Global Environmental Institute Annual Report

INVESTMENT, ENERGY AND BIODIVERSITY CAPACITY TRADE AND THE CLIMATE CHANGE CONSERVATION BUILDING ENVIRONMENT GEI 2014 contents 2 About GEI CONTENTS

Investment, Trade and the Environment P25-32

Regional Environmental Governance and Innovative Market Mechanism: Demonstration Projects in Expert Steering Committee China and Myanmar Sponsors in 2014 - Environmental Policy in ASEAN-China GEI’s Project Sites Investment and Trade Letter from the Executive Ten Years of Achievements Director - Environmental Impact Assessment Training GEI’s 10th Anniversary Major Events in 2014 - Rural New Energy: Technology Celebrations Diffusion and Carbon Finance Energy and Development Climate Change - Sustainable Agriculture and Value P7-14 Chain Development

China-US Cooperation on China-Myanmar Cooperation Climate Change to Combat Illegal Timber Trade and Promotes Sustainable - Promoting Dialogue between Forestry Investment Climate Change Policymakers from the US and China China-Africa Cooperation on Forest Resources Management - Research, Development and Demonstration of the Chinese 2014 Financial Report The Global Environmental Institute (GEI) is a non- As a China-based non-government organization (NGO) Scoping Study of Chinese Provincial Low Carbon Development Investment in Laos profit, non-government environmental think tank. with an international focus, GEI explores solutions to Planning Toolkit Founded in Beijing in 2004, GEI received a 4A Civil environmental issues facing China and the world. We Environmental Capacity Society Evaluation Rating from the Civil Affairs Bureau propose forward-looking policy recommendations Rural Clean Energy Promotion Building for Chinese Investors of Chaoyang District in 2013. During its first decade, to the Chinese Government, and through innovative - Demonstration and Comparison Release of China’s Going Global GEI’s work has spanned more than 20 provinces, demonstration projects fuse best practices in of Promotion Models of Biomass municipalities and autonomous regions in China, as environmental protection, energy conservation, and Stoves well as many countries in South Asia, Southeast Asia community livelihoods with market mechanisms, in - Biogas Project Remediation Capacity Building and Africa. order to drive sustainable development. Standards and Use of Research P33-40 Funds -Myanmar: Demonstration and Promotion and Training for Low Promotion Carbon Policy Quantification GEI Staff in 2014 Toolkit GEI Interns and Research Biodiversity Environmental Impact Fellows in 2014 Conservation Assessment Training P15-24 GEI Volunteers in 2014 Capacity Building on Environmental Compliance for Advisors to GEI New Management Systems Chinese Overseas Investors for Nature Reserves in China: Partner Organizations Research and Demonstration Eco-farm Development Training Mission for Sanjiangyuan Networks GEI Belongs to To use market mechanisms and make policy recommendations to solve environmental problems, working towards NGEPSA Policy Suggestions mutual social, environmental, and economic benefits. and CCCA Demonstration Grassland Degradation Management in Ningxia Province Vision Improving Air Quality in We envision a healthy and diverse world in which society, the environment and the economy develop in harmony. Wulijitu in Inner Mongolia by Controlling Sand Dust Sources with Physical and Biological Measures Companies Incubated by GEI Projects 3 GEI 2014 Expert Steering Committee GEI 2014 Sponsors 4

Expert Steering Committee Sponsors in 2014

Yang Chaofei Vice Chairman of the Board of the Chinese Society for Environmental Sciences Wang Yi Director of the Institute of Policy and Management at the Chinese Academy of Sciences Wen Haizhong Deputy Director of the Natural Forest Protection Program Centre within the State Forestry Administration blue moon fund Ford Foundation Ford China Li Xiaoyun Dean of the College of Humanities and Development at China Agricultural University Zhang Jiqiang Vice President of Programs at the blue moon fund Guo Shenyu Director of Southern China Program at the Rockefeller Brothers Fund Li Nuyun Secretary General of China Green Carbon Foundation

Rockefeller Brothers Fund National Geographic Air and International Institute for Water Conservation Fund Environment and Development Yang Chaofei, “GEI holds world-leading vision. It has already recognized problems and used world- leading methods to solve these tasks, and has important demonstration significance in China.”

Wang Yi, “In its 10 years GEI has done much advanced work. The organization is very visionary and has chosen to use market economic methods to resolve environmental problems. Amongst environmental protection organizations perhaps GEI is the sole one doing so.”

Wen Haizhong, "GEI promotes the CCCA mechanism through demonstration projects which foster World Conservation Society UNDP / Global Environment Facility GlobalGiving environmental, economic and social win-wins among government departments, responsible businesses and communities. These policy tools will play an increasingly important role in natural forest protection in China."

Zhang Jiqiang, “GEI’s distinguishing feature is its ability to predict circumstances that might occur 3-5 years ahead of the government, and according to international experience, propose and furthermore demonstrate solutions to, amongst other things, minimize political and economic risks. I hope GEI can maintain this feature and continue to provide the government with appropriate suggestions to refer to.” Oak Foundation Center For Climate Strategies The Asia Foundation UK Aid / LTS International Guo Shenyu, “We hope that our projects are based on local peoples’wisdom and leadership. We are lucky to have met GEI, who helped us to achieve our project goals, and in doing so we have learnt a great deal from GEI. So thanks to GEI!”

Li Nuyun, “GEI is very good at strategic thinking and brings a strong philosophy to conducting project work. In these years of cooperation with GEI, I have also grown. I hope that this cooperation can continue and take best practice, technology and experience from the forestry industry to make international recommendations.” China Green Carbon Ministry of Agriculture of the Foundation Peoples Republic of China 5 GEI 2014 Letter from the Executive Director GEI 2014 Major Events 6 Major Events in 2014 Letter from the Executive Director January March April

GEI finalized a recommendation for On the 31st, GEI held a publication The Chongqing Development and adopting Community-Driven Conservation launch for Environmental and Social Reform Commission gave its high- Concession Agreements (CCCA) in Challenges of China’s Going Global. level approval for the report titled Biodiversity Conservation work in China. ‘China Low Carbon Policy: 12th Five- With the support of the China Association Year Plan Evaluation and 13th Five-Year for Promoting Democracy (CAPD), the Plan Recommendations – Chongqing proposal was submitted to and recognized Case Study’ co-written by GEI and the by the Standing Committee of the CPC Institute of Policy and Management at Central Committee. the Chinese Academy of Sciences, and Dear friends, issued an official ‘Application of Results Certificate’. 2014 was a memorable, exciting year for GEI as we celebrated our tenth anniversary.

In 2014, GEI integrated the tools and technical practices we have developed previously into new software, in order to realize more scientific, standardized data acquisition and analysis. The software is easy to use, which paves the way for further widespread May July promotion. The software includes: On the 26th, Ms. Yan Junqi, Vice Chairman GEI formally put forward the concept of developing an eco-system services-based Low-carbon Policy Quantitative Analysis Toolkit 1.0 can be used to account and forecast energy consumption and greenhouse of the NPC Standing Committee and economy to safeguard national ecological security and community economic interests at gas emissions, analyze the costs and benefits of low-carbon policies, and assess the macroeconomic impact of policies. Chairman of CAPD, conducted an a seminar on Ecological Security Systems co-hosted by GEI in Beijing. inspection of GEI’s project site in Sichuan During a US-China EcoPartnerships Program seminar held on the 8th, NDRC Deputy- Handheld Terminal Software for Nature Reserve Patrol V1.0 is designed specifically for use in routine patrol to collect data about Province’s Fengtongzhai National Reserve Director Mr. Xie Zhenhua praised GEI, our US partner the Center for Climate Strategies animals, plants, disasters, and illegal behavior. The software has been developed as an Android App, and records the patrol route and highly praised the CCCA mechanism (CCS) and other participating NGOs for cooperating on low carbon policy and introduced by GEI. using GPS on the cell phone it is installed. implementation projects, recognizing the contribution this has made to the advancement of low carbon development in both countries. Intelligent Nature Reserve Protection Management System V1.0 is a back-end computer management system networked with the patrol App, and supports data analysis, reporting, assessment and early warning. At an EcoPartnerships signing ceremony on the 10th, US Secretary of State John Kerry October spoke about the importance of bilateral subnational cooperation on climate change In 2014, GEI has made further progress through our Investment, Trade and Environment program. We have cooperated with a range between the US and China, highlighting the Ecopartnership between GEI and CCS as a of actors to complete studies of Chinese investment and timber trade in Mekong Basin countries, and a study on timber trade in On the 17th, GEI held its 10th anniversary successful example of such initiatives so far. four African countries. GEI has also made great efforts to promote sustainable Chinese investment in Myanmar, including facilitating celebration in Beijing. th th cooperation between the Export-Import Bank of China and Asia Wealth Bank, and assisting the use of China's national climate From the 10 to 19 , GEI accompanied a delegation of representatives from CAPD, blue moon fund, Oak Foundation, Tsinghua University and Shanshui Conservation Center on change aid in Myanmar. In addition, GEI launched and implemented the demonstration of Chinese renewable energy technologies an in-depth investigation in Sanjiangyuan. After concluding the investigation, GEI and in Myanmar. Through this and other work, GEI is leading the way for Chinese NGOs to "Go Global" and conduct positive work in the above-mentioned organizations submitted a policy recommendation to establish other parts of Asia, Africa and even Latin America. a national park system on the premise of constructing a nature reserve system to the Chinese National Development and Reform Commission, to urge the establishment of a In 2014, GEI took the opportunity to renew the way we work as an organization. Going forward, more cross-collaboration will be Sanjiangyuan national park. involved among program teams covering Climate Change, Biodiversity Conservation, and Investment, Trade and Environment. GEI’s projects in Sanjiangyuan and Myanmar provide a unique platform for such collaboration.

GEI brings a forward-thinking, global outlook to address the environmental and social challenges associated with China’s rapid development. For the past decade we have worked to demonstrate solutions and assist the government to develop suitable November December policies. In 2014, GEI’s Expert Steering Committee outlined a more confident vision for the organization: "an influential think tank th th that contributes ideas and solutions”. On the 6 , a group of 24 delegates from Cummins Emissions On the 8 , during COP 20 – the United Nations Climate Change Solutions (CES) visited a village in Shanxi Province, including Conference held in Lima, Peru – GEI’s Executive Director Madam Jin Jiaman was invited to take part in the South-South Finally, I would like extend my sincere thanks to GEI's funders, partners and friends for your support over the last ten years. We departmental managers from America and Vice President of Cooperation on Climate Change Forum. look forward to more successes with you over the coming decade! Cummins Inc. and General Manager of CES Ms. Amy Adam, to investigate the clean stove project CES conducted in cooperation On the 11th, as part of the UN COP 20 Climate Change with GEI. Conference, GEI jointly held an official side event with US-based partners the Center for Climate Strategies and UK-based Climate The ASEAN 2014 Joint Statement on Climate Change was Strategies. The focus of the side event was ‘International Insight adopted at the ASEAN Leaders' Summit 2014, GEI and its project on China & Supporting Chinese Sub-national Governments partner Vermont Law School provided technical support for Achieve Carbon Targets’. Jin Jiaman drafting of the Statement at the request of Myanmar, who was th Executive Director serving as rotating Chair of ASEAN. On the 17 , GEI held the third annual meeting of its Expert Steering Committee in Beijing. GEI 2014 Energy And Climate Change 8

China-US Cooperation ENERGY AND on Climate Change Yu Qingchan [email protected] CLIMATE CHANGE Cui Nanying [email protected] Xu Shengnian [email protected] (Joined GEI in 2014) Ji Lin [email protected]

Promoting Dialogue between Climate Change Policymakers from the US and China

As the world’s two biggest emitters of greenhouse gases, effective On 12th November 2014, the two countries issued the China-US cooperation between China and the US on climate change, Joint Announcement on Climate Change, with China pledging environmental and energy policy is crucial to pave the way for a to achieve a peak in carbon emissions by 2030 and increase the new international climate change agreement and the success of proportion of non-fossil fuels in primary energy consumption. global climate change mitigation efforts as a whole. In the days after the announcement, GEI collected a sample of responses from the US side, including those by senior Democratic Since 2007, GEI has successfully organized more than ten and Republican Party officials. This information was translated and informal China-US climate change dialogues to promote deeper submitted to the leaders of the Department of Climate Change understanding and communication between high-level policy at the National Development and Reform Commission (NDRC) makers from both countries on issues relating to climate policy. responsible for low-carbon policy making in China.

