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Plan for valuing ‘ecological products’ released

 The big environmental stories in the Chinese media (April 30-6 May)

At the end of April, the Party released guidelines on establishing “value-realisation mechanisms for ecological products”, something proposed in China’s 14th Five Year Plan

The document says the system’s goals are to “completely renounce the practices of sacrificing the environment and ecosystems in exchange for economic growth”, to “multiply natural capital”, and to allow providers of “ecological products” to enjoy living standards comparable with providers of food, industrial products and services.

The guidelines don’t define “ecological products” but the phrase can be understood to include sustainably grown food as well as less tangible (service products) such as conserving the environment to keep water clean.
 
The document provides for comprehensive surveys to confirm ownership of eco products across the country, and the establishment of a Gross Ecosystem Product (GEP) accounting system, to measure their value. Markets for trading eco products will then be established based on these. Existing markets for carbon emissions, pollution rights and water rights will be improved and new ones will be established for carbon sinks, forest coverage and others.
 
Ecological compensation, so important for conserving large areas equitably, also features prominently in the document. It proposes improving the existing “vertical” mechanisms (from higher to lower governments) for ecological compensation, and establishing a “horizontal” one (from the providers of ecological products to the beneficiaries). This mirrors a plan released on Wednesday by multiple government ministries on establishing such a system for the entire Yangtze river basin.
 
The document designates 2035 as the year the system will be fully established and perfected, calling it a pillar for the “ecological civilisation with Chinese characteristics”.

(Sources: China Dialogue)

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