fbpx 52194-001: Policy Research on Ecological Protection and Rural Vitalization for Supporting Green Development in the Yangtze River Economic Belt | Asian Development Bank

China, People's Republic of: Policy Research on Ecological Protection and Rural Vitalization for Supporting Green Development in the Yangtze River Economic Belt

Sovereign (Public) Project | 52194-001 Status: Approved

The proposed knowledge and support technical assistance (TA) cluster will support the green development of the Yangtze River Economic Belt (YREB) in the People's Republic of China (PRC). It will (i) support research on enabling policies, regulations, and incentive mechanisms needed to achieve the environmental goals and objectives outlined for the YREB region; and (ii) undertake analytical work needed to design and implement demonstration projects. The TA cluster subprojects were developed on the request of the Government of the PRC with the National Development and Reform Commission (NDRC) to support the Asian Development Bank's (ADB) strategic project investments for achieving targets outlined in the YREB development plan.

 
Project Name Policy Research on Ecological Protection and Rural Vitalization for Supporting Green Development in the Yangtze River Economic Belt
Project Number 52194-001
Country China, People's Republic of
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 0032-PRC: Policy Research on Ecological Protection and Rural Vitalization for Supporting Green Development in the Yangtze River Economic Belt
Technical Assistance Special Fund US$ 1.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Land-based natural resources management - Rural water policy, institutional and capacity development - Water-based natural resources management

Gender Equity and Mainstreaming No gender elements
Description The proposed knowledge and support technical assistance (TA) cluster will support the green development of the Yangtze River Economic Belt (YREB) in the People's Republic of China (PRC). It will (i) support research on enabling policies, regulations, and incentive mechanisms needed to achieve the environmental goals and objectives outlined for the YREB region; and (ii) undertake analytical work needed to design and implement demonstration projects. The TA cluster subprojects were developed on the request of the Government of the PRC with the National Development and Reform Commission (NDRC) to support the Asian Development Bank's (ADB) strategic project investments for achieving targets outlined in the YREB development plan. The TA cluster subprojects were included in the country operations business plan for the PRC, 2018 2020; and are consistent with the focus of ADB's Strategy 2030 and its development agenda of supporting institutional reform and achieving environmentally sustainable growth, which are the strategic priorities of ADB's assistance to the PRC. The TA cluster is aligned with the following impact: green economic development and ecological protection in the YREB achieved (footnote 1). The TA cluster will have the following outcome: design and implementation of eco-compensation and ecosystem protection demonstration projects enhanced. The TA subproject outputs will also reflect the outputs of the overall TA cluster. Output 1: Enabling environment for ecological compensation demonstration strengthened. Output 1 will support the development of policies, regulations, and incentive mechanisms needed to establish appropriate policy and institutional frameworks that will facilitate effective ecological restoration and environmental improvement demonstration projects in the YREB. Output 2: Capacity on integrating poverty reduction targets into innovative financing mechanisms for ecosystem protection enhanced. Output 2 will support the strengthening of the project designers' capacity to effectively undertake analytical assessments needed for designing comprehensive ecosystem protection demonstration projects. Output 3: Knowledge sharing and dissemination of lessons and findings conducted. Output 3 will support the preparation and publication of at least two knowledge products, including policy briefs and case study research reports, which summarize the findings and facilitate the dissemination of key lessons as well as the design and delivery of targeted training programs and study tours. The TA subprojects 2 and 3 (Appendix 2) will primarily contribute to this output.
Project Rationale and Linkage to Country/Regional Strategy

Rural vitalization in the Yangtze River Economic Belt. Among the rural villages, about 40% do not have garbage collection facilities; and about 80% lack basic sewage treatment, which contributes to poor environmental conditions. The environmental quality of these rural areas is further exacerbated by agriculture-related nonpoint source pollution from outdated production systems lacking effective waste management systems. Due to these concerns, the NDRC launched guidelines on a rural vitalization strategy, identifying agriculture, farmers, and rural areas as the major bottleneck to achieving the PRC's economic development and environmental restoration goals. Under the rural vitalization strategy, the PRC seeks to modernize agriculture and rural villages through (i) building ecologically livable villages; (ii) improving provision of basic public services (including rural sanitation, solid waste collection, and nonpoint source pollution control); and (iii) improving rural governance. These issues complement and are closely aligned with the goals in the YREB development plan and the focus of the proposed TA cluster, sharing common outcomes for ecological and environmental improvement.

Government strategy. The outline of the YREB development plan was released by the government in September 2016 to guide the future development of the YREB towards the goal of ecological restoration and green development (footnote 1). The outline prescribes environmental improvement targets and water quality in the Yangtze River by 2020, with over 75% of the river water meeting the Class III standard or above, compared with 68% in 2014; and the forest coverage achieving 43.0%, compared with 41.3% in 2014.

ADB strategy. ADB's country partnership strategy for the PRC, 2016 2020, aligned with the PRC's Thirteenth Five-Year Plan, also supports the government's reform agenda and the YREB targets by focusing on the following strategic priorities: (i) managing climate change and the environment; (ii) promoting regional cooperation and integration; (iii) supporting inclusive economic growth; (iv) fostering knowledge cooperation; and (v) supporting institutional and governance reform.

