Environment – Page 4 – Regional Knowledge Sharing Initiative

Joint CAREC-PRC and Second ASEAN-PRC Digital Economy Workshop: Empowering Digital Future

The global economy is rapidly changing, driven by emerging technologies that promote resource efficiency, inclusivity, and environmental sustainability. Digital technologies play a crucial role in this transformation, offering solutions to challenges like poverty, healthcare, job creation, and environmental protection. The COVID-19 pandemic has accelerated the adoption of digital tools, demonstrating their potential to connect people and businesses even in crises.

The CAREC region, however, faces significant challenges in harnessing the benefits of the digital economy due to inadequate digital infrastructure and unclear regulations. To address these issues, the CAREC Secretariat, supported by the Asian Development Bank (ADB) and partnering with the CAREC Institute and UNESCAP, developed the CAREC Digital Strategy 2030. This strategy serves as a roadmap for accelerating digital transformation and unlocking the region’s potential.

The CAREC Institute, with support from ADB and other organizations, has conducted research and engaged policymakers in dialogues on digitalization. Recognizing the importance of digital economy, the People’s Republic of China has made significant strides, with its digital economy value reaching 6.5 trillion US dollars by 2021.

To further promote digital economy in the CAREC region, the CAREC Institute will collaborate with ADB, the CAREC Secretariat, and Chinese government entities to launch a capacity building program aimed at enhancing digital economy cooperation and promoting digital connectivity. This initiative aligns with the CAREC Digital Strategy’s vision and mission, seeking to equip member countries with the necessary tools and knowledge to realize the full potential of the digital economy for inclusive economic growth, social well-being, and enhanced regional competitiveness.

Agenda

Week 1 (20–26 May)


20 May (Monday)
Morning	Opening Ceremony Zhoushan Jianghong, Vice President of Zhejiang University Kabir Jurazoda, Director, CAREC Institute (Online) Shuzhong Ma, Dean and Distinguished Qiu Shi Professor of the China Academy of Digital Trade at Zhejiang University Moderator: Gong Sen, Director, Center for International Studies on Development and Governance (CiSDG), Zhejiang University
	CAREC Digital Strategy 2030 (Online) Dorothea Lazaro, Senior Regional Cooperation Specialist, ADB Central and West Asia Department CAREC Digital Economy Development: challenges and policy recommendations Rovshan Mahmudov, Senior Capacity Building Specialist, CAREC Institute
Afternoon	Practice and Pathway in China’s Development of Digital Economy Yuezhou Cai, Director and Researcher of the Digital Economy Research Office, Institute of Quantitative & Technical Economics at Chinese Academy of Social Sciences
Night	Ice-breaking: Participants will introduce themselves, express their expectations on the Workshop and raise their questions concerning digital economy. Participants will be grouped, and each group will prepare for delivering a presentation on Day 12.
21 May (Tuesday)
Morning	On-site: Zhejiang’s Information and Communication Infrastructure Construction China Mobile (Zhejiang) Innovation Research Institute China’s Information and Communication Infrastructure Construction: History and Experience Jun Lei, Senior Project Expert and Senior Engineer of the Smart Home Operations Centre and Integrated Communication Systems Department of China Mobile Ltd
Afternoon	The Application of Metaverse Technology in the Digital Economy Era Xuguang Zhang, President of the Zhejiang Association for Science, Technology and Innovation, Distinguished Researcher of the Intelligent Education Research Centre at Zhejiang University
Night	The New Generation of Artificial Intelligence: from AlphaGo to ChatGPT Fei Wu, Director and Qiu Shi Distinguished Professor of Institute of Artificial Intelligence at Zhejiang University
22 May (Wednesday)
Morning	On-site: Evolution towards Intelligent Education Transformation Xianghu Future School and Hailiang Limited Co., Ltd.
Afternoon	On-site: Metaverse Technology, Digital Collectibles and Global Distribution of Digital Content Zhejiang Zoland Animation Co., Ltd.
Night	Practices, Experiences and Challenges in the Development of Digital Economy in Asian, CAREC and ASEAN Economies Yoonee Jeong, Senior Digital Tech Specialist (Digital Infra & Economy), Climate Change and Sustainable Development Department (CCSD), ADB
23 May (Thursday)
Morning	On-site: Cloud Computing: Current Landscape and Future Directions – From Emulation to Innovation Alibaba Cloud Computing Co., Ltd. – Hangzhou Branch
Afternoon	Intelligent Transformation of Manufacturing Industry Wenge Liu, Dean and Professor of the School of International Economics and Politics at Liaoning University
24 May (Friday)
Morning	On-site: 3D+AI Tools for Propelling the Global Fashion Industry’s Digital and Innovative Evolution Zhejiang Linctex Digital Technology Ltd.（Style3D）
Afternoon	Exemplary Cases of Intelligent System Design Yongchuan Tang, Deputy Director of China Digital Creative Technology Equipment Innovation Industrial Alliance, Professor of the School of Computer Science and Technology at Zhejiang University
Night	Networking: Global Digital Economic Cooperation, Digital Economic Development Opportunities and Digital Technology Solutions (Arranged by the World Digital Economy Forum (WDEF), Hangzhou Digital Ecological Building and representative enterprises in the area of digital technology solutions)
25 May (Saturday)
Daytime	Digital Economy-focused Industry Tour to Shaoxing: Enterprise Digital Transformation, Rural Livestream E-commerce and Traditional Culture Zhejiang Toman Intelligent Technology Co., Ltd——Lunch——China Pearls and Jewelry International City——The China Shaoxing Wine Museum——Dinner (Arranged by Shaoxing Council of China Council for the Promotion of International Trade (CCPIT), Shaoxing Chamber of International Commerce and representative enterprises in Shaoxing)
26 May (Sunday)
	Off

Week 2 (27 May–2 June)


