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By Sun Xiaohua (China Daily)
Updated: 2007-08-18 08:43

Lawmakers will discuss the country's first law to put into effect the circular economy initiative on August 24.

The Standing Committee of the 10th National People's Congress (NPC), the top legislature, announced on Friday it would hold its 29th meeting from August 24 to 30, during which the draft of the circular economy law would be discussed for the first time.

The circular economy law provides a legal framework for developing the economy, raising energy efficiency, protecting the environment and realizing a sustainable development.

Qian Yi, professor of the environmental science and engineering department of Tsinghua University, said the circular law would be different from the draft energy conservation law and the Law on the Promotion of Cleaner Production, whose targets are overlapping: to save energy and protect the environment.

"The new law requires all the links from production to consumption to follow the rules of the circular economy," she said.

The circular economy changes the traditional linear way of material flow, raising eco-efficiency based on the 3R principle - reduction, reuse and recycle.

According to the draft, it will raise standards in resource reduction, safe waste disposal industrial production, mineral resource exploitation, construction, agriculture, governmental practice, urban domestic consumption, and the service sector.

Mao Rubai, chairman of the NPC's Environmental and Resources Protection Committee, earlier told China Daily that "some detailed mandatory requirements have been written into the draft, making the law easy to implement".

The draft requires the government to allocate special funds for supporting technological research, key projects, education, capacity building and the establishment of an information network.

Incentives, such as favorable tax and investment policies, will also be offered to organizations that take an active role in China's Circular Economy, according to the draft.

Violators could face a fine of up to 500,000 yuan ($66,000).