Helping the poor, the environment and the private sector: Promoting small enterprises and green jobs

in China

For the Conference on the Environments of the Poor in the Context of Climate Change and the Green Economy 24-26 November 2010, New Delhi

Satoshi Sasaki Specialist on Enterprise Development and Job Creation ILO Office for China and Mongolia

The views expressed in this paper/presentation are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors, or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.

1. Introduction
Environment protection and transition to a low-carbon economy is an imperative and no leeway for China to do it the other round. Green enterprises already exist and the number of them is increasing. Also, efforts have been made in many companies to make their production processes and services greener. Questions should be made to what extent emerging new businesses in green economy is inclusive and just, therefore not leaving the poor people behind in the transition process. The ILO has been promoting the Green Jobs Initiative, which supports the process of a just transition for the workers who are affected by the on-going changes and the creation of enabling environment for green businesses to grow. The Green Business Options (GBO) is an example of entrepreneurship training programmes of the ILO in China, partnering with the Ministry of Human Resources and Social Security (MOHRSS) to explore the potential of individuals, who intend to take business development opportunities in green economy. This paper will review the pilot training of GBO in 2010 and summarize the experiences to date. Based on the findings from the GBO pilot programme and the ILO’s experiences in micro and small enterprise development in China, suggestions are made for the development of future projects involving private sectors in the promotion of environment protection and a just transition to a low carbon economy in an inclusive way. 2. Green Jobs Initiative in China 2.1. Why green jobs? 2.1.1. Implications of low-carbon economy to the world of work The concept of “green jobs” is generally defined as work in agriculture, industry, services and administration that contributing to preserving or restoring the quality of the environment. Green jobs are typically facing the dual challenges, which are closely linked therefore addressed simultaneously: • • Averting dangerous and potentially unmanageable climate change and protecting the natural environment which supports life on earth Providing decent work and thus the prospect of well-being and dignity for all in the face of rapid population growth worldwide and the current exclusion of over a billion people from economic and social development

Drastic changes in production and consumption patterns are required to make economic growth and development attuned to reduce the climate impact and environmental degradation. Given the importance of sustainable enterprise development, it has been emphasized the win-win relationship of environment and economic development aspects. But relatively less efforts has been made to give attention to the social aspects of 2

sustainable development, in particular to the issues of quantity and quality of employment. 2.1.2. Realizing a more balanced society During the 11th Five-Year Plan period (2006-2010), the Chinese government has been promoting the concept of “harmonious society” intending to reduce the gaps of wealth distributions and services existing between the regional and individuals, amplified during the previous periods. The latest discussions on the formulation of the 12th Five-Year Plan (2011-2015) have focused more on the transformation of growth patters leading to better economic prospects in a long run. The Government work report for 2010 highlighted “sound” development rather than “fast” development for the first time.1 While maintaining relatively high economic growth, the Communist party of China (CPC) made commitment for enhance efforts to save energy and resources and build an environmentally friendly society. 2.2. Potential of green jobs growth in China 2.2.1. Findings from the ILO/CASS study There is no complete analysis and the projection of green jobs in China. The ILO and the China Academy of Social Sciences organized a study in 2009, trying to estimate the potential green jobs in selected sectors.2
Total employment effects of low-carbon development in major sectors in China (1,000jobs) Sectors Forestry (2005 ~ 2020) Power Industry (2005 ~ 2020) Core Industry Sub-sectors Afforestation & Reforestation Sustainable Forest Management Forest tourism Thermal Power Wind power Solar power Direct Employment 7,600 188 3,154 251 848 50 -200 175 Indirect Employment 11,085 61 3,616 29 2309 1,237 - 357 30,759 Sub-total 18,685 249 6,770 279 3,157 1,287 -200 532