27 May (Monday)
Morning	Digitalization of Government Services for a Better Business Environment in China: A Case Study on the Reform Experience of Zhejiang Province Wenting Wei, Private Sector Specialist, World Bank in China The Construction Process of Digitalization of Government Services in Zhejiang Yongsheng Shen, General Manager of Zhejiang Daily Digital Technology (Zhejiang) Co.,Ltd., General Manager of Hangzhou City Brain Co.,Ltd.
Afternoon	On-site: Zhejiang’s Practice in Building a Digital Government: Hangzhou City Brain Zhejiang’s Practice in Intelligent Industrial Transformation: Zhejiang Top Cloud-agri Technology Co., Ltd
28 May (Tuesday)
Morning	Sustainable Social Innovation and Governance of Digital Divide Lijie Fang, Professor of the School of Social Research at the Renmin University of China
Afternoon	Constructing Rules for an Opened Global Digital Economy System Xianhai Huang, Changjiang Distinguished Professor and Vice President of Zhejiang University
Night	Networking: Integration and Cooperation of Asian Civilisations in the Digital Age (Arranged by Zhejiang University International Business School (ZIBS) and the International Campus of Zhejiang University)
29 May (Wednesday)
Morning	Financial Innovation in the Context of Digitalization – Micro Connect: The Wall Street for SMEs Zhong Wu, Secretary-General of the Finance Center for South-South Cooperation, Senior Advisor of Micro Connect and Chairman of Hong Kong Oriental Patron Financial Group
Afternoon	Networking: Global Trade of Cultural Goods and Services in the Digital Era (Arranged by the 20th China International Cartoon & Animation Festival (CICAF), Zhejiang Digital Culture International Cooperation Zone and representative enterprises in the area of international cultural goods and services)
Night	On-site: Digital Industry Investment and Live Streaming Economy
30 May (Thursday)
Morning	On-site: Zhejiang’s Footprint in E-commerce: A Dive into the Corporate Ecosystem and Development Experiences 1688.com and Taobao of Alibaba Group
Afternoon	Digital Transformation, Global FinTech Trends & Opportunities for Emerging Markets Shenglin Ben, Dean and Professor of the International Business School, Director of the Fintech Research Institute at Zhejiang University
Night	Networking: (Arranged by Zhejiang University International Business School (ZIBS), the International Campus of Zhejiang University and representative enterprises in Jiaxing)
31 May (Friday)
Morning	Experiences and Practices in the Development of Digital Economy in CAREC and ASEAN Economies, Insights from the Workshop and Suggestions Group Reports by the Workshop Participants
Afternoon	Concluding Session and Commencement of the Workshop Sen Gong, Director and Professor of the Centre for International Studies on Development and Governance at Zhejiang and Zhejiang University (CiSDG)
Night	Closing Ceremony Sen Gong, Director and Professor of the Centre for International Studies on Development and Governance at Zhejiang and Zhejiang University (CiSDG) Akiko Terada-Hagiwara, Principal Country Specialist, East Asia Department, ADB Kuat Akizhanov, Deputy Director Two, CAREC Institute ASEAN Secretariat
1 June (Saturday)
Daytime	Digital Economy-focused Industry Tour to Yiwu Participants will explore the Zhejiang China Commodities City Group Co., Ltd., and other digital economy infrastructure projects. Participants will also explore the eWTP Public Service Platform and the integrated online-offline services of the China Goods digital trade platform to gain insights into the opportunities and challenges that Yiwu’s procurement and trade industry faces in the digital era.
2 June (Sunday)
	Off

East Asia Forum 2024

This year’s East Asia Forum (EAF) will explore ways the People’s Republic of China (PRC) and ADB can foster partnerships in addressing regional challenges related to climate change with a special interest in promoting global and regional public goods in ADB’s developing member countries (DMCs).

The Forum has four sessions. The first explores strategic ways the PRC and ADB can further evolve their partnership in tackling regional challenges including climate change. The second and third focus on two critical parts of climate as public goods and explore best practices for promoting them. Specifically, Session 2 focuses on nature conservation and ecosystem protection, and how instruments like nature-debt swaps can be a viable financing instrument to help DMCs meet their commitments to conserve 30% of terrestrial and marine areas by 2030. Session 3 centers on addressing climate mitigation through accelerating the energy transition from fossil fuel powered energy to clean energy, drawing on international practices related to energy policy, investments, and transition financing. The fourth session discusses how artificial intelligence can support addressing regional challenges. Specifically, it looks at emerging best practices in strategy, policy, and regulation to enhance the potential benefits of AI while mitigating its potential costs.

Each session will comprise a keynote speaker setting the context and regional challenges and followed by an interactive panel discussion comprising of distinguished experts.

In addition to the four sessions, ADB will also launch its publication “Echoes of Success: Case Studies in the Replication of Asian Development Bank Projects in the People’s Republic of China“. The report presents five ADB-financed projects in the PRC that have been replicated within and outside the PRC.

Venue: Grand Ballroom 2, Kerry Hotel, 1 Guang Hua Road, Beijing.

Browse the program and biographies here.

Download the presentations here.

Agenda

19 September (Thursday, Beijing time)

Date/Time	Session
8.30-9.00	Registration
9.00-9.15	Opening Messages Scott Morris, Vice-President (East and Southeast Asia, and the Pacific), ADB Weihua Liu, Executive Director, ADB
9.15-10.45	1. The PRC and ADB Partnership for the Asia and Pacific Region Chair: Guan Xin, Anchor and Chief Editor, Business News Department, China Global Television Network (CGTN) Presentation: ADB-PRC Country Partnership Safdar Parvez, Country Director, ADB Resident Mission in the PRC The PRC-ADB Strengthening Cooperation to Tackle Regional Challenges Yiping Huang, Dean, National School of Development, Peking University Panel Discussion: Creating Partnerships for Addressing Regional Challenges Scott Morris, Vice-President (East and Southeast Asia, and the Pacific), ADB Weihua Liu, Executive Director, ADB Beate Trankmann, Resident Representative, United Nations Development Programme in the PRC Ayumi Konishi, Senior Advisor to the Chief Executive Officer, Multilateral Cooperation Center for Development Finance Yao Wang, Director General, International Institute of Green Finance Q&A
10.45-11.00	Break
11.00-12.30	2. Nature Conservation as a Regional Public Good Chair: Duncan Lang, Senior Environment Specialist, Climate Change and Sustainable Development Department (CCSD), ADB Presentation: Good International Practices on Strategies for Conserving Nature Mingjia Yuan, The Nature Conservancy Beijing Representative Office Considerations on Debt for Nature Swaps Nicole Arditti, Global Sovereign Advisory Panel Discussion: How Can We Leverage Financing Instruments to Meet the Global Conservation Goal of 30% of Land and Marine Resources Protected by 2030? Ye Wang, Deputy Section Chief, Foreign Economic Cooperation Office, Ministry of Ecology and Environment, the PRC Han Chen, Senior Researcher, Green Belt and Road Center, International Institute of Green Finance, Central university of Finance and Economics, the PRC Mingjia Yuan, The Nature Conservancy, Beijing Representative Office Nicole Arditti, Global Sovereign Advisory Luo Wang, Director, Institute of International Development Cooperation, Chinese Academy of International Trade and Economic Cooperation, Ministry of Commerce, the PRC Q&A
12.30-14.00	Lunch
14.00-15.30	3. Energy Transition as a Global Public Good Chair: Toru Kubo, Senior Director, Climate Change, Resilience, and Environment, CCSD, ADB Presentation: International Practices for Accelerating the Energy Transition Andrew Jeffries, Advisor, Energy Transition Mechanism and Partnerships, Sector Group, ADB Panel Discussion: Creating Partnerships for Advancing the Energy Transition in ADB’s Developing Member Countries Yanmei Cui, Deputy General Manager, Client and Credit Management Department, Export-Import Bank of China Edo Mahendra, Special Advisor to Coordinating Minister for Maritime Affairs and Investment, Indonesia, and Chairperson of Indonesia Energy Transition Implementation Joint Office Junjie Kang, Deputy Director, Climate Change and Energy Transition Program, Institute of Energy, Peking University Helmut Fischer, Executive Director, ADB Yihan Hao, Principal, Rocky Mountain Institute (RMI) China Program Andrew Jeffries, Advisor, Energy Transition Mechanism and Partnerships, Sector Group, ADB Q&A
15.30-17.00	4. Artificial Intelligence: Emerging Global Best Practices in Strategy, Policy, and Regulation Chair: Ozzeir Khan, Director, Information and Technology Department (ITD), ADB Presentation: Setting the Context Stephanie Hung, Director General, ITD, ADB Panel Discussion: How AI Can Be Supportive in Tackling Regional Challenges Stephanie Hung, Director General, Information and Technology Department, ADB Chen Hui Ong, Assistant Chief Executive (Business-Technology Group), Infocomm and Media Development Authority of Singapore Talal Ikhwan, Head, KPMG Digital Village, Singapore Xudong Chen, Chairman and General Manager of IBM, Greater China Group Zheng Liang, Deputy Director, China Institute for Science and Technology Policy, Tsinghua University Q&A
17.00-17.05	Closing Remarks Muhammad Ehsan Khan, Director General, East Asia Department, ADB
17.05-17.20	Break
17.20-17.50	Publication Launch: “Echoes of Success: Case Studies in the Replication of Asian Development Bank Projects in the People’s Republic of China” Messages from: Scott Morris, Vice President (East and Southeast Asia, and the Pacific), ADB Xi Zhang, Executive Director and General Manager, Shaanxi Financial Holding Development Investment Management Co., Ltd.
All day	Results Reality Booth Showcasing ADB projects in the PRC in augmented and virtual reality
18.30-20.30	Dinner