GEI has adopted a three-pronged approach in response to the global need to tackle climate change and develop cleaner sources of energy: Research, Development and Demonstration of the Chinese Provincial Low Carbon Development Planning Toolkit High-level dialogue between China and the US: GEI launched the ‘US-China Bilateral Dialogue (Track II) on Climate Change’ in 2007, to promote deeper understanding and communication between policy In recent years, the concept of Low Carbon Development (LCD) Development of the Chinese Provincial LCD Toolkit comprising the makers and experts from both countries and ultimately foster a cooperative response to climate has become commonplace. In 2010 the NDRC launched the Low Policy Package of China (PAC) and Policy Insight of China (PIC) change. Carbon Development Pilot in eight cities across five provinces, models was completed in 2014, and received high-level approval Policy Research: in partnership with Chinese and American organizations, GEI continues to develop, including Guangdong, Tianjin and Chongqing. Many other Chinese from the NDRC. During a US-China EcoPartnerships Program demonstrate and promote the Low Carbon Policy Analysis Tool and provide capacity building training th for Chinese provincial governments on its use, in order to advance China’s low carbon development. cities soon followed suit and began developing their own LCD seminar held on 8 July 2014, NDRC Deputy-Director Mr. Xie Rural Renewable Energy: GEI promotes Chinese clean energy technologies across China and South- plans. In order to assist the formulation of scientific and effective Zhenhua praised GEI and other participating NGOs for cooperating East Asia and develops carbon reduction projects, to lessen the climate change impacts of rural low carbon policies, GEI along with experts from the US and China on low carbon policy and implementation projects, recognizing energy consumption and increase rural living standards. We also conduct follow-up studies of biogas jointly set about developing the Chinese Provincial Low Carbon the contribution this has made to the advancement of LCD in both management and maintenance models, and explore biogas repair standards and uses of government Development Planning Toolkit, in order to assist provincial and countries. At an EcoPartnerships signing ceremony in Beijing on July funds, to provide recommendations to government departments. municipal governments to develop quantifiable and workable low 10th, US Secretary of State John Kerry spoke about the importance of carbon policies. In May 2011, GEI and our US-based partner the bilateral subnational cooperation on climate change between the US Center for Climate Strategies (CCS) successfully joined the US-China and China, highlighting the Ecopartnership between GEI and CCS as EcoPartnerships Program under the US-China Ten-Year Framework a successful example of such initiatives so far. for Cooperation on Energy and the Environment, providing further impetus to our work in this area. 9 GEI 2014 Energy And Climate Change GEI 2014 Energy And Climate Change 10

Results from Using the LCD Toolkit in 2014 International cooperation

The Policy Insight of China (PIC) model from the LCD Toolkit was department of Climate Change at NDRC. Mr. Su expressed his hope In September, the Chinese government announced that it would In December, as part of the COP 20 in Lima, GEI jointly held an used to analyze and assess future energy policies and renewable that more policy assessments such as this can be carried out in establish a South-South Cooperation Fund on Climate Change, and official side event with US-based partners the Center for Climate energy development scenarios, which featured in the ‘China other low carbon pilot provinces and cities, in order to provide a GEI actively participated in research and discussion relating to the Strategies and UK-based Climate Strategies. The focus of the side Sustainable Development Report 2014’ issued by the Institute of summary of experiences to guide formulation of the 13th Five-Year design and operation of the fund. In December, during COP 20 – event was ‘International Insight on China & Supporting Chinese Policy and Management at the Chinese Academy of Sciences. Plan. The Chongqing DRC also gave its high-level approval for the the United Nations Climate Change Conference held in Lima, Peru Sub-national Governments Achieve Carbon Targets’. Director report and issued an official ‘Application of Results Certificate’. This – GEI’s Executive Director Madam Jin Jiaman was invited to take General of the Department of International Cooperation at China’s Analysis using the PIC model from the LCD Toolkit formed the basis acknowledged that policy recommendations made in the report are part in the South-South Cooperation on Climate Change Forum. National Development and Reform Commission (NDRC), Mr. Li of the ‘China Carbon Emissions Peak Scenario Analysis and Policy both relevant and practical, and will be used as a point of reference During her speech to the Forum, Madam Jin emphasized GEI’s vision Haiyan, delivered a high-level address in which he emphasized the Impact Assessment’ report. This provided technical support for the in formulating low carbon policies in the 13th Five-Year Plan. for effective use of the South-South Climate Change Fund and the importance of international cooperation in the global response to peak emissions scenario put forward by China, and received high importance of transparency in its application. climate change, in particular that between China and the US. level acknowledgement and approval from the NDRC’s Department The (PAC) model from the LCD toolkit was used in the initial of Climate Change. construction of a LCD planning tool for Guangdong province, and to conduct analysis and evaluation of the current LCD situation in The Policy Package of China (PAC) model from the LCD toolkit was Guangdong. Through researching relevant government department, used to analyze traits in Chongqing’s carbon emissions, principally associates and companies in Guangdong, analysis was conducted the contribution rate of low carbon policies towards achieving carbon of the carbon emissions reduction potential and associated costs of intensity targets, the amount of emissions reductions and costs Guangdong’s key low carbon development measures and policies. Research Reports associated with implementing such policies. This analysis formed the basis of a report titled ‘China Low Carbon Policy: 12th Five- GEI’s cooperative partner, the Institute of Policy and Management Investigative Report on American Energy and Climate Change Policies Year Plan Evaluation and 13th Five-Year Plan Recommendations – at the Chinese Academy of Sciences (CAS-IPM), applied to develop http://www.geichina.org/_upload/file/climate_change/201206_USvisit_Climate.pdf Chongqing Case Study’. The report was submitted to the NDRC and ‘China’s current low carbon policy assessment and 13th Five-Year Chongqing DRC, and the results approved by Mr. Su Wei, Head of the Plan adjustment and formulation research’. CAS-IPM obtained the approval of the China Clean Development Mechanism’s Fund Audit International Actions and Contributions in Response to Climate Change Council, and GEI will be a major participant in the project. http://www.geichina.org/_upload/file/report/StudyonActions&AchievementsMadetoAdaptClimateChange.pdf

Sub-national Low Carbon Planning in China and Experiences from the US http://www.geichina.org/_upload/file/report/StudyonLowCarbonPlanninginChinaProvinces&Cities.pdf Toolkit Promotion

In early 2014, GEI cooperated with the Tianjin Administrative Institute the formulation of regional environmental management and low to launch the ‘Economic Analysis of Low Carbon Public Policy’ carbon development policies. Experts from both China and the US capacity building project. The purpose of the project is to promote took part in the seminar. The Chinese participants included Director use of the ‘Low Carbon Policy Quantification Toolkit’ to the Institute’s General of NDRC’s Climate Change Department, Su Wei, Deputy training system and policy research, to provide government Director of the Ministry of Environmental Protection’s Pollution officials with a scientific decision making tool and increase the Prevention and Control Department, Wang Jian, Vice President of validity and scientific nature of decision making. By the end of the Chinese Research Academy of Environmental Sciences, Chai 2014 four demonstration classes had already been conducted, Fahe, Dean of the School of Environment at Tsinghua University, He with teachers from the Central Party School and government Kebin, and Director of the Beijing Municipal Research Institute of officials from over ten provinces and cities taking part in the training Environmental Protection, Pan Tao. Attendees from the US included and reporting positive feedback. (To read more details about President of the Southern California Association of Governments, the progress and results of this project, see ‘Low Carbon Policy Carl Morehouse, Deputy Director of the California Strategic Growth Quantification Toolkit Training and Promotion Project’ on page 34.) Council, Allison Joe, Vice Chairman of the California Planning Foundation, Janna Minsk, and Vice President of Regional Economic In June, GEI supported the Chinese Academy of Sciences to hold Models Inc. (REMI), Billy Leung. The recommendations put forward from this project are both focused the ‘International and Regional Integrated Planning and Cooperation and practical. The outcomes of the research provide a meaningful Exchange’. Speaking during the Exchange, GEI’s Executive Director reference in formulating policies relating to the 13th Five-Year Plan and Madam Jin Jiaman expressed her desire to continue cooperation will be utilized in the next phase of our work. with research organizations in China and abroad, and spoke of her hope that the ‘LCD Toolkit’ can be applied in establishing regional integrated planning, to provide technical support for and progress - Chongqing Development and Reform Commission 11 GEI 2014 Energy And Climate Change GEI 2014 Energy And Climate Change 12

Taking consideration of local energy use and economic conditions, At the end of June, GEI project officers accompanied Mr. Germer, Rural clean energy the project team conducted a detailed comparison of energy-saving Global Environment Fund Small Grants Program (SGP) National stove manufacturers. This resulted in selection of the CKQ-80 model Steering Committee member, and Ms. Liu Yi, National Coordinator promotion (in China) high-efficiency biomass stove manufactured by Shanxi Jinqilin at SGP, to visit Xiaoliandian Village and clean stove production Energy Science and Technology Company Limited. A total of 180 enterprises. Although the project had only been running for In the context of the global response to climate change and stoves were purchased and donated to households in Xiaoliandian six months, 180 clean stoves were distributed to participating need to drastically reduce carbon emissions, GEI has conducted village to replace their existing coal stoves. Users of the new stoves, households in this time. Villagers were positive that the new stoves research into rural energy consumption in China and found that rural which have a thermal efficiency of 41% and provide energy and are more fuel-efficient, work faster and burn cleaner. The majority of energy emissions are growing six times faster than emissions from cost savings, opted for renewable biomass resources such as straw users opted to burn corn stalks and dry twigs in their new stoves, urban energy consumption. By pursuing the use of market-based and corn as a source of fuel. To ensure correct usage of the stoves, also reducing the time and labor needed to collect firewood. mechanisms GEI hopes to identify more effective, sustainable and the project team also provided operation manuals and training to impactful methods to address the problem, for example the use of households, and feedback from participant households suggested From 2012 to 2013, through use of market mechanisms and carbon finance to create a market for energy efficient biomass stoves. they were extremely satisfied with the new stoves. GEI’s calculations incentives, GEI successfully promoted and sold 2,000 efficient GEI promotes such methods not only to stimulate end markets for suggest that as a result of the demonstration project, each household biomass stoves in Ruicheng County, Shanxi Province. The next step renewable energy, but also to promote their use to the government can save 1 ton of coal, 2.6 tons of carbon emissions and RMB 700 for GEI’s project team is to compare the full-subsidy model used to and provide a reference for policy making and the use of government (USD 114) a year. promote cookstoves in Xiaoliandian Village with the business model funds. Our approach is also aimed at raising the rural population’s used in Ruicheng County, in order to determine the optimal model to awareness on the benefits of renewable energy, to ultimately reduce promote in the future. the global warming impact of rural energy consumption.

Demonstration and Comparison Heating in Rural Schools CSR

of Promotion Models of Biomass Stoves In the process of project implementation, GEI’s team discovered that In April, GEI’s project team held a mobilization meeting for Cummins outdated coal-fired stoves were still used in schools in Yuxian County. Emission Solutions’ employees. GEI and Beijing University of Use of such outdated technology not only makes it difficult to sustain Chemical Technology introduced the basic concepts of using clean In the mountain village of Xiaoliandian in Shanxi province’s Yu County, In 2014, with financial support from the Global Environment Facility comfortable indoor temperatures in winter, but indoor air pollution stoves along with the clean stove project, and received positive villagers farm a total area of 15 hectares, or roughly 0.1 hectare per Small Grants Program and Global Giving, a project team was formed caused by coal combustion also seriously impacts children's health. feedback from participants. Cummins’ employees expressed that capita. The main crops grown are walnuts and corn. Each year after consisting of GEI, Beijing University of Chemical Technology and After communication with schools and with the consent of donors, they will spend more time taking part in charitable activities including harvesting, the majority of leftover straw and walnut tree branches Cummins, to begin a clean cookstove demonstration project in the project made use of funds from Global Giving to purchase and participation in the clean stove project. are disposed of through open burning in nearby fields, creating local Xiaoliandian village. This type of project team combines the project donate more efficient and cleaner biomass-fired heating systems air pollution and releasing GHG emissions. Coal is the primary fuel design and on-the-ground implementation abilities of an NGO, to nine schools. The schools were selected based on existing In June and August, GEI’s team twice led Cummins’ team to Yuxian used for cooking and heating in the village, which is burned using technical capacity of a University, skills and participation of company infrastructure and financial conditions, and commissioning of the new County to conduct site research, which included collecting data on hand-piled traditional stoves from the 1980s. In the present day this employees, along with the financial support of a foundation. heating systems was completed in October. More than 500 students heating in local rural schools and the application of biomass stoves technology is crude, and during combustion the mixture level of fuel across the nine primary schools will benefit from the new heating in Xiaoliandian Village. and air is inadequate, resulting in incomplete combustion and low systems for many winters to come. thermal efficiency of only around 12%. Emissions from the stoves From April to November, several senior leaders from Cummins create serious pollution and this outdated technology is not able to carried out project inspections. Mr. Vasudev Kannappan from adequately meet the needs of modern life. Over the course of a year Cummins visited the project team in Beijing to discuss project a typical household will consume 3-3.5 tons of coal for cooking and strategy and participated in baseline research at project sites. Ms. heating, with annual fuel costs of over RMB 2,000 (USD 326) creating Related Information Amy Adams, President of Cummins Emission Solutions and Ms. Gou a financial burden to villagers. Furthermore, exposure to indoor air Ming, China General Manager, led department managers to Yuxian pollution from the old-fashioned coal burning stoves has health County. Participants from Cummins indicated that the project was implications for the villagers. As a result, the village urgently needs an The Ruicheng project team has completed all the procedures needed very meaningful and will be extended, and expressed their hoped economical, clean and environmentally friendly alternative in order to to achieve the gold standard in voluntary emission reductions (VER), that employees can continue to be more involved in, and contribute improve economic, health and living conditions for its residents. and is applying for new funding for the subsequent development of to, environmental protection. an emissions trading project. If the project succeeds, the revenues made from selling the gold standard VER credits will be used to subsidize more farmers to use biomass stoves as part of the project, in order to further increase use of this cleaner, low-carbon, rural energy technology. 13 GEI 2014 Energy And Climate Change GEI 2014 Energy And Climate Change 14

Biogas Project Remediation Standards and Myanmar: Demonstration and Use of Research Funds Promotion Cao Sirui [email protected] Hong Liwei (Left GEI in 2014) Cao Sirui [email protected] Hong Liwei (Left GEI in 2014)