Iron and Steel(2007~2011 ) Green investment(2008~2011) 3 Total4

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Charting China’s new course, Beijing Review (28 October 2010) Study on Low Carbon Development and Green Employment in China, conducted under the MDG Achievement Fund Propgramme on Climate Change (March 2010) 3 Part of investment made through 4 trillion Yuan stimulus package after the financial crisis happened in 2008. 4 Here the simple measurement of sum total is only for reference, which includes incomparable data between sectors like forestry and iron and steel because different methodology and data resources. And

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The figures in the table shows huge employment gains expected in forestry and power sectors, while net employment loss in Iron and Steel industries. The result of the study suggests that the Green Jobs Initiative should support the emerging green industries, at the same time it is important to take care of the workers who will lose their jobs. 2.2.2. Energy Efficiency in Building Retrofitting of existing building saves energy, reduces emissions and protects the environment and natural resources. It creates many job opportunities due to its labourintensive nature of work. Of the 42 billion square meters existing buildings in China, assuming 1/3 to be retrofitted and 200 RMB per square meter, yield a market potential of 2.6 trillion RMB. In 2009, the “Response to Climate Change Report” pointed out that building energy efficiency retrofits can add approximately 12.6 million new jobs.5 2.3. Sustainable enterprise development The intention of the ILO in promoting green jobs reflects three different aspects which are conducive for the creation of sustainable enterprises: 2.3.1. Creating more green businesses In terms of job creation, the ILO supports its constituents in the countries to develop more enterprises which contribute to solve the climate and environmental issues through the market mechanism. Particularly, stronger focus should be made on the development of micro, small and medium-sized enterprises that create majority of employment opportunities, including the ones for migrant workers. Efforts should be made to promote sustainable enterprise development by nurturing entrepreneurship, coping with the increasing needs for skilled workers, improving business environment and financial support for the entrepreneurs to start and grow their businesses. This is more on the positive aspect of taking opportunities in emerging green markets. 2.3.2. Protecting workers in green businesses Many green businesses already exist in China. But workers in these businesses are not always well protected. For example, toxic chemicals used in e-waste recycling without proper protection gears and without ventilation system installed in the workshops could be harmful for the workers’ health. Many of such jobs in small enterprises are occupied by migrant workers who have limited access to insurance against health problems and occupational injury. Irregularity and delay of payments and lack of social dialogue between employers and workers are typically observed at this level of enterprises in China. The ILO green jobs programmes will foster the Decent Work Agenda6, which
some of the employment data in this table is average value. 5 Information provided by Dr. Kevin Mo in the Green Jobs Consultation Meeting in Beijing on 20 March 2010. 6 The ILO’s organizational principles established by Juan Somavia, Director General, and supported by tripartite constituents of the ILO.

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pursue not any kind of employments but better quality of employments that are protected and sustainable. 2.3.3. A just transition Promotion of environment protection and low-carbon economy requires changes in industrial structures and their operation processes. Some of the industries, either they cause pollution by themselves or producing pollutants, are forced to closed down by the government order. Such as the cases of closing of small coal mines that produce low quality coals and thus contributing to air pollution. These small coal mines also have hazardous working conditions to the mine workers, killing several thousand miners every year. Workers who lost jobs in such enterprises have to find alternative jobs. But apparently, emerging green industries do not exist where brown enterprises were closed down. Also, the skills of workers from closed enterprises are not compatible to apply for new jobs created in green industries. Coping with transition needs of workers from brown industries, the ILO continues to support the government efforts in providing them with social security and opportunity to gain new skills to minimize the impact of industrial restructuring on workers. 2.4. Green jobs policy development 2.4.1. Official view of the government on green jobs No official guidelines have been established by the Ministry of Human Resources and Social Security (MOHRSS) on the employment aspects of developing green economy in China. The recent speech made by Mr. Zhang Xiaojian, Vice Minister, MOHRSS, well summarized the current view of MOHRSS on the promotion of green jobs in the context of employment promotion in China.7 He explained the five key issues: • • • • • Eliminate backward production capacity and create new employment opportunities in economic transformation through public employment services in forest protection, sand prevention, energy-saving activities and renewable energy; Measures against job losses in economic transformation, for example reemployment of laid-off workers and unemployed persons. Also improvement of social security system to mitigate unemployment risks; Skills training for workers need to be enhanced to meet the requirement of green economy; Promotion of green small enterprises: encourage businesses start-ups in priority industries such as those with comprehensive resource utilization; Conduct research studies to support green employment policy formulation for China.

