Climate Change and Disaster Risk Management – Regional Knowledge Sharing Initiative

4 Reasons Why Reforestation Is Great for Rural Growth

Restoring forests can create good rural jobs, reduce disaster risks, and secure water supplies—while helping close the gap between booming cities and left behind countrysides.

Forest restoration in Asia and the Pacific is no longer only the work of conservationists; it’s fast becoming central to economic development and how communities cope with increased flooding, heat, and other impacts from changing weather. A major bonus is that it can also create significant employment and bring social benefits to rural areas.

The region’s economic success story is well known, but that big picture hides a deep divide between rural and urban areas. Take almost any modern city in developing Asia and it will stand in stark contrast to the surrounding countryside that’s often struggling with unemployment, poverty, and a lack of basic services.

Many development initiatives struggle to take root beyond booming cities. Poor infrastructure, difficult geography, limited local capacity, and scarce financing often hold back rural projects. While there are many national initiatives to correct this imbalance, the region would benefit from a more unified strategy that taps into its extraordinary concentration of forests and other natural resources.

One way to do this is to shift from exploiting forests and landscapes to managing them in a way that allows them to regenerate. New data from the Asian Development Bank’s Basic Statistics 2026 provides a snapshot of the top 30 countries in terms of forest cover as a share of their land area.

With more than 500 million hectares of degraded land across the region, large-scale programs show what is possible. For example, the Returning Farmland to Forest Program of the People’s Republic of China (PRC) has helped raise forest cover from about 10% 70 years ago to around 25% today.

The rest of the region is stepping up too: the RESULT (Restoring and Sustaining Landscapes Together) Asia-Pacific program was established in 2024 to support 20 countries in restoring 100 million hectares of degraded forests, agricultural land, and urban areas.

Forest Area as a Proportion of Total Land Area, Top 30 ADB Economies, 2025

Here are four reasons why nurturing forests and other natural resources can support rural communities and narrow the urban–rural divide in many of the region’s developing economies.

First, when done well, reforestation is a powerful way to create steady, decent jobs in rural areas, ranging from planning to planting, maintenance to security, and accounting to marketing. Successful agroforestry and forest restoration create a mix of unskilled, semi-skilled, and whiter-collar jobs, which are often missing in many rural communities.

A good example is in Viet Nam, where small farmers have played a central role in reforestation. Ambitious tree-planting and restoration programs have expanded forest cover from around 9.4 million hectares in 1990 to an estimated 14.8 million hectares in 2025. This included policy reforms that allowed households to use government-owned forests through land-use agreements, devolving forest management to locals. Later programs funded by the government and international organizations gave cash payments to communities for managing and protecting forests in their local area. About five million smallholders now manage somewhere between 40% and 70% of the country’s newer wood plantations.

Initiatives like this can deliver large social and economic gains and contribute to reducing rural poverty. By contrast, when local needs and rights are not prioritized in large reforestation projects, forests may be restored but at the expense of local people’s lands and livelihoods.

Second, forests are not only important for prosperity; they also play a key role in managing weather-related risks in rural areas. Many rural communities face frequent typhoons, floods, landslides, and storm surges. Reintroducing forests, mangroves, and other forms of tree and shrub cover provides natural barriers that help shield exposed communities.

Third, new forests and grasslands also combat desertification by stabilizing soil, restoring water cycles, and creating vegetation cover that prevents erosion. The PRC, India, and Mongolia all have large initiatives to combat desertification and land degradation. Mongolia has committed 1% of its annual gross domestic product to its “One Billion Trees” program, with more than 41 million trees planted between 2021 and 2024. Partnerships between the government and international organizations have created forest nurseries near planting areas to raise tree survival rates. Community members frequently receive training to operate these nurseries, providing jobs for residents. This program shows how restored forest cover supports local communities and contributes to national development.

