Financing
Domestic public financing
Subsidies were given to those farmers who have returned their cultivated land to forests according to verified areas (By the end of 2012, cumulatively 324.7 billion yuan RMB, benefiting 120 million farmers each household 7,000 yuan RMB. Since 1999, the central government has been subsidizing those households that have returned their cultivated land to forests according to the actual areas returned and verified. These households also have the ownership of forests that grow on returned land, with contract period for owning and using returned land being as long as 70 years, while enjoying preferential tax incentives for benefits from use of returned land. In 2007, the State Council issued a notice on improving the policy of returning cultivated land to forests, with a view to increase the subsidies to related households. According to this notice, households living in the Yangtse River Basin and South China can be subsidized in cash by 1,575 yuan RMB per hectare of land annually, while households living in the Yellow River Basin and North China can get a cash subsidy of 1,050 yuan RMB per hectare of land. Farmers that return land to forests with ecological functions can be compensated for eight years, while those that return land to forests with economic functions can be compensated for five years. From 2008 to 2011, the central government provided specialized grants totaling 46.2 billion yuan RMB. By the end of 2012, the central government has invested cumulatively 324.7 billion yuan RMB, and 124 million farmers in 2,279 counties directly benefited from this investment, with per household being subsidized 7,000 yuan RMB on the average.
Subsidizing the projects on natural forest protection. Natural forest protection project: 118.6 billion yuan RMB in the first phase, and 244 billion yuan RMB in the second phase from 2011 to 2020. Natural forest resources protection projects were initiated in 17 provinces in 2000. The central government subsidized forest management and conservation as well as seedling cultivation and reforestation. The central government also provided subsidies by covering pension insurances for forest enterprise employees and social expenditures of forest enterprises, and providing basic life guarantees for laid-off forest workers. The total investment for the first phase of this project went up to 118.6 billion yuan RMB. At the end of 2010, the State Council decided to implement a second phase of this project from 2011 to 2020, with 11 more counties (cities, districts) to be included in the project. The subsidy provided for reforestation will be 4,500 yuan per hectare, and those for enclosing mountains for forest conservation and aerial seeding will be 1,050 yuan RMB per hectare and 1,800 yuan RMB per hectare respectively. Education subsidy is 30,000 yuan RMB per person per year. Sanitation subsidy for forest areas in the upper reaches of the Yangtse River, the upper and middle reaches of the Yellow River and Inner Mongolia is 15,000 yuan RMB per year and 10,000 yuan RMB per year respectively. For state-owned forests, the central government provides 75 yuan per hectare annually as forest conservation fee. For those collectively-owned forests that also belong to national-level pubic benefits forests, during 2011-2012, the central government provided 150 yuan RMB per hectare annually as part of the funds for ecological compensation. Since 2013, this rate has been increased to 225 yuan RMB per year. For local benefits forests the compensation funds are provided mainly from local government budgets, while the central government also provides 45 yuan RMB per hectare per year as forest conservation fee. The total investment of the second phase of this project will be around 224 billion yuan RMB.
Subsidizing projects of returning grazing land to grasslands. Subsidies to those herdsmen who have returned their grazing land to grassland to cover part of costs for grassland enclosures and forages (17.57 billion yuan RMB between 2003-2012 benefiting more than 4.5 million herdsmen). Since 2003 such projects have been implemented in eight provinces such as Inner Mongolia, Sichuan, Qinghai and Xinjiang. The central government has been subsidizing the construction of fences and the provision of forages. In 2011 the central government raised the subsidy standards and percentages. 300 yuan RMB per hectare is provided to fence building in Qinghai-Tibet Plateau while 240 yuan RMB per hectare to other regions. A subsidy of 300 yuan RMB per hectare is provided to reseeding grass; 2,400 yuan RMB per hectare to artificial forage farming and 3,000 yuan RMB per household for building feeding stables and rings. The central government invested cumulatively a total of 17.57 billion yuan RMB in this project during the period 2003-2012, with projects having benefited 174 counties, more than 900,000 farm households and more than 4.5 million farmers and herdsmen.