Development of household biogas use in rural areas can solve In 2014, GEI undertook research for the Department of Science, Building on work and research conducted in previous years, the villages to demonstrate the use of six types of clean cookstove, domestic fuel and sanitation problems, while also reducing the Technology and Education at the Chinese Ministry of Agriculture. The in 2014 GEI conducted field visits to rural areas in Myanmar each with different technical characteristics and sourced from labor burden on households and providing high-quality fertilizer as a topic of the research was ‘Biogas Project Remediation Standards and suitable for the promotion of renewable energy technologies. different countries. Together with small hydropower experts from bi-product. In this light, the Chinese Government has been Use of Research Funds’, and focused on the problem of high rates Led by GEI’s partner in Myanmar - the Myanmar Renewable Myanmar, GEI also conducted visits to villages in the Northern Shan committed to promoting biogas nationwide over the years. According of failure and abandonment in subsequent biogas use, along with Energy Association (REAM) - GEI’s team visited several villages in State which are suitable for developing small-scale hydropower to 2011 statistics, the number of national biogas users in China identifying appropriate solutions. In addition to conducting substantial Magway and Mandalay, both of which are important provinces in stations. exceeded 40 million, giving rise to an annual energy savings of more literature review on the policy and operational status of domestic arid regions. The research team met with village committees and than 24 million tons of coal equivalent and contributing more than 50 biogas maintenance and management, GEI’s team conducted field villagers to learn more about their livelihoods and development Following successful completion of the field visits, GEI invited its million tons of emissions reductions. investigations to Yunnan, Gansu and Hubei to collect information needs, in particularly current energy provision and requirements, partners from Myanmar to investigate suitable renewable energy through questionnaires and interviews, in order to gain an in-depth and sought feedback on ideas to promote the use of renewable technologies from China, in particular the Hangzhou Regional Center However, research suggests that by 2007, only 60% of the biogas understanding of the current status of biogas use, costs for repair, energy technologies. GEI also held clean stove exhibitions in (Asia-Pacific) for Small Hydro Power in the suburb of Hangzhou and digesters in 26.5 million rural households were functioning well. maintenance and management, along with the actual operations its associated small-scale hydropower projects. GEI also presented Many digesters have not been repaired and are eventually abandoned of biogas service teams. Based on analysis of the data collected, samples of China-made, transportable clean cookstoves to its due to uncoordinated management and changes in the energy mix. problems were identified along with methods to improve the efficient partners. Through this, GEI’s partners in Myanmar were able to gain In addition, in the absence of clear policy guidance, the funds and use of government funding. At the end of 2014, the project team a more detailed understanding of Chinese technologies, and built technologies for repairing digesters are inadequate and repair and drafted the research report and proposed a series of policy and confidence in how they can be successfully utilized in Myanmar. maintenance costs uneven. This, coupled with low awareness about model solutions, covering devolution, market mechanisms, carbon the need for maintenance and a lack of training, undermined the finance mechanisms, and fully managed services. Once completed, Based on the outcomes of multiple research seminars and field efficiency of biogas maintenance, management, and utilization. As a the report will be submitted as a policy brief to the MOA Department visits, GEI finalized the Report‘ on the Demand for and Potential of direct result, state funding for post-service biogas use is not effective. of Science, Technology and Education. Renewable Energy in Myanmar’, and committed to further promote renewable energy technologies in Myanmar in 2015. Rural clean energy promotion (in other countries)

Ever since its inception, GEI has emphasized the need for developing countries. Against the backdrop of the establishment of international cooperation on the environment and energy from a local China’s Climate Change South-South Cooperation Fund in 2014, GEI perspective, particularly as part of South-South Cooperation. As early is even more determined to promote applicable renewable energy as 2005, GEI introduced mature and reliable biogas technologies from technologies and products, particularly those sourced from China, to China to Sri Lanka, and five years later, to Laos. Through this work, the rural areas of least developed countries. GEI became the first Chinese NGO to successfully implement field projects overseas. With the reform and opening up of Myanmar, GEI also turned its attention to this traditional friend of China, and now continues to promote appropriate Chinese clean energy technologies in rural areas of Myanmar with a view to reducing GHG emissions. GEI hopes that by promoting the use of renewable energy on a large-scale, Myanmar will see the benefits of choosing an alternative to the typical high-carbon, high-pollution development path, thus providing an example for more sustainable development in other

Project Research Reports

Study on the Effects of Straw Utilization on Resource Conservation and Environmental Protection (http://www.geichina.org/_upload/file/report/research_on_straw_comprehensive_use.pdf) GEI Summary of the Demonstration on Biomass-Fired Stove Commercial Operations (http://www.geichina.org/_upload/file/GEIbiostovemodel.pdf) Analysis of Domestic Energy Consumption and Carbon Emissions in Rural Areas of China (2001-2010) (http://www.geichina.org/_upload/file/report/RuralEnergyResearchReport.pdf) GEI 2014 Biodiversity Conservation 16

New Management Systems for Nature Reserves BIODIVERSITY in China: Research and Demonstration

Wang Aimin [email protected] CONSERVATION Kong Linghong [email protected] Peng Kui [email protected]

As of 2012, China had established 2,669 nature reserves, covering In light of this, GEI endeavors to: approximately 15% of the national land area. In recent years, Research the importance and feasibility of legislation on nature although the state has invested greatly in ecological protection reserves and submit legislative proposals to the National People's through transfer payments such as ecological compensation, Congress (NPC). inefficient use of these funds has produced unsatisfactory results. Promote the Conservation Concession Agreement (CCA) GEI recognizes three main reasons for this. The first is that mechanism in nature reserves, develop the intelligent patrol compensation and ecological protection can become separated; management system for use in areas with key ecological functions, there are instances where compensation funds have been received such as forests, grasslands and wetlands, and build the ecological but there remains nobody in place to administer environmental protection. The second is that ecological compensation is protection capacity of full-time and community patrol teams. This excessively distributed. As a result, a complementary mechanism allows community residents to be actively involved in ecological cannot be formed that also incorporates community economic protection, while also safeguarding its outcomes. development and the improvement of residents’ livelihoods, the Promote the establishment of an ecosystem services-based resolution of regional poverty issues, and ultimately cannot influence economy to protect and nurture the ecosystems as part of local communities to actively participate in ecological protection. The sustainable economic development, in order to ensure China’s third reason is that those parties responsible for ecological protection ecological security. lack the capabilities to carry out their work effectively.

Legislative Research Demonstration and Promotion

In 2013-2014, GEI carried out research on three specific topics: the To meet the needs of protecting nature reserves and natural forests, feasibility and urgency of protected area legislation, protected area GEI led the development of an intelligent patrol management system Giant pandas, Tibetan antelopes, porpoises and cedar trees might be the first thing that spring to classification systems, and protected area management systems. comprising an Android App (Handheld Terminal Software for Nature mind when it comes to protection of flora and fauna. Indeed, these and many other endangered The Law School of Jilin University undertook specific research Reserve Patrol v1.0) and a back-end computer management system species need careful protection. In addition, it is also necessary to safeguard the health of entire work, while the Chinese NPC Environment and Natural Resources (Intelligent Nature Reserve Protection Management System v1.0). ecosystems and ensure the continued provision of ecosystem services which are so vital to human Committee, in its capacity as the body responsible for China’s By use of real-time data transmission and processing, the system well-being. ecological legislation, provided macro guidance. provides immediate support and strengthens ranger management, while improving patrol efficiency and optimizing the Natural Forest Based on maintaining and improving ecological functions while stemming ecological degradation, In July, GEI program officer Mr. Wang Aimin accompanied Protection Project (NFPP) management. the Biodiversity Conservation program at GEI takes ecological protection as the ultimate goal. government officials from the Environment and Resources Through demonstration and promotion, the program aims to advance national protection policy and Committee of the NPC and China State Forestry Administration In 2014, GEI conducted tests and demonstration of the system at construct related laws, thus increasing the significance of biodiversity conservation. (SFA) on an exchange to Lima, the capital city of Peru, to learn about two project sites, namely Fengtongzhai National Nature Reserve in nature reserve management experiences. After returning to China, Baoxing County, Sichuan Province, and Yunwushan National Nature In 2014, the Biodiversity Conservation Program’s policy-related projects focused on new management the group raised proposals to the SFA on the application of the CCA Reserve in Ningxia Hui Autonomous Region. systems for protected areas and national grassland ecological protection subsidy awards (NGEPSA). mechanism in nature reserves and the establishment of partnerships Field demonstration projects in protected and ecologically fragile areas were extended to wetland with NGOs. ecosystems (Qinghai) from the initial forest ecosystems (Baoxing in Sichuan) and grassland ecosystems (Ningxia and Inner Mongolia). Meanwhile, GEI began to explore the concepts and models of eco-system services-based economy, and carried out research and demonstrations in the Sanjiangyuan region of Qinghai Province. 17 GEI 2014 Biodiversity Conservation GEI 2014 Biodiversity Conservation 18

1 Eco-system Services-based Economy NGEPSA Policy Suggestions and 2

During the Third Plenum of China’s 18th Communist Party Congress, The seminar was attended by over 70 participants who engaged CCCA Demonstration General Secretary Xi Jinping proposed the principle to use systematic in enthusiastic discussions about various hot topics including Kong Linghong [email protected] methods to protect the ecology, while also suggesting ecological the current situation and challenges of ecological protection Wang Aimin [email protected] protection will be raised to an issue of national security. This signified systems, ecological security legislation, community participation Peng Kui [email protected] that the opportunity to resolve China’s ecological crisis had come, in ecological protection, ecological services-based economy, and and that China will strategically and systematically consider how to China’s ecological “red line”. Participants included central and local In China, increasingly severe grassland degradation has directly include subsidies, resettlement and fencing projects, fail to fire the innovate and improve its system for ecological protection. government officials from the Ministry of Environmental Protection, impeded economic development, undermined herding communities’ enthusiasm of herders for ecological conservation. GEI believes Ministry of Agriculture, State Forestry Administration and Sichuan quality of life, and threatened ecological security. A group of targeted that only when herders are motivated to take the initiative to protect Following six months of preparation, GEI, Shanshui Conservation Province’s Baoxing County; expert scholars from academic programs have therefore been introduced such as natural grassland grassland ecosystems can a balance be struck between economic Center (SCC) and Wildlife Conservation Society (WCS) jointly held institutions including the Chinese Academy of Sciences, Peking restoration, pasture-to-grassland conversion, grassland fencing, development and ecological conservation. Therefore, GEI at one a seminar on Ecological Security Systems in July 2014, Beijing. and Tsinghua Universities; delegates from regional protection areas/ and Beijing-Tianjin sandstorm source control. While these produce hand conducts research on the use and efficiency of NGEPSA, while The purpose of the seminar was to provide key policy makers and national parks in Sichuan, Qinghai and Tibet; representatives of ecological benefits in areas covered by the programs, grassland also implementing pilot projects of CCCA in grasslands. implementers along with community members a platform to speak Chinese and overseas NGOs. degradation and desertification continue to escalate in other areas. freely and put forward plans and ideas for ecological protection in From 2011 onwards, the central government has allocated RMB13.4 China. During the seminar, GEI formally put forward the concept of eco- (USD 2.2) billion and implemented a comprehensive incentive system services-based economy to safeguard national ecological mechanism, known as National Grasslands Ecological Protection security and community economic interests. Subsidies and Awards (NGEPSA), in eight provinces including Inner Mongolia, Tibet, and Ningxia. However, current policies and

Outcomes Research on Use and Efficiency of NGEPSA

GEI finalized a proposal for Community-driven Conservation protecting natural resources. The Economics and Development Concession Agreements, with the support of the China Association Research Center of SFA submitted policy proposals on promoting for Promoting Democracy (CAPD). The proposal was submitted conservation concessions and developing the forest sector economy. GEI has studied the allocation, use and efficiency of NGEPSA since Through the investigation, GEI found out that the NGEPSA can to and recognized by the Standing Committee of the CPC Central 2013. This has included investigating the use of domestic subsidies, hardly meet the direct economic losses caused by the measures, Committee. Ms. Yan Junqi, Vice Chairman of the NPC Standing Committee comparatively analyzing the usage of grassland protection funds at including grazing bans and controlling the balance between the and Chairman of CAPD, conducted an inspection of GEI’s project home and abroad, and proposing new methods for fund use. grass yield and the number of livestock raised. The measures have GEI proposed a draft of National Park Law and completed site in Sichuan Province’s Fengtongzhai National Reserve and highly not resolved the ecological degradation of grasslands from the the Research Report on Nature Reserves Legislation, which were praised the CCA mechanism introduced by GEI. In 2014, GEI conducted field research in Ningxia, Inner Mongolia source, which still is severe. Therefore, GEI plans to give policy submitted to the NPC Environmental and Resource Protection and Tibet with our partner, the Institute of Tibetan Plateau Research suggestion on effective use of NGEPSA to the Chinese Ministry of Committee. at the Chinese Academy of Sciences. The research includes Agriculture for their reference. management, income and cost, income source, use of NGEPSA, The Law Office of the NPC Environmental and Resources etc. The draft of Investigation and Analysis of NGEPSA was finished Protection Committee affirmed the CCA mechanism and in November 2014. the role of NGOs in protecting natural resources. The

CCCA Demonstration Related Articles

In 2014, GEI conducted CCCA demonstrations in Ningxia and Qinghai in China. Conservation Concession Agreement: Ecological Protection, Wang Aimin, Forest Economics, Issue 5, 2014 （http://lyjj.cbpt.cnki.net/WKB2/WebPublication/paperDigest.aspx?paperID=458ddf11-5c52-4b68-9263- 632c6b1ad48d）