Fourth, reforestation is critical for water security, another cornerstone of rural development. Forests act as natural sponges: they store, slow, filter, and regulate water flows, making water supplies for farming and daily use more reliable. These functions help buffer communities from erratic and changing weather, with more frequent droughts and damaging downpours.

Beyond these economic and environmental benefits, restoring indigenous trees and plants can help people reconnect with their surroundings and traditional land‑based practices, while also providing spaces for recreation, reflection, and better mental health for all—including people living in cities.

Brad Earvin T. Zuniga

Statistician

Stefan Schipper

Principal Statistician, Data Division, Economic Research and Development Impact Department

Sean Crowley

Communications Consultant

Reproduced from adb.org.

What a 1,000-Year-Old Drainage System Teaches Us About Flood Risk

Ganzhou’s ancient Fushougou system offers a model of integrated, nature-based flood management for modern communities.

Introduction

As climate change intensifies extreme rainfall across Asia, cities are increasingly challenged by stormwater management, aging drainage infrastructure, and rising urban flood risk. Many urban drainage systems designed decades ago are now under stress due to rapid urbanization, expanding impervious surfaces, and more frequent high-intensity rainfall events.

Yet centuries before modern urban drainage engineering emerged, the city of Ganzhou in Jiangxi Province, People’s Republic of China (PRC), developed an innovative stormwater management system known as Fushougou. Constructed during the Song Dynasty nearly 1,000 years ago, the system combined engineered drainage channels, hydraulic control structures, and natural storage ponds into an integrated urban water management network closely linked with the city wall.

Historical accounts and local narratives often attribute Ganzhou’s long-standing ability to manage stormwater and reduce flood impacts to the Fushougou system, although detailed quantitative performance data remain limited. Its design reflects principles that resonate strongly with contemporary approaches to nature-based solutions (NBS) and sponge city development, particularly the integration of engineered drainage with natural storage and gravity-driven hydraulic systems.

As cities seek more resilient and adaptive flood management strategies, Fushougou provides a valuable historical example of how integrated water infrastructure can operate effectively over long periods.

A System Designed Around Natural Topography

Ganzhou lies at the confluence of the Gong and Zhang Rivers, which merge to form the Gan River. This geographical setting historically exposed the city to seasonal flooding during the rainy season. Annual rainfall in the region often exceeds 1,500 mm, with approximately 64% of runoff occurring between April and September, creating significant pressure on urban drainage.

To address these challenges, city planners during the Song Dynasty constructed the Fushougou drainage system to serve the southeastern and northwestern sections of ancient Ganzhou. The system covered approximately 3 km² and included more than 12 km of underground drainage pipelines, working in coordination with an approximately 8 km-long city wall.

Historical sources attribute the expansion and refinement of the system to Liu Yi, a water management specialist during the Northern Song Dynasty, who improved the connectivity and capacity of the drainage network.

The system relied entirely on gravity-driven flow, utilizing the natural terrain gradient of the city rather than mechanical pumping. By integrating drainage channels, hydraulic control structures, and surface water bodies, Fushougou functioned as a comprehensive water management network that managed stormwater, urban wastewater, and river flooding simultaneously.

Three key components formed the backbone of the system.

Key Components of the Fushougou System

1. Brick-lined drainage channels and pipelines

The primary infrastructure consisted of arched brick-lined drainage channels, designed for both structural stability and hydraulic efficiency. Larger channels reached approximately 0.9–1.0 m in width and 1.6–1.8 m in height, while smaller channels were covered with stone slabs.

One notable feature of the system is the depth of the pipelines, which in many locations extend roughly 2 meters below ground level. The deeper placement increased storage capacity within the network and reduced the risk of surface flooding during heavy rainfall.

Hydraulic performance was also enhanced through relatively steep channel gradients. For example, recent studies have identified a slope of approximately 4.25% near one of the system’s discharge structures. Such gradients produce relatively high flow velocities that help flush sediments and debris through the system, reducing blockages and minimizing long-term maintenance requirements.

