China, People's Republic of: Ecological Valuation and Compensation Mechanism in the Kubuqi Desert

Sovereign Project | 54026-006

The project will be aligned with the following impact: resilient ecological protection and security in the Yellow River Basin achieved. The outcome of the TA is the sustainable financing for the ecological protection and green development in the Kubuqi Desert prompted. The project will include the following outputs:

Project Name Ecological Valuation and Compensation Mechanism in the Kubuqi Desert
Project Number 54026-006
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6656-PRC: Strengthening Capacity, Institutions, and Policies for Enabling High-Quality, Green Development in the Yellow River Ecological Corridor Ecological Valuation and Compensation Mechanism in the Kubuqi Desert (Subproject 5)
Technical Assistance Special Fund US$ 258,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Land-based natural resources management - Water-based natural resources management

Gender Equity and Mainstreaming Some gender elements
Description

The project will be aligned with the following impact: resilient ecological protection and security in the Yellow River Basin achieved. The outcome of the TA is the sustainable financing for the ecological protection and green development in the Kubuqi Desert prompted. The project will include the following outputs:

(i) Output 1: Framework and methodology on ecological valuation of the Kubuqi Desert proposed. This output aims to set up the ecological valuation framework and methodology by learning from international and national experiences for accurately quantifying the ecological restoration effects and establishing the ecological value assessment model for the Kubuqi Desert. It will conduct (i) the literature review and a training workshop on international and national frameworks and methodologies on the valuation of ecological assets; and (iii) the valuation of the ecosystem services of the Kubuqi Desert, including valuation on forest, grassland, wetland, and cropland; and based on surveys, monitoring, statistics, and integration with the existing data platform and management system.

(ii) Output 2: Policy advice on ecological compensation mechanism for the Kubuqi Desert finalized. This output will develop the ecological compensation mechanism. Its activities include (i) conduct of a case study on the cost benefit analysis of the Kubuqi Desert's model of industry-based ecological restoration for its sustainability and replication in other regions in the PRC and in ADB's developing member countries (DMCs), particularly in the central Asian countries; (ii) conduct of an international exchange on eco-compensation and sustainable financing, and (iii) development of ecological compensation mechanisms, including the policies or guidelines and accounting tools for the public goods of large-scale ecosystem restoration led by the private sector.

(iii) Output 3: Knowledge of multiple stakeholders on ecological valuation and compensation enhanced. The output will support the capacity building on developing the eco-compensation mechanisms and sharing knowledge with all stakeholders and DMCs. Activities under Output 3 will include (i) organization of workshops to be participated in by multiple stakeholders for guidelines on ecological valuation and eco-compensation; (ii) conduct of knowledge sharing on the TA subproject 5's results at the high-level Kubuqi Desert Forum to facilitate the sustainable development of the Kubuqi Desert; and (iii) publication of at least one knowledge product for sharing with other DMCs, especially the central Asian and regional economic cooperation (CAREC) countries.

Project Rationale and Linkage to Country/Regional Strategy

The Kubuqi Desert has its (i) special geographical location being located in the middle and upper reaches of the Yellow River Basin; (ii) natural environment being the easternmost and seventh largest desert in the PRC; and the transition zone between desert and sand; and (iii) important economic role being one of the key implementation areas of the Government of the PRC's subproject began in the 1980s to build the world's influential "three Northern" shelterbelt system, including returning farmland to forests and grasslands, protecting natural forests in the middle and upper reaches of the Yellow River, and controlling the sources of sandstorms in Beijing and Tianjin, which has resulted to gradually improved ecological environment and remarkable achievements of changing sand damage into sand and wind sand into scenery; and thus, creating a green miracle of desertification prevention and control in the world. Therefore, conducting research and further designing innovative experiments in the Kubuqi Desert are of great importance to the PRC's practice of ecological civilization.

The government requested a TA from ADB to conduct a study on ecological valuation and compensation mechanism in the context of the Kubuqi Desert. The TA is included in the country operations business plan (COBP) for the PRC, 2018 -2020. The TA subproject 5 will support the overall TA cluster with strong focus on developing the ecological compensation mechanism in the Kubuqi Desert with the involvement of private sector. The TA subproject 5 will also help to formulate fiscal and sustainable ecological solutions, so as to better protect the environment while increasing the productivity and incomes of local people in the Kubuqi Desert.

The expected results of the proposed TA subproject 5 are as follows: (i) build different ecosystem assessment models, and develop technical guidelines for ecological valuation; (ii) formulate a diversified and market-oriented ecological compensation program to promote ecological protection and green development in the Kubuqi Desert; and (iii) share knowledge on items (i) and (ii) to other regions in the PRC; and to ADB''s DMCs, particularly to the central Asian countries.

Impact Resilient ecological protection and security in the Yellow River Basin achieved
Project Outcome
Description of Outcome Sustainable financing for the ecological protection and green development in the Kubuqi Desert prompted
Progress Toward Outcome On track.
Implementation Progress
Description of Project Outputs

Framework and methodology on ecological valuation of the Kubuqi Desert proposed

Policy advice on ecological compensation mechanism for the Kubuqi Desert finalized

Knowledge of multiple stakeholders on ecological valuation and compensation enhanced

Status of Implementation Progress (Outputs, Activities, and Issues) The inception workshop was held in July 2021, and the inception report was ready. The framework and methodology on the ecological valuation of the Kubuqi desert were proposed. The GEP accounting, ecological compensation, and green finance were focused.
Geographical Location Nation-wide, Inner Mongolia
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The local government and private sector are key stakeholders of this projects.
During Project Implementation The local government and private sector are involved as key stakeholders. The local survey was mainly focused on the Yili group.
Responsible ADB Officer Guo, Dongmei
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
Inner Mongolia Autonomous Region Finance Department (Former Inner Mongolia Autonomous Region)
No. 19, Chilechuan Street, Saihan District
Hohhot City, Inner Mongolia Autonomous
Region People's Republic of China
Timetable
Concept Clearance -
Fact Finding 14 Aug 2020 to 14 Aug 2020
MRM -
Approval 08 Dec 2020
Last Review Mission -
Last PDS Update 30 Sep 2021

TA 6656-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2020 31 Dec 2020 31 Dec 2020 31 Dec 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
258,000.00 0.00 0.00 0.00 0.00 0.00 258,000.00 20 Oct 2021 0.00

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Safeguard Documents See also: Safeguards
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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Consulting Team Firm - Consulting Closed 18 Jan 2021 01 Feb 2021

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Research and Developme Technical Assistance 6656 27 May 2021 Chinese Academy for Environmental Planning (CHINA, PEOPLE'S REP. OF) | No.8 Dayangfang St., BeiYuan Road., Chaoyang District, Beijing 100012 PRC +8610 84915995/ [email protected] Inner Mongolia Autonomous Region Finance Dep't 249,824.00

Procurement Plan

None currently available.