIDO should serve as a global facilitator of knowledge and advice on policies and strategies towards
achieving inclusive and sustainable industrial development; and should focus on the three thematic
priorities in which it has comparative advantage and expertise: poverty reduction through productive
activities; trade capacity-building and energy and environment.
ISID means that: (i) Every country achieves a higher level of industrialization in their economies, and
benefits from the globalization of markets for industrial goods and services; (ii) No one is left behind in
benefiting from industrial growth, and prosperity is shared among women and men in all countries; (iii)
Broader economic and social growth is supported within an environmentally sustainable framework; and
(iv) The unique knowledge and resources of all relevant development actors are combined to maximize
the development impact of ISID.
The 2030 Agenda for Sustainable Development sets out the global framework to eradicate poverty and
achieve sustainable development by 2030. The new objectives, a set of 17 Sustainable Development
Goals (SDGs), has been formally adopted by the international community at a dedicated UN Summit
taking place from the 25 to 27 September 2015.
The 2030 Agenda is a universal agreement; its implementation requires action by all countries,
developed and developing. It will be underpinned by a Global Partnership, mobilizing governments and
stakeholders (citizens, civil society, private sector, academia, etc.), at all levels.
The UNIDO ISID agenda, which helps to build economic growth, reduction of inequality and ensuring
more careful use of natural resources, is closely related to many SDGs, and in particularly to SDG 9:
Build Resilient Infrastructure; Promote Inclusive and Sustainable Industrialization and Foster
Innovation.
An increased focus on the sector of Food Safety should be considered.
The focus of poverty alleviation should be sharpened and more profoundly addressed.
The potential for increasing leverage through co-financing should be more actively explored.
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Within the framework of UNIDO’s mandate and approved services, the China-UNIDO Country
Programme 2016-2020 focuses on promoting inclusive and sustainable industrial development (ISID)
through convening global forum for industrial cooperation and standard-setting, providing policy
advisory and technical cooperation services in order to address the two major components of the ISID,
namely creating shared prosperity and safeguarding the environment. UNIDO’s intervention into
priority areas defined in the Country Programme will be in accordance with this fundamental approach
to ISID.
a. Global Forum for industrial cooperation and standard-setting
Global Forum functions enable UNIDO to build partnerships and networks and facilitate stakeholders’
engagement which are necessary to achieve desired development outcomes. UNIDO’s convening role
brings Member States, the private sector, civil society and other development partners together in major
outcome-oriented events that serve to exchange ideas and disseminate knowledge and information,
facilitate partnerships, and forge common positions and plans of action for inclusive and sustainable
industrial development.
UNIDO, as one of the co-organizers and supporting institutions, will provide necessary support and
participate in the international forums that are held in China, namely China (Shanghai) Technology Fair,
China Eurasia Expo (Urumqi), China International Fair for Investment and Trade (Xiamen), China
International Industrial Fair (Shanghai) among others, in a more systematic way to achieve value
addition and tangible results.
UNIDO in cooperation with the Government of China will also invite the experts, academia,
entrepreneurs, businesses and government officials to the global forums organized by UNIDO outside of
China to share their knowledge, experiences and best practices.
b. Policy advisory services
UNIDO supports the creation of conducive policy environments for inclusive and sustainable industrial
development. In collaboration with national research institutions, universities and governmental
departments, UNIDO will provide policy advisory on green industry and its role in the transformation of
the industry, in promoting a circular economy and in developing a low carbon economy. This will
contribute to the policy making of various levels of governments as well as the task force work of China
Council for International Cooperation on Environment and Development (CCICED).
UNIDO will collaborate with local universities and research institutions to carry out feasibility studies
on Eco-Industrial Parks and formulate ISID strategies for pilot cities or regions in China in line with the
MOU signed between UNIDO and the Ministry of Industry and Information Technology (MIIT) on 7
November 2013 and Strategic Cooperation Framework (2014-2016) signed between UNIDO and the
Ministry of Commerce in November 2014.
Given the importance of Global Value Chains (GVCs) in industrial development and international trade,
UNIDO will strengthen its study on GVCs, to list GVCs as a UNIDO systematic research subject; to
establish relationships with national institutions and international organizations; and to accelerate the
UNIDO study on GVCs. UNIDO will also focus on the study on industrial cooperation and development
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along the Belt and the Road in cooperation with Development Research Center of State Council/China
and other international organizations under the framework of the Silk Road Think Tank Network.
c. Technical cooperation services
UNIDO’s development intervention is delivered through its technical cooperation activities. It represents
a significant element in achieving UNIDO’s mission to help reduce poverty through inclusive and
sustainable industrial development, giving every country the opportunity to grow a flourishing
productive sector, increase their participation in international trade and safeguard their environment.
