China, People's Republic of: Building a Framework for Regulation and Policy Support System for Eco-Compensation in Gansu

Sovereign Project | 45136-001

Summary

The expected impact of the TA will be enhanced environmental sustainability in Gansu province. The expected outcome of the TA will be an improved legislative framework for eco-compensation in Gansu Province. The TA will produce the following outputs: (i) eco-compensation approaches for forests and grasslands, (ii) recommendations for mainstreaming eco-compensation into relevant legislation, and (iii) enhanced institutional capacity on eco-compensation of forests and grasslands.

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Project Name Building a Framework for Regulation and Policy Support System for Eco-Compensation in Gansu
Project Number 45136-001
Country China, People's Republic of
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8180-PRC: Building a Framework for Regulation and Policy Support System for Eco-compensation in Gansu
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development

Gender Equity and Mainstreaming
Description The expected impact of the TA will be enhanced environmental sustainability in Gansu province. The expected outcome of the TA will be an improved legislative framework for eco-compensation in Gansu Province. The TA will produce the following outputs: (i) eco-compensation approaches for forests and grasslands, (ii) recommendations for mainstreaming eco-compensation into relevant legislation, and (iii) enhanced institutional capacity on eco-compensation of forests and grasslands.
Project Rationale and Linkage to Country/Regional Strategy

In the PRC, the traditional approach to ensure the provision of ecosystem services and ecological restoration and management has been through eco-compensation' payments made directly from the government to providers of the services. Eco-compensation-related mechanisms and regulations in the PRC historically have been mainly limited to local areas. However, since 2005, the State Council has also been giving top priority to and urging the establishment of effective national-level eco-compensation mechanisms. The government continues to assign high priority to ecological restoration and management. The government recently emphasized the need to revisit the legal and institutional mechanisms for natural resources protection. In 2008, the Decision of the Central Committee of the Communist Party of China on Several Significant Issues in Promoting Rural Reform and Development , which was adopted in the Third Plenary Session of the 17th Communist Party of China Central Committee, stressed the need for an incentive mechanism that will facilitate the protection of natural resources such as arable lands, water areas, forests, grasslands, wetlands, and agricultural species resources.

Gansu Province has placed great importance on eco-compensation for some time. Along with other sectors, the Provincial Forestry Department has particularly made efforts to include eco-compensation mechanisms in their relevant policies and regulatory framework. In recent years, several regulations related to eco-compensation have been issued at three different levels (i.e., local rules, government rules, and normative codes issued by provincial governments). There are six different rules and regulations related to eco-compensation. These include (i) implementation solutions to the forest law; (ii) regulations for the protection of the Qilian mountain national nature reserve; (iii) rules on grasslands of Gansu Province; (iv) rules on forest ecological and environmental protection of Gansu Province; (v) rules for water resources management in the Shiyang river basin; and (vi) rules on ecological and environmental protection in oil exploration and exploitation.

Despite the existence of these legal provisions to deal with eco-compensation, the main challenges which remain include (i) the existing principles and legal provisions being too general; and (ii) the lack of clarity on how to operationalize the existing legal provisions. This TA will build on the experiences and lessons learnt from the various ongoing and recently completed initiatives on eco-compensation in the PRC. The proposed roadmap for improved legal and policy framework, and enhanced capacity for implementing eco-compensation mechanisms resulting from this TA will contribute to enhancing environmental sustainability in Gansu Province.

Impact Enhanced environmental sustainability in Gansu Province
Project Outcome
Description of Outcome An improved legislative framework for eco-compensation in Gansu Province
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs

1. Eco-compensation approaches for forests and grasslands

2. Recommendations for mainstreaming eco-compensation into relevant legislation

3. Enhanced institutional capacity of stakeholders on eco-compensation of forests and grasslands

Status of Implementation Progress (Outputs, Activities, and Issues)

The implementation of this TA is now complete, and the TA is anticipated to be closed by 31 October 2014.

The final report presented the findings of the TA in relation to the intended outputs and proposed suboutputs of the TA. A detailed analysis of two case studies on eco-compensations mechanisms in Xiaolongshan (forests) and Tianzhu (grasslands) have also been completed. Recommendations were put forward on strengthening the legal and policy framework for forests and grassland eco-compensation in Gansu. The review of international experiences relevant to forest and grassland PES was conducted and presented in the final report. The detailed thematic reports of the relevant TA consultants were presented separately as supplementary reports. The key findings and recommendations of the TA are presented in the executive summary of the final report. With regards to the overall outcome of the TA, the mission and the EA agreed that the TA has significantly contributed to the improvement of the eco-compensation policy framework in Gansu.

