Progress of Eco-compensation in China

Transcription

1 The OECD international Expert Workshop on Biodiversity Offsets Progress of Eco-compensation in China LIU GUIHUAN PhD and Associate Professor Chinese Academy for Environmental Planning, MEP, P.R.C Nov.2013

2 Content 1. Background of Eco-compensation Implementation 2. Concept of Eco-compensation Mechanism 3. Development Stages of Eco-compensation Policy 4. Key Fields of Eco-compensation in China 5. What we want to learn from OECD Countries

3 1. Background of Ecocompensation Implementation

4 Effective management and protection means need to be explored for biodiversity conservation Present situation and problems: China, is one of 12 countries with the most abundant biodiversity in the world. China is actively protecting biodiversity, however, it remains to be strengthened and improved in aspects of financial support, supervision mechanism for project implementation, and the public consciousness on biodiversity protection etc. Lessons and recommendations: biodiversity conservation shall focus on protection of habitats and even a wider range of ecosystem, instead of some individual species only, which needs to explore new means for biodiversity conservation.

5 Eco-compensation is a new approach to biodiversity conservation On Jun 4th, 2012, the first conference of China Biodiversity Conservation Committee was chaired by then Vice Premier Li Keqiang in Beijing, who addressed an important speech. To strengthen biodiversity conservation, the reform must further be deepened, and the system mechanism must be improved. In view of the current situations, it is most important to establish eco-compensation mechanism and integrate biodiversity conservation into the ecocompensation policy, so that the corresponding economic compensation and institutional supports could be provided through the fiscal and taxation systems.

6 Ecosystem is an Important Carrier for Biodiversity Conservation and Eco-compensation Mechanism Eco-compensation is a comprehensive way to protect overall ecosystem on the basis of integration of conservation and sustainable utilization of ecosystem services with pollution control. It is an effective means to establish eco-compensation mechanism for protection of ecosystem services function, including biodiversity. Since all natural elements in the ecosystem, such as river basin, forest and grassland, closely relate to each other, the mutual influences among different regions are also very significant, so they are important carriers to establish ecocompensation mechanism.

7 2. Concept of Eco-compensation Mechanism

8 Academic Views on Eco-compensation Emphasis on compensation to protector Emphasis on two-way compensation Eco-compensation shall meet five conditions: Firstly, it shall be a kind of voluntary trading behavior; Secondly, the trading object shall be clearly defined as environmental services; Thirdly, the environmental server shall be available; Fourthly, the environment supplier shall be available; Lastly, consumers have to pay if and only if the service provider can ensure provision of the environmental services. In view of cost of the behavior subject, ecocompensation is considered as increasing cost (or earnings) of behavior to damage (or protect) resources and environment through charging (or compensating) on such behavior, so as to encourage the subject reduce (or increase) the external diseconomy (or external economy) result from their behavior, and achieve the resources protection.

9 Policy definition of Eco-compensation Eco-compensation is a kind of institutional arrangement to regulate the economic interest relationships among the ecological protector, beneficiary and impairer by means of fiscal, tax and market according to the ecosystem service value or ecological protection cost, ecological destruction and development opportunity cost with purpose of protecting the ecosystem function and promoting harmony between human and nature. In China, eco-compensation is not only an environmental economic means, but also a means to regulate the social development.

10 3. Development Stages of Ecocompensation Policy in China

11 Overall Situation of Establishing Eco-compensation Mechanism in China Inception The researches and practice on eco-compensation have been began in China since mid-1980s, the concept of ecocompensation is put forward by MEP. Promotion Eco-compensation fields: Eco-compensation in forests, river basin, grassland, key ecological function zone, and mineral resources development, etc Eco-compensation means: --National eco-compensation policy promoted by the relevant ministries and commissions; --Local eco-compensation policy formed on the basis of local exploration practices. 11

12 Eco-compensation was preliminary received attention First Stage: Inception (1985~1998) Since mid-1980s, a number of laws on resources and environment have been enacted, which has provided a legal basis for ecocompensation practices. In 1990, the State Council promulgated Regulation on Further Strengthening the Environmental Protection, which stipulates the environmental protection orientation of the developer must protect, impairer must restore and user must compensate" and the exploitation and utilization shall be equally valued with protection and appreciation, initially established eco-compensation policy.