UNIDO builds capacities in public and private institutions to support the growth of industry and related
services, with a particular focus on SME and entrepreneurship development.
Based on the above principles and frameworks of general goals and methodology, the China-UNIDO
Country Programme 2016-2020 consists of three main components, namely Green Industry, Food
Safety, and International Cooperation on Industrial Development. The matrix below gives an overview
of the Country Programme priorities:
CP Priority
areas
Relevant
national sector
priorities
Relevant
UNDAF
Other national/regional
and international
frameworks
And commitments
Alignment with
UNIDO’s
priorities
ISID
Green Industry
Prevention and control of
pollution; Enhancing climate
resilience of industries；Improving energy efficiency and
management；
Hazardous waste management
UNDAF
Outcome 1
SDG 9 and Lima
Declaration;
Montreal Protocol；
Kyoto Protocol；
Stockholm Convention；
Minamata Convention；
UN Framework
Convention on Climate
Change
Safeguarding the
environment
Food Safety Food safety UNDAF
Outcome 2
SDG 9 and Lima
Declaration; ISO 22000;
WTO; International Food
Safety Network; Global
food safety partnership;
HACCP
Creating shared
prosperity
International
Cooperation
on Industrial
Development
South-south and triangular
cooperation；the Belt and Road
Initiative
UNDAF
Outcome 3
SDG 9 and Lima
Declaration; APEC;
FOCAC; ASEAN;
BRICS; G20
Creating shared
prosperity
Following are the detailed descriptions of the Country Programme components. A list of ongoing
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projects and projects in the pipeline is provided in the Annex II.
4.1 Green Industry
The objective to promote environmental protection is in line with the ISID principle of safeguarding the
environment. The environmental issue is a major national priority of China. UNIDO continues to
provide assistance to China to achieve a smooth transition to resource efficient and low carbon
industries. UNIDO assistance is focused on supporting and guiding China’s efforts to adopt the actions
in line with Manila Declaration on Green Industry during the first Green Industry Conference in 2009
and the UNIDO-China Strategic Cooperation Framework 2014-2016.
UNIDO delivers its technical cooperation programme through a two pronged approach: a) greening of
existing industries; and b) creating new industries. The approach consists of:
a. Greening of Industry: ensuring that all industries, regardless of sector, size, ownership, markets
and location continuously improve their environmental performance and resource productivity,
and
b. Creating Green industries: Stimulating the development and creation of industries that enable
environmentally-friendly goods and services.
UNIDO sees its role in the energy and climate change field as a catalyst for scaling up investments in
clean energy solutions, strengthening policy frameworks to create an enabling environment and to
secure funding for increased market penetration of renewable energy, energy efficient and low-carbon
technologies that promote sustainable industrial growth.
UNIDO development cooperation and intervention for environmental protection is delivered in three
levels namely policy, institution, and enterprise as reflected below.
Policy
Create and Raise awareness on cleaner and sustainable production (CSP).
Deepen national markets and policy environment of CSP centres and other institutions.
Asses trends in energy consumption and provide policy support.
Assistance for coherent policy and institutional framework for sustainable energy use and
increased access to low carbon energy.
Use of new energy vehicles to be promoted and the industrialization level of electric cars
improved.
Institution
- Create support institutions, test and disseminate CSP tools and methodologies.
Support the adoption of CSP practices, methodologies and technologies.
Provide assistance in the environmentally sound management of POPs and other toxic
chemicals.
Strengthen the capacity of institutions to support energy efficiency practices through
implementation of Energy Management System such as ISO 500001.
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Training and transfer of technology to rural communities to provide modern energy services
through innovative renewable energy technologies
Enterprise
Strengthen the global and regional networking activities between the NCPCs and related
institutions.
Participate and collaborate with CP-related global fora and providing guidance and support to
enterprises.
Support environmentally sound management of wastes, waste recycling and waste treatment
systems.
Promote the transfer of cleaner and environmentally sound technologies to industry.
Create an ecosystem of innovation especially for clean technologies
SME training on environmental protection, good practices.