20 September (Friday, Beijing time)

09.00-18.00	Field Visit to Project Site Tianjin Dongli Biomass Energy and Comprehensive Waste Treatment Subproject, Dongli District, Tianjin Municipality

Day 1

Day 2

ADB and UNDRR Making Cities Resilient 2030 (MCR 2030) City-to-City Learning Forum on Developing Urban Disaster Resilience

Cities and urban communities around Asia and the Pacific are facing an era of unprecedented uncertainty, with climate-induced disasters becoming more frequent, intense, and unpredictable. Over the past three decades, extreme weather events have accounted for 90% of all disasters, posing significant threats to urban areas through intensified storms, coastal flooding, deadly heatwaves, water shortages, and prolonged droughts. At the same time, local authorities face other systems-wide crises, in terms of water, food, and energy security. The Political Declaration of the midterm review of the Sendai Framework for Disaster Risk Reduction 2015–2030, adopted by the United Nations General Assembly in May 2023 reiterates the extreme challenges to hand and conveys a deep concern that the pace of implementation is not sufficient or equal. The gaps at the local and urban level are particularly large.

In response to these challenges, municipalities across Asia Pacific are scaling up their ambitions and actions on disaster resilience to protect their citizens and local infrastructure assets and systems. The Political Declaration of the midterm review of the Sendai Framework calls for scaled up support and action at the local level, urging countries to:

Support and enable all local authorities to have disaster risk reduction strategies and local platforms for disaster risk reduction, or similar mechanisms, in place;
Ensure the provision of financial assistance, technical support, and capacity development to strengthen local multi-hazard risk governance and local government leadership on disaster risk reduction;
Promote local ownership through community-based disaster risk management approaches and whole-of-society engagement; and
Promote exchanges and peer learning between cities through increased participation in the Making Cities Resilient 2030 (MCR2030) initiative.

Agenda

29 July (Monday)

Time	Program
08:00 – 09:00	Registration
09:00 – 09:10	Opening Remarks Norio Saito, Senior Director, Water and Urban Development Sector Office, Asian Development Bank (ADB) Sanjaya Bhatia, Head of Office Incheon, United Nation Office for Disaster Risk Reduction (UNDRR) (Online speaker)
09:10 – 10:40	Theme 1: Showcasing Urban Solutions – SDGs in Action at the Municipality Level Moderator: Mr Andy McElroy, Global Coordinator MCR2030, UNDRR Speakers: Ms Deborah C. Dacanay, Head of Quezon City Persons with Disability Affairs Office, Philippines – Quezon City Community Inclusive Disaster Preparedness Interventions (SDG 10 Reduced Inequalities) Ms Susana Sousa Gonçalves, Director of Civil Protection Matosinhos, Portugal – Putting Communities at the Heart of Resilience Action (SDG 11 Sustainable Cities and Communities) Ms Sung Ah An, Public Officer, Incheon Metropolitan City, Republic of Korea – How Incheon Effectively Manages Increasing Heatwave Risk (SDG 13 Climate Action) Q&A session
10:40 – 10:55	Coffee Break
10:55 – 12:25	Theme 2: Financing Urban Disaster Resilience Moderator: Mr Jinqiang Chen, Urban Development Specialist (Climate Change), Water and Urban Development Sector Office, ADB Speakers: Ms Liza Ramos, Research and Planning Division Head, Disaster Risk Reduction and Management Office, Makati City, Philippines – How is Makati Developing Innovative Financing Options for Resilience (Online speaker) Ms Jazlyn Lee, Engagement Lead for Southeast Asia & South Asia, Global Covenant of Mayors for Climate and Energy and the Gap Fund Partnership – Empowering Cities to Transform Climate Ideas into Action through the City Climate Finance Gap Fund Mr Thomas Kessler, Principal Finance Specialist (Disaster Insurance), ADB – Building Climate and Disaster Resilient Cities – Risk Management, Financing and Insurance Q&A session
12:25 – 12:30	Group Photo
12:30 – 14:00	Networking lunch
14:00 – 15:30	Theme 3: Learning from MCR2030 Resilience Hubs Moderator: Mr Alessandro Attolico, Executive Director of the Territorial Planning and Civil Protection Office at the Province of Potenza, Italy Speakers: Dr Kathy Oldham OBE, Chief Resilience Officer, Greater Manchester, the UK – How Greater Manchester Works with Nature as Part of Flood Risk Management (Online speaker) Mr Jieyong Luo, Resilient City Officer for the City of Zhuji, PRC – Building a Resilient River City – Zhuji’s Practice in Governing and Transforming Puyang River to Enhance Flood Resistance Mr Stefan Wagner, Head of the Department of International Affairs and Global Sustainability, City of Bonn, Germany – Connecting the Green Agenda from National to Local Level (Online speaker) Q&A session
15:30 – 16:00	Coffee break
16:00 – 18:00	Theme 4: Learning from Asian Development Bank Moderator: Ms Jingmin Huang, Director, Water and Urban Development Sector Office, ADB Speakers: Mr Khen Sopheak, Deputy Director of Inter-Sectoral Division of Kep Provincial Hall, Cambodia – City-to-City Partnership on Resilient City Development Ms Yingxia Xie, Former Vice President, Professor, China Academy of Urban Planning and Design – Urban Resilience Evaluation Method and Index System Ms Arpita Mozumder, Assistant Engineer, Planning Unit, Local Government Engineering Department, Bangladesh – Coastal Towns Climate Resilience Project in Bangladesh Mr Ming Hu, Senior Engineer, Director of Movement Control Office, Fuzhou Urban Water System Joint Drainage and Coordination Centre – One Center Manages the Entire City, Digitization Ensures Safety: Innovative Practices of the Fuzhou Water System’s Coordinated Management Mechanism Q&A session
18:00 – 20:30	Networking dinner

