By Wang Yufei, Management World Magazine & Jin Tong, the Nature Conservancy

Research Report, No.173, 2019 (Total 5673) 2019-9-29

Abstract: In accelerating the reform of the ecological civilization system, the 19th CPC National Congress emphasized the need to establish a market-oriented and diversified ecological compensation mechanism. The Nature Conservancy launched a water source protection project in Qingshan village, Hangzhou city, Zhejiang province, which, based on a water fund trust, channeled non-governmental capital into the project to shore up ecological compensation. This project is featured by the following two aspects. First, through the application of both economic and administrative measures, efforts were made to encourage farmers to participate in ecological protection. By way of profit sharing with the farmers, non-point pollution got controlled and water quality became improved. Second, with the establishment of enterprises funded by the water fund trust, commercial projects with diversified designing and based on the advantages of local resources were developed and relevant green industries were able to bolster the community development with their earnings. This project has achieved remarkable ecological, economic and social benefits, and its experience has been applied to relevant rural areas with limited water sources in other provinces, and even in Qiandao Lake area with abundant water sources in Zhejiang province. The water source protection model of Qingshan village can provide reference for the establishment of a market-oriented and diversified ecological compensation system, and also serve as a typical case for boosting rural revitalization with ecological protection.

Key words: ecological compensation mechanism, market-oriented, diversified, rural revitalization, social organization