He also emphasized the importance of coordination between employment policies, environmental policies and industrial policies.
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The speech was made in the Forum of Green Jobs for a Better Life, organized by the ILO at the Shanghai Expo in August 2010.

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2.4.2. Towards formulation of green jobs policy guidance Based on the Employment Promotion Law established in 2008, MOHRSS is in the process of developing the new policy guidance for green jobs promotion, which is expected to be issued in 2011. The policy guidance will explain how to adapt employment services at the local level and facilitate green economy at provincial and municipal levels. The Green Jobs Policy Guidance could also be used by MOHRSS as a position paper of the labour administration for policy coordination with other ministries promoting transition to green economy at the national level. 3. Green Business Options (GBO) Training: Developing green business

ideas for small enterprises
3.1. Objectives of GBO training 3.1.1. GBO, a private sector approach contributing to a low carbon economy The idea of Green Business Options (GBO) Training was conceived as part of the MDG Achievement Fund Programme on Climate Change in 2008.8 The programme became the first opportunity for the ILO to introduce the concept of green jobs in the context of transition to a low carbon economy to China. The GBO is a training tool for sustainable enterprise development, embodying triple bottoms of business development, job creation and environment protection. From the view point of job creation, SMEs contribute 80% of urban employment in China.9 The economic and social stability of China largely depends on the capacity of SMEs, in particular small enterprises, in absorbing labour force and make the economic growth inclusive for the people. It is of strategic importance for the government to support small enterprises to explore emerging business opportunities in transition to a low carbon economy. The ILO decided to develop a new entrepreneurship training programme, which supports entrepreneurs to develop business ideas in climate change adaptation and environmental protection. After the pre-testing of the training materials in 2009, eleven training institutions organized the first pilot training from March to June 2010. The second pilot training is currently undertaken since August 2010 in Jiangsu Province and the city of Chongqing.10
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A technical Cooperation Project funded by the Government of Spain, implemented from 2008 to 2010. It is an UN interagency project, participated by ten UN agencies in China. In this project, the ILO focused on green jobs. 9 “Smaller firms to benefit from new definition of SMEs” Chinadaily.com, 27 October 2010 10 The ILO and MOHRSS agreed the GBO pilot programme, supporting four cities in Jiangsu and Chongqing to organize training of trainers (TOTs) and training of entrepreneurs (TOEs).

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3.1.2. Make micro and small businesses accessible to new market opportunities Many entrepreneurs and potential entrepreneurs understand there are different kinds of environmental problems in China. But not many of them consider such problems as business opportunities. The GBO training intends to provide entrepreneurs with a big picture of climate change and environmental issues with tools to analyze emerging green markets and help them in developing new business ideas. 3.1.3. Positioning of GBO in the Green Jobs Initiative The contributions of the world of work towards the realization of a low carbon economy could be made mainly in the following areas: • • • • Supply of skilled human resources required in starting green businesses Building additional/new skills of workers to facilitate the enterprises’ transition to a cleaner and low carbon production system Protection of workers in green businesses to maintain occupational safety and health standards Help workers in closing enterprises due to the environment protection reasons to find new jobs in other sectors.