30 July (Tuesday)

Time	Program
09:00 – 10:30	Theme 5: Strengthening National-Local Coordination Moderator: Ms Susana Sousa Gonçalves, Director of Civil Protection Matosinhos, Portugal Speakers: Mr Alessandro Attolico, Executive Director of the Territorial Planning and Civil Protection Office at the Province of Potenza, Italy – Long Term Strategy for Effective Risk Governance Mr Aslan Kandygulov, Director of the Center, Urban Environmental Sustainability Center, Astana, Kazakhstan – Resilience Action Plan for a 21st Century City Mr Ali Ahmed, Deputy Mayor, Kulhudhuffushi City Council, Maldives – Strengthening Local Capacity with MCR2030: A City’s Sustainable Approach to Building Resilience Q&A session
10:30 – 10:45	Coffee break
10:45 – 12:15	Theme 6: Identifying solutions to major urban disaster resilience challenges Moderator: Ms Deborah C. Dacanay, Head Persons with Disability Affairs Office, Philippines Speakers: Mr Hee Jong Kim, Director Ulsan Research Institute, Republic of Korea – Forging Multisector City Partnerships for Resilience Mr Thayukorn Prabamroong, Director of Climate Change, Mitigation, Adaptation Research Unit, Mahasarakham University, Thailand – How the Thai Network for Disaster Resilience of 17 Universities Supports Local Governments to Reduce Disaster Risk Ms Sofia Karma, Dr Chemical Engineer, Academic Staff National Technical University of Athens, Greece, Director of the European Center for Forest Fires, EUR-OPA Major Hazards Agreement/Council of Europe – Recommendations for Managing Urban Heatwaves and for Inclusivity in Disaster Preparedness and Response Q&A session
12:15 – 13:30	Networking lunch
13:30 – 15:00	Orientation: Disaster Resilience Scorecard Assessments for Cities Introduction: Orientation on two new self-assessment tools to understand capacities and gaps in terms of climate resilience and early warning systems. Group work: Participants will split into two groups and try out one of the tools. Plenary feedback: Participants will share feedback on their discussions and potential deeper dive follow-ups with individual cities will be discussed.
15:00 – 15:15	Coffee break
15:15 – 17:15	Final Session: Moving Forward on Urban Resilience in Asia Moderators: Mr Andy McElroy, Global Coordinator MCR2030, UNDRR Mr Jinqiang Chen, Urban Development Specialist (Climate Change), Water and Urban Development Sector Office, ADB Mr Xijie Lu, Urban Development Specialist, Water and Urban Development Sector Office, ADB -This moderated session will be a focused group discussion to identify priority areas for collaboration & collective commitment to ensure follow-up action on urban disaster resilience. -How can MCR2030 Resilience Hubs, Asian Development Bank, and cities work better together to strengthen urban disaster resilience – what plans/commitments can be made? -What kind of support is required to deliver on these plans/commitments?
17:15 – 17:20	Closing Remarks: Ms Jingmin Huang, Director, Water and Urban Development Sector Office, ADB
18:00 – 20:30	Networking dinner

31 July (Wednesday)

Time	Program
09:00 – 12:30	Site visit to Guangxi Polytechnic of Construction – The Introduction of Guangxi Polytechnic of Construction, current status and the achievements of the Resilient Cities Development Research Center, Urban Renewal Research Center (Habitat Building Research Center) – Campus visit – Lunch at school cafeteria
12:30 – 14:00	Back to hotel
14:00 – 17:50	Site visit to Guangxi Institute of Safety and Technology – Visit the emergency service station in Xingdong Community, Nanning – Visit Guangxi Institute of Safety and Technology
17:50 – 20:30	Networking dinner

Shaanxi Qinling Biodiversity Conservation and Demonstration Project

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Engaging Private Sector and Nonprofit Organization in Ecosystem Restoration

In the PRC, the successful restoration of the Ma’anshan and Zhihui mining pits showcases innovative business models.

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Introduction

To avoid, reduce, and reverse land degradation induced by human activities, ecosystem restoration is essential and urgently needed. Ecosystem restoration is a proven and cost-effective solution to help reverse the loss of ecosystem services caused by the rapid depletion of natural capital stocks.

However, ecosystem restoration has largely relied on government’s public investments, and the participation of the private sector and nonprofit organizations (NPOs) has been limited due to the constrained business case for investing in nature. For instance, restoration of abandoned mine pits requires a substantial one-time investment, along with ongoing expenses for managing and protecting ecological forests to sustain the restored areas’ ecosystem services.

An evaluation of the natural capital created by ecosystem restoration and the ecosystem services after the restoration of the Ma’anshan and Zhihui farms, formerly abandoned mining pits in the Ningxia Hui Autonomous Region of the People’s Republic of China (PRC), showed that investment in ecological restoration can be economically feasible if designed and implemented effectively.

This article introduces business models for engaging the private sector or nonprofit organizations in ecosystem restoration.

Analysis

Ecosystem restoration leads to the formation of a stock of natural capital, enabling people to derive benefits through ecosystem service flows. These flows can be valued in various ways, including provisioning (food, fuel, fruits, etc.), regulating (biodiversity, climate regulation, carbon sequestration, soil and water conservation, etc.), and cultural services (interactions between people and nature).

Figure 1: Conceptual Framework for Ecosystem Restoration’s Natural Capital and Ecosystem Services

Source: Modified from Bolt et al. (2016) and Diaz et al. (2015).

The PRC considers ecological restoration a vital element of its pursuit of ecological civilization. Despite achieving land degradation neutrality in 2020, over 40% of its land is affected. Noteworthy efforts, including rehabilitation, afforestation, and biodiversity protection, have been made, but sustained actions are crucial. The demand for ecological restoration investment is around 60 billion Chinese Yuan (CYN) annually, yet government budgets cover only 24%. To bridge the financing gap, the central government encourages private and nonprofit involvement. However, a key obstacle is the lack of an enhanced framework in the business case for investing in nature.

An analysis of the ecosystem restoration at Ma’anshan farm and Zhihui farm in the Ningxia Hui Autonomous Region, using the Toolkit for Ecosystem Service Site-based Assessment (TESSA), suggests that social capital investment in ecological restoration can be viable with careful design and implementation.

Innovative collaborative governance

The Ma’anshan farm, situated in Linhe Town, Lingwu City of the Ningxia Hui Autonomous Region, spans a total area of 667 ha on the east bank of the Yellow River. It is in proximity to key infrastructure, including the Ningxia Yinchuan Hedong International Airport, Yinchuan Comprehensive Bonded Area, a high-speed railway station, and the Yellow River Wharf. Originally a mining pit providing raw materials for infrastructure construction, the site was abandoned without effective restoration, leading to severe soil erosion and sand and dust storms that posed threats to nearby infrastructure operations.

In 2014, the restoration of the Ma’anshan site began. The initial interventions from 2014 to 2018 focused on land leveling, topsoil restoration, and initial vegetation plantation. Subsequently, from 2018, with the support of an Asian Development Bank project, approximately CNY80.0 million was invested in constructing water conservancy facilities, water-saving irrigation systems, connecting roads, culverts, bridges, production and living housing, and other supporting facilities.

The Ma’anshan farm operates with financially independent entities, such as small-scale farmers, better-off farmers, herders, and private enterprises. It exemplifies a nonprofit organization’s ability to mobilize resources for ecosystem restoration, employing diversified funding, co-governance, and shared costs and benefits for effective management. The project surpasses the typical government role in ecological restoration investment by involving various stakeholders through innovative collaborative governance. It involves leasing facilities and lands to generate economic benefits for local communities, farmers, or herdsmen. The arrangement includes zero rent for land use, contingent upon the responsibility of caring for a designated area of ecological forests.

