China issues guideline on deepening reform of eco-compensation mechanism

China has released a guideline on deepening the reform of the country's ecological compensation mechanism to speed up the building of ecological civilization.

The guideline, jointly released by the general offices of the Communist Party of China Central Committee and the State Council, details measures for the country to realize long-term ecological compensation goals set for 2025 and 2035.

By 2025, an ecological compensation mechanism that is aligned with economic and social development should be basically built up. The classified compensation system targeting ecological elements such as rivers, natural forests and wetlands, and the comprehensive compensation system that features fiscal support will be improved.

In the meantime, a market-oriented and diversified compensation pattern will be formed with the whole society more actively participating in ecological protection.

By 2035, the country will form an ecological compensation mechanism that meets the requirements of ecological civilization in the new era, according to the document.

The classified compensation system will take into account factors including the economic and social development of the ecological protection areas, and the protection costs of diverse ecological elements.

Efforts will be made to explore a protection mode that facilitates local governments to strengthen coordination in practicing ecological protection measures, said the document.

While focusing on national ecological security priorities, the country will enhance the comprehensive compensation system with policies that conform to the financial capacity and promote equal access to basic public services.

Efforts will be made to give full play to the role of market mechanism to promote diversified compensation and help regions that conduct ecological protection measures obtain benefits, so as to encourage the whole society to participate in ecological protection.

According to the document, the country will accelerate the building of a national market for trading energy use rights and carbon emission rights, which is to involve voluntary emission reduction projects on greenhouse gases in the fields of forestry, renewable energy and methane utilization.

To expand market-oriented financing channels, financial institutions, qualified non-financial firms and insurers are encouraged to provide green services and products, the document added.

Supporting policies regarding the rule of law, ecological environment monitoring, and fiscal and taxation will also be introduced to deepen reform of the country's ecological compensation mechanism.

Related parties should take their responsibilities to protect ecological environment, and mechanisms to evaluate and supervise the implementation of the policies regarding ecological protection will be further improved, the document said.