Support for industrial upgrading and modernization (IUMP).
The strategies and approaches displayed above will be implemented in UNIDO’s cooperation with
China in pursuit of a greener industry. Following is an overview of UNIDO’s future activities regarding
environmental protection in China.
UNIDO will continue its cooperation with the Ministry of Environmental Protection (MEP),
especially in the implementation of international environmental conventions. Additionally,
UNIDO will make more efforts in supporting the implementation of China’s national key
environmental protection action plans, such as the Air Pollution Prevention and Control Action
Plan and Water Pollution Prevention and Control Action Plan. At a minimum, UNIDO and MEP
will work together on:
Under the Montreal Protocol, the elimination of HCFCs in the room air conditioning (RAC)
manufacturing sector and extruded polystyrene foam production sector, of CFCs in the metered
dose inhaler (MDI) sector and the refrigeration servicing sector, of methyl bromide in the
chemical industry and the agricultural sector, and of disposal of obsolete ODS’s;
Under the Stockholm Convention, the development and implementation of demonstration projects
on integrated chemicals management, reduction and elimination of hexabromocyclodeodecane
(HBCD) and elimination of dioxins discharges from the steel industry and chlorobenzene sector;
Under the Mercury Convention (adopted in 2013), the development and implementation of
projects on the reduction of mercury emissions and environmental sound management from the
zinc smelting industry, of demonstration projects of mercury reduction and minimization in the
production of vinyl chloride monomer, of the initial assessment of Minamata Convention.
Task force work of China Council for International Cooperation on Environment and
Development (CCICED), focusing on greening one belt one road and resource efficiency.
Under the national action plans on water and air pollution prevention and control, supporting the
planning and implementation of cleaner and upgrading transformation of production processes in
10 key industrial sectors respectively in the air and water programmes.
UNIDO will continue to support the relevant counterparts in the field of energy and resource
efficiency in cooperation with the Ministry of Industry and Information Technology (MIIT) and
the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), especially in
industrial clusters and parks. At a minimum, UNIDO and these counterparts will work on:
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Capacity building for energy management in industry;
The development of energy conservation mechanisms and the promotion of the energy
conservation industry;
Capacity building for the phase-out of production and use of lead -based paint in China;
The development of fuel efficiency strategies and new energy technologies for the Chinese
automotive industry;
The promotion of renewable energy, especially through the two UNIDO renewable energy
centres in China, the International Solar Energy Centre for Technology Promotion and
Transfer and the International Centre for Small Hydro Power;
The development of resource efficient and cleaner production planning and development
mode for the industrial clusters and parks.
Sharing experience and best practices through south-south cooperation, eco-design and
technology transfer.
Jointly organizing green manufacturing training workshops through the foreign aid training
programme and facilitating the international cooperation and exchanges on energy efficiency
and environmental industries, and their advanced technologies and equipment.
Use of new energy vehicles to be promoted and the industrialization level of electric cars
improved.
UNIDO will look into developing projects in the broader area of climate change mitigation.
Specifically, this could include projects on:
Greenhouse gas (GHG) data collection and analysis;
Establishment of greenhouse gas (GHG) emission database at city or provincial level;
Development of greenhouse gas mitigation policies at city or provincial level;
Capacity building for carbon exchange and carbon auditing
In the area of environmental standards, UNIDO will continue with its efforts to promote Corporate
Social Responsibility (CSR) in cooperation with Ministry of Construction and Ministry of
Commerce. UNIDO will cooperate with MIIT and local governments to set up pilot Eco-Industry
Parks. In the field of sustainable energy standards, UNIDO will cooperate with the Administration
of Quality Supervision, Inspection and Quarantine (AQSIQ) and for new energy vehicles with the
Society of Automotive Engineers of China (SAE-China).
In the area of gender issues, UNIDO will build on and align with the Vienna Energy Forum (VEF)
recommendations and in particular with the conclusions of the third Green Industry Conference
which was held in Guangzhou, China in November 2013 where an engagement was taken to liaise
with governments, business associations and enterprises to promote the particular interest of
women in Green Industry and create a women-in-green-industry network in the framework of the
Green Industry Platform.
4.2 Food Safety
UNIDO has a strong and resourceful experience in food safety, working all along the food processing
value chain, from agro-processors, upgrading their processes to meet relevant food safety standards, to
standards bodies and laboratories, which are needed to allow agro-processors to receive the necessary
food safety certifications for their processes.