GBO is expected to contribute to the first and the last points. 3.2. GBO training programme development 3.2.1. Training materials The ILO has been promoting business start-up and management development training programme known as Start and Improve Your Business (SIYB) for the last thirty years worldwide. This training package focuses on the development of small enterprises, particularly individuals who wish to start, improve or expand their businesses. It consists of four training modules intended for learners at different stages of enterprise development as follows: Generate Your Business Ideas (GYB), Start Your Business (SYB), Improve Your Business (IYB) and Expand Your Business (EYB). The GBO Training programme has been developed using GYB as the platform to accommodate climate change and environmental issues explained systematically and lead the learners to identify their own business ideas. 3.2.2. Training methodology GBO is designed as learner-centered participatory training, using case studies, brain storming and small group discussions. The size of a GBO class is limited to twenty participants only. It takes three to four days to complete the GBO training course.

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3.2.3. Target groups GBO was initially designed for youths, particularly university and college students and graduates who are thinking of doing business as a career option. It was anticipated that those students and graduates who already have scientific knowledge and skills might have better prospects for entering to environment-related businesses. When the pilot training programme was launched, it was found that not only university and college students and graduates but also private business owners who are thinking of expanding their businesses showed high interest in learning GBO. At present, GBO is still suitable for potential entrepreneurs who are thinking of starting businesses in climate change adaptation and environmental protection in the future. However, existing entrepreneurs are not excluded in the training. 3.2.4. Non-sector specific approach The initial idea of GBO was to make it a generic training, not addressing specific sector issues. There are reasons why it is better to keep it as non-sector specific, from the view point of enterprise development: • • The very nature of GBO is a tool for developing creative and unique business ideas by learners. Selection of economic sectors in training may cause many learners ended up with similar business ideas. GBO should be an opportunity for learners to know about business potentials in various green sectors. This is particularly important for university and college students and graduates who do not currently own businesses to identify the potential industrial sectors that they could use their knowledge and skills.

Different from students and graduates, existing entrepreneurs who wish to expand their businesses needs more information specific to the sectors they may explore. To cope with their needs, GBO training has developed two resource books in circular economy and energy conservation industry. The use of resource books will be adopted in GBO training courses case by case. The trainers are advised not to mix two different types of learners in the same training course. 3.3. GBO training management 3.3.1. Start and Improve Your Business (SIYB) Training Platform in China The Ministry of Human Resources and Social Security (MOHRSS) was first adopted the SIYB training programme in China in 2001 as a way to facilitate alternative employment opportunities in self-employment and small enterprise development, particularly for the people having difficulties in finding jobs, including laid-off workers, migrant workers, graduates, people with disability and retired military personnel. So far, the SIYB

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programme has been expanding through the national network of vocational training institutions and certified SIYB trainers nationwide. The SIYB programme has been institutionalized through the establishment of Employment Promotion Law in 2008. The SIYB network has been administered by the China Employment Training Technical Instruction Center (CETTIC) under MOHRSS, having 142 Master Trainers and 18,900 Trainers around the country.11 Based on the results to be obtained from the on-going pilot training in Jiangsu and Chongqing, the GBO training is expected to roll out throughout the country using the SIYB training platform. From the contacts with local governments in the GBO pilot training, high participation for GBO training is anticipated by the cities facing environmental problems and old industrial bases in the north-eastern provinces which are required to develop alternative economic development strategies. 3.3.2. Training capacity building Having an extensive network of training institutions and trainers of SIYB as the platform for rolling out the GBO training in China, the ILO has been focusing on Training of Trainers (TOTs) to retrain SIYB trainers as GBO trainers. Typically, TOT takes one week for the trainers to understand the technical contents as well as micro-teaching sessions that could allow the trainers to demonstrate their ability to organize GBO sessions with the guidance provided by the Master GBO trainers. Currently, the ILO Beijing Office has two GBO Master Trainers, who have been involved in the development of the GBO training. MOHRSS and the ILO expect to develop a core team of potential GBO Master Trainers in the next two years. 3.4. Initial achievements from the GBO pilot training 3.4.1. Chengdu Vocational and Technical College The Chengdu Vocational and Technical College is one of the eleven training institutions the ILO tested the GBO in April 2010. The college has 41 majors with ten thousand students. The students from different majors have participated in the GBO pilot training, allowing them to apply their own skills and experiences in creating green business ideas. Among twenty participants, some students came up with practical green business ideas and now developing new businesses at a small scale. For example, these ideas include: • • • • •
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Energy efficiency in school lighting A/C adapter for multiple purposes Stuff toys produced from used children’s clothes Rental bicycle Eco-tour

Information updated by CETTIC in October 2010.