ADB's framework approach for the Yangtze River Economic Belt. ADB is playing a catalytic role by focusing its limited resources to work together with different YREB stakeholders to develop and promote innovative yet replicable approaches for scaling up in each of the strategically selected priority areas where ADB has institutional advantages. ADB's framework approach supporting the YREB will see an estimated $2.0 billion of support provided during 2018 2020, extending across one or more provinces or municipalities in the middle and upper reaches of the YREB. The individual projects may be in one or more of the core operational sectors of ADB environment, agriculture and natural resources, transport, energy, or urban development.

Strategic priority areas. In line with the core areas identified in the YREB development plan, ADB's current YREB assistance framework focuses on four strategic priority areas: (i) ecosystem restoration, environmental protection, and management of water resources; (ii) green and inclusive industrial transformation; (iii) construction of an integrated multimodal transport corridor; and (iv) institutional strengthening and policy reform. All four priorities will complement each other to support the overall ecological restoration and green development of the YREB.

The proposed TA cluster offers an additional avenue of strategic, yet complementary support to planned ADB lending and non-lending assistance in the YREB. The themes of the four subprojects (Appendix 2) cut across key strategic priority areas consistent with ADB's YREB framework approach, addressing the areas of ecosystem restoration and environmental protection, institutional and policy reform, and capacity building. Eco-compensation particularly has been identified as an important innovative financing mechanism to address both ecosystem restoration and rural poverty reduction in the YREB. ADB is also co-leading with the China Council on International Cooperation for Environment and Development a 2-year Special Policy Study on Eco-compensation and Green Development Institutional Reform in the YREB during 2018 2019 to create an enabling policy framework for effective implementation of eco-compensation programs.

The executing agencies associated with the subprojects under the proposed TA cluster are closely involved in the key strategic areas under the YREB development plan and the rural vitalization strategy (footnotes 1 and 4). The Guizhou Provincial Government (subproject 1), situated in the upper Yangtze River catchment area, is supporting the project activities which aim to protect and improve ecological and environmental processes critical to achieving the YREB development plan outcomes. The NDRC, through the Chongqing Municipal Development and Reform Commission (subprojects 2 and 3), is a key player in the project activities which support the design and implementation of eco-compensation and related incentive mechanisms that are aligned with ecological protection and environmental improvement outcomes under the YREB development plan and rural vitalization initiatives. The State Forestry and Grasslands Administration (subproject 4) plays a significant role in the PRC's ecological recovery plan.

A TA cluster modality was determined to be the most appropriate means of providing strategic and targeted support for the YREB development plan (footnote 1). Linked subprojects will support a program of activities covering capacity development and the development of enabling policies and regulatory frameworks, with the common objective of supporting the implementation of demonstration projects aligned with targets in the YREB development plan (footnote 1). The TA cluster modality provides the flexibility to support emerging needs through the design of subprojects during the TA implementation. Since the PRC has a TA framework agreement for the YREB and the TA subprojects have been programmed as knowledge and support TA projects, the TA approach is more appropriate because greater knowledge sharing and cooperation can be achieved within the cluster.

Impact Green economic development and ecological protection in the YREB achieved
Project Outcome
Description of Outcome Design and implementation of eco-compensation and ecosystem protection demonstration projects enhanced
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Enabling environment for ecological compensation demonstration strengthened

Capacity on integrating poverty reduction targets into innovative financing mechanisms for ecosystem protection enhanced

Knowledge sharing and dissemination of lessons and findings conducted

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide, Chongqing, Guizhou
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA cluster is expected to engage international and national consultants individually or through firms as and when needed in accordance with ADB's Procurement Policy (2017, as amended from time to time) prior to approval of each TA subproject in consultation with the government during follow-up missions. ADB will engage consulting firms and individual consultants for each TA subproject in accordance with ADB's Procurement Policy (2017, as amended from time to time) and the associated project administration instructions and/or TA staff instructions.
Responsible ADB Officer Au Shion Yee
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Chongqing Municipal Development and Reform Commission
Room306, Jianfa Building, No.16 Honghuxilu
Road, Yubei Disctrict, Chongqing
Municipality, PRC
Guizhou Provincial Finance Department (GFD)
No.7 Bldg., No.242 Provincial Govt.Inst.
Comp., North Zhong Hua Rd., Guiyang City
Guizhou Province, P.O. Box: 550004, PRC
National Development and Reform Commission
No. 38 South Yuetan St.
Beijing 100824
China
State Forestry and Grassland Administration
18 Hepingli East Street
Dongcheng District, Beijing 100013
People's Rep of China
Western Region Development Department
No. 38 Yuetan Shout Street, Beijing, People's Republic of China
Timetable
Concept Clearance 20 Jul 2018
Fact Finding 31 May 2018 to 01 Jun 2018
MRM -
Approval 15 Sep 2018
Last Review Mission -
Last PDS Update 28 Mar 2019

TA 0032-PRC

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 0.00 0.00 0.00 0.00 1,500,000.00 - 0.00

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