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UNIDO assists countries to develop competitive manufacturing capability, supports conformity with
national and international market requirements and connect the enterprises with markets. Basically,
UNIDO implements the 3C approach to ensure food safety and trade facilitation:
1. Compete: Develop competitive manufacturing capability;
2. Conform: Prove conformity with market requirements;
3. Connect: Connect products to the market.
At the global forum level, in addition to the number of expert group meetings on Food Safety and
conformity issues, UNIDO in close partnerships with UN Agencies and bilateral partners has
coordinated in the publication of i) Resource Guide on Trade Capacity Building Services, and ii)
Meeting Market Standards-Winning Markets. These documents have been well recognized by various
international organizations and contributed in formulating programmes on Food Safety and to facilitate
trade in international markets.
UNIDO has contributed significantly for the development of National and Regional Quality Policies and
national SPS (sanitary and phyto-sanitary) and Food Safety related policies, such as for the East African
Community (EAC), West Africa (ECOWAS/UEMOA), and to several Asian countries.
In the undertaking of these services in the area of Food Safety, UNIDO has developed institutional
partnerships with international food safety related regulatory authorities such as the EU DG Sanco
(consumer safety), the US Food and Drug Administration (FDA) and their corresponding services in
Australia and Japan.
UNIDO has global partnerships in the area of Quality Infrastructure Governance (ISO for
standardization, ILAC for accreditation, IAF for certification, BIPM and OIML for metrology). A major
global partnership with Private Sector in Food Safety is the cooperation with the Consumer Goods
Council, in particular the Global Food Safety Initiative (GFSI).
In the framework of rules and negotiations on Food safety and growing global trade relations, UNIDO
services contributing in:
Food Safety and Occupational Health and Safety training and certification;
A range of trainer accreditation;
A range of Training of Trainers (ToT) sets;
Localization of training manuals on Food Safety (FS) and Occupational Health and Safety (OHS);
Local co-branding of training materials with national certification bodies;
Development of a national center for accreditation；
Expanding similar project models to other countries such as China;
Co-branding of new qualifications;
Creating E-learning packages and providing online digital platforms;
Food safety is a relatively new area for UNIDO in China, but is of growing importance for the Chinese
people and the government. In recent years, a number of major incidents in China have drawn
international attention as well as national attention to this issue. To tackle this problem, China’s
16
government has implemented major measures, such as strengthening supervision, law enforcement,
improvement of food safety standards, and raising public awareness. However, there are still big
challenges ahead in improving the level of food safety. The most pressing issue is that many small
agricultural and food producers have poor access to technical assistance and capacity building in China.
In the 12th
Five-Year Plan, the issue of food safety received stronger attention, to the extent that there is
a special section regarding food and medicine safety. With strong expertise in implementing food safety
projects worldwide, UNIDO’s involvement with China’s food safety efforts is extremely relevant.
The following three levels of UNIDO intervention for food safety in cooperation with China Food and
Drugs Administration (CFDA) are provided at the policy, institutional and enterprise levels, to national
institutions and enterprises.
Policy
Assist in formulating the China Food Safety Initiative and building-up national and regional
infrastructure and services.
Support to comply with the international agreements.
Foster the export of safe and compliant products.
Develop capacities to protect consumers according to the provisions of TBT and SPS.
Institution
Support to the establishment of China Food Safety Platform.
Support to the development of quality infrastructure.
Support to the development of standards bodies.
Support to the development of product testing laboratories (micro-biological, chemical,
pesticide residue and others).
Assist in the development of metrology/calibration laboratories, and accreditation bodies,
certification bodies, inspection services.
Enterprise
Provide support to technology improvement, process optimization and the utilization of by-
products for waste reduction.
Support and implement factory rehabilitation, modernization, upgrading projects and
campaigns to improve product quality.
Assist in implementing good hygiene practices and introducing food-safety systems based on
risk analysis and prevention and traceability.
Assist compliance with the sanitary and phyto-sanitary agreements to help food companies
expand their access to world markets.
UNIDO has completed a number of projects on food safety in Fujian, Guizhou and Yunnan provinces,
working in some of the poorer counties to promote domestic consumption as well as export. UNIDO has
also set up a regional training base for food testing in Dali, which should serve both the western part of
China and the broader region.
