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  1. 1. Integrated Policy Solutions to China’s Conservation Challenges Douglas Whitehead Global Environmental Institute douglas@geichina.org
  2. 2. Major Conservation Challenges in China • Management of nature reserves • Public and Civil Society Participation • Regulating environmental behavior by enterprises – At the local level – Overseas • Mitigating impacts of resource extraction on climate and biodiversity – timber, mining, energy…
  3. 3. Challenge: China’s Nature Reserves •15% of China’s overall land area •Activities, resource extraction from enterprises at the buffer zone pose threat to biodiversity in the nature reserve • Problems in the funding structure make managing the reserves difficult • Improving policy environment for civil society • Challenge 1: how to enhance management of the nature reserve without affecting community livelihoods and enterprise activities?
  4. 4. Fengtongzhai Nature Reserve • Significance – Baoxing County, Ya’an Prefecture, Sichuan Province – First record of Giant Pandas – Other biodiversity • Challenges – Unitary Funding and Administration Structure – Encroachment by communities at buffer zone (see red areas on map)
  5. 5. Conservation Incentive Agreements in Baoxing • Conservation Concession Agreement – Pioneered by CI (Guyana, Peru) – Land use concession, signed between protection org. and local communities – Mechanism for allocating funding for conservation activities • GEI: Conservation Incentive Agreements – 2 Agreements signed in April 2007 • Nature Reserve (1,771 hec.) • Farmers’ Cooperative – CNY100,000 P&D fund with Baoxing Rural Credit Union – Combines CCA with additional community development for CIA
  6. 6. CIA-Community Development • Livelihood Programs – Rabbit rearing – Honey production • Energy: Biogas (10m3, floating drum) – Reducing firewood collection and combustion – Reduction of emissions (23 million tons annually) – Waste management • Other Energy Solutions – Biochar? • Disaster Mitigation • Enhancing Local Capacity – Biogas maintenance teams – Luyuan Farmer’s Cooperative
  7. 7. CIA Model
  8. 8. Incorporating PES into Project Model • Hydropower in Baoxing – 7 stations within the nature reserve, total output 577,000KW – Incl. Huaneng Hydro- electric, Sichuan Power – Damage to biodiversity • PES—Payments for Ecosystem Services – Funds for ecosystem ser- vices (e.g. protection, clean water) – Hydropower PES payments contribute to protection and community development • Policy Suggestion on CIA-PES – SFA and NPC’s Environment and Resources Protection Commission
  9. 9. CIA-PES: Refined Model PES Enterprises Conservation Actions By communities PES Conservation Rights Cons. & Develop. Benefits provided Fund Economic activities Conservation Agreement Between Conservation Agreement Nature Reserve & GEI Between GEI & Communities CIA
  10. 10. Challenge: The “Go Out Strategy” • Since early 2000s, guided by inst. like Exim bank • US$40.65 of outbound Direct Investment Overseas • Sectors: Timber, Hydropower, Plantations, Mining, Oil & Natural Gas • Regions: SE Asia, Africa, Latin America • China working to maintain Image as responsible super- power • Challenge: How to ensure best environmental impact overseas?
  11. 11. China’s FDI Overall Source: OECD By sector By Region (hydro) Source: GEI
  12. 12. Environmental Impact Merowe Dam, Sudan: China Int’l Water and Electric Sedimentation, evaporation, resettlement Oil, Gabon Sinopec Threat to 67,000 hectares in Loango National Park Nam Ngum 5, Laos Sinohydro Potential flooding damage on forests, communities (under-construction)
  13. 13. Governing China’s Enterprises • Domestic – 2002 Environmental Impact Assessment Law (NPC), among many – Market based instruments (DPS, EPBs, tax incentives, green credit, green insurance) • Foreign – 2007 Nine Principles on Encouraging and Standardizing Foreign Investment (State Council) – 2007 Guidelines on Sustainable Management of Overseas Forests by Chinese Enterprises (SFA, SEPA) – 2008 Guide on Sustainable Overseas Silviculture by Chinese Enterprises (SFA, with GEI) – 2009 Guide on Sustainable Overseas Forest Management and Utilization by Chinese Enterprises (SFA, MOFCOM, with GEI) – 2009 Guidelines on Environmental Conduct by Overseas Chinese Enterprises (MEP, MOFCOM, with GEI)
  14. 14. Source: OECD
  15. 15. Challenges in Governance • Improved legislative and enforcement capacity of local (host country) governments • Coordination between government departments • Increased participation by civil society • Assistance to local communities • More systematic, market-based incentive mechanisms • Incentives for complying with laws
  16. 16. A Solution: Integrated Policy Package • Policies: CCA, PES, EIA, CSR, REDD(?) – EIA: incorporated into legislative process of host countries – PES: Ecological services quantified, payments contributed through fund – CCA: Allocates how PES payments would go towards conservation; land use concessions – CSR: Voluntary tool, mounting domestic pressure – REDD: “carbon credits” for reduced deforestation • Advantages: – Designed to address multiple stakeholders – Community Development benefits – Enhances civil society participation
  17. 17. Model 1: Government- NGO- Enterprise Model Model 2: Guarantee Fund for Community Development and Environmental Protection
  18. 18. Pilot: Lao PDR • Project: – Lao China Cooperation Center (WREA, NLMA) – Sustainable (market) management of Land and Natural Resources – Incorporating PES into legislation • Demonstration – Sinohydro—Nam Ngum 5 – Enterprise buy-in for community development – Renewable Energy (biogas)
  19. 19. REDD in IPP • Concerns about REDD – Lack of agreement on fossil fuels in Copenhagen – Limited to tropical forests – What about indigenous communities? – Cannot be implemented effectively w/o strong governance – Philosophical problem: co-benefits? • How can IPP help? – Community participation through EIA, PES, CCA ??? – Improved bilateral governance – Combines multiple market-based incentives
  20. 20. Benefits of an Integrated-Policy Approach • Pilot project policy advocacy • Enhances relationship between enterprises and local communities • Greater role for Chinese civil society in China’s international cooperation • Alleviates many of the concerns regarding REDD • Ideal balance between conservation and development