Ecological compensation mechanism for Yangtze, Yellow rivers slated for 2027 completion

BEIJING -- China is set to establish a unified cross-basin ecological compensation mechanism for the mainstreams of the Yangtze and Yellow rivers by 2027, as part of its broader efforts to improve water environment management, the Ministry of Finance announced on Wednesday.

According to a plan jointly issued by the ministry and four other government departments, the mechanism will expand to cover the mainstreams and major tributaries of key river basins, including the Yangtze and Yellow rivers, by 2035.

The system will feature diversified compensation measures, flexible approaches, refined standards and a mature operational framework.

China's central fiscal authorities will play a coordinating and guiding role in implementing this mechanism -- ensuring that compensation indicators and funding scales align with the water ecological conservation situation while remaining fiscally sustainable for local governments.

China first introduced plans for Yangtze and Yellow river compensation mechanisms in 2021 and 2020, respectively. Since then, the country has made significant progress in terms of ecological conservation and restoration of these rivers.

For example, the Yangtze River basin has seen a recovery in aquatic biodiversity following the imposition of a 10-year fishing ban in 2020. According to the Ministry of Agriculture and Rural Affairs, 344 native fish species were recorded in the river from 2021 to 2024 -- an increase of 36 species compared to the 2017-2020 period before the ban took effect.

Meanwhile, the Yellow River, China's second-longest waterway, has also experienced steady ecological improvements, including enhanced water security and environmental quality.