UNIDO in cooperation with CFDA organized an International Forum on Food Safety in June 2015 in
Beijing and in September 2015 in Vienna. A project to jointly organize training courses for the officials
and practitioners on food safety at the provincial and central levels has commenced. The cooperation
17
with World Bank and other international organizations will be fully harnessed for synergy and
complementarities. Also, the gender issues in food safety from the perspective of Trade Capacity
Building and Agro- business revealed their high importance. UNIDO will ensure the participation of
women and the integration of a gender perspective in the project activities such as training courses,
workshops and study tours.
4.3 International Cooperation on Industrial Development
South-South cooperation has long been an important effort in China and will become the most important
part in establishing mutually beneficial relations between China and the world, especially with
developing countries. China has been providing assistance to other developing countries in the past six
decades and has made great achievements. The 12th Five-year Plan also highlighted strengthening
South-South cooperation with a clear thinking of optimizing and innovating the assistance to other
countries, including more focus on social welfare projects, and self-developing capacity building
projects.
Through UNIDO’s assistance, the spectrum of cooperation for China as a South-South partner can be
broadened. The UNIDO Centre for South-South Industrial Cooperation (UCSSIC) can offer technical
assistance in this respect. UNIDO can also use its existing Investment and Technology Promotion
Offices (ITPOs) network and International Technology Centers (ITCs) to provide support to China’s
enterprises in their outward investment to other developing countries.
China’s own development experience has much to offer to the other developing countries which have
considerable demand and interests. UNIDO can use its network and substantive experience to help
China ensure that its experience is shared in ways that best fits the needs of other countries.
For instance, China’s experience in poverty reduction and trade capacity building are both of great
interest to other developing countries. During the past 30 years, more than 600 million people have been
lifted out of extreme poverty in China. In this connection, it is helpful to facilitate the information
exchange and experience sharing programmes between China and other developing countries in the area
of special economic zones, agriculture and poverty reduction, health, education and training, and
watershed and land management issues.
China can also share its experience in the application of green solutions to industrial development
challenges with other developing countries, for instance, in promoting cleaner production nationwide
through pilot demonstration, policy advice, networking and capacity building with technical support
from the China National Cleaner Production Center. China was one of the first set of countries to
massively develop clean energy sources such as biogas and small hydropower stations. In the past few
years, UNIDO has devoted its effort to support China in the implementation of pollution control and
environmental protection programmes.
With regard to the Belt and Road initiatives, UNIDO pioneered a Green Silk Road project to promote
green development concept in 2012 under which the guidelines for the establishment of eco-industrial
parks were developed. UNIDO is currently cooperating with Asian Development Bank and other
international organizations to facilitate regional cooperation on industrial parks, city alliance, green
industry and small business development. UNIDO is now the founding member of the Silk Road Think
Tank network at the invitation of the Development Research Center of State Council of China.
18
China’s experiences in promoting gender equality and its positive impact on poverty reduction, green
industries, agro sector development and capacity building could be shared with other countries in the
region and globally.
5.0 Management framework
5.1. Coordination:
A Steering Committee (SC) will be established to monitor implementation of the Country Programme
and assess its progress and achievements. The SC will also provide policy guidance and direction to the
implementation of the country to ensure its continued relevance to China’s priorities and needs. Its core
members will comprise of representatives of the Ministry of Commerce (MOFCOM); Ministry of
Finance (MoF); Ministry of Environmental Protection (MEP); Ministry of Industry and Information
Technology; China Food and Drugs Administration (CFDA); China International Centre for Economic
and Technical Exchanges (CICETE); Foreign Economic Cooperation Office (FECO)/MEP; and UNIDO
Field Office in Beijing. The membership of the SC will be expanding depending on the programmes and
projects that are implemented under the umbrella of the Country Programme. The Steering Committee
will meet once a year to review the progress of the projects and activities implemented within the
Country Programme.
The project managers of the projects being implemented as a part of the Country Programme will be
members of the Country Team, chaired by the UNIDO Representative in Beijing. This body will also be
used to monitor and assess progress, and in particular to maximize any possible synergies between
projects.
Within UNIDO, the UNIDO Representative in the Beijing Office will have overall responsibility for the
implementation of the Country Programme. The UNIDO project managers responsible for the individual
projects being implemented under the umbrella of the Country Programme will coordinate their
implementation with the UNIDO Representative.
