How Stable Financing and Sustainable Grazing Can Restore Grasslands

Early, well-financed, and locally tailored grassland restoration delivers economic and ecological returns. Photo: Tseelei Damjin

BEIJING, PEOPLE’S REPUBLIC OF CHINA – Long-term investment, better policies, and targeted restoration can restore grasslands, stabilize ecosystems and protect livelihoods across Asia and the Pacific.

Temperate grasslands are vital ecosystems that support rural livelihoods in Mongolia, the People’s Republic of China (PRC) and many other countries.

In Mongolia, grasslands cover nearly 80% of the territory and are essential for the nomadic herding lifestyle of one-third of the population. In the People’s Republic of China, they account for almost 40% of the land area, supporting more than 18 million herders and pastoral households.

These grasslands provide important ecosystem services, which are the benefits derived from nature such as food, clean air and water, plants and wildlife. In this case, these benefits include carbon storage, water regulation, and biodiversity conservation. They also serve as significant carbon sinks, storing carbon in vegetation and soil.

By regulating water flows and preventing soil erosion, grasslands protect freshwater resources and enhance land productivity, offering habitat for countless wildlife species. Preserving grasslands is crucial for sustaining livelihoods, ensuring food security, and building resilience against extreme weather.

Decades of overgrazing and poor land management have led to widespread degradation in many countries.

Grassland restoration projects in the People’s Republic of China emphasize that the recovery of native grassland ecosystems should take precedence over introducing incompatible or short-lived technological fixes. Experts highlight the importance of ecological integrity, sustainability, and tailoring interventions to local conditions.

Large-scale programs in the People’s Republic of China combine the restoration of degraded grasslands, sand fixation technologies, and community engagement to combat desertification. These approaches underscore the importance of coherent policies and long-term investment in land restoration. Solutions such as rotational grazing, grass reseeding, and payment for ecosystem services show how economic incentives can align with ecological goals.

Stable, long-term domestic financing is needed to achieve Mongolia’s grassland restoration goals. Despite strong policy commitments, institutional and financial constraints limit vital actions, such as reducing livestock stocking rates, establishing rotational grazing systems, and allowing resting periods for degraded grasslands.

Without predictable and sustained financing, progress will remain fragmented and vulnerable to short-term funding cycles, undermining Mongolia’s ecological and resilience goals.

There is a high cost to delayed restoration. Rehabilitation of severely degraded rangelands costs roughly $13,000 per hectare.

With Mongolia’s 12 million hectares of degraded rangelands, this poses a significant future financial burden. Early, low-cost interventions offer the greatest returns by preventing irreversible ecological decline and substantially reducing future restoration costs by one-third.

There is also a need for a combination of top-down policy direction with bottom-up innovation, starting with targeted pilot programs supported by policies and testing, while refining approaches on the ground, and scaling up based on lessons learned.

Simply banning grazing creates conflicts. It is essential to create new opportunities for herders before implementing restrictions.

Mongolia aims to adopt an integrated approach by increasing investment in rangeland restoration, strengthening policies for sustainable grazing management, and promoting grassland-based livestock products and services.

The People’s Republic of China is transforming its livestock sector to a greener, lower-carbon, and higher-quality production system. This is being done through certified organic and eco-labeled products. These measures align ecological objectives with rural income growth.

Tools such as eco compensation and joint public-private funding show how financing can be broadened through a mix of public, private, and philanthropic sources. These approaches can spark long-term investment and draw in companies, cooperatives, and other groups working on land restoration and water management.

Techniques such as rainwater harvesting and efficient irrigation are also crucial for sustaining grasslands amid changing environmental conditions.

Remote sensing is used in the People’s Republic of China for ecological monitoring and early warning, offering practical models for data-driven environmental governance. This offers opportunities to enhance monitoring systems, support data-driven decision-making, and strengthen preparedness for environment-related risks.

By building on these insights, Mongolia and other countries facing such issues have a unique opportunity to champion a future where rangelands thrive, supporting biodiversity, resilience, and the livelihoods of millions across the region.

The blog post is based on findings from a study tour for senior government officials of Mongolia to the People’s Republic of China, funded by the Regional Knowledge Sharing Initiative, as Mongolia hosts the 17th Conference of the Parties to the United Nations Convention to Combat Desertification.

