advanced monitoring techniques and citizen surveys; expand scope of monitoring also to private enterprises and SMEs

- Tackle trans-jurisdictional environmental problems:

- Promote cross-regional governance bodies and environmental commissions to solve cross-border environmental problems (e.g., cross-regional air commission, lake commission)

- Encourage the set up of horizontal fair exchange mechanisms to finance environmental protection in particularly underdeveloped regions

- Increase use of market-based instruments to reduce overreliance on administrative measures:

- Enhance technical and financial abilities of ESCOs and help to stimulate additional market demand

- Improve regulatory environment for local cap-and trade emission markets and ensure scaling up of local pilots: develop unified supervision and management standards by an independent regulatory body.

- **Political and** • Inclusion of qualitative measures and comprehensive criteria in cadre evaluations: **economic** - Incorporate more comprehensive environmental criteria into evaluation system, **incentives** such as measurements on the depletion of resources (e.g., depletion of energy, minerals, soil nutrition) and environmental degradation (e.g., PM10 health damage)

- Enforce stricter punishments for local non-compliance: increase pollution fines for local governments and enterprises as current fines are not much of a deterrent; use stricter punishments, such as ban on new investment projects and temporarily production stops

- - Conduct surveys on local citizens’ environmental satisfaction by independent, certified auditing companies and link results with annual cadre evaluation (i.e., introduce new binding target requiring a minimum citizen satisfaction rate of x%)

- • Adjust local cadres’ time horizon and evaluation period: - Extend current average promotion cycles of 3-4 years to the recommended 5- year term for civil servants and Party cadres in leadership positions

- - Hold local cadres accountable even after they leave a locality (e.g., collect feedback from previous three posts when discussion a cadre’s next promotion).

- • Ensure that environmental protection performance increase in weight when discussing cadre promotions

- • Economic incentives for urban sprawl: further tightening enforcement of existing <u>guidelines and controls on land use</u>

- **Public and** • Increase feedback mechanisms and participatory elements: -

- **private** Publish targets and actual achievements online for public comments -

- **participation** Advance feedback mechanisms for local citizens to report environmental noncompliance (e.g., blogs, surveys, online reporting system)

- - Promote local environmental litigation and courts

- Increase participation and address opposition from the private and state-owned sector:

- Devise incentives for private sector to share implementation burden (e.g., through creating win-win scenarios through bundling of policies and interests)

- - Work also with the SME sector since this sector is not unimportant in terms of overall emissions.

- **Political,** • Increase capacities of implementation agencies: **technical, and** - _Political:_ allow local EPBs to fine central SOEs in their jurisdiction; increase **financial** administrative rank of EPB’s monitoring teams; more frequent use of inter- **capacities** departmental ad-hoc working groups, e.g. for sustainable city planning - _Technical:_ increase technical and sector-specific know-how of local EPB staff to spot non-compliance; invest in advanced monitoring technologies such as GPS, remote sensing monitoring equipment, e-laser technology, <u>(e.g., to verify</u>

42