Post on 12-Jun-2015
Integrated Policy Solutions to
China’s Conservation Challenges
Douglas Whitehead
Global Environmental Institute
douglas@geichina.org
Major Conservation Challenges in ChinaMajor Conservation Challenges in China
•• Management of nature Management of nature reserves reserves
•• Public and Civil Society Public and Civil Society Participation Participation
•• Regulating environmental Regulating environmental behavior by enterprisesbehavior by enterprises
–– At the local levelAt the local level
–– OverseasOverseas
•• Mitigating impacts of Mitigating impacts of resource extraction on resource extraction on climate and biodiversityclimate and biodiversity
–– timber, mining, energytimber, mining, energy……
Challenge: China’s Nature Reserves
• 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?
•15% of China’s overall land area
•Activities, resource extraction from enterprises at the buffer zone pose threat to biodiversity in the nature reserve
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)
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 fundingfor 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
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
CIA Model
Incorporating PES into Project Model
• Hydropower in Baoxing
– 7 stations within the nature reserve, totaloutput 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 andcommunity development
• Policy Suggestion on CIA-PES
– SFA and NPC’s Environmentand Resources Protection Commission
CIA-PES: Refined Model
Conservation Actions
By communities
Benefits provided
Economic activities
Enterprises
Cons. & Develop. Fund
Conservation
Rights
Conservation Agreement
Between
Nature Reserve & GEI
PES
CIA
Conservation Agreement
Between GEI & Communities
PES
• Since early 2000s, guided byinst. 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 maintainImage as responsible super-power
• Challenge: How to ensure
best environmental impactoverseas?
Challenge: The “Go Out Strategy”
China’s FDI
OverallSource: OECD
By sector By Region (hydro) Source: GEI
Environmental Impact
Merowe Dam, Sudan:
China Int’l Water and Electric
Sedimentation, evaporation,
resettlement
Oil, GabonSinopec
Threat to 67,000 hectares
in Loango National Park
Nam Ngum 5, LaosSinohydro
Potential flooding damage on
forests, communities(under-construction)
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 OverseasForests 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)
Source: OECD
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
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
Model 2: Guarantee Fund for
Community
Development and Environmental
Protection
Model 1:
Government-
NGO-
Enterprise Model
Pilot: Lao PDR
• Project:
– Lao China Cooperation Center (WREA, NLMA)
– Sustainable (market) management of Landand Natural Resources
– Incorporating PES into legislation
• Demonstration
– Sinohydro—Nam Ngum 5
– Enterprise buy-in for community development
– Renewable Energy (biogas)
REDD in IPP
• Concerns about REDD
– Lack of agreement on fossil fuels in Copenhagen
– Limited to tropical forests
– What about indigenous communities?
– Cannot be implementedeffectively 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
???
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