In some sections, culverts narrow near discharge points, increasing flow velocity and helping to facilitate efficient outflow through the system’s outlets. These design characteristics demonstrate a strong understanding of hydraulic principles and the importance of self-cleansing flow velocities in urban drainage systems.

2. Water windows: Passive hydraulic control structures

The drainage network discharged through twelve outlets located along the city wall, known as “water windows.”

These structures functioned similarly to modern hydraulic check valves. Under normal river conditions, stormwater from the city could flow outward through the windows into surrounding rivers. In some locations, accelerated flow from narrowed culverts helped push the windows open.

However, when river levels rose during flood events, the increased external water pressure forced the openings closed, preventing floodwaters from flowing back into the city.

This passive hydraulic mechanism allowed the system to automatically respond to changing river levels without mechanical components or manual intervention. Such gravity-based and pressure-responsive controls represent a simple yet effective method for preventing backflow in flood-prone urban environments.

3. Interconnected storage ponds

Complementing the underground drainage network was a system of interconnected ponds located within and around the city. Historical accounts suggest that the system was linked to over one hundred ponds, forming a distributed storage network.

These ponds served multiple functions, including agricultural irrigation, aquaculture, and stormwater retention. Fish farming was commonly practiced, and nutrient-rich sediments accumulated in the ponds were reused in agriculture, forming a localized ecological cycle.

During heavy rainfall, the ponds acted as temporary storage basins, capturing excess runoff and reducing peak flows within the drainage system. Water could then be gradually released after storm events, helping to moderate downstream flood risks.

From a contemporary perspective, these ponds function similarly to decentralized stormwater detention and retention systems, which are widely used in modern sponge city designs. In addition to their hydraulic role, the ponds also supported microclimate regulation and aquatic ecosystems, demonstrating how water infrastructure can simultaneously deliver environmental and social benefits.

Long-Term Performance and Resilience

Historical records indicate that by the late 1960s approximately 12.6 km of the Fushougou drainage network was still functioning and serving an estimated 100,000 residents in Ganzhou’s old urban district.

Rapid urban expansion during the twentieth century led to the loss of many original components of the system. Today, only about 1 km of the original drainage network, along with two ponds and two water windows, remain intact.

Despite this partial loss, the surviving elements of the system continue to illustrate the durability of its design. The longevity of the infrastructure highlights several characteristics that contributed to its resilience:

Gravity-driven drainage, eliminating reliance on mechanical pumps
High hydraulic capacity relative to the scale of the historic city
Self-cleansing flow velocities that reduce sediment accumulation
Distributed storage through ponds, which buffer peak stormwater flows
Integration with natural terrain gradients

Together, these features demonstrate how urban water infrastructure designed around natural hydrology and passive hydraulic processes can remain functional for centuries.

Lessons for Contemporary Urban Flood Management

Although the historical context of Fushougou differs from that of modern megacities, several design principles remain relevant for contemporary urban flood risk management.

1. Integrating natural and engineered infrastructure

The Fushougou system demonstrates how engineered drainage can be combined with natural landscape features such as ponds and terrain gradients. This hybrid approach aligns with current nature-based solution strategies, which seek to enhance the role of natural systems in urban water management.

2. Multifunctional water infrastructure

The system simultaneously supported stormwater drainage, wastewater conveyance, irrigation, and aquaculture. Such multifunctionality is increasingly recognized as an important characteristic of sustainable urban infrastructure, allowing water systems to deliver environmental, economic, and social benefits.

3. Passive hydraulic design

The water windows illustrate how simple hydraulic mechanisms, including pressure-responsive closures and flow-accelerating channel design, can provide reliable flood protection without energy inputs or complex mechanical systems.

4. Designing for longevity and maintainability

The steep gradients and self-cleansing flow conditions of the drainage network reduced sediment accumulation and maintenance demands. Designing systems that can maintain hydraulic performance with minimal intervention is an important consideration for long-term infrastructure sustainability.