Funding sources encompass government subsidies, corporate and international donations, as well as savings from the operations of the Ningxia Desert Greening and Sand Industry Foundation.

The project not only restored abandoned mine pits but also created stable job opportunities for locals. By the end of 2021, the Ma’anshan farm had planted over 1.3 million trees and developed 440 ha of ecological public welfare forest, 133 ha of economic forest, 333 ha of landscape forest, 40 ha of nursery, and 23 sets of greenhouse facilities.

According to the TESSA assessment, the Ma’anshan farm’s ecosystem services are valued at CNY21.54 million in its natural capital account for the year 2021.

Table 1: Natural Capital Valuation of the Ma’anshan Farm

(CNY million)

Type of Ecosystem Services	Services	Value	Percentage
Provisioning Services		13.41	62.3%
Regulating Services	Soil and water conservation	2.50
	Accumulated water resources	0.32
	Pollination	1.02
	Increase carbon sink	1.28
	Dust removal	00.3
	Subtotal	5.16	23.9%
Cultural Services	Research, study tour	2.98	13.8%
Total Value		21.54

The cumulative cash flow from economic investments at the Ma’anshan farm is projected to turn positive in 2027, reaching CNY1,194,300. The net present value is expected to become positive in 2028, amounting to CNY1,001,800, with a financial internal rate of return of 4%.

Integrating industrial development with ecosystem restoration

The Zhihui farm is in Xixia District of Yinchuan City, Ningxia Hui Autonomous Region at the eastern piedmont of the Helan Mountain. The area where the farm is located has been excavated for mining sand and gravel materials for several decades since the 1980s. Large excavation resulted in soil erosion and loss of natural habitats. Land productivity deteriorated severely.

Since 1996, Zhihui Company began contracting abandoned mine pits in the region for ecological restoration, primarily through tree plantation. In the initial stages, Zhihui Farm engaged in cropping grains, planting economic forests (peach, plum, and apricot), nursery gardens, and animal husbandry to generate revenue for restoration works. Unfortunately, these efforts proved financially unsustainable. Eventually, the farm shifted its focus to nursery stock and landscaping, which became its primary revenue source. In 2006, the farm expanded its business by venturing into wine making and establishing vineyards.

In total, 1,000 ha of abandoned mine pits have been restored. As of 2021, the Zhihui farm has planted 400 ha of ecological forests, 266.7 ha of vineyards, and 53.3 ha of other economic forests. The site has been developed into a modern farm supporting a national 4A-level leisure scenic spot (the PRC’s rating system for tourist attractions, where 5A is the highest rating) and a famous winery.

Table 2: Natural Capital Valuation of the Zhihui Farm

(CNY million)

Ecosystem Services		Value	Percentage
Provisioning services	Wine	40.00	81.6%
	Fruit	4.60
	Job creation	10.82
	Subtotal	55.42
Regulating services	Water saving	0.65	4.1%
	Pollination	1.37
	Carbon stock	0.69
	Dust removal	0.09
	Subtotal	2.80
Cultural services	Winery tourism	5.48	14.3%
	Leisure and entertainment	4.20
	Subtotal	9.68
Total		67.90

In 2021, the total natural capital value of Zhihui farm was estimated at CNY67.9 million. The farm’s income that year included CNY40.0 million from wine sales and CNY4.0 million from government subsidies for the operation and maintenance of the sport and recreation park, venue rental, and sales of agricultural products. Consequently, Zhihui farm reported a profit of CNY10 million for the year, with a calculated return on investment of 13 years.

Considering its 2021 natural capital of CNY67.9 million, the payback period could be halved if the full value of natural capital created by the ecosystem restoration is realized.

The Zhihui farm proves that private companies can profitably explore ecological industries through restoration, serving as a sustainable model. This approach, integrating restoration with industrial development like vineyards and wineries, has inspired other companies to invest in ecological restoration in the region. Consequently, the area has become a global hub for wine-making, offering substantial employment opportunities and establishing a green, profitable industry.

Recommendations

Ecosystem restoration creates natural capital, offering provisioning, regulating, and cultural services, while combating land degradation. Here’s how policy makers can support these efforts.

Establish policies and mechanisms for realizing the value of ecosystem services and natural capital.

The Ma’anshan and Zhihui projects have created valuable ecosystem services and abundant natural resources. However, existing policies and market conditions lack an effective mechanism to actualize the value of these services and resources on the farms. These farms bear the majority of ecological restoration costs, despite providing public goods, services, and positive external economic benefits. The absence of this mechanisms may discourage private sector investment in ecological restoration.

Define the property rights of the formed natural capital.

In the PRC, sites for ecosystem restoration, such as abandoned mining pits, are often state-owned with vague property rights. Social organizations, including private companies, encounter difficulties in obtaining necessary land rights for business development due to ambiguous property rights. This hinders them from engaging in profitable ecological activities despite their commitment to environmental protection. There is a need to clarify property rights for social organizations and enterprises and create appropriate incentives to encourage private sector investment in ecological restoration.

Enable viable investment and eco-compensation in ecosystem management.

Natural capital provides a promising instrument to justify viable investment in ecosystem management given the ecosystem services that it can create. It also supports the design and implementation of eco-compensation regimes for conservation activities. However, creating an enabling environment is essential to actualize the potential of natural capital. Further studies are needed to identify appropriate policies and financing mechanisms that can motivate the participation of nonprofit organizations and the private sector.

References

Asian Development Bank (ADB). 2018. Ningxia Integrated Ecosystem and Agricultural Development Project: Completion Report. Manila.

ADB. 2022. Ningxia Irrigated Agriculture and Water Conservation Demonstration Project: Completion Report. Manila.

K. Peh et al. 2022. Toolkit for Ecosystem Service Site-based Assessment (TESSA) Version 3.0. Cambridge, UK.

Ministry of Natural Resources of China. 2021. Typical Cases of Ecological Restoration in China.

P. Dasgupta. (2021). The Economics of Biodiversity: The Dasgupta Review. London: HM Treasury.

The State Council. 2023. White Paper: China’s Green Development in the New Era. Beijing.

The State Council. 2021. Opinions on Supporting and Encouraging Social Capital to Participate in Ecological Protection and Restoration. Beijing.

United Nations Convention to Combat Desertification (UNCCD). 2022. The Global Land Outlook Second Edition: Summary for Decision Makers. Bonn.

UNCCD. 2022. The Global Land Outlook Second Edition: Land Restoration for Recovery and Resilience. Bonn.

Author

Zhiming Niu

Senior Project Officer (Environment), East Asia Department, ADB

This blog is reproduced from Development Asia.

Strengthening Biodiversity Conservation in the Yellow River Basin of Henan Province, the PRC

Ecological Protection in the PRC: Pilot Case Studies on Comprehensive Eco-Compensation, Poverty Alleviation, and Green Development

Resilience Rising: Battling Nature’s Fury in the PRC

The destructive capabilities of natural hazards, coupled with their far-reaching consequences on employment, health, population migrations, and poverty perpetuation, are well-recognized. The People’s Republic of China faces a wide array of natural hazards, and these challenges are exacerbated by climate change and rapid urbanization. The interconnectedness of urban systems makes them highly vulnerable to cascading effects from disasters. Meanwhile, rural areas, where many young and older residents remain due to rural-to-urban migration, are also at risk. Disaster Risk Management is crucial, but it requires tailored solutions that consider geographic, social, and economic factors. Cost-effectiveness principles are essential to prioritize impactful measures, benefiting both the country and the region. Collaboration with neighboring countries is vital for promoting regional disaster resilience, as natural hazards show no signs of abating, necessitating immediate adaptation and preparation.

