China to Establish Ecological Product Value-realization Mechanism
Amid its environmental protection and green development efforts, on 26 April 2021, the General Offices of the Central Committee and the State Council jointly issued a guideline on setting up and improving the mechanism for realizing the value of ecological products. According to the guideline, the main objective is to establish a basic policy framework which governs value realization of the products by 2025. Problems related to measuring, mortgages, transactions, and value realization of ecological products shall be effectively solved by 2025, and an interest-oriented mechanism for environmental protection will take a basic shape. A sound mechanism for realizing the value of the products will be formed by 2035 so that green production and a sustainable way of life may take hold in the country.
Furthermore, both government bodies plan to establish an ecological product survey and product value assessment mechanism. This will be supplemented by ecological product value accounting standards and the promotion of their application. These measures are intended to spur the trading of rights and interests related to ecological resources. Moreover, the ecological product protection compensation scheme is planned to be improved and fine-tuned.
Finally, the guideline also stressed more support for green finance, encouraging banks to increase medium- and long-term loan support for entities managing or developing ecological products and reduce financing costs reasonably.