On October 22-23, Lishui City in Zhejiang Province hosted an important conference focused on developing effective mechanisms for realizing the value of ecological products. Over 200 guests gathered to share innovative local experiences and practices aimed at creating a new path of ecological primacy and green development.
Lishui, known for its breathtaking mountains and flowing waters, was chosen as the venue for this event due to its rich natural resources. The city has been recognized as a national pilot for ecological product value realization since 2019. In his keynote speech, Lishui’s Vice Mayor and Mayor, Zhu Linsheng, highlighted the city’s progress in integrating ecological protection, value addition, and realization processes. He emphasized their efforts to tackle challenges in measurement, collateralization, trading, and monetization, which have allowed various ecological resources, such as mountains, rivers, forests, fields, lakes, and grasslands, to be assigned a “value label” and a path for conversion.
Indeed, Lishui has delivered impressive results, being the first to implement a GEP (Gross Ecosystem Product) accounting system at the town and village levels, facilitating a land transfer that incorporates GEP value, and executing large-scale carbon neutrality transactions for public events. Innovations in green finance products like “eco-credit loans” and “eco-pawn loans” have also emerged, painting a vivid picture of Lishui’s ecological value practices.
One remarkable story comes from Datian Village, where a GEP accounting report released in May 2019 revealed an incredible valuation of about 160 million yuan for the local ecosystem. Villager Cheng Wanneng expressed his surprise, saying, “It’s the first time I’ve heard that our village’s mountains, fields, forests, waters, and even the air have price tags!”
GEP refers to the total economic value of the products and services provided by an ecosystem, akin to how GDP measures a city’s economic value. In August 2019, Lishui published China’s first local government technical measures for establishing ecological product value accounting. This framework led to the development of governmental procurement and market transactions for ecological products and the formation of “Two Mountains Cooperatives” involving local state-owned enterprises.
Beyond quantifying eco-values through “standards and system innovations,” Lishui is also pioneering new paths in ecological transformation and industry development.
In the mountainous regions of Qinyuan County, ancient tea gardens and naturally growing tea trees have flourished without artificial interventions, creating what locals call “wild tea.” In 2022, Qinyuan County initiated the protection and cultivation of wild tea, establishing it as a key pillar of rural revitalization. The head of the local Agricultural and Rural Bureau shared, “We created a database for wild tea trees, ensuring their protection and sustainable management.”
Qinyuan’s transformation of wild tea from obscurity to a highly valued niche market exemplifies Lishui’s commitment to exploring new paths in ecological conversion. The city continues to focus on leveraging its unique ecological and cultural characteristics to develop industries such as quality agriculture, cultural tourism, forestry, and water economics.
Integrity is foundational in realizing the value of ecological products, and ecological credit plays a crucial role in that process. Lishui has pioneered an ecological credit system, introducing a list of positive and negative behaviors and developing innovative credit services linked to ecological credit. As of June 2024, the balance of “eco-credit loans” reached 4.518 billion yuan.
Lishui’s journey in ecological value transformation mirrors Zhejiang Province’s broader commitment to harnessing green engines for shared prosperity. In early 2022, Zhejiang issued its first comprehensive document promoting ecological product transformations and introduced the “Zhejiang Provincial Environmental Protection Regulations” to establish a basic institutional framework for realizing ecological product values, enabling more stories of thriving ecosystems and economic opportunities to emerge in the region.
