China, People's Republic of: Innovating Eco-Compensation Mechanisms in Yangtze River Basin

Sovereign Project | 55006-002

The TA will support the National Development and Reform Commission (NDRC) of the People's Republic of China (PRC) to prepare GEF7 Request for Chief Executive Officer Endorsement (CER) for another larger knowledge and support TA on Innovating Eco-Compensation Mechanisms in the Yangtze River Basin (YRB) with estimated TA cost of $8.07 million proposed to be financed by the GEF. The GEF7 CER will be submitted to the GEF Secretariat by 31 November 2021, with targeted endorsement by the first quarter of 2022. The TA is aligned with the following impact: environmentally sustainable development in the YREB enhanced. The TA will have the following outcome: design of eco-compensation mechanisms in the YRB improved.

Project Details

  • Project Officer
    Guo, Dongmei
    East Asia Department
    Request for information
  • Country
    China, People's Republic of
  • Sector
    • Agriculture, natural resources and rural development
Project Name Innovating Eco-Compensation Mechanisms in Yangtze River Basin
Project Number 55006-002
Country China, People's Republic of
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6736-PRC: Innovating Eco-Compensation Mechanisms in Yangtze River Basin
Global Environment Facility US$ 183,488.00
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 / Agricultural policy, institutional and capacity development - Land-based natural resources management - Water-based natural resources management

Gender Equity and Mainstreaming Some gender elements
Description The TA will support the National Development and Reform Commission (NDRC) of the People's Republic of China (PRC) to prepare GEF7 Request for Chief Executive Officer Endorsement (CER) for another larger knowledge and support TA on Innovating Eco-Compensation Mechanisms in the Yangtze River Basin (YRB) with estimated TA cost of $8.07 million proposed to be financed by the GEF. The GEF7 CER will be submitted to the GEF Secretariat by 31 November 2021, with targeted endorsement by the first quarter of 2022. The TA is aligned with the following impact: environmentally sustainable development in the YREB enhanced. The TA will have the following outcome: design of eco-compensation mechanisms in the YRB improved.
Project Rationale and Linkage to Country/Regional Strategy

Many YREB projects have operationalized some eco-compensation concepts to enhance trans-provincial cooperation, including pilot projects in Xin'an River watershed or which funding for eco-compensation from the government of the PRC increased from CNY6 billion in 2008 to CNY81 billion in 2019. In January 2019, the NDRC and eight other government agencies jointly released the Action Plan for Establishing Market-Oriented and Diversified Eco-Compensation Mechanism. Since 2020, ADB has been supporting the NDRC in drafting National Regulation on Eco-Compensation for approval by the State Council. However, consensus has not been reached on issues such as the definition, scope, and objectives of diversified eco-compensation; natural resources property rights and obligations; compensation rate calculation and payment vehicles; market-oriented mechanisms with involvement of the private sector; etc. ADB's supports on transboundary eco-compensation mechanism in the YRB is still difficult to be promoted.

ADB applied funding from the GEF Trust Fund as part of ADB's continued support to cofinance the YREB Framework Program, to innovate eco-compensation mechanisms which contribute to improved and sustainable terrestrial and freshwater ecosystem health in the upper and middle reaches of the YRB. This will include the (i) promotion of innovative eco-compensation mechanisms with economic incentives to the private sector and farmers, for improved biodiversity conservation and agricultural plastic pollution control; (ii) more innovative monitoring and measurement of strengthened ecosystems services through use of the gross ecosystem product accounting based on spatial data and environmental performance assessment; (iii) exploration of sustainable financing tools for natural capital management, which will generate significant global environmental benefits; and (iv) knowledge sharing with other developing member countries. Upon the GEF CEO's endorsement of the $8.07 million financing to ADB by the first quarter of 2022, the proposed larger knowledge and support TA on Innovating Eco-Compensation Mechanisms in the YRB will be processed for ADB's approval by the second quarter of 2022.

Impact Environmentally sustainable development in the YREB enhanced
Project Outcome
Description of Outcome Design of eco-compensation mechanisms in the Yangtze River Basin improved
Progress Toward Outcome On-track to achieve outcome.
Implementation Progress
Description of Project Outputs

Eco-compensation enabling framework reviewed and cases identified

Eco-compensation mechanisms designed

Strategic directions for developing a natural capital lab identified

Technical and safeguards assessments conducted in the project areas

GEF7 CER submitted and standalone KSTA approved

Status of Implementation Progress (Outputs, Activities, and Issues) The TA inception mission was conducted in July 2021 and a local stakeholder consultation was conducted in September 2021. The TA interim mission and stakeholder consultation is scheduled in October 2021
Geographical Location Nation-wide, Chongqing, Guizhou, Hubei, Hunan, Sichuan, Yunnan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with EA, IA, and other stakeholders.
During Project Implementation Consultation and knowledge sharing with EA, IA, and other stakeholders.
Responsible ADB Officer Guo, Dongmei
Responsible ADB Department East Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, EARD
Executing Agencies
National Development and Reform Commission
No. 38 South Yuetan St.
Beijing 100824
China
Timetable
Concept Clearance -
Fact Finding 12 Jan 2021 to 12 Jan 2021
MRM -
Approval 03 Jun 2021
Last Review Mission -
Last PDS Update 28 Sep 2021

TA 6736-PRC

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Jun 2021 - 03 Jun 2021 30 Jun 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 183,488.00 0.00 0.00 0.00 0.00 183,488.00 28 Sep 2021 7,801.77

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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
ADB/GEF Senior Chemical and Waste Specialist and Team Co-Leader Individual - Consulting Closed 08 Oct 2021 17 Oct 2021
National ADB/GEF Senior Eco-Compensation and Conservation Finance Specialist Individual - Consulting Closed 14 Jul 2021 20 Jul 2021
National ADB/GEF Chemical and Plastic Industry Analyst Individual - Consulting Closed 26 Jun 2021 02 Jul 2021
National ADB/GEF Social Safeguards and Gender Specialist Individual - Consulting Closed 18 Jun 2021 24 Jun 2021
National ADB/GEF Environmental Safeguard Specialist Individual - Consulting Closed 18 Jun 2021 24 Jun 2021
National ADB/GEF Senior Biodiversity Advisor and Team Co-Leader Individual - Consulting Closed 03 Jun 2021 09 Jun 2021
National ADB/GEF Protected Area Management Specialist Individual - Consulting Closed 03 Jun 2021 09 Jun 2021
National ADB/GEF Agricultural Plastics Specialist Individual - Consulting Closed 03 Jun 2021 09 Jun 2021
International ADB/GEF Senior Chemical and Waste Specialist and Team Co-Leader Individual - Consulting Closed 21 May 2021 27 May 2021

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

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