Water Permits: How to Get Water in China
By China Water Risk 17 November, 2014
Find out how total water quotas are set, how to access water & the risks when China's permit system reforms
This article summarises China’s current water resources permitting approaches based on the study “Technical Research on Integrated Permitting of Water Resources”. The study was undertaken by the Governance Pillar of the China Europe Water Platform (CEWP) – a policy dialogue between China and the EU in the water sector. It reviewed the integrated water resources permitting policy and practice in Europe and China was conducted with a view to see which elements may be adapted for use in China. The objectives were:
- Improved licensing and permitting of water abstraction and discharge;
- Improved access to policy, strategy and legal documents in China and Europe on inter alia water efficiency;
- Mobilisation of the research and business communities; and
- Enhanced visibility of CEWP in China and Europe.
The study supports the Chinese Ministry of Water Resources (MWR) in reviewing and upgrading existing Water Abstraction Permitting Procedures and will assist in initiating cooperation with the Ministry of Environmental Protection (MEP) to develop proposals for a more integrated approach to water resources permitting procedures for China. There are clear challenges ahead for China – read report authors, Dr Martin Griffiths, expert in water quality strategy, regulation & policy, and Dr Cheng Dongsheng of the China Institute of Water Resources and Hydropower Research views on “Reforming Water Permits in China” here.
Click here for the full report.
Not many people know exactly how China manages its limited water resources, let alone realize that there is a water permitting system in place. Moreover, there are significant doubts as to whether the current water management system in China can deliver the “Three Red Line Policy” and provide efficient & cohesive management of water resource availability, required water abstraction limits, water quality and water quality discharge standards.
China’s water permitting system was first set up along with a compensation system according to the Water Law of People’s Republic of China (2002). After several years’ development, the current system was amended in 2006 according to the State Council Decree No. 460, “Regulation for Water Drawing Permit and Collection and Management of Water Resources Fee”.
Since then, permits are being issued on a more systematic assessment of water resources. This is to ensure the permitted volume does not exceed the sustainable resource volume. This is done by the below procedures:
- Monitoring of water resources and modeling;
- Issuance and enforcement of permits; and
- Adjustment of annual allocations until a sustainable situation is reached.
How is the total water quota set?
To determine the total water quota, the development and utilization of water resources must be balanced with the impacts on the natural environment and various goods & services that rivers provide to society. This will influence decisions on where water infrastructure will be built, how it will be operated, and how much water can be drawn for consumptive purposes. This is important to ensure water resource planning, allocation and management so that we can achieve ‘water for all’.
The volume of water available for drawing is the difference between total water resources available and the environmental flow
The Water Law (2002) requires the water planning process to “pay attention to maintaining the rational river flow and the rational water level of lakes, reservoirs and groundwater and to maintaining the natural purification capacity of water system”. All aspects of the flow regime are potentially important to the environment and this natural variability needs to be accounted for in allocating and managing water resources. Thus, the volume of water available for drawing can be defined as the difference between the total water resources available and the environmental flow.
The report notes that environmental flows vary significantly for different rivers and such differences should be taken into account in river management. Moreover, competing demands for water from economic development, municipal and irrigation needs, as well as the need to manage droughts, floods and eco-systems will impact the environmental flow. At no point, should water withdrawals result in lower environmental flows such that its provision of natural ecological services is impaired.
Currently water quota allocation is on the basis of average water resource availability
The current approach in China is to assign water quota allocations on the basis of average water resource availability. This means that half of the time, there is insufficient water available to meet demand, and some degree of water rationing is required.
Underlying systemic issues hinder effective water management
The report acknowledges:
China’s 2011 “No.1 Document” which focuses on water seeks to address this by setting national water quotas for the future. This document potentially provides adequate strategic direction for water resource reform and sustainable practice at a national & provincial level, provided that it is implemented effectively. The subsequent “Three Red Lines Policy” provides further guidance and forms the basis for setting standards for water resources, water efficiency and water quality.
The study recommends such standards need to be stringent to be effective.
A Water Use Permit must be obtained from the MWR to access water, whilst a Water Discharge Permit must be obtained from the MEP in order to discharge pollutants into water bodies
Currently, in order to tap into this water quota, a Water Use Permit must be obtained. Additionally, a Water Discharge Permit must be obtained in order to discharge pollutants into water bodies. However, these two types of permits are currently issued and monitored by two separate ministries namely the MWR and MEP respectively, making the implementation of the “Three Red Line Policy” difficult. Reforming such permits is recommended in the study – more on MWR’s views on this in “Reforming Water Permits in China”.
The rest of this article sets out the current regulations and key challenges agead regarding Water Use Permits.
How to obtain a ‘Water Use Permit’
Water Use Permits are currently issued by the MWR. According to current regulation, individuals or companies who want to apply for such permits, should file their applications directly to the water use permit review and approval authorities. Once a Water Use Permit is issued, details such as the maximum amount of water permitted to be withdrawn and what that water may be used for will be specified.
According to the study, there were approximately 440,000 Water Use Permits in China at the end of 2011.
Water Use Permits are valid for 5 years after which they need to be renewed
Water Use Permits are valid for 5 years after which they need to be renewed. Within the this period holders may request changes, such as more water or a change in use purpose – like crop mix, irrigation methods, switching from coal-fired to coal-to-gas plants and so on. However, since these permits are not currently tradable, they will be terminated if no longer required. This may change in the future – read our interview with Prof. Jia “Water Rights in China”.
The report notes that despite holding a Water Use Permit, the permit holder cannot take water allocation for granted – circumstances may change, such as (but not limited to):
A permit holder can apply for renewal. The renewal process is essentially the same as the initial issuance process but will take into account updated assessments of water resource availability and changes in the purpose of water use.
Key challenges under the current Water Use Permit system identified in the report
What the future holds – a single integrated permit?
The report suggests the MWR become the leading organization for implementation and coordination of the “Three Red Lines Policy”. MWR should work together with other ministries and partners to develop methodologies and drive the changes towards a common goal agreed by all parties.
MWR should become the leading organization for implementation & coordination of the “Three Red Lines Policy”
The report explains that a single integrated permit would be the optimal solution but that it is not easy to achieve and may detract from the essential elements of water management. Therefore, a common platform is suggested to be developed to enable progressive integration and ultimately lead to the merging of existing water regulatory frameworks (see diagram).
A common platform should be developed that will ultimately lead to the merging of existing water regulatory frameworks
We will have to wait and see if the MWR takes the lead and reforms the current water permit system…
More proposed improvements & reforms of China’s water permit system from the report
- Reforming Water Permits in China – European and Chinese water policy experts Martin Griffiths & Chen Dongsheng gives an overview of their collaborative study on water permits systems as part of the China Europe Water Platform. What challenges lie ahead? What improvements are needed?
- Water Rights in China – Professor Jia Shaofeng, Deputy Director of the Center for Water Resources Research of CAS, shares his in-depth insights on water rights in China – what they are, who owns them, how can they be “traded” & why a market trading system should be the way forward
- China’s Hidden Water Flows – Prof Hubacek & Dr. Feng contributing authors of ”Virtual Scarce Water in China” share key findings. Find out why developed but water-scarce regions like Beijing, Tianjin and Shanghai are contributing to the country’s water depletion
- Watershed Services in China China has embarked on an ambitious market based programme for watershed conservation. Dr Sun, the former Director at the Chinese Academy of Social Sciences explains
Read more from China Water Risk →