Picture of   Alexandra Vogl

Alexandra Vogl

Principal Climate Change Specialist, ADB Climate Change and Sustainable Development Department

Picture of Enkh-Amgalan Tseelei

Enkh-Amgalan Tseelei

Senior Climate Change Officer, ADB Mongolia Resident Mission

Picture of Lin Ji

Lin Ji

Senior Climate Change Officer, ADB's Resident Mission in People's Republic of China\

Reproduced from blogs.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.

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

Highlights: Harnessing AI to Promote High-Quality Development

A special feature at the ADB’s East Asia Forum 2025 was the third session of the Talk China Seminar Series, which focused intensely on Harnessing Artificial Intelligence (AI) for High-Quality Development. Experts discussed the enormous potential of AI applications, drawing lessons from the People’s Republic of China (PRC) that can be replicated across other ADB developing member countries. Through South-South learning, the EAF encourages the exchange of ideas and successful experiences to boost economic progress and resilience throughout the region.

RKSI Supports Mongolian High-level Officials Learning from PRC on Desertification Control and Water Resource Management

BEIJING, PEOPLE’S REPUBLIC OF CHINA (3−8 November 2025) – A high-level study tour of Mongolian officials to the People’s Republic of China (PRC) provided practical insights for the COP 17 Legacy Program: Global Rangeland Initiative, as Mongolia prepares to host COP 17 in August 2026. From 3–8 November, a Mongolian delegation from the Parliament and the Government visited the PRC to exchange experiences and innovative practices on desertification control, grassland restoration, and water management. Grasslands are vital for both Mongolia and the PRC, as they support biodiversity, help regulate the climate, and sustain the livelihoods of pastoral communities. Member of Parliament and Special Ambassador for COP 17 Mongolia, Munkhbayasgalan Luvsanbyambaa, stressed the importance of learning from successful PRC models on grassland restoration and sustainable livestock development, backed by public, private, and philanthropic investments. During the visit, the delegation learned about PRC initiatives to transform the livestock sector into a high-quality, green, traceable, and integrated value chain. They also visited project sites under ADB’s Chao Lake Rehabilitation Project, where they exchanged views with local officials and the project management office on wetland restoration, water resource management, and eco-compensation practices. The visit was organized with support from the ADB–PRC Regional Knowledge Sharing Initiative (RKSI) and jointly facilitated by EARD and CCRE to promote knowledge exchange and cooperation in addressing grassland ecosystem degradation in Mongolia. Enkh-Amgalan TseeleiLin Ji

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

Highlights: Learning from the PRC’s Clean Energy Innovations

This seminar highlights the People’s Republic of China’s advancements in clean energy, exploring how its successful innovations and practical solutions can be replicated by other Asian Development Bank (ADB) member countries. The discussions focused on PRC’s strategic planning in clean energy and ADB’s role in supporting similar projects across the region, including initiatives in energy efficiency and solar. The goal is to foster knowledge-sharing and accelerate the adoption of clean energy technologies throughout the region.

The Role of Policy and the Challenges to Address in Implementing Clean Energy

Beyond market mechanisms, technological innovation, and international cooperation, what else is crucial for a successful clean energy transition? Yu Wang, Associate Professor at Tsinghua University’s Institute of Energy, Environment and Economy, shares her expert insights.

Highlights: Learning from Greater Beijing on Air Quality Improvement

This seminar, the first in a quarterly series by the ADB-PRC Regional Knowledge Sharing Initiative, focused on air quality improvement, drawing lessons from the People’s Republic of China. It addressed air pollution challenges in developing countries and showcased the PRC’s advanced air quality management experiences, including the Greater Beijing–Tianjin–Hebei program. Policymakers from India, Pakistan, Mongolia, Thailand, and the Philippines shared their insights on national and regional approaches.

Merging Clean Energy into the National Goals and Master Action Plan

Kebin He, Dean of the Institute for Carbon Neutrality at Tsinghua University, People’s Republic of China, breaks down his learnings from DMC member countries and insights from the event. He also explains the importance of including clean energy initiatives into the national goals and the master action plan.

The Clean Energy Transition as a Long Drawn Process

Sujit Kumar Bajpayee, Member, Commission for Air Quality Management in the National Capital Region and Adjoining Areas in India, shares his insights on learning about air quality improvement from fellow experts and the potential of the ADB-RKSI’s Talk China Series as an innovative platform for knowledge-sharing.
 

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