On the side of the Chinese Government, the Ministry of Commerce (MOFCOM), which is the
Government counterpart of UNIDO in China, will be UNIDO’s primary counterpart for the overall
implementation of the Country Programme.
In turn, MOFCOM has designated the China International Center for Economic and Technical
Exchanges (CICETE) as the entity responsible for coordinating the Ministry’s cooperation with UNIDO
at the operational level for the administration of China’s IDF contribution.
5.2 Monitoring and Evaluation:
A mid-term review and an independent final evaluation of the Country Programme will also be
undertaken by the Evaluation Group of UNIDO.
5.3 Risks and mitigation measures:
19
At the country programme level, the biggest risk is that the requisite funds are not mobilized for the
proposed projects. The elaboration and execution of a robust funds mobilization programme is the best
means for reducing this risk.
5.4 The legal Context:
The legal context of the Country Programme and any projects elaborated within its framework are
governed by the provisions of the Standard Basic Assistance Agreement concluded between the
Government of the People’s Republic of China and the United Nations Development Programme on 29
June 1979.
6.0. Indicative budget and Fund mobilization Strategy
6.1. Indicative budget
The indicative budget of UNIDO-China Country Programme 2016-2020 will be around US$170,000,000
(based on the annual delivery of UNIDO TC projects in China is about US$30 million in the past few
years).
Table 1.Indicative budget table (US$)
Resources Needed Funds mobilised Resources to be mobilized
Component 1 110 million 100 million 10 million
Component 2 40 million 2million 38 million
Component 3 20 million 10 million 10 million
M & E* 80,000 0 80,000
Total CP 170 million 112 million 58 million
(* The budget for the monitoring and evaluation of Country Programme will be financed from
UNIDO core resources.)
6.2 Fund mobilization strategy
The mainstay of funding for UNIDO in China is specialized environmental funds: first and foremost the
Montreal Protocol’s Multilateral Trust Fund but also to a significant degree the GEF. Together, these
two funds currently account for about 90% of the portfolio.
The Government of China announced to provide US$20 million to UNIDO as voluntary contribution
from 2013 to 2016, which expands the sources of funds for UNIDO’s portfolio. These funds can best be
used as seed money for mobilizing more domestic and international resources such as government cost
sharing, funds from private sector and international financial institutions, etc.
It is envisaged that limited UNIDO financing will be made available as seed money/bridging funds and
will serve for coordination purposes, fund mobilization and other activities related to development of the
Programme. UNIDO in cooperation with national counterparts and partners will also develop innovative
strategies to mobilize funds from non-traditional sources for the implementation of the Country
20
Programme. The possibility of obtaining from resources from the Air and Water Pollution Prevention
and Control Funds for the implementation of the Country Programme will also be explored.
Currently GEF resources through cooperation with FECO accounts for the considerable funding of
UNIDO environment programmes. As FECO is now a new independent implementing agency of GEF,
there might be a downward trend in the allocation of resources to UNIDO for implementation of GEF
projects in China. UNIDO has a recognized comparative advantage in GEF focal areas other than POPs,
notably climate change and international waters, mercury management as well as other sustainable
chemicals management in general.
As part of funds mobilization strategies UNIDO signed MOUs with China Development Bank (CDB)
and Export-Import Bank of China to identify and implement projects on ISID in areas of common
interest within and outside of China. There is also a need to innovate the ways to mobilize funds from
the private sector and local governments to support UNIDO project activities.
21
Annex I: Results Framework for the Country Programme China 2016-2020
Intervention Item Indicators Means of verification Risks
Impact Promoting inclusive and
sustainable industrial
development in China
NA NA NA
Outcomes
The capacity of
sustainable development
and international
cooperation of China
improved
Ratio of green industry in the
GDP; Number of CFDA
officials at central and local
level trained; Number of green
industry parks established.
National Development
Statistics and Reports
Inadequate or lack
of support from the
government and
participation of
private sector
Outputs
1. Green industry
development
accelerated
Number of enterprises that
adopt energy conservation
measures; Number of new
energy vehicles adopted;
Ratio of women/men in Green
Industry Platform; Number of
activities integrating a gender
perspective; The establishment
of green industry ranking and
certification system; Tons of
GHG emissions abated;
Number of companies using
EnMS
GEF project annual reports;
Green Industry Platform
Newsletters, CCICED
reports, policy
recommendations; national
reports on MEA projects
implementation; report of
pilot testing of green
industry
ranking/certification.