13 Ecological compensation got fast development Second Stage: Development (1999~2005) A series of major ecological projects were launched, such as the returning farmland to forest, natural forest protection, and nature reserve, which promoted rapid development of eco-compensation in China. The CPC Central Committee and the State Council put forward definite requirements on establishing eco-compensation mechanism, for example: In Dec 2005, Decision of the State Council on Implementing the Scientific Outlook on Development and Strengthening Environmental Protection was issued to stipulate that "Ecocompensation policy shall be improved and eco-compensation mechanism shall be established as soon as possible. This Decision became a programmatic document to guide the coordinated economic, social and environmental development in China during the period of the 11th Five-year Plan.

14 Comprehensive promotion of eco-compensation Third Stage: Wide Promotion (2006~) Since 2006, a number of relevant suggestions and proposals have been put forward by NPC representatives and CPPCC members during the annual "two sessions"; the government work report also attaches great importance on it; even the 11th Five-year" and the "the 12th Five-year" National Plan, the key works of the State Council all clearly proposed to establish a new eco-compensation mechanism. Some ministries, such as MEP, MOF, NDRC and MWR are actively brewing to develop eco-compensation policy, and carry out the pilot eco-compensation in river basin. Some regions also began boldly exploring the eco-compensation mechanism, and conducting pilot eco-compensation mechanism in some river basin, some provinces have already established their eco-compensation mechanism in the province-wide river basin.

15 4. Key Fields of Ecocompensation in China

16 Key Fields of Eco-compensation Policy Issued Nationwide Eco-compensation policies enacted in China are mainly concentrated in such fields as river basin, forest, grassland, key ecological function zone, and mineral resources development. State promotes and local government explores River basin About 40 files involving over 20 provinces which have issued their eco-compensation policies for river basin, mainly based on local spontaneous exploration the state promotes it in form of transfer payment for key ecological function zones Mineral resources development Key ecological zone Grassland Forest About 20 files involving over 10 provinces; state promotes and local government carries out the pilots State promotes

17 Biodiversity Conservation Derived from Various Fields There is not any eco-compensation system specific to biodiversity conservation in China, most of them are based on other ecocompensation. Most of eco-compensation is to achieve biodiversity conservation in form of project. These projects have big investment scale and are supported by the Government, which not only improve the worsening ecological environment in China, but also guide the local residents to transfer their life style. So they relieve the environmental pressure, protect the biodiversity to a certain extent, and promote the biodiversityfriendly development.

18 5. What we want to learn from OECD and other Countries

19 Key links of Offsets & Compensation? Why to Offset The fundamental purpose of eco-compensation is to improve the ecological environment, and its ultimate goal is to keep sustainable ecosystem service function. Key links Who offsets whom How much to offset How to offset Where fund comes from The ecological beneficiary and impairer shall compensate the protector and party who reduce ecological damage. Direct input, development opportunity loss, extension input, and input for restoration The governmental and market compensation, as two major ecocompensation modes in China, form a foundation to build ecocompensation mechanism at different levels in China. Financial transfer payment, special fund and market mechanism How does it work Evaluation on the ecological, economic and social benefits of eco-compensation

20 What we want to learn How to narrow the objectives. The objectives of eco-compensation policy shall be designed definite, simple and measurable, stressing on balance between biodiversity conservation and social harmony, so as to realize win-win situation, and avoid phenomenon of applying one policy to all conditions"; How to unify the mythologies of evaluation on biodiversity. It s difficult to find out a very scientific and satisfactory to every stakeholder. How to enhance Public Participation. Strengthen public education and public participation to ensure that the stakeholders can be supported; How to balance the relationship between government and market. Transfer the Government from sole purchaser of ecosystem services to a supporter, establish and maintain the environment and market to encourage individuals to participate in, and explore a mechanism combining government compensation and market compensation; How to monitor and evaluate the effect. Pay attention to assessment on ecocompensation effect, evaluate funds utilization, define the priorities on basis of such evaluation, effectively use the limited compensation funds, and improve its utilization efficiency.

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