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The college, through its Entrepreneurship Department, encourages students to consider business start-up as a career option. Students can apply for financial support for testing their business ideas and have small space as their business incubator. The college also works closely with the local enterprise association, linking students’ activities with the network of local enterprises. 3.4.2. Energy efficiency through LED and the electricity control device12 Mr. Yang Shunbo is a third year student of the Chengdu Vocational and Technical College majoring in electronic science. He participated in the GBO pilot training in April 2010. The business idea he developed is to provide services in replacing electric bulbs with LEDs and install a small controller that he developed to further reducing the electoricity consumptions. He said his business intended to contribute to lighting of buildings with low costs, no pollution and longer lifecycle. He found so many electric bulbs were used in the college, average of 13 bulbs in one lecture room. He thought it would reduce huge amount of energy if these are to be replaced by LEDs. In addition, he had an idea of adding a small electricity control device minimizing the supply of electricity to be consumed. Studying electronic science, he was confident that he could develop such a device by himself. Participating in the GBO training, he confirmed that his idea was in conformity with the government policy of energy reduction in the maintenance of school buildings. Obviously, his idea could be applied beyond school lightings. But he decided to test it in his school first. He established the Yu Chen Cheng Electronic Technology Company with two other students to install LEDs. The Chengdu Vocational and Technical College has supported his business plan and provided 5,000 yuan for his project. With this, he had a contract from the college to install 100 LEDs. The contract allows him to share the profit to be made from the reduction of the electricity use with the college. At present, he has already developed the electricity controlling device. With his colleagues, he is now producing 1,000 pieces of the controller, which will add more profit to his business and further reduce the energy consumptions in school lighting. He is expecting graduation next year. Given the good business prospect in energy saving in lighting, he is thinking of continuing and expanding his business to other areas. In his business plan, his primary target is colleges and universities, which have similar needs for energy reduction. He also thinks of expanding his business gradually to the areas of interior illumination, pedestrian lights and street advertisement equipment in large cities. Also, he is looking into the similar needs in the rural areas. He expect to consolidate his business model in the first five years, develop and improve technology and expand his business in the south-west China in the next ten years. 3.5. Lessons learnt from the GBO pilot programme
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Information collected by the author by interviewing Mr. Yang in October 2010.

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3.5.1. Green sectors suitable for micro and small enterprise development The GBO training intends to create an enabling environment for micro and small businesses to participate in green businesses. The case of Mr. Yang in energy saving showed the potential of individuals to use their own technical skills and develop new green businesses. Obviously they are disadvantaged as compare to large enterprises, which have high R & D capacity and strong financial capacity. However, there are niche markets exist for micro entrepreneurs to explore green markets, including 3R (reduce, reuse, recycle), eco-tourism and organic agriculture and building, which are less capital intensive. But it doesn’t necessarily mean to exclude other areas of green businesses. What is important for the GBO is allowing the participants to think flexibly in creating unique business ideas. 3.5.2. Make products and services available for the poor In the business case of A/C adapter for multiple purposes, the student who produced it sold 160 pieces in ten days through the Taobao13, which is a popular auction service on internet in China. This case implies the high potential of using internet as a platform for small businesses to access the markets of the poor without major investments. More than four hundred million people have access to internet and more than eight hundred million mobile phones are used in China. 3.5.3. Needs for knowledge development The missing link of green business development by micro and small enterprises is in the lack of information for them to understand the markets created by climate change and environmental issues. Individuals tend to think climate change is something beyond their control and nothing to do with the life of ordinary people. There has been no such opportunity like the GBO to provide them with the information on of climate change and environmental protection issues in a systematic and understandable way. In some cases, participants in pilot training wanted to have more specific information about the sectors that they are interested in exploring their businesses. Given the nonsector specific approach of the GBO, it is necessary to strengthen the sector information in the training and follow-up services by supplying additional informational materials and link them to the government and private agencies involved in the specific sector development. For example, water pollution of Taihe Lake is a major environmental concern of the City of Wuxi. The city government of Wuxi has been supporting the GBO strongly, expecting the contribution of private sector in solving the water pollution problems. 3.5.4. Training needs of existing entrepreneurs