Planting the Seeds for an Environmentally Sustainable Future

In the People’s Republic of China, an environmental education program instills in students and their families a love for their hometown and nature.

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Overview

Pingjiang in Hunan province was listed as a poverty-stricken county in the People’s Republic of China (PRC) until March 2019. Back then, the ecological environment of Pingjiang was under pressure from inadequate wastewater and solid waste facilities in rural areas, nonpoint source pollution from intensified crop and livestock farming, occasional industrial pollution, and frequent flooding. Improving the living environment could help the county attract more investments that would create jobs and income-generating opportunities.

In 2020, the Asian Development Bank (ADB) worked with the Pingjiang County government to design a project that incorporates nature-based solutions and circular practices to address environmental challenges and improve quality of life. ADB recommended that the project include awareness-raising programs in local schools and communities for environmental protection and green development.

Despite the lagging economic status of Pingjiang, its education system outperformed other counties for years, benefiting from an excellent educational tradition and high-level policy support to promote education for poverty reduction. The county government adopted ADB’s recommendation to mainstream environmental education in schools and improve the environmental literacy of residents by engaging students’ families through targeted outreach activities.

This case study shares the progress of the environmental education component in the third year of project implementation. It demonstrates the important role of the community in ensuring a better living environment.

Project information

53052-001 : Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project in the People’s Republic of China

Project snapshot

- - Approval date: 27 November 2020
  - Closing date: 30 November 2027
  - Total project cost: $354 million
  - Executing agency: Pingjiang County Government, Hunan Province, People’s Republic of China
  - Financing: Asian Development Bank, KfW Bankengruppe

Context

Covering an area of 4,125 square kilometers, Pingjiang County is located on the eastern margin of Hunan. Its total population is about 1.1 million, with an urbanization ratio of 46%. The Miluo River runs through the county and flows into Dongting Lake. The river also serves as the main source of drinking water for the county.

In 2019, about half of all rural villages in Pingjiang lacked household sewage or wastewater treatment facilities. Agricultural nonpoint source pollution had worsened water quality in the region. These, coupled with inadequate management of solid waste, had a significant negative impact on the rural living environment. The Miluo River was also subject to recurrent flooding, causing damage to the economy and the environment, and posing a serious risk to people’s lives and livelihoods.

To improve the rural living environment in Pingjiang, ADB approved the Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project in November 2020. This $150-million loan invests in water-related disaster management, sanitation services enhancement, and eco-farming demonstration. In addition to investment activities, mainstreaming environmental education in the local educational system was specially designed as a project component to drive a fundamental change in mindset about environmental protection.

Challenge

Although the county government was committed to achieving environmentally sustainable economic development then, the overall environmental literacy of local communities was low, illegal mining and pollution discharge by small enterprises continued to occur, and rapid economic development and changes to traditional lifestyles were accelerating environmental pressures.

Awareness-raising activities carried out by the government often directly called for certain actions or simply disseminated textbook-type knowledge without cultivating attitudes and values that support environmental protection. This resulted in limited active participation by local communities in county initiatives. For example, the potential for reducing environmental impacts through the “reuse, reduce, and recycle” initiative was largely untapped.

There are about 350 primary and middle schools and around 138,000 students in Pingjiang. Exam-oriented education was the dominant goal in schools and families. Before the project, environmental protection was already part of moral education in schools, but it was often delivered through a one-way, lecture method and squeezed into limited teaching time, which substantially weakened its effectiveness. Also, students were often distracted by electronic devices, and they became increasingly disconnected from nature.

Solutions

The Pingjiang Education Bureau and ADB jointly designed the project activities on environmental education. The bureau identified more than 100 schoolteachers who were interested to act as the catalysts for environmental education in Pingjiang.

Building teachers’ capacity. To equip teachers with the necessary knowledge and skills to effectively deliver environmental education, the project organized a range of training programs and study tours for the teachers on natural play, environmental education activities for different types of fields, typical environmental issues, environmental education course design, and environmental education theories and outcomes.

Adding environmental education to school activities. The teachers incorporated environmental education elements into various existing school activities, such as regular classes, labor education programs, science and technology club, and mental health counseling.

Fostering hometown pride. The Pingjiang Education Bureau selected and grouped elite students and teachers to work with environmental education practitioners in developing reading materials for students and citizens that promote love for their green hometown. The books guide the readers to think globally, act locally, and live personally for environmental protection. In contrast to textbooks, these readers forge students’ bond with their hometown by highlighting Pingjiang’s strengths, discussing its environmental challenges, and exploring solutions to such issues.

Acting collectively at school. Teachers organized a variety of school and class activities for students’ active participation. Some schools arranged field trips to the landfill site and waste incineration plant. In other schools, students pioneered milk carton recycling through project-based learning. As a club activity, some students established “a recycling company” to operate the school-wide collection and recycling of old books and used papers.

Engaging families through children. The Pingjiang Education Bureau combined environmental education with family education during students’ vacation. Students and parents were urged to work hand in hand in building a green and harmonious family. The bureau first prepared the families through lectures at mobilization meetings. Then, a family’s environmental action was agreed upon through a why-how-what family discussion. The chosen action was carried out during the vacation and documented. Finally, the students summarized the activity and reported on the before and after situation and their reflections.

Speaking for nature. Since 2021, more than 300 primary and secondary schools in the county have participated in the annual speech competition “Green Home in My Heart.” Students share their stories based on on-site research and/or personal experience, express their thoughts and insights, and also call on everyone to be practitioners and promoters of a green Pingjiang.

Results

As of this year, about 150 personnel, including teachers, educational bureau staff, environmental facility operators, and project management officers, received environmental education-related training. They have applied their new knowledge and skills in school education. A core team of around 40 teachers was created for piloting activities, developing environmental readers, and training new talents. Forty-one schools were identified for development into environmental education schools.

About 138,000 students and 25,000 families actively engaged in environmental education activities. A Pingjiang Environmental Education Reader for junior high school students was prepared jointly by 16 teachers, 50 students, and environmental practitioners. The readers for primary school, high school, and citizens are currently under development. A total of 2,200 students participated in milk carton recycling, following the findings of the first batch of students who underwent project-based learning. A study on irrigation design to cope with drought by a group of high school students—members of a science and technology club—won first prize at the provincial science and technology innovation youth competition.

Environmental education activities organized by the teachers were enriched and diversified to promote active learning in comparison with lecturing and one-off group activities in the past. Students are better motivated by their experiences to study environmental issues and commit to behavioral change.

The Pingjiang Education Bureau will continue its efforts in creating a comprehensive, diversified, and sustainable environmental education system; building model schools; and strengthening the collaboration between schools, families, and society for environmental protection.

Lessons

The project’s achievements in environmental education cannot be achieved without the champions in Pingjiang Education Bureau and the support of the bureau’s leadership as well as the enthusiasm of local teachers.