Xiaoyan Yang

Principal Project Officer (Natural Resources and Environment), Agriculture, Food, Nature, and Rural Development Sector Office,

Reproduced from Asian Development Blog.

ADB, Luli Wood Sign Green Loan to Advance Circular Economy in PRC’s Forestry Value Chain

BEIJING, PEOPLE’S REPUBLIC OF CHINA (4 December 2025) — The Asian Development Bank (ADB) and Shouguang Luli Wood Inc. (Luli Wood) have signed a $50 million green loan (about CNY353.63 million) to support the construction of an oriented strand board (OSB) factory, associated facilities, and a captive biomass power plant, as well as to finance working capital needs in Jiangxi Province, the People’s Republic of China (PRC).

“Climate stability and healthy natural ecosystems are fundamental global public goods, and this project is a tangible example of how the private sector can be catalyzed to actively safeguard them,” said ADB Country Director for PRC Asif Cheema. “By championing a circular bioeconomy, we are not only reducing emissions and preserving forests but also setting a new benchmark for the forestry sector—demonstrating that commercial viability and environmental stewardship are mutually reinforcing.”

The supply of wood and raw materials in the PRC faces significant challenges, with only 1% of forests certified as sustainably managed. This is compounded by the heavy reliance on imported wood, which accounts for over half of the PRC’s demand. The wood panel market is dominated by plywood, which typically depends on large timbers, encouraging the logging of old and natural forests and the inefficient use of trees.

Luli Wood’s OSB production addresses these challenges. OSB is an engineered wood panel that does not use old-growth timber. It uses wood waste—such as branches and twigs—and small trees sourced from smallholder farmers, with about 10% of the inputs being fast-growing and sustainable bamboo. The waste generated from the OSB production is used as fuel by a biomass power plant, which generates the electricity and steam required to operate the factory.

ADB’s financing is verified as a green loan by ERM, a second-party opinion provider, in accordance with the Green Loan Principles.

The project is expected to reduce greenhouse gas emissions by around 200,000 tons of carbon dioxide annually, create 1,500 jobs, and provide additional income for thousands of smallholder wood suppliers. The project also incorporates a gender action plan that will increase women’s inclusion across Luli Wood’s value chain, operations, and workplace.

“Partnering with ADB is a powerful endorsement of our vision,” said Luli Group Vice Chairman Xue Mingliang. “We have built a fully integrated, green supply chain—from sustainable forestry to finished homes—and are committed to setting a new standard for the industry. This collaboration is a pivotal step in our journey to becoming an international company in sustainable wood processing.”

Established in 2001, Luli Wood is a subsidiary of the diversified Luli Group and one of the largest OSB producers in the PRC. The company holds chain-of-custody certifications from both the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC). These certifications ensure traceability and responsible sourcing from forest to finished product, validating that raw materials originate from certified forests or recycled materials. Luli Group is ranked among the top 500 private companies in the PRC.

ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

Reproduced from ADB.org.

ADB to Accelerate Low-Carbon Agriculture Development in Sichuan, PRC

MANILA, PHILIPPINES (28 November 2025) — The Asian Development Bank (ADB) has approved a billion Chinese yuan ($140.89 million equivalent) loan to advance low-carbon, resilient agriculture in Sichuan Province, the People’s Republic of China (PRC).

The Sichuan Climate-Smart Low-Carbon Agriculture Development Demonstration Program will benefit more than 750,000 residents by enhancing agricultural resources and environmental assets, improving people’s living conditions, and providing sustainable livelihoods.

“This program is a strategic investment for ADB that will contribute toward a sustainable future for agriculture in the PRC,” said ADB Country Director for the PRC Asif Cheema. “By establishing a replicable model for low-carbon and climate-smart agriculture, we are not only building resilience for Sichuan Province but also creating a valuable and scalable blueprint for other regions and countries confronted by similar challenges.”

