China, People's Republic of: Gansu Environmentally Sustainable Rural Vitalization and Development

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Rural market infrastructure

Gansu Province is located in the northwest People's Republic of China (PRC). The project area is part of the Yellow River Ecological Corridor (YREC), which comprises the PRC's second largest river basin. 70% of the population lives in underdeveloped rural areas with rural incomes around one-third of those for urban households. The urban-rural gap has resulted from several factors, such as the semi-arid climate and mountainous terrain, increasing climate change impact, and little engagement with private sector. Constrained future economic growth is causing out-migration of young people.

The Government of the PRC (the government) designated rural vitalization as a national priority in the National Strategic Plan for Rural Revitalization (2018-2022). ADB supports it under the Memorandum of Understanding agreed with the government in 2018. The government has also committed to carbon dioxide (CO2) emissions peaking before 2030 under the Paris Agreement, and recently announced targeting carbon neutrality by 2060. The expected key government priorities under the 14th Five-Year Plan include reducing carbon intensity and formulating an action plan for carbon emissions to peak before 2030. The project will contribute to achieving these two key government priorities of rural vitalization and carbon peaking/neutrality.

The YREC program prioritizes ecological protection and promote high-quality green development over the Yellow River basin. The proposed project is part of the YREC program and supports the approach through (i) institutional strengthening to enhance green governance, (ii) demonstration of innovative approaches and technologies to achieve low-carbon rural vitalization in semi-arid environments, and (iii) development and sharing of knowledge.

About 44,000 farmers and other rural residents, including about 16,000 women, in the project demonstration areas are expected to benefit directly from the project. There will be a much larger number of indirect beneficiaries as the sustainable rural vitalization initiatives are replicated in other areas of the province. Development results include environmental restoration such as reforestation integrated into economic activities, and sustainable agricultural practice leading to improved living conditions of rural households, including women, through the creation of new employment opportunities, strengthened resilience to climate and disaster risks, reduced water and soil pollution, and increased capacity of rural residents to engage with the private sector and use emerging business models and high-level technology.

ADB's involvement will add value to the project in a number of ways. It will maximize the role of green and low-carbon development in the rural vitalization program in Gansu province, and will ensure that a prominent role is given to institutional strengthening, which will contribute to sustainability.

The project incorporates innovative aspects such as the use of carbon credits for rural development to support sustainable agriculture and fostering entrepreneurship and building the capacity of farmers to transition to green market-oriented business practices.

Institutional capacity for green governance and private sector engagement enhanced

Sustainable and climate-resilient agricultural development measures and practices enhanced

Sustainable low-carbon rural development measures and facilities installed

Environmental areas protected and restored