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Taobao at www.taobao.com

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The primary target group of the GBO training is the students and graduates of universities and colleges. Given the low employment of graduates from tertiary education, at the level of 67% after graduation in 2009, the GBO was expected to serve for dual purposes; helping the young unemployed by facilitating the use of their skills and knowledge in creating green businesses. But once the GBO pilot training was launched, the local training institutions found high training needs of existing entrepreneurs, who are thinking of expanding their businesses into green businesses, capitalizing on their technological advantages and adding new value to their products and services to explore new markets. The training needs of the existing entrepreneurs are that of more strategic way of thinking required for the management, which goes beyond the capacity of GBO training. The Global SIYB Programme of the ILO is now considering the necessity of developing new training programme to capture the specific training needs of entrepreneurs in this respect. 3.5.5. Protection of intellectual property rights Due to the small scale of business operations, the GBO learners who turned out to be entrepreneurs are not yet sure about their business potentials. This is why they have not thought about application of the intellectual property rights to protect their products. For example, the electricity controller for LED, which was developed by Mr. Yang of the Chengdu Vocational and Technology College, could be the core product for his business development. But such a valuable device could be easily imitated by others, unless proper protection is provided for his invention. The GBO training may need to add information how entrepreneurs could protect their intellectual property rights. Also, it is useful for the training institutions and schools, which provide business incubation services to GBO learners, to support them in this respect. 3.5.6. Training needs expressed by local governments Through the pilot testing of GBO training, local governments from different parts of the country expressed their needs for GBO training. Towards the implementation of the 12th five-year plan (2011-2015), it is clear that the central governments will require local governments to adopt more distinctive measures in controlling environmental problems and closing gaps between rich and poor. Typical examples of what local governments expressed their interest in organizing GBO are: • • • Expectation for private businesses to contribute in solving specific environmental problems that the city/county is facing, in particular water pollution; Declaring as “environment friendly city” as its official policy, the city would like to adopt GBO as a tool to promote environmental protection; Old industrial bases, typically in the north-eastern part of the country, which have been looking for alternative industries.

Many of these cities mentioned their needs for capacity building of local training institutions to organize the GBO training. They would like to have their own SIYB trainers to be retrained as GBO trainers. It would be necessary for MOHRSS to have

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more systematic survey of local governments to analyze the needs for the adoption of GBO. 4. Suggestions for project design: developing more inclusive green