Establishing subsidies and incentives for ecological conservation of grasslands. Mechanism to subsidize and reward grassland ecology conservation established in 2011 (28.6 billion yuan RMB cumulatively, respectively to areas (820,000 km2) where grazing bans are implemented and areas (1.737 million km2) where balancing grass supply with herds is required. Since 2011 eight provinces or autonomous regions with most of the grasslands in China have established incentive measures for grassland ecology conservation, with a subsidy of 90 yuan RMB per hectare annually for grasslands where grazing is banned; 22.5 yuan RMB per hectare annually for grasslands where balance of herds and grass supply is implemented. Subsidies are also provided to herdsmen for their production, with 150 yuan RMB per hectare annually for grass seed and 500 yuan RMB per household annually for production materials. Herdsmen are also trained to promote their shift to new jobs. The subsidies for grassland ecology conservation increased from 13.6 billion yuan RMB in 2011 to 15 billion yuan RMB in 2012, with cumulative total investment reaching 28.3 billion yuan RMB. By the end of 2012, the areas covered by subsidies for grassland grazing bans have reached 820,000 km2, and the areas where rewards are given for keeping the herd-and-grass balance have reached 1,737,000 km2.
Subsidizing wetland conservation. In 2010 the Ministry of Finance together with the State Forestry Administration initiated subsidies for wetland conservation, which covered 27 wetlands of international importance, 43 natural wetland nature reserves and 86 national wetland parks. Some local governments also increased support to wetland conservation from government budgets, and gradually included important wetlands as part of ecological compensation. Restore mangroves and tidal flats and other important wetlands (nearly 3.875 billion yuan RMB since 2010).
Establishing funds for compensating forest ecological benefits. In 2004 China established national funds for compensation of forest ecological benefits, which subsidize plantation, nurturing, conservation and management of national-level public benefits forests, with funding allocated from the central government budgets (annual payment reaching 3 billion yuan RMB). Among them, a subsidy of 75 yuan per hectare is provided annually for state-owned national-level public benefits forests, and 225 yuan per hectare annually for national-level public benefits forests owned collectively and privately. In 2007, the Ministry of Environmental Protection issued guidance for undertaking pilot work in ecological compensation, which required acceleration of the establishment of ecological compensation mechanisms for PAs. Some regions have established ecological compensation mechanisms on a pilot basis. For example, Jining City has issued rules for ecological compensation for wetland loss in Nansi Lake, Shandong Province. Currently the areas that have received such subsidies have reached 924,000 km2. In 2013 the central government provided a total of 14.9 billion yuan RMB for compensation for ecological benefits of forests. Local governments also compensated for local public benefits forests.
Establishing national mechanisms of ecological compensation for national key ecological function zones. Since the central government budget established in 2008 an item of fiscal transfers for national key ecological function zones, the scope of transfers has been constantly expanding. In 2012, funds were transferred to 466 counties (cities, districts), with the total funds reaching 37.1 billion yuan RMB. The funds played an important role in supporting development of PAs. In 2013 funds were transferred to 492 counties and 1,367 land zones prohibited for development, with the total of funds transferred reaching 42.3 billion yuan RMB. In 2013, scenic spots in Yunnan, Guizhou, Sichuan and Xinjiang were included in the pilot work on ecological compensation.
Rural environment improvement (specialized fund of 19.5 billion yuan RMB since 2008)
Pilot Ecological Compensation in Xin'anjiang River Basin (Funds of 300 million yuan RMB were allocated in 2011 for compensation and specially used for water pollution control and water quality improvement in the upper reaches of Xin’an River. Among them 200 million yuan was allocated from the central government budget and 100 million yuan provided by Zhejiang Province.)
Promoting establishment of mechanisms for ecological compensation. In 2010 NDRC together with relevant ministries and commissions drafted a regulation on ecological compensation. This draft regulation provides principles, areas, targets, approaches and criteria for ecological compensation. Currently NDRC is studying and drafting a set of “recommendations for establishing and improving mechanisms for ecological compensation”.
Information for the review of implementation of the strategy for resource mobilization (2014)
Investments into biodiversity conservation (2001-2011). In recent years, China has increased substantially its investments into biodiversity conservation. The investments into projects, such as natural forest resources protection, wild animal and plant conservation, establishment of nature reserves and wetland conservation, have increased from 9.7 billion yuan RMB in 2001 to 21.77 billion yuan RMB in 2011, with the average annual increase of 13.7%, providing financial support to biodiversity conservation.