Conservation Concession Agreement: Give Communities the Responsibilities and Right to Protect, Wang Aimin, Man and the Biosphere, Issue 4, 2014 （http://mall.cnki.net/magazine/Article/RYSW201404006.htm）

1 NGEPSA stands for National Grassland Ecological Protection Subsidy Award. 2 CCCA stands for Community-driven Conservation Concession Agreement. 19 GEI 2014 Biodiversity Conservation GEI 2014 Biodiversity Conservation 20

At the end of 2013, based on years of CCCA research and has been established through an in-depth investigation of 197 Demonstrations in Ningxia experience, GEI began focussing on a new concept and model households on their life and livelihoods. It provides a reference known as “eco-system services-based economy" and decided for scientific design and layout of the eco-system services-based to carry out a comprehensive project in the Sanjiangyuan region. economy project in the Sanjiangyuan region. Yunwushan National Nature Reserve, located in the semi-arid area in patrolling and protecting the grasslands. The project also provides The project, based on the CCCA mechanism, supports and trains of the Loess Plateau in southern Ningxia, covers an area of 6,660 each participating household with various kinds of grass seed, and communities to carry out ecological conservation activities and In July, GEI accompanied a delegation of representatives from hectares and was established to protect the area’s grasslands. experts were invited to give technical guidance on planting and develop eco-friendly products. Making effective use of funds, CAPD, blue moon fund, Oak Foundation, Tsinghua University In order to reverse serious deterioration of the eco-system and animal husbandry. the project strives to boost public participation in ecological and SCC on an in-depth investigation in Sanjiangyuan. The GEI- environment, Ningxia began in 2013 to prohibit grazing across conservation and eco-economic development tailored for local led delegation investigated the local ecology and development, in its territory through confinement of livestock. In 2011, following In 2014, the project distributed one ton of forage seeds to reduce the herdsmen, while improving their capacity for climate change particular the practice of community-driven ecological conservation, the expansion of the Yunwushan Grassland Reserve, the arable need for grazing without permission by supporting the planting of adaptation, so that herdsmen can truly benefit from ecological and identified key issues and potential pilot project sites. After and grassland areas accessible to local herders was reduced grasses across 20 hectares. To increase local households’ income, conservation. concluding the investigation, GEI and the above-mentioned substantially. With drought in the Loess Plateau, animal husbandry the project distributed 1,000 apricot tree seedlings, which inspired organizations submitted a policy recommendation to establish activities were also impeded, which is a major source of income for the Reserve to also plant an additional 900. In 2014, in collaboration with the School of Resources and a national park system on the premise of constructing a nature local residents. The Reserve Management Office has acknowledged Environment at Southwest University, GEI launched the baseline reserve system to the Chinese National Development and Reform the development of animal husbandry in surrounding communities To ensure sustainability of the project, GEI established a community research project “Investigative Study on Pasture Management Model Commission, to urge the establishment of a Sanjiangyuan national as a priority from the start, and has provided support by means of conservation and development fund, the interests from which and Alternative Sustainable Livelihoods for Farmers and Herdsmen park. importing high-quality animals to allow surrounding communities goes back to the fund. In 2013, the fund gave loans totalling of in the Sanjiangyuan Community”. A general overview of pasture to reduce animal numbers while simultaneously raising the quality RMB62,000 (USD 10,100) to 11 pilot households. In 2014, the project management, ecological conservation and economic development, and quantity of their animal produce. They have also helped local donor added another RMB 50,000 (USD 8,143) into the fund. By including the current status, problems, reasons and willingnesses, herdsmen to improve surrounding degraded grasslands, provided the end of July 2014, loans totaling RMB 62,000 from 2013 have all excellent quality grazing land and introduced semi-confinement been paid back. Therefore, in August GEI and the Reserve selected raising, among other methods, to assist local herdsmen. But due to a further 20 households as to receive loans to support their planting local economic circumstances, some herding families were still left and husbandry activities. GEI focused our efforts on four aspects in 2014: use of resources. Currently, demonstrations have been carried out unable to sustain their livelihoods and therefore frequently entered in Longge Village in Baiyu Township, Guoluo Prefecture, Gerize the Reserve area to graze livestock or take pasture, thus damaging In 2014, the number of pilot households increased from 26 to 32, Pilot villages for an eco-system services-based economy: GEI Village in Banma County, Lechi Village and Cuochi Village in Qumalai recovery of the grassland’s vegetation cover. the CCCA protected area increased from 400 to 600 hectares, provided trainings to more than 200 villagers on environmental County, and Xiaying Village in Hailing City. (For details, see page 37 and vegetation protection rate increased by 2.7%. While the fence education and eco-system services-based economy in Longge “Eco-farm Development Training for Sanjiangyuan”). During 2011 to 2013, GEI conducted a pilot CCCA project in repair rate grew by 2%, the frequency of breaking fences, and Village in Baiyu Township, Guoluo Prefecture and Ganda Village Yunwushan National Nature Reserve. The project includes grazing or mowing without permission decreased significantly. In the in Yushu City, Yushu Prefecture. In Longge Village, local villagers Ecosystem services-based economy pilot scaling-up: In line designating protected areas around the Reserve and facilitating the CCCA period, there was also no grassland fires. According to the established a project management team and cooperative. In Ganda with the objectives of the project and considering the willingness signing of “grassland management agreements” between nature “Grassland Management Agreement” signed between the Reserve Village, a Villager Resource Management Committee was created to of herdsmen and NGOs to take part, GEI selected capable reserves and nearby residents, while involve residents participating and the households, the Reserve gave the households RMB 13,500 carry out watershed protection and development. The demonstration communities with high awareness of ecological protection and (USD 2,200) for their efforts in grassland protection, which fired their project will directly benefit more than 100 demonstration households, economic development as voluntary pilot project sites to promote enthusiasm to contribute more. with influence radiated to more than 2,000 households and the wider the eco-system services-based economy. GEI will support these Sanjiangyuan Community. communities to turn the protection and development strategies and plans into reality, encourage community participation in ecological Eco-farm pilot villages/households: Herdsmen with business conservation and eco-friendly product development, and build up experience and awareness of modern animal husbandry techniques their capacity to adapt to climate change. So far, Dayu Village in were invited to learn about advanced eco-farm concepts and Haiyan County and Saiwu Village in Nangqian County have joined Demonstrations in Qinghai practices at home and abroad. GEI studied the application of the initiative. More communities will be included and together sustainable eco-farm development models and pilot programs in the with pilot sites will form a network of eco-system services-based Sanjiangyuan region, in order to promote eco-farms in surrounding economy communities capable of safeguarding the ecological Sanjiangyuan, located in western China and southern Qinghai, is the Sanjiangyuan Ecological Conservation and Development Program in communities. This aims to develop eco-friendly products and security of the “Asian Water Tower”. source of three world-famous rivers: the Yangtze River, the Yellow 2005, which encompasses forest cultivation with restricted access, markets and further improve living standards based on the rational River and the Lancang River. It is known as the "Asian Water Tower" farmland to forest conversion, farmland to grass conversion, and Promotion and demonstration of the Eco-Patrol Monitoring Data as the three rivers provide the people living in China and Indochina resettlement of residents in protected areas. After a decade of Collection & Evaluation System: In December 2014, GEI introduced Peninsula with water. Ever since the 1970s, dwindling glaciers and efforts, some initial successes were achieved, but due to various the Eco-Patrol Monitoring Data Collection & Evaluation System to slowly melting snow caused by global warming have exerted a historical and institutional reasons, the program failed to reverse the Qinghai Province and provided training to personnel involved in direct impact on the water replenishment of plateau lakes, meadows overall trend of ecological deterioration. Ecosystem degradation and natural forest protection, in order to improve management capacity and wetlands. As a consequence, numerous lakes and wetlands community poverty remain very serious and threaten the survival and implementation efficiency in the protection of natural forests and shrank or dried up, and swamps disappeared. Furthermore, due and development of the nation's water source. other ecosystems in Qinghai. to the sharp decline of water conservation capacity, coupled with improper human activities such as overgrazing and mining, the local ecological environment has severely deteriorated. Recognizing the importance and perilous state of the ecological environment in the region, the Chinese Government established the Sanjiangyuan Nature Reserve in 2000. This was followed by the launch of the 21 GEI 2014 Biodiversity Conservation GEI 2014 Biodiversity Conservation 22

Under the joint efforts of the Reserve and pilot households, the The results show that the numerical indicators for households not Grassland Degradation Management number of plan t species and cover degree of plants in the CCCA covered by the agreement are far below those covered. Agreement- protected areas increased by 17.6% and 1.6% respectively, biomass covered households that have obtained loans present higher volume 14.2%, and vegetation protection rate by 2.7%. While the indicator values relative to other categories: planting area up by in Ningxia Province fence repair rate grew by 2%, the frequency of breaking fences, and 8.2%, sheep livestock by 10.9%, farming income by 23.0%, animal grazing or mowing without permission decreased significantly. In the husbandry income by 1.1%, and cattle livestock equivalent to the Kong Linghong [email protected] CCCA period, there was no grassland fires. average of covered households. As this group focuses on farming Wang Aimin [email protected] and animal husbandry, their supplementary income is relatively Peng Kui [email protected] Comparative analysis of pilot and non-pilot households: GEI small, accounting for only 53.61% the average of the covered conducted a comparative analysis of neighboring communities households. It is visible that the micro-credit fund which supports to the Reserve, focusing on income, livestock (cattle and sheep) pasture and livestock development of communities surrounding Yunwushan National Nature Reserve, located in the semi-arid area Support to animal husbandry and plantation development: scale and planting area. Those surveyed can be divided into three Yunwushan National Nature Reserve is an effective way to increase of the Loess Plateau in southern Ningxia, covers an area of 6,660 One ton of forage seeds were distributed as part of the project, categories: all GEI demonstration project households in the Reserve, economic income. hectares and was established to protect the area’s grasslands. which were planted across eight hectares. Households were also demonstration households that have obtained loans, and farmers In order to reverse serious deterioration of the eco-system and granted subsidies of tools worth RMB 3,000 (USD 489) in total or and herdsmen not covered by the project agreement. environment, Ningxia began in 2013 to prohibit grazing across RMB 500 (USD 81) per household. The project not only provided the its territory through confinement of livestock. In 2011, following households with training on plantation and husbandry technologies, the expansion of the Yunwushan Grassland Reserve, the arable but also invited experts to give on-the-ground guidance to the and grassland areas accessible to local herders was reduced households. A description of these and other farming techniques and substantially. With drought in the Loess Plateau, animal husbandry recommendations have been compiled into an Agricultural Cultivation activities were also impeded, which is a major source of income for Hand Book and have been distributed to project households to local residents. The Reserve Management Office has acknowledged maximize agricultural sustainability and provide new income for the development of animal husbandry in surrounding communities the project households. The households were also organized to as a priority from the start, and has provided support by means of visit established farms in nearby communities to learn from their importing high-quality animals to allow surrounding communities experiences. to reduce animal numbers while simultaneously raising the quality By means of agreeing social contracts and through friendly and quantity of their animal produce. They have also helped local Establishment of community conservation and development herdsmen to improve surrounding degraded grasslands, provided fund: A key aspect of the project was the creation of a community consultations, GEI’s projects encourage people to abide by laws and excellent quality grazing land and introduced semi-confinement conservation and development fund by GEI and the Reserve, to regulations on a self-discipline basis and achieve shared interests. raising, among other methods, to assist local herdsmen. But due to support livestock raising and farming while ensuring project funds local economic circumstances, some herding families were still left can be sustained to support more herdsmen who lack financial unable to sustain their livelihoods and therefore frequently entered support to increase their incomes. At present, the fund has a total the Reserve area to graze livestock or take pasture, thus damaging capital of RMB 112,000 (USD 18,241), of which GEI’s project - Yang Chaofei, Vice Chairman of Chinese Society for Environmental Sciences recovery of the grassland’s vegetation cover. contributed RMB 100,000 (USD 1,629) and the Reserve RMB 12,000 (USD1,954). In 2013-14, GEI and Yunwushan National Nature Reserve Management Office jointly conducted a grassland degradation Analysis of ecological and economic effects: According to management project which applies the CCCA mechanism to results of a project survey, the livelihood structure and family income encourage herdsmen to protect the grassland while developing of demonstration households has changed greatly since project livestock and farming. It is not only conducive to grassland implementation began in 2011. Within the project area pasture protection, but also helps herdsmen to increase their incomes. has increased 62.8%, cattle and sheep raised by demonstration households has increased by an average of 13.2% and 92.7% As part of the project, the Reserve signed a grassland conservation respectively, while income from planting is 1.9 times greater than agreement with six demonstration herdsmen. According to the before project implementation, income from livestock farming 1.2 agreement, herdsmen carry out routine patrols of an agreed 217 times greater, and supplementary income 1.1 times greater. hectare protected area on the perimeter of the Reserve. In return, they receive production and seed subsidies, along with professional guidance about planting and breeding techniques. Related Articles

Technical Report on the Study of Grassland Conservation Concession Agreement in Semiarid Area of the Loess Plateau in Southern Ningxia, Ningxia Yunwushan National Nature Reserve Management Office (http://www.geichina.org/_upload/file/grassland_articles/grassland_technical_report.pdf)

A Study of New Ways for Balanced Grassland Protection and Economic Development, Kong Linghong, Proceedings of China Grassland Development Forum (http://www.geichina.org/_upload/file/grassland_articles/paper_for_grassland_forum.pdf) 23 GEI 2014 Biodiversity Conservation GEI 2014 Biodiversity Conservation 24

Improving Air Quality in Wulijitu in Inner Mongolia by Controlling Sand Dust Sources with Physical and Biological Measures Kong Linghong [email protected] Peng Kui [email protected]

Xilin Gol Grassland in Inner Mongolia is rich in natural resources and recognized as one of the world’s top four grasslands, known for its complete grassland types and diverse plant and animal species. It is home to Xilin Gol National Nature Reserve, China’s only grassland member of UNESCO’s World Network of Biosphere Reserves (WNBR). Xilin Gol Grassland is not only an important ecological barrier in North China, but also the closest to the capital Beijing.