business models in China
Suggestions below should be taken into consideration in developing a project to promote private sector approaches towards inclusive green economy development. In particular, points were made to create enabling environment for micro and small enterprises to explore green business markets and create employment opportunities for the poor: 4.1. Integrated approach to sustainable small enterprise development The experiences from the GBO pilot training indicated the potential of micro and small enterprises to take part in the development of green economy. Small enterprises could create new employment opportunities, including for the poor people to participate in green businesses. At the same time, small enterprises are likely to provide access for the poor people to be consumers of green products and services. In designing a project for promoting small green businesses, it should cover three dimensions of sustainable development, i.e. economic, environment and social dimensions, if the project is to be inclusive and prevent poor workers from further deprivation. Particularly, the social dimension, including working conditions and occupational safety measures, which are often neglected, should be integrated in the promotion of green businesses. 4.2. Value chains analysis as a tool to find niche markets through upward linkages for small enterprises Indirect effects of employment creation should not be neglected in designing the project. Green businesses cannot exist by themselves alone. They are linked to other businesses in the local economy. To make to project more inclusive, it is useful to apply Value Chain Analysis (VCA) to identify how the green products and services are produced and consumed and how they could be linked to other businesses and support services. VCA provide a participatory platform for stakeholders involved in the production and marketing of selected products and services. Through VCA, the project may possibly identify new employment opportunities to be created not only in the green businesses but also in the other businesses linked to them. 4.3. Linking policy incentives to create green business markets Natural demands of consumers for green products and services may not be strong enough to expand green businesses in a short term perspective. For example, it takes years to come to the break-even point in replacing fluorescent lights with LEDs, while initial investment required make consumers reluctant to buy LEDs. To leapfrogging of green

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enterprises in transition to a low-carbon economy, policy incentives, including financial support, tax reduction should be available for green entrepreneurs and consumers. 4.4. Knowledge development and information dissemination There is fundamental lack of access for the poor to obtain information about the global trend in transition to low-carbon economy. What environment protection meant for them and what are economic opportunities emerging around them? Education and training should play a key role in this respect. The GBO is an example of providing potential micro entrepreneurs and self-employed persons with systematic understanding and approaches to explore their business opportunities in green economy. Given the expansion of mass media and internet connections, social marketing methods for information dissemination to the poor should be considered as an option for knowledge development on green businesses.

5. Conclusions
China is explicitly shifting its development policy to realize a low-carbon economy and creating a more equitable society, departing from the rapid economic growth policy started by Deng Xiaoping three decades ago. For the next decades, the Government departments have to adopt new lows and regulations, guiding structural changes to be made in industries and the life of Chinese people. For the last two years, the ILO has been working with its constituents in China, introducing the concept of green jobs and alerting the changes to be resulted in the world of work. At the same time, efforts have been made to search for new employment opportunities in emerging green industries. The Green Business Options (GBO) has been developed basing on the national entrepreneurship training platform owned and operated by the Ministry of Human Resources and Social Security (MOHRSS) in addressing the needs of small enterprises and self-employers to grasp business opportunities in environmental protection and reduction of GHG emissions. Promotion of micro and small enterprises in green economy is a critical element for making the greening process more inclusive, because most of workers from the poor segment of society are employed in micro and small enterprises. Also, it is likely that small businesses could provide green products and services for the poor and contribute to the local economic development. Since the official GBO pilot programme has started in March 2010, it is still too early to evaluate its effectiveness in creating small green businesses. But the green business ideas developed by the students participated in the GBO pilot training in Chengdu imply the ample possibility of micro enterprises to capture emerging green markets and employ more people as businesses expand. Promotion of small green enterprises should be achieved effectively, if three bottoms of sustainable development - economic, environment and social dimensions - are to be supported by the programmes covering these aspects in an integrated manner. It is a

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crucial concern of the ILO to make a just transition by creating decent and socially acceptable jobs in green enterprises.

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REFERENCE Beijing Review, 2010. “Charting China’s new course” Beijing Review (28 October 2010) www.bjreview.com ILO, 2007. Conclusions concerning the promotion of sustainable enterprises, International Labour Conference, June 2007 ___, 2010. Report on Forum of Green Jobs for a Better Life, Unpublished internal document ___, 2010. Green Business Options Training Book, Unpublished Research Center for Sustainable Development, Chinese Academy of Social Sciences, 2010. Study on low carbon development and green employment in China UNEP, ILO, IOE, ITUC, Green Jobs Initiative, 2008. Green Jobs: Towards decent work in a sustainable, low-carbon world, by World Watch Institute

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