Mainstreaming Environmental Concerns into Development Projects and Programs Three Examples from ADB’s Work in PRC Bruce Carrad, Principal Project Specialist (Natural Resources), PRCM, Beijing 22 March 2005

Examples from Three TA Projects Control and Management of Rural Non-Point Pollution Transjurisdiction Environment Management in Yellow River Basin PRC-GEF Partnership on Combating Combating Land Degradation

1. Control, Management of Rural Non-Point Pollution NSP from contaminated surface cropland runoff (fertilizers and pesticides), village sewage, agricultural solid waste, and livestock waste is massive and increasing All major eastern cities, regions affected Fertilizer/pesticides exceed crop requirements, leading to deteriorating soil and water quality Pollution levels will more than double by 2020 Waterways and groundwater are affected No systematic monitoring, data are weak

Mainstreaming Solutions A major problem in all OECD countries, and especially recognized from 1970s NSP is too complex for single policy solutions Combination of mandatory and voluntary policies proved most effective Reinforced via market-based measures – charges, tradable permits, subsidies Institutional reforms, better coordination, improved data and monitoring needed in PRC

2. Transjurisdiction Pollution Control in YRB Natural river flow decreasing and heavily polluted. Mostly class 5 water or worse Untreated industrial discharges the main cause No incentives for provinces to treat, manage or conserve for benefit of downstream users EPBs have primary responsibility for emission control and monitoring but are ineffective SEPA has national level responsibility but lacks control of EPBs and has inadequate capacity and resources

Mainstreaming Solutions Similar problem faced by USA in 1950s/60s Also a huge country with similar geology and climatic range Long record of science-based solutions in context of central/state governments Policy/legal, financial and institutional reforms are relevant Educational changes, especially ecology Environment a legitimate concern, not just economic growth

Mainstreaming Solutions Long term reform perspective needed for significant effect Bottom-up approach that involves all stakeholders Major institutional changes needed, especially legal framework for use of YR, SEPA/EPBs, permit system, monitoring, accurate reporting Education to promote common understanding of environmental goals and transboundary issues

3. PRC-GEF Partnership on Combating Land Degradation Land degradation is also a massive problem, especially in dryland areas Barriers to combating land degradation include Inadequate policy and legal framework Sector-driven fragmentation Poor application of lessons learned Undeveloped participatory approaches Perverse incentives Inadequate financial arrangements and incentives

Lessons from international experience highlight the need for … An integrated ecosystem management approach Institutions working together Comprehensive, scientific, and participatory approach Better management practices A realistic time frame Outstanding examples are well documented (e.g., USA, Canada, Australia) Common understanding is key Community-driven Partnership with Government

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