Ministry of Finance: Establishing a long-effect mechanism for eco-compensation

In line with the central government’s decision to enhance ecological protection along the Yangtze River Economic Belt, the Ministry of Finance announced guidelines to establish a long-acting mechanism for ecological compensation and protection in the region in February 2018.

The document focuses on green development and gives priority to ecological conservation. Through the coordination of general and special transfer payments, an incentive and guidance mechanism will be set up to increase financial investment in ecological compensation and protection, it stated.

A more complete mechanism for the protection and management of the Yangtze River basin is expected to take shape by 2020, according to the document.

It also said that centralized financing will increase policy support to the area through increasing ecological weight in balanced distribution of transfer payments, raising direct compensation through transfer payments to key ecological functional areas, and implementing incentive policies for ecological protection and restoration.