Ecological compensation is a key tool to realize China's vision to refine its ecological management regime and to transition to a sustainable growth model.
Eco-compensation has become an important policy framework in China, which encompasses a wide range of programmes for addressing conservation and environmental restoration while supporting local livelihoods. The concept comprises a package of incentive-based policy and regulatory instruments with the primary objective of internalizing negative environmental externalities such as water pollution, biodiversity loss, land degradation, or deforestation.
This paper provides case studies of ecological compensation in China. The country's experience in innovative eco-compensation programmes and policies to achieve dual environmental and social co-benefits can offer insights to countries facing similar challenges in environmental management in the Asia and Pacific region and beyond.