1. MICHAEL BENNETT FOREST TRENDS Research Fellow, Peking University Visiting Scholar, EfD Research Fellow. Markets for Ecosystem Services in China: Inventory of PES/MES Activities, Initiatives and Programs in China, Interim Report

3. Background Soil and Water Conservation Law (1991) Stipulates that farmers can contract marginal, barren & degraded land in watersheds and have ownership rights over what is produced, with the obligation to prevent soil erosion. Green Food Label, Environmental Label The Green Food Label indicates that food is produced with low pesticide and chemical fertilizer use. The Environmental Label indicates that non-food products are produced in line with national environmental and social development goals. PES/MES in China has been ongoing since the early 1990s…

4. 1997 Yellow River dry-up, 1998 Yangtze River Floods led to… Sloping Land Conversion Program Initiated in 1999, pays farmers to retire & plant trees/grasses on marginal cropland. Has enrolled 9 million ha of cropland, spent over RMB 130 billion so far. Currently encompasses 25 provinces, 2279 counties, and over 32 million rural households. Forest Ecosystem Compensation Fund Farmers and communities paid to conserve key “public benefit” standing forest area. Initiated in 2001, has spent over RMB 13.34 billion (RMB 3.34 billion in 2007 alone), currently covers over 105.2 million ha of forest area across 30 provinces. ...which have generated significant activity and momentum at both central and local levels… Background

6. Background Pan Yue, Deputy Director of the Ministry of Environmental Protection: “ [ Ecocompensation policy is ] not only an environmental and economic, but also a political and strategic need. Ecocompensation policy that focuses primarily on instruments that transfer implementation and financial costs between developed and developing regions, between urban and rural areas, between rich and poor, between lower and upper watershed areas, between those benefiting from the environment and those suffering from environmental degradation, and between high-polluting high-energy industries and ‘green’ industries, needs to be improved.” (12 th Green China Forum, 2007).

24. Provincial FECP (Central: RMB 75/ha) Fujian Province (+ RMB 30/ha)

25. Provincial FECP (Central: RMB 75/ha) Hainan Province (same rate, additional land area enrolled)

26. Provincial FECP (Central: RMB 75/ha) Jiangxi Province (+ RMB 30-75/ha)

27. Provincial FECP (Central: RMB 75/ha) Zhejiang Province (+ RMB 45/ha)

28. Provincial FECP (Central: RMB 75/ha) Guangdong & Guangxi Provinces

29. Other Programs: Forestry SLOPING LAND CONVERSION PROGRAM SANDSTORM SOURCE CONTROL PROGRAM/ANTI-DESERTIFICATION NATURAL FOREST PROTECTION PROGRAM

30. Other Programs: Eco-Labeling Government “Green” Procurement & China Environmental Label “ Green” Food Certification Systems Organic Food Certification System

31. Other Programs: Agriculture Various Local Subsidies for Development of Green and Organic Agriculture Promotion of Rural Biogas Development (Ministry of Agriculture) Promotion of Conservation Tillage (Ministry of Agriculture)

32. Other Programs: Energy Export Tariffs on Energy-Intensive Industries Renewable Energy Law (2005) Energy Efficiency Law (2007)

33. CDM, Emissions Trading, etc. Various emissions-trading experiments going on. Clean Development Mechanism Beijing & Shanghai Environmental Trading Centers Recently Set Up