China, People's Republic of : Support for National Ecological Compensation Regulation of the People's Republic of China

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

The TA is aligned with the following impact: environmental protection and high-quality green growth enhanced. The TA will have the following outcome: quality of national regulation on ecological compensation improved. The three TA outputs include the following:

Output 1: Policy advice on the national eco-compensation regulation finalized. This output will include (i) a review of subnational, national, and international policies and legal and regulatory frameworks in relation to eco-compensation, payment for ecosystem services, and market-based instruments for ecological protection; (ii) identification of key issues of eco-compensation and development of the outline of the national eco-compensation regulation; and (iii) preparation of the draft national eco-compensation regulation.

Output 2: Understanding on proposed national eco-compensation regulation increased. This output will include (i) the conduct of consultative workshops combining with inception and interim workshops with relevant stakeholders: the NDRC, line ministries, subnational agencies, local governments, and civil society organizations. Consultations will be undertaken under the guidance of national and international experts to discuss the draft national eco-compensation regulation and the thematic areas proposed under the regulation; and (ii) submission of the draft final national eco-compensation regulation to the State Council for consideration and approval.

Output 3: Knowledge product published and disseminated. This output will include the (i) preparation and publication of a technical policy paper both in English and in Chinese languages, with a focus on key thematic areas proposed under the regulation, including but not limited to scope of the regulation, eco-compensation mechanisms for key ecosystems, transboundary eco-compensation mechanisms, and trading systems among market players; rights and obligations of ecosystem owners, direct users, beneficiaries, and indirect users; local government responsibilities; obligations of stakeholders engaged in eco-compensation, institutional coordination, and policy coherence; correlation between eco-compensation programs and poverty alleviation; and relations between eco-compensation and functional zoning; and (ii) knowledge sharing and dissemination of results in the PRC and other developing member countries of ADB through webinars and outreach knowledge products (i.e., policy briefs, blogs, opinion from editors [op-eds], etc.).

The proposed small-scale knowledge and support TA will support the National Development and Reform Commission (NDRC) with their drafting of the national ecological compensation (or eco-compensation) regulation of the People's Republic of China (PRC).

ADB conducted a comprehensive study on eco-compensation regulations jointly with the NDRC, which highlighted the need to capture the diversity of subnational experiences; and integrate them into a coherent national regulatory framework. The TA therefore builds on this study, and more broadly builds on ADB's long-term technical experience and partnership with the NDRC. The TA will therefore provide timely and relevant policy advice, while supporting research and building strong synergies with ADB's investment programs in the Yangtze River Economic Belt and the Yellow River Basin.

Environmental protection and high-quality green growth enhanced

Quality of the national regulation on ecological compensation improved

Policy advice on the national eco-compensation regulation finalized

Understanding on proposed national eco-compensation regulation increased

Knowledge product published and disseminated

The inception workshop was held in May 2021, and the interim workshop was held in July 2021. The local consultation was conducted in September 2021. NDRC appreciated the inception and interim reports. The knowledge product was designed as a policy brief. The understanding of the proposed national eco-compensation regulation increased via communication with clients.

Next steps: Conduct of the final review workshop and the International Conference on Eco-Compensation in the Yellow River Basin by Q4 2022; and completion of the publication of the policy brief KP by Q1 2023.