VZCZCXRO8440
RR RUEHCN RUEHGH RUEHVC
DE RUEHGZ #2430/01 3530733
ZNR UUUUU ZZH
R 190733Z DEC 06
FM AMCONSUL GUANGZHOU
TO RUEHC/SECSTATE WASHDC 5600
INFO RUEHOO/CHINA POSTS COLLECTIVE
RUCPDOC/USDOC WASHDC
RUEAUSA/DEPT OF HHS WASHDC
RUEAEPA/HQ EPA WASHDC
RUEKJCS/DIA WASHDC
RUEAIIA/CIA WASHDC
RHHMUNA/HQ USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 02 GUANGZHOU 032430 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR OES/OGC, OES/ENV AND OES/PCI/STEWART 
USDOC FOR 4420/ITA/MAC/MCQUEEN, DAS LEVINE 
USPACOM FOR FPA 
EPA FOR OFFICE OF WATER 
HHS FOR OGHA 
 
E.O. 12958: N/A 
TAGS: SENV SOCI PGOV CH
SUBJECT: South China Environmental Brief 
 
¶1. (U) This cable summarizes the following recent 
environmental events in South China: 
 
-- U.S. venture capital interested in China's environmental 
sector. 
-- Raising water prices to pay for treatment plants. 
-- Euro III vehicle emission standards for Guangdong. 
-- Pollution from mining industry in Guangxi. 
-- Guangxi environmental protesters on trial. 
 
U.S. VENTURE CAPITAL SEES OPPORTUNITY 
IN CHINA'S ENVIRONMENTAL SECTOR 
------------------------------------- 
 
¶2. (U) Reuters reported that U.S. venture capital companies 
are increasingly interested in China's environmental 
sector.  Venture capital executives said China's plans to 
reduce pollution and improve energy efficiency in it's 11th 
Five-year Plan pave the way for the creation of clean 
energy and other environmental start-ups.  Opportunities 
exist for investment in the alternative energy, waste-water 
treatment, air pollution control, and recycling industries. 
U.S. investment would be particularly welcome in southern 
China water treatment plants, desulfurization equipment, 
air pollution computer modeling, and soil pollution cleanup 
technologies. 
 
RAISING WATER PRICES TO PAY FOR TREATMENT PLANTS 
--------------------------------------------- --- 
 
¶3. (U) The Chinese government will raise water prices 
nationwide to promote conservation and efficiency in a 
reform of the country's water pricing scheme, according to 
the Ministry of Water Resources website.  Domestic water 
prices would be tiered with higher fees for heavy 
consumers.  Li Yunsheng, from the Chinese Academy for 
Environmental Planning, said inadequate supply, under- 
priced water, and a lack of conservation awareness were 
major problems.  Li said waste-water treatment fees were 
expected to rise to RMB 0.8 (USD 0.1) per ton, compared to 
the current RMB 0.1 per ton.  Guangdong plans to build 164 
water treatment plants over the next five years. 
 
EURO III VEHICLE EMISSION STANDARDS FOR GUANGDONG 
--------------------------------------------- ---- 
 
¶4. (U) The State Council has approved Guangdong's request 
to apply Euro III standards for vehicle emissions in Pearl 
River Delta (PRD) cities.  While the standards would only 
apply to newly registered vehicles, it is a step in the 
right direction towards reducing vehicular pollution, a 
significant contributor to PRD smog.  The standards could 
be enforced as early as January 2007. 
 
POLLUTION FROM MINING INDUSTRY 
IN GUANGXI ZHUANG AUTONOMOUS REGION 
----------------------------------- 
 
¶5. (U) According to a Radio Free Asia report, residents of 
Guangxi's Guo'an village near Dali township are 
experiencing health problems from waste discharged by lead 
and zinc mines.  Aside from the pollution in the river 
itself, local doctors say the pollution has reached the 
groundwater, and local officials have closed one well in 
Guo'an.  One villager claims that there is no longer any 
vegetation growing upstream where the mines have their 
outlet, the fish have died, and farmers are having trouble 
growing any crops.  In 2004, one of the mines agreed to 
compensate the villagers for the pollution, but the 
pollution has worsened since then.  Villagers have demanded 
a revised compensation deal and even staged a sit-in at one 
of the mines in August.  Residents claim that 30% of 
villagers have had kidney stones.  One 17-year old resident 
died of "kidney poisoning," according to doctors in 
Nanning. 
 
GUANGXI ENVIRONMENTAL PROTESTERS ON TRIAL 
----------------------------------------- 
 
¶6. (U) Five environmental activists who were arrested for 
 
GUANGZHOU 00032430  002 OF 002 
 
 
protesting the construction of a manganese electrolyte 
plant in Guangxi went on trial in early December, according 
to court official quoted in an Associated Press report. 
The five were arrested after leading a sit-in of 1,000 
villagers who were upset that the plant was being built 
close to their homes.  The area is already the site of 
several plants which villagers say have caused widespread 
environmental damage. 
 
GOLDBERG