However, Xilin Gol Grassland has suffered serious degradation in recent years, with the degraded area accounting for up to 70% of the total, and has become one of the major sand and dust sources in the Beijing-Tianjin area and wider East Asia. In addition to being a threat to human health, sand storms can directly result in reduced agricultural production and disrupt transport, with potential to severely affect economic activity and everyday life.

Over the years, China has implemented a wide range of programs and developed a variety of policies for protecting grassland ecosystems. However, these policies and programs, which include subsidies, environmental migration and fencing projects, do not empower local herdsmen the right to protect their grassland and fail to motivate their enthusiasm for ecological conservation. Results are far from satisfactory in many areas, given enlargement in degraded areas and limited economic development. Located in the semi-arid temperate continental monsoon climate zone, Xilin Gol Grassland is subject to drought and high winds and suffers slow natural vegetation recovery. As a result, grassland degradation and desertification continues to expand, especially in non-protected areas.

GEI’s project outcomes for controlling desertification during plants can also be used as livestock feed. All in all, this integrated 2011 to 2013: GEI believes that only when herders are motivated program will effectively contribute to the prevention of sand storms, to take the initiative to protect grassland ecosystems can a while also restoring grassland vegetation which will provide adequate balance be struck between economic development and ecological forage for livestock and boost the grassland animal husbandry conservation. Making use of practices developed through successful industry. implementation of a CCA project in a Giant Panda nature reserve Related Articles in Sichuan Province during 2006-10, GEI carried out a grassland Physical and biological measures: GEI renewed the existing desertification control pilot project at Wulijitu in Xilin Gol from 2011 conservation concession agreement with demonstration households. to 2013. By introducing the CCA mechanism, the project set out to As part of this, GEI is responsible for funding to control grassland Herdsmen in Sandstorm Source Areas, Kong Linghong develop an optimal model that performs well in grassland protection desertification including the purchase of plants, providing scientific (http://www.geichina.org/_upload/file/grassland_articles/herdsmen_story.pdf) and livelihood improvement. Through the project, up to 50 hectares guidance for setting sand prevention barriers, along with training of degraded grassland received treatment, with both grassland activities. Pilot households purchase and construct fences on their degradation and desertification trends slowing significantly. own and maintain the project area, and after three years will be entitled to open grazing. In spite of these positive results, ensuring the survival of Caragana planted for the purpose of acting as a windbreak and to provide After listening to the views of herders and experts, GEI further refined sand fixation poses a challenge, since the roots of seedlings are the desertification control program to local conditions and made exposed during high winds. In 2014, GEI decided to address this by plans to grow plants and set up sand prevention barriers during integrating physical and biological measures, i.e. building barriers March to May 2015. and growing plants. In particular, barriers are effective in protecting existing vegetation from wind and fixing sand, while they can The project is expected to prevent 9,700 tons of sand being blown also intercept seeds which will reproduce and further improve the into the atmosphere (based on a wind erosion rate of 1.46g/h/cm2) surrounding micro-environment. Once plants reach maturity after and support herders to increase income by around RMB 40,000 three years, their root sand-fixing capacity will increase further, while (USD 6,515) per year. GEI 2014 Investment, Trade and the Environment 26

Regional Environmental Governance and INVESTMENT, TRADE AND Innovative Market Mechanisms: THE ENVIRONMENT Demonstration Projects in China and Myanmar

Ren Peng [email protected] Ji Lin [email protected] Zhu Rong [email protected] Cao Sirui [email protected] Hong Liwei (Left GEI in 2014)

Against a background of tremendous political and economic changes investment and trade activities between China and Myanmar, while in recent years, Myanmar needs to follow a sustainable development also ensuring environmental protection. path as it opens up to the world, in order to avoid exploitation of its natural resources, large-scale ecological destruction and potential The project has four components: environmental policy in ASEAN-China environmental disasters. investment and trade, EIA training, rural new energy technology diffusion and carbon finance, and sustainable agriculture value chain To keep Myanmar from following China’s path of "pollute first, rectify development. later", GEI launched a project to help the Government of Myanmar improve environmental governance while developing and applying innovative market mechanisms, in a bid to achieve sustainable

Environmental Policy in ASEAN-China Investment and Trade

In 2013, China’s MOC and MEP jointly issued the Guidelines for Conservation and Forestry, Ministry of Industry, and the Natural Environmental Protection in Foreign Investment and Cooperation. Resources and Environmental Conservation Committee of the House In 2014, Myanmar served as rotating Chair of the Association of of Representatives. South-East Asian Nations (ASEAN) for the first time. Given our strong connections with Myanmar, GEI viewed this as an opportunity to Furthermore, GEI discussed with the Ministry of Foreign Affairs the Chinese enterprises are often accused of ignoring the environmental risks and social impacts put sustainable investment on the agenda of the ASEAN Summit possibility to include the topic of sustainable investment on the of their projects overseas. This not only results in reputational damage to the companies involved, and include environmental terms into the investment agreement of ASEAN Summit agenda. While the timing was not appropriate for but also undermines China’s international image. ASEAN and between ASEAN and China. regional discussions and agreements on sustainable investment, the With the launch of China’s “One Belt, One Road” strategy, yet more Chinese companies are ASEAN 2014 Joint Statement on Climate Change was adopted at expected to “Go Global”, potentially putting more pressure on the environment and local By organizing a series of seminars, GEI introduced the concept the ASEAN Leaders' Summit 2014, which GEI and its project partner communities. of sustainable investment, relevant policy frameworks and Vermont Law School provided technical support for the drafting of at environmental terms in international investment agreements to The aim of GEI’s Investment, Trade and Environment program is to mitigate the environmental and the request of Myanmar. social impacts of Chinese overseas trade and investment, and improve its overall sustainability. senior Myanmar government officials, including from the Ministry To this end, we carry out work to: of National Planning and Economic Development, Investment Encourage and support the Chinese government to formulate investment and trade related Commission, Ministry of Foreign Affairs, Ministry of Environmental environmental policies that regulate and guide the environmental conduct of enterprises investing overseas, particularly those involved in natural resource development and related operations; Build up the environmental governance capacity of host countries, including the development (refer to page 35) of appropriate environmental policies that regulate the environmental conduct of investors; Environmental Impact Assessment Training Improve the capability of Chinese enterprises to comply with environmental policies and regulations, better manage investment risks and fulfill their environmental and social responsibilities.

In 2014, GEI carried out research and demonstration projects in South East Asian and African countries where Chinese investment is now significant, while making preparations to deliver training Rural New Energy: to overseas business investors. Technology Diffusion and Carbon Finance Development (refer to page 14 "Myanmar: Demonstration and Promotion") 27 GEI 2014 Investment, Trade and the Environment GEI 2014 Investment, Trade and the Environment 28

Sustainable Agriculture and Value Chain Development China-Myanmar Cooperation to Combat Illegal Timber Trade and Promote Against a backdrop of political and economic reform, Myanmar has to buy high-quality agricultural materials, thus it remains difficult already begun to receive large influxes of foreign investment. As a to fundamentally improve living standards. An innovative mode of Sustainable Forestry Investment predominantly agricultural country, the Government of Myanmar has operation is therefore required to make better use of loans, and GEI formulated a reform and development plan for the agricultural sector, subsequently submitted an investigation report with comments and Ji Lin [email protected] and is determined to revive Myanmar's status in the international suggestions to the Myanmar Office of China Exim Bank. Ren Peng [email protected] agricultural market. It can be expected that in the near future, You Chang [email protected] (Joined GEI in 2014) Myanmar's small farmers will face fierce competition in industrialized In October 2014, following six months of GEI’s efforts, Mr. U Shwe agriculture led by multinational companies and international trading Mann, Speaker of the Myanmar Parliament and Speaker of the China has risen to become an important hub in the global processing investment and development in Myanmar, to effectively curb illegal companies. This, coupled with limited access to finance and loss House of Representatives, met with Mr. Li Ruogu, serving President and trade of timber products. As the growing demand for timber logging and trade activities and provide increased protection for the of bargaining power and land, will undoubtedly exacerbate existing of China Exim Bank, in Myanmar's capital Naypyidaw. Prior to the for processing and exports purpose far exceeds timber production, environment. Moreover, through partnerships between responsible levels of poverty within the country. meeting, GEI prepared related materials for the Office of the Speaker China has to rely heavily on imports of raw wood or semi-finished Chinese enterprises and local enterprises, the project will push of Myanmar and Myanmar Office of China Exim Bank. During the wood to ease the shortfall between supply and demand. Among forward the upgrading of wood processing facilities and increase In 2013, GEI provided training sessions on sustainable livelihoods talks, the two sides reached a preliminary intention of cooperation these timber suppliers, some developing countries are facing forest employment and added value, ultimately realizing economic, social to rural communities in Myanmar. Through this process, it became regarding the loan and agreed to sign a memorandum of cooperation deforestation caused by illegal logging and limited access to added and environmental win-wins for Myanmar. apparent that the Export-Import Bank of China and Myanmar Ministry during Chinese Premier Li Keqiang's visit to Myanmar in November. value due to large-scale raw wood exports, as well as accompanying of Cooperatives signed a framework agreement for USD 700 million reduction of greenhouse gas (GHG) absorption and biodiversity, in agricultural loans, and by the end of the year had agreed to grant Going forward, GEI will continue to provide liaison and coordination and increased poverty of community residents. Meanwhile, the USD 100 million as part of an initial pilot. on loan agreements for Myanmar and China Exim Bank, and provide Related Activities destinations of China’s wood products, such as the United States, capacity building, monitoring and evaluation for Myanmar to promote European Union, and Japan, have required legality certification for To better understand rural development needs and the actual and guide small- and medium-sized sustainable agriculture projects In 2013, to combat and curb criminal damage to wildlife resources, timber product imports. In order to ensure the legality of timber disbursement and utilization of small agricultural loans in Myanmar, financed by China. China led Operation Cobra, a joint campaign against the smuggling trade and mitigate negative environmental and social impact, China GEI and the Myanmar Office of China Exim Bank conducted visits of endangered species in 22 Asian and African countries. needs to crack down on the illegal timber trade, but also carry out and held exchanges with persons in charge of local cooperatives, bilateral and multilateral cooperation, such as timber legality mutual village heads and villagers in March 2014. This exercise revealed In October 2014, GEI was invited as an NGO observer to a meeting recognition, to sustain forestry investment and trade. that the current microfinance model provides local farmers only a of the special investigation team of Asia’s Regional Response to small, short-term cash flow, and does not include capacity-building Endangered Species Trafficking program in Bangkok, Thailand, In March 2014, GEI held an international seminar on the promotion content to improve the productive capacity of farmers. Farmers lack organized by the International Law Enforcement Academy. GEI also of legal and sustainable timber product trade and investment in access to finance to purchase machinery and established channels provided funding to support attendance by representatives of four Shanghai, in conjunction with the Research Center for Economics African countries and Myanmar at the meeting. This marked the and Trade in Forest Products of the State Forestry Administration, first time Myanmar government officials had attended an Operation International Institute for Environment and Development (IIED), Cobra-related meeting and signified that Myanmar had officially Forest Trends, and European Forest Institute. GEI coordinated for joined the ranks of Operation Cobra. officials from Myanmar and China to hold two informal dialogues during the seminar, which led to in-depth exchanges on timber legality certification, the fight against illegal timber trade and creation of integrated wood processing parks, thus laying a foundation for substantive future bilateral cooperation.

