BEIJING — The Asian Development Bank (ADB) has approved a CNY1.068 billion ($150 million equivalent) loan to pilot its first nature credit mechanism in Gulin County, Sichuan Province, in the People’s Republic of China (PRC). The financing will support biodiversity conservation and green development in the county, which is located in the Chishui River Basin—a key freshwater biodiversity hotspot.
The Chishui River Basin Ecological Protection and Green Development Project will introduce a results-based eco-compensation mechanism and a nature credit system—supported by digital monitoring and blockchain technologies—to promote biodiversity conservation, forest and wetlands restoration, soil conservation, rural–urban environmental infrastructure upgrades, and a landscape approach to integrated catchment management.
It will transform natural capital—including biodiversity, carbon, and ecosystem services—into virtual assets that can mobilize public and private green financing. The project is expected to directly benefit about 265,000 residents—50.5% of whom are women—through restored ecosystems, improved living standards, and expanded livelihood opportunities.
“The project pioneers a nature-positive financing model that integrates biodiversity conservation, resilience to extreme weather events, and economic development,” said ADB Country Director for the PRC Asif Cheema. “Aligned with ADB’s Operational Approach for Food Systems Transformation in Asia and the Pacific (2026–2030), Environment Action Plan 2024–2030, and country partnership strategy for the PRC, the project will create long-term incentive for communities, enterprises, and governments to protect and restore ecosystems and ensure food security and sustainable development.”
The Chishui River Basin, the last undammed primary tributary of the Yangtze River, is home to 112 globally significant fish species, including 28 endemic species. From 2022 to 2024, three riparian provincial governments collaborated successfully to remove 342 small hydropower dams and 300 barrages and weirs. However, the basin continues to face increasing environmental pressures, including soil erosion, pollution from excess pesticides and other contaminants, deforestation, habitat degradation, and rising disasters such as floods, droughts, and extreme temperatures. Gulin County, located in a mountainous ecological barrier zone, is particularly vulnerable, as rapid urbanization on floodplains is increasing disaster risks.
The project will help streamline national and local policies on green financing by strengthening natural capital accounting, supporting the establishment of new protected areas, and enhancing coordination on disaster resilience.
In addition, the project will promote low-emissions agriculture, establish ecotourism facilities, and foster the development of green micro, small, and medium-sized enterprises that can generate sustainable income for local communities.
The project supports the PRC’s goals on ecological civilization, aligns with the Kunming–Montreal Global Biodiversity Framework, and contributes to ADB’s Strategy 2030 priorities on climate action, resilience, and environmental sustainability.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