Sichuan is a major agricultural and grain-producing province that faces significant risks due to unsustainable practices, intensive land use, extensive terracing, and agricultural chemical overuse, which degrade soil and water quality. The increasing frequency and intensity of extreme weather events further exacerbate the negative impacts of human activities on communities and nature, undermine agricultural productivity, and threaten regional food security.

To address these problems, the program will employ a multifaceted approach. It will modernize farms and farming practices, integrate climate-smart agriculture and low-carbon production technologies, and adopt digital information services to assist farmers. The program will also help develop new policies and incentives, evaluate the effectiveness of voluntary carbon trading, and integrate emission reduction methodologies into local farming. It will promote the limited use of chemical fertilizers and pesticides, strengthen rural communities’ resilience against hazards, and help the PRC meet its national carbon reduction and neutrality targets.

The program will protect and restore the environment by rehabilitating farmlands and replacing inefficient irrigation systems. It will also improve knowledge sharing and foster local expertise in low-carbon agriculture and rural development.

Reproduced from ADB.org.

Digital Monitoring Technology and Air Quality: Evidence from the People’s Republic of China

Strengthening Climate Resilience and Restoring South Dongting Lake

The Asian Development Bank is investing over $3.6 billion in projects like the South Dongting Lake restoration. This ambitious project aims to revitalize one of PRC’s most important wetlands, benefiting local communities and global biodiversity. By improving water quality, restoring habitats, and promoting sustainable practices, we can ensure a healthier planet for future generations.

Transcript

Au Shion Yee, Principal Water Specialist, Asian Development Bank

By next year, we will be investing more than $3.6 billion. And South Dongting Lake project through the investment in the wetland improvements, migratory bird habitat improvements, water quality improvements… We can see that this project is really bringing and will continue to bring real benefits to the local communities.

This is the South Dongting Lake. It spans over 168,000 hectares and is one of (the People’s Republic of) China’s most vital wetlands. Hundreds of species, including endangered migratory birds call this area home. It is also crucial in climate change mitigation and adaptation. However, the lake and its surrounding wetlands have been under increasing pressure. Urban expansion, invasive species, unsustainable agricultural practices, and climate change have led to significant ecological degradation and biodiversity loss.

In response, the Asian Development Bank, in partnership with the Yuanjiang Municipal government, the Hunan Provincial government, the French Development Agency and other partners have launched an ambitious project to further restore and sustainably manage the South Dongting Lake wetlands.

Tieshan Song, Vice Mayor, Yuanjiang Government

We have been actively promoting both preparation and implementation of this project with a focus on the critical issue of South Dongting Lake wetland. We also aim to leverage the ADB project to elevate the restoration of the Dongting Lake wetland system environmental protection and rare species conservation.

Au Shion Yee, Principal Water Specialist, Asian Development Bank

This is one of the first projects that is linked to ADB’s Regional Flyway Initiative, which connects a number of very, significant bird habitat and wetland areas from the northern hemisphere, from northern Siberia down to Australia. So this project is part of a broader, global effort where we can have win-win outcomes, in terms of green development for the local fishermen community transitioning to green economy as well as, ecological benefits for global protected bird species.

The goal is to restore almost 12,000 hectares of degraded wetland, improve water connectivity, and manage invasive species.

Jianzhi Li, Deputy Secretary-General of Hunan Wildlife Conservation Association, and President of Yuanjiang Environmental Protection Volunteer Association

Now, the environment is improving, we expect to see an increase in visitors which will stimulate the local economy, raising incomes and bringing numerous benefits to Yuanjiang City and the South Dongting Lake area.

South Dongting Lake is gradually reclaiming its role as a vital ecosystem, thanks to the focused efforts in restoration and sustainable livelihoods, so that people and nature thrive together.

