December 2011
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Title
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P0016 Water Ecology Compensation (PES) Policy and Mechanism
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Australian $
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$1,647,392
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Chinese $
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In-kind
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Duration
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28 months
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Key Chinese Agencies
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Ministry of Water Resources (MWR), Ministry of Environmental Protection (MEP) ) and Chinese Academy for Environmental Planning (CAEP)
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Australian
Contractor
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Australian National University (ANU) Enterprise
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Status
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Running
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Objectives
The project aims to make policy recommendations to MWR and MEP on suitable mechanisms for ‘Payment for Environmental Services’ (PES) and to explore potential follow-up activities to then develop a (PES) Framework for China at the national policy level.
Key Activities / Components
The project consists of two subprojects that will address the needs of both MEP and MWR. The two subprojects will proceed in parallel to ensure synergies are maximised. At specific points in component 2 and 3 the project will develop an integrated approach for production of guidelines for PES mechanisms. The project comprises 3 key components:
· Scoping (month 1-2): a database including relevant data, reports and other information will be established; inception of project and design of capacity building program including training needs in Australia
· Capacity Building (month 3-5): includes in-Australia training and follow-up in-China workshop series to produce inventory of Australia and China experiences in PES, discussion papers on PES principles and methods for further testing at feasibility stage
· Feasibility Analysis of PES Mechanisms in China (month 6-9): feasibility analysis of PES theories, principles, criteria, etc will be carried out in selected pilot river basins with a report submitted to the 2 ministries for consideration of broader applications in China. An integration workshop will be held at the end in which decision will be made whether there is willingness to design a follow-up project to develop guidelines for PES mechanism in China given the funding sources available.
Extension of the project named “national Payment for Environmental Services Guidelines” is designed to cooperate with two ministries together for the following activities:
· Workshop series in Australia: Literature review will be produced on the experiences in and lessons from EC and PES in watershed in China and Australia and elsewhere as a discussion paper for the workshop series. Joint working papers from the workshops will provide analysis of assessment framework and decision support model, and analysis of policy, regulation, institutional and administrative implications.
· Refine assessment and regulatory framework: modify frameworks based on outcomes from previous project and provide training to two ministries and pilot sites on application of decision support model.
· Completion workshop: disseminate the whole project outcomes.
Contribution to ACEDP Program Outcomes
It is envisaged that this intervention will influence the shaping of Chinese PES policies through targeted capacity building at individual and institutional levels.
Highlights
The extension inception workshop report was approved by PCO in September and ten delegates from MEP, MWR and NDRC attended the Australian Series of Workshops during 19-23 Sep. A dedicated ‘Assessment Framework’ workshop was held in Beijing on 29th Nov and the Final Completion Workshop on 1st Dec. Final policy recommendation reports are expected to be concluded in January. Discussion between ANUE and Chinese counterparts continue on how to utilise project savings, with more training on the ‘assessment framework’ and enhanced inter-agency collaboration for formulation of the final policy recommendations being clear favorites.