Experienced nongovernment organizations and social enterprises in the environmental education field served as external advisors for the Pingjiang Education Bureau. Initially, the bureau invited university professors to provide technical support, but their academic style did not suit the project’s practical needs.

The development of higher education on environmental protection in the PRC was lagging compared with developed countries. There were gaps to bridge in terms of professional talent, education theory, curriculum development, and teaching methodologies. International experiences can provide valuable reference.

An environmental issue often involves multiple disciplines. Solving practical environmental problems is a good opportunity for students to comprehensively apply their knowledge and skills. Therefore, environmental education can bring students a variety of benefits: academic achievement, critical thinking and problem-solving skills, personal growth, and joy. It also provides students with extra motivation for self-development and a great sense of self-efficacy.

References

Asian Development Bank (ADB). 2020. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the People’s Republic of China for Hunan Miluo River Disaster Risk Management and Comprehensive Environment Improvement Project. Manila.

Author

Xin Shen

Senior Project Officer (Natural Resources and Agriculture), East Asia Department, ADB

This blog is reproduced from Development Asia.

Rehabilitating the Chao Lake Basin in the PRC

Strengthening the capacity of the new lake authority was a critical success factor in implementing an integrated lake basin management project.

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Overview

The area around Chao Lake, the fifth-largest freshwater lake in the People’s Republic of China (PRC), has experienced tremendous economic growth from 2000 to 2009. This has resulted in a 30% increase in the urban population within the lake basin catchment and a fivefold increase in gross domestic product (GDP). However, this remarkable progress came at an environmental cost. In 2010, the lake’s overall water quality was considered Class V, the worst grade under the PRC’s national environmental water quality standard.^[1]

To decouple economic growth from environmental degradation, the Anhui Provincial Government crafted the Master Plan for Integrated Water Environmental Management of Chao Lake Basin (2008–2020). This unprecedented plan set forth a basic framework aimed at enhancing the water quality of Chao Lake while safeguarding its economic, ecological, and aesthetic values by adopting the integrated water resources management approach.

The Asian Development Bank (ADB) was invited by the Anhui Provincial Government in 2010 to support the implementation of this master plan through its lending program. The Anhui Chao Lake Environmental Rehabilitation Project put a great emphasis on institutional capacity building to support the then newly established Chao Lake Management Authority that has primary authority and responsibility for managing the lake. It is the first lake or river management agency in the PRC that has a sufficiently comprehensive management purview and the first to deal with all aspects of the water cycle.^[2] The project also made significant engineering investments toward controlling nonindustrial municipal point source pollution and nonpoint source pollution.

With the help of the Anhui Chao Lake Environmental Rehabilitation Project, the lake’s water quality began to show signs of recovery. By 2021, the lake’s water quality improved to Class IV,^[3] while the basin economy experienced increased GDP at an estimated 11% compound annual growth rate.

The project offers valuable insights on supporting new river basin authorities for integrated water resources management and offers replicable lessons and best practices that other regions within and beyond the PRC could benefit from.

Project information

44036-013 : Anhui Chao Lake Environmental Rehabilitation Project in the People’s Republic of China

Project snapshot

- - Approval date: 16 November 2012
  - Closing date: 31 March 2021
  - Total project cost: $413 million
  - Executing agency: Anhui Provincial Government, People’s Republic of China
  - Financing: Asian Development Bank

Context

The Chao Lake basin covers 13,545 square kilometers or about 10% of the total area of Anhui province, with some 40 tributaries belonging to seven major river systems flowing into it. The lake serves as a crucial component of the province’s industrial and agricultural water supply, water transport, tourism, and recreational activities. The population in the basin totaled about 11.9 million in 2020.

The Chao Lake basin covers 13,545 square kilometers (within the gray line boundary). Around the Chao Lake, there were still significant lands used for farming (light brown areas in the colored belt around the lake). The most densely populated area in the basin is the urban area of Hefei Municipality, the capital city of Anhui Province (the large gray area above the lake). The background is the remote sensing image from October 2020. Photo credit: Chao Lake Management Authority.

The lake’s water environment has suffered significantly because of the adverse effects of rapid economic growth and urban development since 1990. Recognizing its poor water quality, the national government designated it as one of three priority lakes for environmental rehabilitation in 1996.

Despite substantial resources being invested in controlling pollution within the lake basin and industrial pollution being largely under control by 2010, Chao Lake continued to be besieged by excessive amounts of organic matter, nitrogen, and phosphorous, which contributed to it retaining a Class V water quality status in 2010.

Challenge

Back then, the primary pollutant sources in the Chao Lake were nonindustrial municipal point source pollution. The sewerage system coverage and wastewater treatment capacity in the urban area were woefully inadequate, leading to a considerable amount of untreated domestic wastewater in towns being discharged into water bodies.

The nonpoint source pollution was also significant and largely to be addressed, including waste from animal farming, nitrogen and phosphorous runoff from farmers’ fields, unsewered rural households, resuspension of polluted sediments, and erosion of riverbanks during high flow conditions.

Pressures from economic growth and urban development were expected to continue, if not increase, based on strategic plans for the Chao Lake basin. The Anhui Provincial Government and the Ministry of Environmental Protection signed a cooperation agreement to manage the environmental implications of these developments, but concerns for increased water pollution remained.

In 2011, the Anhui Provincial Government established the Chao Lake Management Authority as one of the PRC’s pioneering agencies tasked with overseeing all aspects of lake water quality and use. However, the agency faced challenges related to acquiring necessary knowledge and skills on integrated lake basin management due to limited precedents in the PRC to learn from and staff inexperience. It also needed to gain the cooperation of different sectors and agencies to effectively coordinate efforts related to lake rehabilitation.

Solutions

In 2012, ADB approved a $250 million loan aimed at enhancing the water resources and environment in Chao Lake and its upstream rivers. The project sought to improve residents’ quality of life and ensure sustainability of the aquatic ecosystem within the lake basin. To achieve these goals, the project expanded and enhanced municipal wastewater treatment, made new investments in nonpoint source pollution control, and bolstered the institutional capacity of Chao Lake Management Authority through an integrated approach.

Capacity building included organizing training programs and study tours for staff, delivering a UNESCO–Institute for Water Education (IHE) capacity-building program, financing water quality monitoring equipment, and providing consulting services. The consulting services supported research on an integrated management mechanism for Chao Lake basin based on function zoning, blue-green algae early warning system development based on a water quality-water turbulence model, and water environment intelligent supervision and spatial data management system development.

Increased municipal point source pollution control

The project constructed wastewater collection systems in developed urban areas where the wastewater was unsewered and untreated, and intercepted sewer discharges flowed directly into tributaries of Chao Lake. A total of 640 kilometers (km) of the sewer network and 15 wastewater pumping stations were constructed, expanding the capacity of the wastewater collection system by 540,400 cubic meters (m3) per day. The project also built 10 wastewater treatment plants with 176,000 m3/day treatment capacity.