In November, after several rounds of communication and negotiation, GEI and the Myanmar Ministry of Environmental Conservation and Forestry signed a project cooperation agreement in Naypyidaw. The first of its kind, the agreement marked the formal launch of the project in Myanmar. Project activities will include joint law enforcement to combat illegal bilateral and regional timber trade, capacity building for customs forces to identify illegal timber, research and development of a guide to forestry investment and incentives in Myanmar, establishment of China-Myanmar wood processing parks, and activities to encourage Chinese enterprises to conduct responsible forestry investments in Myanmar. This will strengthen enforcement against illegal timber trade, promote bilateral timber legality certification, and boost sustainable Chinese forestry 29 GEI 2014 Investment, Trade and the Environment GEI 2014 Investment, Trade and the Environment 30

China-Africa Cooperation on Scoping Study of Chinese Investment in Laos

Ji Lin [email protected] Ren Peng [email protected] Zhu Rong [email protected] Forest Resources Management Chris Dunn [email protected] Peng Kui [email protected] Ren Peng [email protected] You Chang [email protected] (Joined GEI in 2014) In pursuit of economic development, Laos has implemented opening-up to conduct research and met with local government departments policies in recent years and attracted a large number of investors and Chinese enterprises in Laos, including the Ministry of Planning China has become Africa's largest trading partner, with China-Africa interested in developing its rich natural resources. According to and Investment, Ministry of Natural Resources and Environment, trade volume reaching up to USD 200 billion for the first time. statistics of the Ministry of Planning and Investment of Laos, the Laos Chinese Embassy, Chinese Chamber of Commerce and NN5 Power Investment by Chinese state-owned enterprises (SOEs) and private Government approved total foreign investment of USD 13.09 billion Generation Corporation. In June, the project team completed the first enterprises has continued to grow year on year and is mainly in 2000 and 2011, two-thirds of which is concentrated in mining, draft of the research report. concentrated in the natural resources sector. Although Africa electricity and agriculture. accounts for only a small proportion of China’s timber imports (4%, The report summarizes the foreign investment management systems valued at USD 1.3 billion yuan according to Chinese Government Such huge influxes of foreign capital have exerted a tremendous and related policies and regulations of China and Laos, analyzes statistics), timber exports to China are of crucial importance for a impact on the natural environment and the lives of ordinary people the situation regarding Chinese investment in Laos, and describes number of African countries. For example, 90% of Mozambique’s in Laos. In the Report on Socio-economic Development Plan findings of the field research and in-depth analysis of large-scale timber exports are destined for China, and an estimated 50% of (2011-2015), the Laos Government cited the need to follow a more investment projects. Recommendations are also provided for Congo’s timber exports. sustainable economic development path which attaches importance government bodies and private organizations from both Laos and to the environment, culture, and the people's lives, with reference China. As China has risen to prominence as one of the most important made to the lessons learned over the past five years. export destinations for Africa, trade in timber products has exerted an increasingly prominent influence on African forest resources China is the largest investor in Laos, with investment totalling and sparked widespread attention – largely criticism – from the USD 5.085 billion as of November 2013. To better understand international community, including NGOs and media. Generally, the investments of Chinese enterprises in Laos and improve the this criticism has been targeted at four aspects. The first is that environmental and social behavior of Chinese investors, in 2014 In 2014, GEI was invited to join the IIED-led China-Africa Cooperation given Africa's dependence on timber exports to China, and the GEI launched a Scoping Study of Chinese Investment in Laos. The on Forest Resources Management project. In the first year, GEI existing problem of illegal logging in Africa, China is inevitably a study focussed on sectors with the greatest potential for negative undertook a study on the impact of China's investment in non-forest land destination for illegal timber from Africa. Second, China's imports impacts on the environment, including water and power utilities, use industries and African forestry trends, including a comparison of of precious wood are likely to pose a threat to some species. Third, mining and agriculture. In February, the project team visited Laos China's timber imports from Africa are predominantly unprocessed China-Africa customs data on timber trade. As part of the study, GEI logs, something not conducive to the development of a local wood also identified Chinese enterprises importing timber from Africa as processing industry. Fourth, studies suggest Chinese enterprises target groups for future training on corporate environmental behavior. in Africa tend to employ Chinese workers over locals, and therefore fail to provide opportunities for local employment and increased To enhance public understanding of China-Africa timber trade, the Environmental Capacity Building standards of living. project also included inviting reporters for exchanges and visits. In 2014, GEI selected two senior reporters with a long-term focus on China's overseas investment and supported their efforts to research for Chinese Investors China-Africa timber trade and publish articles in the relevant media. Ren Peng [email protected] You Chang [email protected] (Joined GEI in 2014)

Over the next two years, GEI will continue to carry out research and training and work with a range of stakeholders to raise awareness, In 2001, China introduced the Going Global Strategy, which the absence of appropriate communication with host communities, improve policy and investment practices, and optimize forest encourages and supports enterprises of various ownership forms a number of environmental and social issues have arisen relating to resource management in China and Africa. to make overseas investments and conduct transnational business, such investments. This not only causes reputational and financial while becoming more actively involved in international economic losses to the enterprises directly involved, but also undermines and technological cooperation of various forms. Ever since, Chinese China's international image. enterprises have stepped into the international arena at a growing pace, while China's overseas investment has increased drastically, Recognizing these problems, the Chinese Government has rolled up from less than USD 3 billion in 2002 to more than USD 100 billion out a number of guidance documents. Among them are Guidelines in 2013. China’s outward investment surpassed inward investment to State-owned Enterprises Directly under the Central Government for the first time in 2014, marking China’s rise as a major international on Fulfilling Corporate Social Responsibilities released by the investor. State-owned Assets Supervision and Administration Commission Project Research Reports (SASAC) in 2008, A Guide on Sustainable Overseas Silviculture by Chinese investment overseas can provide opportunities to boost Chinese Enterprises and A Guide on Sustainable Overseas Forest economic development in host countries, create employment Management and Utilization by Chinese Enterprises issued by Chinese Views of African Forests –IIED publication, 2014 opportunities, and improve the living standards of local people. the SFA and MOC in 2008 and 2009 respectively, as well as the However, some companies exploit local resources with no regard to Guidelines for Environmental Protection in Foreign Investment and the environmental and social risks and impacts of their actions. In Cooperation released by MOC and MEP in 2013. However, GEI’s 31 GEI 2014 Investment, Trade and the Environment GEI 2014 Investment, Trade and the Environment 32 research shows that due to a general lack of systematic training and promotion, companies have limited knowledge of relevant policies and guidelines, while also lacking knowledge and capability to manage environmental and social risks overseas.

To help Chinese companies better understand these policies and regulations, and encourage them to conduct themselves more responsibly overseas, GEI began designing a capacity building program in 2014 which encompasses the development of a set of training materials covering policy guidelines, case studies and a CSR toolkit. This is expected to be completed and two training sessions held for 50-100 participants in Beijing and Kunming before the end of 2015.

environmental factors, the Going Global Strategy will not only fail to realize profits on the investments made, but also incur great losses.”

Release of China’s Dr. Zhang Mianli, Research Associate at the Institute of Contemporary China Studies at China Academy of Social Sciences and long-term researcher on China’s foreign aid, stressed that "integrating Going Global a foreign aid perspective into the discussion about the Going Global Strategy is very important and worth attention." Responding to a On March 31st, 2014, GEI held a publication launch for Environmental publication and emphasized that the problems addressed are some question about making institutional changes to China’s foreign aid and Social Challenges of China’s Going Global (hereinafter referred to of the most important currently facing China. Mr. Yang commented to address new challenges, Dr. Zhang said "in the course of the as China’s Going Global). that "China's economic development has entered a new stage where study, we have proposed reforms to China’s foreign aid management domestic markets and resources are inadequate to meet growing mechanism including the establishment of an independent foreign Prepared by GEI and an expert team, the book is another important demand, so it is necessary for enterprises to “Go Global”. With this aid management agency. This matters to China’s own long-term research output of GEI’s Investment, Trade and Environment in mind, enterprises should consider how to achieve sustainable strategic planning for foreign aid.” program, and follows the publication of a previous book in 2010 development and how to establish equal, harmonious relationship about the environmental implications of China’s investments with host countries.” Mr. Yang added, “If we can report the research In the discussion session that followed, the issue of independent overseas. findings of this publication to relevant government departments assessment was raised. Professor Ge stated his belief that NGOs Media coverage and make our viewpoints known to companies, it will have a very can fulfill this task, and with more credibility than the government. China’s Going Global provides an overview of China’s OFDI during important impact on implementation of the Going Global Strategy.” Dr. Wang expressed a similar opinion, saying "NGOs should also Logging Forbidden in the Largest Forest Area of the ten years since introduction of the Going Global Strategy, the ‘Go Global’ and provide support where needed overseas, and the status of China’s trade in major commodities between 2007-2011, Dr. Wang Yi, then Deputy Director-General of the CAS Institute of government should support NGOs in this respect and carry out China (China Business News, April 1, 2014) along with an analysis of the development of China’s foreign aid. Policy and Management (IPM), affirmed GEI’s efforts in promoting similar work of their own. Efforts through multiple channels are The book is based on an in-depth analysis of environmental policies more environmentally conscious behavior by Chinese enterprises conducive to creating a virtuous cycle.” Chinese Forestry's Going Global (ditan360.com, on foreign investment and trade, and details case studies of the overseas. Noting that "The efforts of government departments, April 1, 2014) environmental and social problems faced by Chinese investors including MEP and SFA, are far from enough", Dr. Wang expressed The publication launch of China’s Going Global was attended overseas. Recommendations are also made on sustainable his hope for further collaboration amongst all parties in order to find a by approximately 80 experts, leaders, and representatives from Experts Remind Chinese Enterprises of Green implementation of the Going Global Strategy, targeted at improving more sustainable path. government departments and research institutions including MEP’s Challenges when Going Global (Xinhua News, national policy and corporate risk management as well as research Foreign Environmental Cooperation Office and NDRC’s Academy of and demonstration projects conducted by research institutions and Professor Ge Chazhong, co-author of China’s Going Global and Foreign Economic Research. Foreign embassies and aid agencies March 31, 2014) civil society organizations. Deputy Director of the Environmental and Economic Planning were also represented along with domestic and international NGOs Institute of the Chinese Academy for Environmental Planning, pointed and enterprises. Mr. Yang Chaofei, former Chief Engineer at MEP, praised the out that if Chinese enterprises overseas "fail to manage social and GEI 2014 Capacity Building 34

For Policy Makers (Energy and Climate Change) CAPACITY BUILDING Promotion and Training for Low Carbon Policy Quantification Toolkit

Yu Qingchan [email protected] Cui Nanying [email protected] Xu Shengnian [email protected] (joined in 2014)

Air pollution was the most talked about topic during 2014’s National project: Research and Demonstration of the Chinese Provincial Low People’s Congress. The topic was mentioned in nine out of ten Carbon Development Planning Toolkit) to develop and evaluate low government work reports, while 15 provinces and municipalities carbon policies in a more scientific manner. Both parties plan to raised the issue of tackling the problem. How can air pollution be jointly develop teaching software and training courses, invite experts brought under control? What policies can be introduced and how from other Academies of Governance and relevant government should they be enforced? What economic and social impacts will organizations to take part, to ultimately support local governments in these policies have? In this respect, the awareness of government low-carbon policy evaluation and analysis. officials and civil servants about sustainable development and their capabilities to develop and implement effective environmental In July, the first lecture on quantitative analysis of low carbon policies, decides the future of our environment. policy was conducted at the Tianjin Academy of Governance, and as of December, four demonstration lectures had been delivered. To promote full consideration for sustainable development and the Participants have included those responsible for the training of civil environment in the decision making process of high-level policy-makers and servants and leaders of Academies of Governance across China civil servants, from 2005 onwards GEI has carried out a capacity building including Shanghai, Hebei, Guangdong, Shandong, Zhejiang, project adopting the ‘train the trainers’ approach. In cooperation Jiangsu, Anhui, Hainan, and Sichuan. According to participant with the Central Party School and the China Executive Leadership satisfaction questionnaires, up to 90% of the trainees showed great Academy Pudong, both ‘Teaching Materials on Environment and interest and willingness to apply the new training model and its Sustainable Development’ and ‘Teaching Materials on Low-carbon contents to their own civil servant training programs. Going forward, Economy’ have been developed. From 2011 onwards, GEI and the GEI and the Tianjin Academy of Governance will further expand the Chinese Academy of Governance have jointly carried out a scope of training and develop a set of training courses, in order to five-year capacity-building project in order to further meet the needs promote the toolkit and concepts to an even wider audience. of government officials for knowledge and tools about environmental "One is never too old to learn". Many famous statesmen, philosophers and scholars have followed protection and low-carbon economic development. So far, teachers the principal of lifelong learning, whether hailing from Ancient Greece like Solon, from local Academies of Governance and in Shaanxi, Tianjin and or China like Confucius. Chongqing have joined in the project.

GEI’s Capacity Building program also follows this principal, integrating different types of training In 2014, GEI and the Tianjin Academy of Governance launched a courses into projects to enhance the awareness and capacity of stakeholders, and extend project cooperative project: Promotion and Training for Low Carbon Policy outcomes and influence further. Quantification Toolkit. The project aims to encourage officials and For example, the Energy and Climate Change program encompasses training on sustainable policy analysts to use a toolkit (developed as part of a previous GEI development awareness and capacity-building for decision-makers, and training on policy analysis methods for researchers. As part of the Investment, Trade and Environment program’s work, training has been designed and provided for government departments in China and host countries, along with Chinese business investors on improving their environmental and social conduct overseas. In the Biodiversity Conservation program, capacity building training has been incorporated into GEI’s projects, including how to use new tools and software for biodiversity protection and management personal, The introduction of quantitative analysis into government decision and developing sustainable livelihoods in local communities. making processes will yield benefits in both thinking and practice. This training will play an important role in supporting trainees cope with new challenges and will be a huge help to their future work.