Central biodiversity expenditure US dollars 2,005 million in 2010 During 1992-2004, China invested over 137 billion RMB for biodiversity conservation, equivalent to US$16.6 billion Environmental expenditure China Development Bank (CDB) Introduced environmental criteria including biodiversity in credit policies of its state-owned banks, and the practice may be replicated for all national development banks and agricultural banks
China Investment Corporation, China-Africa Development Fund, National Social Security Fund, SAFE Investment Company, Hong Kong Monetary Authority Investment Portfolio Funding needs for each strategic goal Financing in NBSAP1994, 2010 Cost and benefit analysis of biodiversity conservation and sustainable use in China 1998: estimated costs of conservation and sustainable use, full incremental costs of implementing the Convention’s obligations, as well as economic, social and ecological benefits of implementing the Convention.
cost of protecting pandas, invasive alien species
Private revenues
Credit policy for environmental protection, Alashan initiative, development of private forestry Insurance scheme to protect Snow Leopards Greening Banks: Highlights of 2012 International Green Credit Forum - China WWF and Lafarge partnership on biodiversity private sector participation in water supply and waste water services, foreign direct investment and overseas investment China Green Bond Market 2018. At the end of 2018, total green bond issuance from China reached USD42.8 bn (CNY282.6bn), representing a 12% increase year-on-year, cementing the country’s position as the second largest green bond market in the world. Globally, US issuers contributed USD34.1bn to the total volume of green bonds aligned with international definitions, while France ranked 3rd with USD14.2bn.
- Includes USD30.9bn (CNY208.9bn) issued by Chinese issuers on both domestic and overseas markets, and USD208m (CNY1.4bn) green panda bonds issued by Hong Kong issuers.
- Internationally-aligned green bonds from Chinese issuers account for 18% of global issuance.
- Nearly three quarters of domestic green bonds are issued on the China interbank bond market (CIBM).
- Fourteen issuers raised a total of USD9.5bn through offshore green bonds.
Biodiversity funds
Yunnan Biodiversity Fund (donation of 32.3 million yuan RMB and Yunnan Province’s budget totaling 50 million yuan RMB Local Environment Funds,
special fund for Basic Energy Saving Construction, special fund for renovation in energy-saving technologies, National Natural Sciences Foundation of China, Special Fund for Demonstration Projects Using Renewable Energy in Buildings, Special Fund for Commercialization of Wind Power Generation Equipment, renewable energy development fund, Environment and Conservation Fund (Hong Kong), Environmental Protection and Energy Conservation Fund, China Green Carbon Foundation, National Subsidy Fund for Management and Conservation of Key Ecological Forests
International financing
(2003)
The Chinese Diaspora and Philanthropy (2014)
New progress made in South-South cooperation. In recent years the Government of China has been actively undertaking South-South cooperation in the field of biodiversity, by signing agreements of cooperation with many developing countries in areas related to biodiversity. China has organized a number of capacity development workshops for developing countries from the sub-regions such as South and Southeast Asia. China has also established a Center for China-ASEAN Environmental Cooperation, the first platform China has established for South-South environmental cooperation and regional environmental cooperation.
Evolution of Chinese foreign aid policy, funding, forms, geographical and sectoral distributions, administration and international cooperation (2008)
China's participation in SSC eliminated in 2007 export subsidies of 553 highly energy-consuming, highly polluting and resource-consuming products, including products from endangered species, leather products, wood products and some disposal wood-made products. Enhancing synergies of CBD with multilateral trade system, Incorporating biodiversity into policies, regulations and guidance issued by the Ministry of Commerce (In March 2009, the Ministry of Commerce and the State Forestry Administration jointly issued ‘Guidelines for Chinese Enterprises for Sustainable Forest Business and Use in Foreign Countries’. In February 2013, the Ministry of Commerce and the Ministry of Environmental Protection jointly issued ‘Environmental Guidelines for International Investment and Cooperation’, which requires enterprises involved to give priority to in-situ conservation and to minimize negative impacts on local biodiversity.), Taking biodiversity into consideration in international trade negotiations., Strengthening supervision of import and export of biological resources, Participating in development of biosafety regulatory systems, Constantly strengthening training of on-site customs officers, Investigating relevant cases in import and export (From January 2009 to December 2012, the anti-smuggling department of the customs investigated 406 cases of smuggling of rare animals and plants and their products, and seized 381 tons of smuggled rare animals and plants and their products, whose value was 5.83 billion yuan RMB. They also investigated 3,573 cases of administrative violations in this regard and seized products worth 130 million yuan RMB).
environmental impacts of WTO accession, forest imports, endangered species
References
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