ADB and NDRC co-host 10th International Conference on Eco-Compensation and Payments for Ecosystem Services

BEIJING, PEOPLE’S REPUBLIC OF CHINA (5 December 2024) – The Asian Development Bank (ADB) and the People’s Republic of China’s National Development and Reform Commission (NDRC), with support from the ADB-PRC Regional Knowledge Sharing Initiative (RKSI) and other partners, co-hosted the 10th annual eco-compensation conference in Miyun, PRC, from 25–27 November.

ADB East Asia Director General Muhammad Ehsan Khan and NDRC Vice Secretary General Xiao Weiming opened the conference, while AFNR Senior Director Qingfeng Zhang delivered a keynote presentation, reflecting on achievements from 15 years of ADB-NDRC collaboration, of continuously refining and improving the eco compensation mechanism as a means of financing ecological restoration work in vital ecosystems including the Yangtze and Yellow River basins.

This year’s conference, a regional flagship event led by ADB’s East Asia Regional Department and the Agriculture, Food, Nature and Rural Development Sector Group (AFNR), focused on market-based and user-pays mechanisms, and legal frameworks for eco-compensation and Payments for Ecosystem Services (PES) schemes. Importantly, the conference served as the international launch of the PRC’s National Ecological Protection Regulations, a pioneering effort at standardizing a mechanism of payment for ecosystem services.

“This conference provides a vital platform for knowledge sharing and collaboration on critical issues related to environmental protection and sustainable financing,” said ADB Director General for East Asia Department Muhammad Ehsan Khan. “ADB is committed to supporting its member countries in developing and implementing effective eco-compensation and PES mechanisms to achieve their environmental and development goals. Eco-compensation mechanisms are not just about protecting our environment; they are about unlocking the economic potential of nature. By investing in natural capital, we can drive sustainable development and create a greener, more prosperous future for all.”

Around 300 participants from government agencies, national and international research institutes, academia, and the private sector attended the event, including delegations from 13 countries. The conference helped strengthen collaboration between the PRC and other developing member countries through sharing of knowledge on sustainable conservation finance strategies.

On the first day of the conference, participants embarked on a field visit to observe various watershed conservation programs in Miyun. This excursion included stops at the Miyun Reservoir Exhibition Museum and Dam, the Chinese Bee Protected Area in Fengjiayu, the Jixing Agricultural Park built on reclaimed wildlands, and the Earth System Simulation Facility. These site visits provided firsthand insights into the practical implementation and diverse applications of modern and sustainable agriculture, engineering and science.

Conference sessions discussed a range of topics including the PRC’s experience in implementing eco-compensation programs, which have contributed towards improving environmental quality and enhancing sustainable agriculture practices, while also enhancing ecotourism activities and promoting nature positive investments. The eco-compensation schemes also serve as a mechanism to channel financial flows from carbon or biodiversity credit schemes.

The conference also facilitated the sharing of experiences and best practices from other regions, including the Greater Mekong Subregion, Lao PDR, and India, with presentations highlighting successful initiatives like the Khao Yai National Park in Thailand. Discussions highlighted the importance of identifying additional avenues for dissemination of PRC’s rich experiences in implementing eco-compensation mechanisms with other DMCs, including through the RKSI and other knowledge sharing platforms.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.

Replicating ADB Projects from the People’s Republic of China

Generation of knowledge is a priority of the partnership between Asian Development Bank and the People’s Republic of China (PRC). The PRC’s rich experiences and its strong institutional and project implementation capacities make it fertile ground for learning, demonstration, and replication of new development approaches. A new publication, “Echoes of Success: Case Studies in the Replication of Asian Development Bank Projects in the People’s Republic of China,” looks at five projects in the PRC that illustrate how effective solutions to environmental and social problems have been replicated both within and outside the country. The sectors covered span nature conservation, green finance, road safety, renewable energy, and water resources management. The case studies highlight how lessons from projects in the PRC can help inspire and shape other projects in the PRC and beyond.

Publications