- Li Gao, Deputy Director of NDRC Department of Climate Change 35 GEI 2014 Capacity Building GEI 2014 Capacity Building 36

For Host Countries (Investment, Trade and Environment) For Chinese Overseas Investors (Investment, Trade and Environment)

Environmental Impact Assessment Training Capacity Building on Environmental Compliance Ren Peng [email protected] Ji Lin [email protected] for Chinese Overseas Investors

Myanmar has experienced enormous social and environmental From the outset, GEI has paid close attention to the social and Ren Peng [email protected] Ji Lin [email protected] changes since 2010. As more and more foreign investment flows environmental impacts of China’s overseas investment activities. into Myanmar, environmental and social challenges become more Driven by GEI’s efforts, SFA and MOC released A Guide on In 2001, China introduced the Going Global Strategy, which (SASAC) in 2008, A Guide on Sustainable Overseas Silviculture by prevalent. Sustainable Overseas Silviculture by Chinese Enterprises and A encourages and supports enterprises of various ownership forms Chinese Enterprises and A Guide on Sustainable Overseas Forest Guide on Sustainable Overseas Forest Management and Utilization to make overseas investments and conduct transnational business, Management and Utilization by Chinese Enterprises issued by Environmental impact assessment (EIA) is a process adopted by Chinese Enterprises in 2008 and 2009 respectively, while MOC while becoming more actively involved in international economic the SFA and MOC in 2008 and 2009 respectively, as well as the by many governments and organizations to assess the potential and MEP released the Guidelines for Environmental Protection in and technological cooperation of various forms. Ever since, Chinese Guidelines for Environmental Protection in Foreign Investment and environmental impacts of programs and projects, such as Foreign Investment and Cooperation in 2013. enterprises have stepped into the international arena at a growing Cooperation released by MOC and MEP in 2013. However, GEI’s infrastructure and resource development activities. By requiring pace, while China's overseas investment has increased drastically, research shows that due to a general lack of systematic training and identification, assessment and mitigation of the potential In addition to contributing to the introduction of much needed up from less than USD 3 billion in 2002 to more than USD 100 billion promotion, companies have limited knowledge of relevant policies environmental impacts of development activities, appropriate EIA domestic policy and guidelines, GEI also goes out and helps host in 2013. China’s outward investment surpasses inward investment and guidelines, while also lacking knowledge and capability to institutional arrangements support and safeguard the balance countries to increase their capacities in environmental governance. for the first time in 2014, marking China’s rise as a major international manage environmental and social risks overseas. between economic development and environmental protection. investor. To assist Myanmar in developing EIA implementation rules, GEI To help Chinese companies better understand these policies and Myanmar created a legal framework for EIA in 2012 through and Vermont Law School provided training on EIA and other Chinese investment overseas can provide opportunities to boost regulations, and encourage them to conduct themselves more introduction of the Environmental Protection Law, but at that environmental policy tools in November 2013 and February 2014 economic development in host countries, create employment responsibly overseas, GEI began designing a capacity building time specific implementation rules and standards had yet to be in Naypyidaw. Government officials from Natural Resources opportunities, and improve the living standards of local people. program in 2014 which encompasses the development of a set of introduced. Given the absence of a sound EIA system and limited and Environment Conservation Committee of the House of However, some companies exploit local resources with no regard to training materials covering policy guidelines, case studies and a CSR environmental regulatory capacity within the government, resource- Representatives, Ministry of Foreign Affairs, Ministry of Environmental the environmental and social risks and impacts of their actions. In toolkit. This is expected to be completed and two training sessions and biodiversity-rich Myanmar was risking uncontrolled exploitation Conservation and Forestry, Ministry of Industry, and Myanmar the absence of appropriate communication with host communities, held for 50-100 participants in Beijing and Kunming before the end of of its natural resources and large-scale ecological destruction by Investment Commission took part in the training. a number of environmental and social issues have arisen relating to 2015. opening its doors to foreign investment. such investments. This not only causes reputational and financial In the latter half of 2014, Myanmar’s EIA implementation rules were losses to the enterprises directly involved, but also undermines announced by the Ministry of Environmental Conservation and China's international image. Forestry.

Recognizing these problems, the Chinese Government has rolled out a number of guidance documents. Among them are Guidelines to State-owned Enterprises Directly under the Central Government on Fulfilling Corporate Social Responsibilities released by the State-owned Assets Supervision and Administration Commission

Related Research Report Myanmar is in urgent need of this training and is preparing to revise its EIA policies and procedures. We are very eager to draw on the experience of other countries. Guiding the Environmental Conduct of Chinese Hydro-power Investments in the GMS (Global Review, 2013)

- Dr. Nay Aye, Director General of the Department of Environmental Conservation, Ministry of Environmental Conservation and Forestry, Myanmar 37 GEI 2014 Capacity Building GEI 2014 Capacity Building 38

For Communities (Biodiversity Conservation) In order to increase the incomes of local herdsmen while protecting the environment, GEI set about introducing more eco-friendly and sustainable livelihoods, such as eco-farming. By integrating principals of ecological conservation into daily operations, eco-farms Eco-farm Development Training for Sanjiangyuan and eco-ranches produce eco-friendly agricultural products and byproducts which generally have higher added value and bring more Peng Kui [email protected] Ji Lin [email protected] earnings.

To achieve this, GEI began to explore the application of the The Sanjiangyuan or “Three Rivers” region is located in Western The establishment of nature reserves and ecological migration allow sustainable eco-farm model and pilot this in the Sanjiangyuan China’s Qinghai Province. Its name refers to the fact the region for pasture vegetation recovery. Nevertheless, for various reasons, region. A study tour to the United States was organized, providing an is the source of three world-famous rivers: the Yangtze River, the grassland degradation remains a grave issue and the pasture opportunity for participants to learn about the business philosophy, Yellow River and the Lancang River. It is known as the "Asian Water available to resettled herders are declining. In this region, 90% of mode of operation and cost-effectiveness of sustainable eco-farms. Tower" as the three rivers provide food and water to the people residents are Tibetans who due to religious belief, do not slaughter From August to September 2014, GEI led a nine-person delegation of Chinese and the Indochina Peninsula. Ever since the 1970s, or trade their livestock. It is very difficult to live on yak milk and its comprising of farmers, herdsmen and officials from the Sanjiangyuan dwindling glaciers and slowly melting snow caused by global by-products only, while language barriers, lack of skills and the region to visit three eco-farms in eastern United States, namely warming has exerted a direct impact on the water replenishment inaccessibility of the local area which they inhabit make it almost Stone Barns Center for Food and Agriculture, Polyface Farm and of plateau lakes, meadows and wetlands. As a result, numerous impossible for local people to develop other livelihoods. Increases Timbercreek Farm. Those involved learnt about the principals, lakes and wetlands shrank or dried up, and swamps disappeared. in spending on health care, education, and other living costs due to practices and techniques implemented on the farms including Furthermore, due to the sharp decline in water conservation capacity, inflation only exacerbate poverty. An investigation by GEI found that pesticide- and chemical-free production, poultry and livestock coupled with improper human activities such as overgrazing and the majority of local families cannot make ends meet and rely on rotation, rational use of pastures, and material recycling. resource exploitation, the ecological environment in the region has borrowing money to get by, while remaining poverty-stricken. Despite severely deteriorated. Recognizing the importance of the region and these difficulties, out of religious beliefs local people will often Following the tour, in December GEI along with the Sanjiangyuan severity of the situation, the Chinese Government established the spontaneously organize themselves to in turn keep outsiders from National Nature Reserve Authority and Qinghai Forestry Department Sanjiangyuan National Nature Reserve in 2000, and launched the poaching, while also planting new grass and cleaning up trash across jointly held the Sanjiangyuan Eco-Ranch Development Seminar in Sanjiangyuan Ecological Conservation and Development Program the vast pastures, in an attempt to protect the rivers and surrounding The three herders and four officials that took part in the study Xining, Qinghai Province. The seminar attracted experts from Qinghai in 2005 encompassing closed forest cultivation, farmland to forest areas, day and night. tour have significantly enhanced their awareness of ecological University, Inner Mongolia University and the Sichuan Provincial conversion, farmland to grass conversion, and resettlement of conservation and development. On their return, they mobilized rural Academy of Social Sciences, while villagers including project residents in the protected areas. After a decade of efforts, some communities and government leaders to carry out dissemination demonstration householders from Haidong City, Yushu City, Haiyan initial successes have been achieved. and training on ecological conservation and eco-farming. In Longge County, Jiuzhi County, Banma County, Nangqian County, Qumalai Village, eight villager meetings were held and ecological patrol teams County, and Gonghe County also took part. Through a series of and cooperatives established. In Gerize Village, more than ten rounds exchanges and forums, participants discussed approaches to of talks were organized for various groups, from religious leaders develop sustainable eco-farming in the region. to young volunteers, to share the experiences and lessons learnt. An ecological protection youth volunteer group was also created to jointly promote community-driven ecological management. In Lechi Village, a community-based natural resource co-management committee was set up to facilitate scientific and rational use of resources and fair and transparent decision-making, while also improving public environmental awareness.

Over the years, the Government has put much emphasis on the specific work for ecological conservation, but to really achieve better ecological conservation, we must develop the community economy while protecting ecosystems. The GEI-advocated eco-farming development project is based on local conditions and cultural characteristics, and the demonstration of an ecosystem services-based economy. This is an important way to achieve coordinated ecological conservation and economic development in the Sanjiangyuan region.

- Li Ruofan, Director General of the Qinghai Sanjiangyuan National Nature Reserve Authority 39 GEI 2014 Capacity Building GEI 2014 Capacity Building 40

Government officials that took part in the study tour submitted the ‘Investigation Report and Proposals on Eco-farming Development and Management in Sanjiangyuan’ to Qinghai Forestry Department, proposing introducing eco-farming to the Sanjiangyuan region and in particular communities in protected areas. Qinghai Forestry Department and Sanjiangyuan National Nature Reserve Authority made project and funding arrangements to support eco-friendly animal husbandry and grassland protection in Longge Village of Jiuzhi County, Le hi Village of Qumalai County, and Xiaying Village of Haidong City.

GEI also provided training sessions on eco-system services-based economy to more than 200 people in Longge Village of Jiuzhi County and Ganda Village of Yushu City. In addition to local villagers and county and township leaders, representatives from nearby Qumalai County, Nangqian County and Banma County also participated in the training, including the elderly, children, monks, nuns, and volunteers. Through training, villagers have recognized the importance of protecting their homeland and gained a preliminary understanding of community economic development, laying the foundation for public participation in eco-farming and economic development.

GEI wishes to extend the project through various channels to the entire Sanjiangyuan region. Currently a total of nine communities have been covered. By cultivating and training community leaders, GEI guides and encourages communities to adopt the eco-farming development plan to local conditions, and set up an initial eco-farming network. With this project as a starting point, GEI hopes to train a group of influential business leaders and guide the healthy development of eco-farming in the Sanjiangyuan region.

Related Articles

GEI Sanjiangyuan Ecological Research – Unknown Stories about Sanjiangyuan (1-5) Sanjiangyuan Protectors: Dancing on the Edge of Livelihoods and Protection (1-2)

(Articles are available on GEI’s WeChat account in Chinese language only. To access GEI’s WeChat account, please scan the QR code on page 50 of this report.)

The development of agricultural and animal husbandry in Qinghai differs greatly from that on U.S eco-farms, but the concepts and models of eco-farming are worth learning. Training and learning like this has brought new concepts and methods for us, and will be beneficial for the development of eco-farms in Qinghai.

- Zhang Li, Director of International Cooperation, Qinghai Forestry Department 41 GEI 2014 Companies Incubated GEI 2014 Financial Report 42

Companies Incubated by GEI Projects 2014 Financial Report

GEI is committed to seeking project models that both address Presently, GEI continues to utilize market mechanisms to promote environmental problems and bring about sustainable economic sustained project operation. However, because of orientation development. An important measurement for verifying the success adjustments, projects to directly incubate companies have of a GEI project rests on whether or not its activities can continue been reduced, and primary responsibility for carrying out the operating independently after the end of the project period. Therefore, commercialization of GEI projects has been transferred to Beijing Balance Sheet Business Activities st st st st we endeavor to find ways to make projects self-sustaining, helping FP. Through its commercial operations, LSMO established an January 1 , 2014 - December 31 , 2014 (Unit: USD*) January 1 , 2014 - December 31 , 2014 (Unit: USD) participants convert project activities into sustainable, profitable organic produce brand name, with flourishing cultivation and sales enterprises. GEI has previously used projects as foundations to and dramatically boosted local farmer incomes; but because the incubate the companies Dalian East Energy Development Co., Ltd. company’s farmland was appropriated by the local government, Beginning of End of Year Assets Year Income Unrestricted Restricted Total (DEED), Beijing Future Prosperity Resources and Hi-tech Co., Ltd. business operations were suspended and the company was (Beijing FP), and Lijiang Snow Mountain Organics Co., Ltd (LSMO). forced to close. As for DEED, the company has been operating Liquid Assets 572,689.14 720,541.80 Donations 965,182.78 0.00 965,182.78 independently on a continuous basis. Fixed Assets 10,490.39 8,387.82 Services 61,374.76 0.00 61,374.76 Investment Total Assets 583,179.54 728,929.63 137,677.78 137,677.78 Returns 0.00 Beginning of End of Year Other 6,292.98 0.00 6,292.98 Liabilities Year Dalian East Energy Development Corporation Liquid Liabilities 7,028.89 154,876.91 Total 1,170,528.30 0.00 1,170,528.30 Long-term Liabilities 0.00 0.00 Expenditures Unrestricted Restricted Total Operating Costs The potential for energy savings in China’s industry and market The company’s primary business operation is investing in and Total Liabilities 7,028.89 154,876.91 1,173,872.07 0.00 1,173,872.07 place is huge, with no lack of high quality energy saving technology; constructing WHR power generation projects at cement factories Beginning of Fundraising Costs -3,370.34 0.00 -3,370.34 Net Assets Year End of Year yet because of restrictions caused by the crisscross of vocational, or other industrial plants, increasing energy efficiency. Starting in Other Expenses 2,124.50 0.00 2,124.50 technological and institutional barriers, energy saving projects 2006, the company has completed three WHR projects in Longyou, Unrestricted 576,150.65 576,150.65 have been developing slowly. Since its establishment, GEI has Zhejiang; Longyan, Fujian; and Huludao, Liaoning. Total installed Restricted Assets 0.00 0.00 Total 1,172,626.23 0.00 1,172,626.23 been devoted to utilizing market mechanisms to advance the capacity is 21MW, with annual electric production at approximately Change in Net Total Net Assets -2,097.93 0.00 -2,097.93 commercialization of energy saving technology. 140GWh, and providing 54 long-term employment positions. By the 576,150.65 576,150.65 Assets end of 2014, the three projects altogether have generated 500million Total Liabilities and Net Assets 583,179.54 576,150.65 GEI eventually developed an energy saving program with an kWh, equivalent to saving 165,000 tons of coal and preventing innovative business model, using the Energy Management Contract 465,000 tons of CO2e emissions, while achieving an operating * Based on the 2014 average exchange rate of 6.14 RMB to 1 USD. (EMC) and the Clean Development Mechanism (CDM) models as revenue of RMB 170 million (USD 27.7 million). a means of financing, taking a small project and converting it for large-scale use. GEI allied with the Dalian East Energy Engineering Funding by Program Funding by Source Corporation, a waste heat recovery (WHR) enterprise in the domestic cement industry, and obtained international investment to jointly establish a specialized energy service company that provides 0.8％ 2.3％ integrated financing, technology, and international carbon trading services: the Dalian East Energy Development Co. Ltd. (DEED). 0.1％ 11.9％14%