Inadequate support
from the
government and
participation of
private sector
2. Food Safety
system
established
International standard training
materials used; number of
women and men participated
in the training courses,
workshops and study tours;
number of workshops at
provincial level; Number of
activities integrating a gender
perspective.
Cooperation with World
Bank, CFDA policy and
training report; project
reports; training reports;
China Food Safety Platform
established
Inadequate support
from the
government and
participation of
private sector
3. International
cooperation
strengthened
Number of industrial parks
abroad, number of south-south
cooperation projects, number
of enterprises participated in
the belt and road initiative
Policy papers on the belt
and road, research results
on GVCs and South-South
cooperation and triangular
cooperation, project reports
Inadequate support
from the
government and
private sector
22
ANNEX II: Ongoing and pipeline technical cooperation projects in China (as of Nov. 2015, to be
updated twice a year)
Table 1
Ongoing projects
Thematic
Priority
# Project No. Project Title Total Budget
(US$) Green Industry GF/CPR/12/001 Reduce mercury emissions and promote
sound chemical management in zinc
smelting operations
990,000
100283 Promoting energy efficiency in
industrial heat systems and high energy-
consuming (HEC) equipment - main
phase
5,375,000
103136 Strengthening of the International Solar
Energy Centre for Technology
Promotion and Transfer (ISEC) - Second
Phase (Extension)
450,000
150261 Assistance to enterprises in Fujian
province to meet greener product
standards for mechanical and electrical
equipment (MEE) (Phase II)
565,000
120387 CSR in construction sector 300,000
130022 Green Industry conference 2013 China
IDF
138,457
130022 Green Industry conference 2013 UNIDO 85,013
120387 China: CSR in construction sector 400,000
130062 SPX Xián (Phase II) 100,000
130202 Vehicle Technologies in China 350,000
150157 Integrated adoption of New Energy
Vehicles in China – preparatory phase
200,000
140386 Stage II-HPMP in the RAC sector 300,000
140389 Stage II- HPMP in the XPS sector 260,000
140196 Upgrading of China SHP Capacity
project
68,925 ,000
140408 Support to Green Industry Platform
China Office
300,000
23
140003 Methyl bromide phase-out plan for
consumption sector in China
14,789,342
140219 World Small Hydropower Development
Report (WSHPDR) next edition
preparation and knowledge platform
www.smallhydroworld.org maintenance
38,250
150019 Promoting Inclusive and Sustainable
Industrial Development (ISID) through
Partnership Building for Trade and
Investment Flows along Maritime and
Continental Silk Road
565,000
105058 Sector plan for phase-out of CFCs
consumption in MDI sector
13,500,000
105064 HCFC Phase-Out Management Plan of
China – RAC sector
75,000,000
105066 HCFC Phase-Out Management Plan of
China – Extruded polystyrene foam
sector
48,650,000
120515 Pilot demonstration project on ODS
waste management and disposal
2,127,885
120061 PPG of POPs and chemical pollution
solutions through area-based-eco
effective-management
150,000
150073 POPs and chemical pollution solutions
through area-based-eco effective-
management
6,000,000
140214 Demonstration of Mercury Reduction
and Minimization in the Production of
Vinyl Chloride Monomer in China （
preparatory fund）
300,000
104088 Regional Network On Pesticide for Asia
And the Pacific
100,000
104147 Environmentally Sound Management
And Disposal Of Obsolete Pops
Pesticides And Other Pops Wastes In
China
9,959,000
104036 Environmentally Sustainable
Management Of Medical Waste In
China
11,650,000
104037 Strengthening Institutions, Regulations
And Enforcement Capacities For
Effective And Efficient Implementation
Of The National Implementation
Plan(Nip) In China
5,410,000
130176 China’s Compliance with the Stockholm
Convention
2,000,000
24
Refrigeration servicing sector plan for
CFCs phase-out
7,417,100
105053 Methyl bromide production sector plan
in China
9,700,000
Food safety 140272 Food Safety Supervision Capacity
Building for China
560,000
140142
Demonstration of Agro-industry in
Fujian province (IDF)
500,000
(with co-
funding $1.2
million)
International
Cooperation
140099 Assistance to Shanghai Municipal
Commission of Commerce in inward
and outward investment promotion
(Shanghai investment promotion centre)
1,358,391
(approved in
project document
for 3 years from
August 2014 to
July 2017) for
both currencies
(CNY and USD).