Enhanced nonpoint source pollution control

The project dredged 112 km of river course to remove nutrient-rich sediments from the beds of rivers flowing into Chao Lake to prevent excessive plant and algal growth; built 160 km of embankment to reduce soil erosion and enhance the flood protection of adjoining lands; and implemented a solid waste collection and transfer subproject to control a troublesome source of floating objects. It also established 430 hectares (ha) of lakeside and riverine wetlands to reduce nutrient loads going into the lake, enhance habitats for wildlife, and absorb the wind-induced waves that break down the banks. It piloted nonpoint source pollution control in rural areas, focusing on agricultural pollution sources.

As part of nonpoint source pollution control measures, 20 training sessions were conducted in rural communities for technology-extension workers and local farmers on such topics as organic agriculture and certification of organic produce, nonpoint source pollution control technology, principle and method for fertilizer selection and application, green control of pest and diseases, and rice and shrimp co-cropping.

Improved institutional capacity of Chao Lake Management Authority

In total, 14 training programs and 14 study tours were organized for Chao Lake Management Authority staff. Capacity building activities covered river basin management and integrated water resources management, eco-compensation, innovative mechanisms on pollution control, regulation formulation and enforcement, ecological restoration and security, nonpoint source pollution control, water quality and hydrodynamics modeling, remote sensing and environmental monitoring, environmental impact assessment, and project management.

In addition, a UNESCO–IHE (Institute for Water Education) capacity building program supported the project through the following activities:

facilitated the development of a pilot institutional framework, which clarifies Chao Lake Management Authority’s internal structure and jurisdiction in relation to existing provincial agencies,
assessed the technical and administrative training needs of staff,
developed the understanding and capacity of staff to apply the principles of integrated water resources management, and
established links between the Chao Lake Management Authority and lake and river basin management authorities elsewhere in the PRC and globally to facilitate the exchange of management experiences and knowledge.

Three consulting services packages for study and system development works were also implemented.

Results

Through the sewer network and wastewater treatment plant component, the chemical oxygen demand discharge was reduced by 22,313 tons per year, the ammonia nitrogen discharge by 3,142 tons per year, and the phosphorus discharge by 413 tons per year. Dredging activities removed about 2,506 tons of total nitrogen and 919 tons of total phosphorus from the Chao Lake and its tributaries. Constructed wetlands of 430 ha also helped remove about 15 tons of total phosphorus, 71 tons of chemical oxygen demand, and 36 tons of ammonia nitrogen each year.

Overall, the project benefited approximately 2.54 million people, of whom 49.1% are women and 8.2% from low-income households. Benefits included an improved living environment and better access to water resources. About 1,000 agricultural technology-extension workers and local farmers participated in training sessions on agricultural nonpoint source pollution reduction and environmentally friendly agriculture.

With the project assistance, the Chao Lake Management Authority established its authority and enhanced its capacity for managing the lake basin. Its human resources attained the staff skills needed to achieve its objectives. An information system and monitoring facility was established and has been issuing an annual monitoring report on the ecological health of the lake since 2017.

The government expanded the Chao Lake Management Authority’s original mandate and entrusted it with a greater role in lake basin management. This enhanced the institution’s sustainability as well as demonstrated the strong commitment of the Anhui Provincial Government to integrated water resources management in the lake basin.

The overall water quality in Chao Lake was restored to Class IV in 2021 from Class V in 2010. The water quality of the eight upstream rivers flowing into the Chao Lake with national control sections also largely improved. In 2021, the annual water quality assessment of the national control sections of the lake basin fully reached the required standard. Since 2021, the endangered Ciconia boyciana (Oriental Stork) and Emberiza aureola (Yellow-breasted Bunting) have become frequent visitors to the lake because of the improved aquatic ecosystem. This improvement occurred alongside significant economic growth in the region, with the GDP of the Chao Lake basin increasing from CNY70 million (about $9.7 million) in 2017 to CNY108 million (about $15 million) in 2021, representing an approximate 11% compound annual increase.

Lessons

Institutional capacity. The creation of a primary institution to manage the lake was important for integrated river basin management. However, turning a good concept into reality took time and required an evolutionary process. At the beginning, the Chao Lake Management Authority struggled to establish its authority and distinguish its responsibilities from related provincial line departments. Persistent efforts enabled the agency’s transformation into an established and recognized lake basin management institution over the past 10 years.

Strengthening its institutional capacity was a critical success factor. The project gave timely support to the Chao Lake Management Authority by improving its technical capacity, providing advanced monitoring facilities, developing a lake management information system, addressing key management issues, and connecting it to international networks.

Effective incentive mechanism. Reducing the agricultural nonpoint source pollution remains to be a challenge in the Chao Lake basin. Since household farming was the major source of livelihood for many years, the increasing labor cost and low environmental literacy of local communities hindered the transition to environmentally friendly agriculture. While an eco-compensation program can provide incentives to farmers, the absence of a cost-effective measure to quantify the pollution emission from a household’s farmland impeded the wide application of an effectiveness-based quantitative incentive mechanism. The increased land circulation for crop farming in recent years offers new opportunity for this endeavor.

Digital governance. Data accessibility and integration are often an issue in the digital governance of a lake basin. The data are usually collected and held by different line departments, such as those on environmental protection, agriculture, land resources, and water resources. The Chao Lake Management Authority successfully addressed this concern by initiating a monitoring system reform to integrate the monitoring data sets for the lake basin. This involved unifying planning, design, indicator system, inspection, software management, and data platforms while allowing different departments to install, operate, and manage the monitoring facilities separately.

^[1] According to the PRC Environmental Water Quality Standard GB3838-2002, Class III water is suitable as a supply source for a municipal drinking water treatment plant and for swimming. Class IV water is suitable for use as a general industrial water supply and for recreational use involving no direct human contact with the water. Class V water is suitable only for agricultural water supply and general landscaping use. Class V+ water is unsuitable for any use.

^[2] Q. F. Zhang and M. Bennett. 2011. Eco-compensation for Watershed Services in the People’s Republic of China. Manila: Asian Development Bank.

^[3] See footnote 1.

References

Asian Development Bank (ADB). 2022. Completion Report: Anhui Chao Lake Environmental Rehabilitation Project in the People’s Republic of China. Manila.

ADB. People’s Republic of China: Anhui Chao Lake Environmental Rehabilitation Project.

ADB. 2016. People’s Republic of China: Saving the Great Lakes. Project Result/Case Study. 02 March.

ADB. 2015. Reviving Lakes and Wetlands in the People’s Republic of China, Volume 2. Manila.

ADB. 2012. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the People’s Republic of China for the Anhui Chao Lake Environmental Rehabilitation Project. Manila.

Author

Xin Shen

Senior Project Officer (Natural Resources and Agriculture), East Asia Department, ADB

This blog is reproduced from Development Asia.

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Tag: Environment

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Shaanxi Qinling Biodiversity Conservation and Demonstration Project

Engaging Private Sector and Nonprofit Organization in Ecosystem Restoration

Innovative collaborative governance

Integrating industrial development with ecosystem restoration

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Author

Zhiming Niu

Strengthening Biodiversity Conservation in the Yellow River Basin of Henan Province, the PRC

Ecological Protection in the PRC: Pilot Case Studies on Comprehensive Eco-Compensation, Poverty Alleviation, and Green Development

Resilience Rising: Battling Nature’s Fury in the PRC

Planting the Seeds for an Environmentally Sustainable Future

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Xin Shen

Rehabilitating the Chao Lake Basin in the PRC

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Xin Shen

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