17.3％13% 32% 1.7％ 20% 63.4％ 2.5％ 21%

Energy and Climate Change Investment, Trade and International Foundations Chinese Organizations the Environment Biodiversity Conservation Chinese Foundations Chinese Companies

Capacity Building Bilateral Organizations Chinese Government

Other International Organizations Other

43 GEI 2014 Staff GEI 2014 Staff 44

Christopher Dunn Wang Aimin Program and Program Officer, Communications Officer Biodiversity Conservation

Kong Linghong Peng Kui Program Officer, Program Coordinator Biodiversity Conservation for Three Rivers Region, Biodiversity Conservation

Yu Qingchan Cui Nanying Program Coordinator, Program Officer, Energy and Energy and Climate Change Climate Change GEI Staff in 2014

Wang Wenxing Jin Jiaman Xu Shengnian Cao Sirui Honorary Director Executive Director Program Coordinator, Program Officer, Energy and Climate Energy and Climate Change Change (Joined GEI in 2014)

Zhang Rongping Ji Lin Ren Peng Hong Liwei Chief Operations Officer Assistant to the Executive Program Officer, Program Officer, Director & Program Officer Investment, Trade Energy and Climate Change and the Environment (Left GEI in 2014)

Wang Nuo Wang Lei Zhu Rong You Chang Administrative Assistant Communications Officer Program Officer, Program Officer, Investment, Trade Investment, Trade and the Environment and the Environment (Left GEI in 2014) (Joined GEI in 2014) 45 GEI 2014 Interns GEI 2014 Interns / Volunteers 46

GEI Interns & Research Fellows in 2014 Zhang Xingyuan Zhao Chenyu

Shen Chenglin Jin Lu

Liu Chuchu Forest Abbott-Lum (United States)

Qiu Tian Zhao Dongchen

Li Tiantian Zhao Jiabin

Ilaria Mazzocco (Italy) Tyler Harlan (United States)

GEI Volunteers in 2014

Caroline Jo (United States) Zhu Wenyu Chu Jiaqi Liang Luting

Zeng Sishi Ni Yifan Ling Chen Liu Ying 47 GEI 2014 Advisors to GEI GEI 2014 Partner Organizations 48

Advisors to GEI (in alphabetical order) Partner Organizations (in alphabetical order)

Bill Chandler Xiao Guangrui President, Transition Energy Company Senior Project Officer at Asian Development Bank Government Institutions Enterprises Area of Expertise: Energy and Finance Area of Expertise: Urban Planning, Program Management Ministry of Commerce Beijing Organic Food Co., Ltd. Ge Chazhong Yang Fuqiang National Development and Reform Commission Chang De Ding Xin Energy Service Company Director/Researcher at China Academy of Environmental Planning Senior Consultant for Natural Resources Defense Council State Forestry Administration Cummins Emissions Solutions (China) Area of Expertise: Environmental Policy Area of Expertise: Environment and Climate Change Chinese Academy of Governance Dalian East Energy and Development Co., Ltd. Ministry of Agriculture Environment Energy and Enterprise Ventures Private Limited (e3 V) Jia Feng Zhang Jianping Ministry of Finance Industrial Bank Co., Ltd. Deputy Director, Director of the Foreign Economic Research Institute Ministry of Environmental Protection Lenovo Center for Environmental Education and Communication and International Economic Cooperation for the National China Customs Information Center Qinghai Environmental Energy Exchange Area of Expertise: Environmental Education Development and Reform Commission National People’s Congress Environment and Resources Committee Regional Economic Models, INC (REMI) Area of Expertise: Foreign Investment and Economic Cooperation The Export-Import Bank of China Jiang Heng Transition Energy Associate Researcher at Chinese Academy of International Trade Zhang Mianli and Economic Cooperation, Deputy Director of Beijing New Century Associate Researcher for the Institute of Contemporary China Studies Guangdong Provincial Development and Reform Commission Academy on Transnational Corporations at the Chinese Academy of Social Sciences Hebei Provincial Development and Reform Commission Area of Expertise: Corporate Intellectual Property Strategy, Area of Expertise: Foreign Aid Heilongjiang Provincial Development and Reform Commission Corporate Joint Ventures and Mergers, Corporate Public Relations Hubei Provincial Development and Reform Commission Management, Foreign Business Investment Review, Corporate Zhang Yansheng Jiangsu Provincial Development and Reform Commission Social Responsibility Secretary-General for the Academic Board Jiangxi Provincial Development and Reform Commission of the National Development and Reform Commission Management Department at Yunwu Mountain Grassland Reserve, Li Nuyun Area of Expertise: Development Economics, Foreign Investment Ningxia Secretary General of the China Green Carbon Fund and Economic Cooperation Qinghai Forestry Department Area of Expertise: Forestry and Climate Change Sanjiangyuan National Nature Reserve Management Office Zhou Hongchun Party School of the Shenzhen Committee of the CCP Long Feng Director of the Social Development Research Department Local Governments in Inner Mongolia and Ningxia Hui Autonomous PhD of Chinese Academy for Environmental Planning for the State Council Developmental Research Center Regions, Sichuan, Tibet, Qinghai and Yunnan Provinces Area of Expertise: Environmental Planning Area of Expertise: Resources, Environment, Sustainable Development, and Circular Economy Tianji Administrative Institute Qian Jingjing Natural Resources Defense Council Yan Jianzhong Area of Expertise: Science and Technology Researcher for College of Resources and Environment Embassy of the People’s Republic of China in Cambodia at Southwest University Embassy of the People’s Republic of China in Lao PDR Te Mule Area of Expertise: Land Use, Global Change and Regional Response Embassy of the People’s Republic of China in Myanmar Clerk for Wulijitu Gacha, Abaga Banner, Xilinhaote City, Embassy of the People’s Republic of China in Sri Lanka Inner Mongolia (Herdsman) Embassy of the People’s Republic of China in the United States Area of Expertise: Grassland Pasturing Representative Office in Myanmar, Export-Import Bank of China

Tian Yishui Researcher at Chinese Academy of Agricultural Engineering National Land Management Authority of Lao PDR Area of Expertise: Biomass Energy, Energy and Dynamics Water Resources and Environment Administration of Lao PDR Wang Yanjia Natural Resources and Environmental Conservation Committee of Professor of Tsinghua University Myanmar Area of Expertise: Energy and Climate Change Ministry of Environmental Conservation and Forestry of Myanmar Ministry of Foreign Affairs of Myanmar Ministry of Livestock Development of Sri Lanka 49 GEI 2014 Partner Organizations GEI 2014 Networks 50

National, International Organizations Networks GEI belongs to (in alphabetical order) and Academic Institutions

Center for Low Carbon and Sustainable Development Research Business College at Howard University China Civil Climate Action Network (CCAN) at Jinan University Center for American Progress C+ Initiatives China Agricultural University Center for Climate Strategies Clinton Global Initiative China National Bamboo Research and Development Center EcoPeace Asia Energy for all China’ Ministry of Agriculture’s Grassland Monitoring ISEAL Alliance Global Alliance for Clean Cookstoves and Supervision Center International Biochar Initiative Nexus Carbon for Development Chinese Academy of Agricultural Engineering, International Financial Corporation The Partnership for Clean Indoor Air Ministry of Agriculture International Institute for Environment and Development Chinese Academy of Environmental Planning, International Institute for Sustainable Development Ministry of Environmental Protection International Rivers Network Chinese Academy of Land & Resource Economics M-POWER Chongqing Academy of Social Sciences Myanmar Peace Center College of Land Management, Zhejiang University Natural Resources Defense Council College of Resources and Envrionment Oxford University at Southwest University of China Small Scale Sustainable Infrastructure Development Fund (S3IDF) Eco-Watch Institute Union of Myanmar Federation of Chambers of Commerce Energy Research Institute, and Industry National Development and Reform Commission Vermont Law School Guangzhou Institute of Energy Conversion, Wildlife Conservation Society Chinese Academy of Sciences World Resources Institute Institute of Geographic Sciences and Natural Resources Research, Food Security Working Group of Myanmar Chinese Academy Sciences Renewable Energy Association of Myanmar Using Market Mechanisms to Develop Economically Viable Solutions to Environmental Problems Institute of Policy and Management, Chinese Academy of Sciences Global Treasury Bank of Myanmar Institute of Tibetan Plateau Research of Chinese Academy of Sciences

Liaoning Research Center for Biochar Engineering Technology, Shenyang Agricultural University Nyanpo Yuzee Environmental Protection Association Research Center of Energy and Power, Chinese Academy of Sciences Global Environmental Institute (GEI) Research Institute of Forestry Policy and Information, Address: Suite 1-401, Building No. 5, Chinese Academy of Forestry New World Villa, Dongcheng District, Beijing 100062, PRC Qinghai Desertification Control and Deserticulture Association Tel: 86-10-67083192 School of Environment and Natural Resources, Fax: 86-10-67083193 Renmin University Website: http://www.geichina.org Shanxi Ruicheng Love Union Shenzhen Light Emitting Diode Industry Association Snowland Great Rivers Environmental Protection Association Sina Weibo: http://weibo.com/geichina Youku: http://i.youku.com/GEIChina Tsinghua University

Biodiversity Conservation

China Nanchuan, Chongqing Municipal Zhuoni, Gansu Province Chishui, Guizhou Province Songxian, Henan Province Hailin, Mudanjiang, Heilongjiang Province Mohe, Heilongjiang Province Badong, Hubei Province Yunxi, Hubei Province Investment, Trade and the Environment Wangqing, Jilin Province Abagaqi, Inner Mongolia Autonomous Region Mozambique Alashanzhuoqi, Inner Mongolia Autonomous Region Uganda Baiqi, Inner Mongolia Autonomous Region Cameroon Ewenkeqi, Hulunber, Inner Mongolia Autonomous Region Congo Siwangziqi, Inner Mongolia Autonomous Region Lao PDR Vientiane Wuerqiha, Inner Mongolia Autonomous Region Ban Chim, Louangphabang Longde, Ningxia Hui Autonomous Region China Beijing Energy and Climate Change Yuanzhou, Guyuan, Ningxia Hui Autonomous Region Myanmar Yangon Banma, Qinghai Province Naypyidaw Ledu, Haidong, Qinghai Province Viet Nam China Beijing Lijiang, Yunnan Province Haiyan, Qinghai Province Cambodia Chongqing Xinping, Yunnan Province Jiuzhi, Qinghai Province Shanghai Yuxi, Yunnan Province Nangqian, Qinghai Province Tianjin Hangzhou, Zhejiang Province Qumalai, Qinghai Province Guangzhou, Guangdong Province Yiwu, Zhejiang Province Yushu, Qinghai Province Shaoguan, Guangdong Province Sri Lanka Western Province Qinyuan, Shanxi Province Nanning, Guangxi Province Central Province Jiaokou, Lvliang, Shanxi Province Rongshui, Liuzhou, Guangxi Province Southern Province Danfeng, Shaanxi Province Nanyang, Henan Province Sabaragamuwa Province Foping, Shaanxi Province Shangcai, Zhumadian, Henan Province Northwestern Province Baoxing, Sichuan Province Lianyungang, Jiangsu Province Changxi, Sichuan Province Ruicheng, Shanxi Province Myanmar Than Bayar Khon, Bago Province Nanjiang, Sichuan Province Youyu, Shanxi Province Naqu, Tibet Autonomous Region Yuxian, Shanxi Province Lao PDR Vientiane Hami, Xinjiang Uygur Autonomous Region Hongyuan, Sichuan Province Louangphabang Lingshui, Xinjiang Uygur Autonomous Region Lhasa, Tibet Autonomous Region Ninger Hani and Yi Autonomous Prefecture Linzhou, Tibet Autonomous Region United States Washington D.C.

Duilongdeqing, Tibet Autonomous Region * Since GEI’s Capacity Building projects are incorporated into the work of our other three programs, Kunming, Yunnan Province the project sites are not listed again separately here. For more details, please refer to the Capacity Building section of this report.