Document Abstract
Published:
1 Mar 2008
Helping people build a better world? barriers to more environmentally friendly energy production in China
Has Shell China managed to have an impact on making China more environmentally friendly
The first goal of this report is to identify and analyse changes that have happened in the Shell Group since the 1990s when energy companies started their ‘greening’ processes. These changes happened due to stricter environmental legislation, increased civil society pressure and media scrutiny. Changes on the global and headquarter levels in a company do not, however, necessitate similar developments in its national and local level operations.
The second goal is thus to analyse to which degree the changes in the Shell Group have had relevance for Shell China and whether barriers in the Chinese context influence its prospects to operate in a more environmentally friendly way.
Overall the report outlines that the main barriers to a more environmentally friendly energy production in the case of Shell China are:
• the role of the state
• short-term economic perspectives
• conflicts of interest
According to the report the strong state is a barrier in its role as JV partner for Shell China. The state hinders the development and competitiveness of renewable energy sources by creating unstable markets for long-term investments, and by limiting the potential for social movements to influence private and state-owned companies through activism and cooperation.
Moreover the media focus on the Chinese ‘economic miracle’ can make it hard to remember that China is still very much a developing country. In a situation of economic insecurity it is difficult to see matters in anything other than short-term economic perspectives.
Finally the conflicts of interests that arise both within a company and between companies and external actors may hamper the implementation of environmental regulations and policies. This is a consequence of the involved actors having different goals.
The second goal is thus to analyse to which degree the changes in the Shell Group have had relevance for Shell China and whether barriers in the Chinese context influence its prospects to operate in a more environmentally friendly way.
Overall the report outlines that the main barriers to a more environmentally friendly energy production in the case of Shell China are:
• the role of the state
• short-term economic perspectives
• conflicts of interest
According to the report the strong state is a barrier in its role as JV partner for Shell China. The state hinders the development and competitiveness of renewable energy sources by creating unstable markets for long-term investments, and by limiting the potential for social movements to influence private and state-owned companies through activism and cooperation.
Moreover the media focus on the Chinese ‘economic miracle’ can make it hard to remember that China is still very much a developing country. In a situation of economic insecurity it is difficult to see matters in anything other than short-term economic perspectives.
Finally the conflicts of interests that arise both within a company and between companies and external actors may hamper the implementation of environmental regulations and policies. This is a consequence of the involved actors having different goals.