Actual amount
depends on
currency
fluctuations and
actual yearly
receipt of
contributions
130292 ITPO Beijing – UNIDO investment and
technology promotion office for China
in Beijing
604,971(for two
years, i.e. 2014
and 2015)
130275 Supporting the UNIDO Centre for
South-South Industrial Cooperation
(UCSSIC) in China (2nd Phase)
2,260,000
140048 Fostering inclusive and sustainable
industrial development (ISID) in the
New Silk Road Economic Belt:
Leveraging potentials of industrial parks,
zones and cities in Azerbaijan,
Tajikistan, Turkmenistan and
Uzbekistan
500,000
140398 Environmental cooperation instruments
in the context of inclusive and
sustainable industrial development
300,000
140396 Industrial modernization and
competitiveness improvement of capet
weaving and emboidery/textile sectors in
Tajikistan
600,000
150019 promoting ISID through Partnership
Building for Trade and Investment
Flows along the MCSR
500,000
150095 Scale up small hydropower development 800,000
25
in selected countries to contribute to
inclusive and sustainable industrial
development (ISID)
120315 Facilitating the exchanges and
cooperation of SMEs between China and
other BRICS countries
600,000
140037 Information and communication
technology and its application in
manufacturing in Shanghai
980,000
140215 Technical assistance to implementation
of integrated industrial platforms in
Senegal (Senegal is expected to
contribute USD 900,000 of its own
funds soon; and this project received
USD 86,000 from PCP Senegal
budget—this amount is not included in
budget shown on the right)
225,000
130316 Integrated industrial upgrading approach
(development of GIFIUD-Growth
Identification and Facilitation for
Industrial Upgrading and
Diversification) methodology with Prof.
Justin Lin, with pilot implementation in
Senegal and Ethiopia. UNIDO
contribution Euro 63,070 (USD74,200)
Euro 800,000
(approx.
$1,100,400,
including SC)
Initial Assessment of Minamata
Convention in China
100,000
Total 297,083,809
26
Table 2
Pipeline projects
(under formulation and/or discussion)
Thematic
Priority
# Project Title Total Budget
(US$ )
Green
industry
Integrated adoption of New Energy Vehicles in China –
preparatory phase
8,930,000
Stage II sector plan for the phase-out of HCFC-22 in the
room air conditioning sector to reach at least the 35%
reduction schedule of the Montreal Protocol
75,000,000/
150,000,000
Stage II sector plan for the phase-out of HCFC-22 and
HCFC-142b in the XPS sector to reach at least the 35%
reduction schedule of the Montreal Protocol
50,000,000/
100,000,000
World Bank Food Safety Project in China 10,000,000 (out
of 300 to 500
million)
Demonstration of Technology Research and
Development on Mercury Reduction in the Production
of Cement and Co-disposition of Waste
1,200,000
130230 Demonstration of the phase-out of production and use of
lead-based paint in China
1,815,000
120061 UPOPs reduction through BAT/BEP in Chlorobenzene
production sector in China
12,600,000
150411 Environmentally Sustainable Development of the Iron
and Steel Industry in the People’s Republic of China
16,400,000
150374 Establishment of an Environmental Protection Fund in
China
300,000
130309 Demonstration of Mercury Reduction and Minimization
in the Production of Vinyl Chloride Monomer in China
16,200,000
150097 Solar Technology Transfer through South-South
Cooperation from China to Fiji
300,000
International
cooperation
Bamboo project in Vanuatu and Fiji 300,000
Solar energy project in Vanuatu and Fiji 300,000
Shanghai Innovation Center Network 1,000,000
ICT Application in SMEs(Shanghai) financed by
CICETE IDF
600,000
Strengthening the Global Innovation Network on
Inclusive and Sustainable Industrial Development
(ISID)
3 year, starting 2016, budget: USD 1 million
Donor: Shanghai International Training Center of
1,000,000
27
Economy and Informatization for Asia-Pacific Region
150240 South-South Cooperation in the Energy-Saving and
Environmentally-Friendly Industry
380,000 (incl.PA)
150379 Building partnerships for South-South and Triangular
Industrial Cooperation between China and other
developing countries for technology upgrading
565,000
130306 Slaughterhouse waste management: the sustainable and
productive use of animal by-products
4,000,000
Total 200,890,000
