Cleaner production as climate investment—integrated assessment in Taiyuan City, China

Taiyuan, one of the most polluted cities in the world, is the first cleaner production demonstration city in China. We assess energy related cleaner production projects in Taiyuan from the point of view of climate change and integrated assessment. In the assessment we develop a rather detailed methodology that relies on a battery of chained models All of the projects improve energy efficiency and reduce emissions. Still, we find that their environmental health benefit differs substantially. The projects are treated similarly from point of view of funding and the regularatory process. Yet, we find that their cost differs substantially, and there is no proportionality between costs and benefits. The finding could supplement explanations of cleaner production progress that rely on financial and institutional barriers. We also ask if the positive attitude to cleaner production in China may help the country introduce greenhouse gas saving projects under another name. It turns out that some, but not all of the projects we analyse have significant greenhouse gas reduction potential. The possibility for foreign funding as CDM projects is discussed.