Output 1: Eco-compensation approaches for forests and grasslands.

-An assessment of the state of forest eco-compensation in Gansu was analyzed in the forest supplementary thematic report and presented.

-Assessment methodologies for forest ecosystem services were included in detail in the forest supplementary thematic report, whilst a literature review was conducted on assessment methodologies for grassland ecosystem services.

-Economic values for targeted forest ecosystem services were presented in detail whilst eco-compensation approaches for grasslands are discussed in the draft final report.

-Detailed recommendations on eco-compensation approaches and rates for forests and grasslands (in relation to Xiolongshan and Tianzhu) are presented and discussed, and the need to be dynamic and adaptive to the changing environment is highlighted.

Output 2: Recommendations for mainstreaming eco-compensation into relevant legislation

- The international review of legal, institutional, and policy frameworks supporting forest- and grassland-related PES/eco-compensation was completed.

- A comprehensive review and analysis of legislations and policies related to forest and grassland eco-compensation both at national and Gansu provincial level has been completed and included in the interim report.

- Detailed recommendations on enhancing the legal and institutional policy framework for forests and grasslands have been prepared.

- Recommendations for revising the Regulations for the Protection of the Qilian Mountain National Nature Reserve have been completed, including recommendations for including eco-compensation mechanisms.

-The draft policy brief has been prepared and dicussed during the final workshop, revised, and circulated to the government and ADB.

Output 3 Enhanced institutional capacity on eco-compensation of forests and grasslands.

-Capacity building workshops for key provincial agencies were integrated into the inception, interim, and final workshops. TA findings and recommendations were presented and discussed in detail with targeted stakeholders. In addition, a grassroot-level training workshop was conducted in Xiaolongshan targeting 400 participants including local students, farmers, and forestry bureau staff. Information booklets on eco-compensation were disseminated at this workshop.

-14 representatives from 5 provincial agencies participated in two inter-provincial study tours to Shandong and Xinjiang to learn about grassland and forest eco-compensation practices in these provinces. The final study tour to the Tibetan Autonomous Region was held during 26Aug-3Sep 2014. The proposed international study tour was replaced with domestic study tours due to change in provincial government policies relating to international travel.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design A detailed stakeholder consultation workshop was held during the reconnaissance mission. The detailed discussions contributed to the final TA design.
During Project Implementation The following key stakeholders participated in the TA inception workshop - Provincial Finance Department, Provincial Forestry Department, the Law Committe of the Provincial People's Congress, the Legislation Offfice of the Provincial Government, Provincial Agriculture Department, and the Provincial Grassland Monitoring and Supervision Bureau. Detailed surveys are being designed to seek grassrot level stakeholder input on the issues being addressed by the TA.
Business Opportunities
Consulting Services

It is estimated that the TA will require 6 person-months of international and 24 person-months of national consulting services. Six national consultants TA team leader and eco-compensation legal and institutional specialist, forestry eco-compensation specialist, grassland eco-compensation specialist, training and capacity development specialist, environmental economist); and two international consultants (environmental legislation and policy specialist, and environmental economist) will be required for the TA implementation.

The consultants will be engaged by ADB through a firm following ADB's Guidelines on the Use of Consultants (2010, as amended from time to time) using the quality- and cost-based selection (QCBS) method, with a quality cost weighing ratio of 80:20

Procurement Equipment will be procured following ADB's Procurement Guidelines (2010, as amended from time to time), and will be handed over to the Gansu provincial government upon completion of the proposed TA. Operational expenses for trainings, workshops, translation, and printing will be included in the consultant's contract. Disbursements under the TA will be done following ADB's Technical Assistance Disbursement Handbook (May 2010, as amended from time to time). Operational expenses for trainings, workshops, translation, and printing will be included in the consultant's contract. Advance contracting procedure for the engagement of consultants for the TA may be considered.
Responsible ADB Officer Alvin Lopez
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Gansu Finance DepartmentNo. 696 Donggangxi Road,
Chengguan District, Lanzhou
730000, Gansu, PRC
Timetable
Concept Clearance 03 Aug 2012
Fact Finding -
MRM -
Approval 28 Sep 2012
Last Review Mission -
Last PDS Update 30 Sep 2014

TA 8180-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2012 26 Oct 2012 26 Oct 2012 30 Apr 2014 15 Mar 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 28 Sep 2012 350,226.80

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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