Policies, markets and the economics of watershed services experiences and lessons from China

Transcription

1 Policies, markets and the economics of watershed services experiences and lessons from China Michael T Bennett Forest Trends & The Katoomba Group / Visiting Scholar, Peking U. International Conference on Watershed Management, Chiang Mai, Thailand March 10 11, 2011

2 PRESENTATION OUTLINE I. Local level Innovations in Watershed Management in the PRC. II. Key Drivers III. Important Parallel Trends IV. Closing Observations

3 Water Use Rights Trading Schemes

4 Watershed Eco compensation Schemes

5 Watershed Eco compensation Schemes Fujian Province Min River Watershed Jin River Watershed Jiulong River Watershed

6 Fujian Province, Min, Jin and Jiulong Rivers A B C

7 Watershed Eco compensation Schemes Liaoning Province Cross-District Watershed Ecocompensation

8 Liaoning Cross Border Pollution Control A B C

9 Watershed Eco compensation Schemes Beijing-Hebei Miyun Reservoir Upper Watershed Ecocompensation

10 Watershed Eco compensation Schemes Hebei Province A Beijing Municipality B Miyun Reservoir

11 Water Use Rights Trading

12 Water Use Rights Trading Zhejiang Province Yiwu-Dongyang Water Use Rights Transfer

13 Water Use Rights Trading Water Use Rights Trading Gansu Province Zhangke Water Use Rights Transfer Jingyuan No. 2 Electric Power Company Water Use Rights Transfer

14 Common Characteristics Contracts, at different scales, between Providers & Beneficiaries. Irrigation Districts Power Plants Municipal & County Governments Municipal & County Governments Provincial Governments Provincial Governments

15 Common Characteristics Initiated and Developed by Regional & Local Governments & Actors. Mechanisms of payments or penalties based on Service Provision, Land-use Changes or Investment in Watershed Infrastructure/Facilities (as proxies for service provision) Involve ongoing negotiations, with evolving frameworks of cooperation concerning - Equity, Rights & Responsibilities - Costs & Benefits - Monitoring & Verification

16 Payments for Watershed Services in the PRC Source: The State of Watershed Payments: An Emerging Marketplace. Ecosystem Marketplace, 2010.

17 Payments for Watershed Services in the PRC Source: The State of Watershed Payments: An Emerging Marketplace. Ecosystem Marketplace, 2010.

18 Key Drivers: Resource Bottlenecks China ranks 5th in total freshwater resources, but per capita resources are < 1/3 world average < 1/10 world average in North China. 400 of 640 major cities face water shortages, and > 700 million people lack access to safe water. Of 84,958 miles of waterways monitored in 2006, 41.7% was unsuitable for drinking, with 21.8% highly polluted.

19 Key Drivers: Increased financial capacity.

20 Key Drivers: Regional differences.

21 Parallel Trends: Forest Eco compensation

22 Parallel Trends: Carbon Markets CARBON MARKETS China is the top destination for the Kyoto Protocol s Clean Development Mechanism (CDM) 22% of all registered CDM projects globally 73% of the CDM credits transacted in 2007 ~725 million tons of carbon dioxide equivalent Destination of choice (World Bank, 2008) Voluntary Carbon Markets Recently announced Panda Standard ( China Green Carbon Foundation

23 Parallel Trends: Environmental Exchanges Hebei Hebei Environmental Energy Exchange (2010) (2010) Guiyang Environmental Energy Exchange (2010) (2010) Kunming Environmental Energy Exchange (2010) (2010) Beijing Environmental Tianjin Exchange Emissions (late (late 2008) 2008) Rights Rights Exchange (mid-2008) Shanghai Environmental Energy Exchange (late (late 2008) 2008) Jiaxing City City Emissions Quota Quota Reserves Trading Center Center (2007) (2007) Guangzhou Environmental Resources Exchange (2009?)

24 Parallel Trends: Eco Agriculture, Eco Labelling ECO CERTIFICATION & ECO AGRICULTURE Green and Organic Food Labels Government Green Procurement Policy Promotion of Rural Biogas Development Promotion of Conservation Tillage Local subsidies for Green/Organic Agriculture

25 Final Thoughts: Getting from A to B? A B

26 Reports

27 Reports

28 THANK YOU! Michael T Bennett, Forest Trends mbennett@forest trends.org