United NationsDepartment of Economic and Social Affairs Sustainable Development


Session Topic: Investing in Energy and Industrial Development ?
challenges and opportunities
Comments from Australia, May 4, 10:00-1:00
Investment is key to economic growth and is vital to environmental and social
progress. Governments need economic, environmental and social policies that provide
a framework for attracting private sector investment.
An important element of effective sustainable development policies is a government?s
capacity to influence the behaviour of the private sector towards responsible
performance. The good governance practices which attract business investment are
generally the same as those which encourage good environmental and social
behaviour. Industry places a premium on stable frameworks and long-term certainty
for their investments. Governments must provide consistent policies and institutions
and establish functioning markets.
In Vietnam, Australia worked with the United Nations Development Programme and
a range of other donors to provide support for the implementation of a new Enterprise
Law which simplified establishment procedures for businesses, abolished a range of
sub-licences and decreased the involvement of the state in business management.
Since the law took effect, 80,000 new private enterprises have been created and
approximately one million new jobs generated.
Datong Cleaner Environment Project
AusAID worked with Chinese agencies in Datong to build the capacity of the local
Environment Protection Bureau and Water Resources Management Office to manage
environmental impacts of coal gasification operations and demonstrate the economic
and environmental benefits of cleaner production at the Datong Coal Gasification
Corporation Plant.
The project successfully:
o Reduced organic pollution and developed processes for resource recovery (the
conversion of organic pollutants to methane for use as a fuel for domestic
o Water savings of 30% per day (up to 80% reduction is expected when new
measures are implemented)
o Improved wastewater quality (that meetings Chinese National Grade 1 water
quality standard)
o Reduced air pollution from coal and coke dust (up to 80% when all relevant
production techniques are implemented)
An incentive created by this project was the ability of the Chinese counterpart agency,
the Datong Coa l Gasification Corporation to patent the water treatment technology
developed during the project, making it available to other coal gasification operations
in China. This and other lessons learned during the project provide a model for
replication througho ut China of the practical application of cleaner production
techniques and water saving initiatives.