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Major conservation investments in the Mountains of Southwest China hotspot come from the Chinese government, multilateral and bilateral aid agencies, and international conservation organizations.

Chinese Government

The Chinese government is the largest investor in the region, with multibillion-dollar programs. These include the National Natural Forest Protection, Grain to Green and National Endangered Plant and Wildlife Protection and Nature Reserve programs, all of which are managed by the State Forestry Administration.

Geographically, the National Natural Forest Protection and Grain to Green programs are focused on the Upper Yangtze and Yellow rivers. The programs focus on reducing erosion from deforestation and cultivation of sloping lands. The combined budget for the programs is estimated at $40 billion over 10 years, beginning in 2000 and ending in 2010. The primary expenditures of the National Natural Forest Protection Program are subsidies to logging companies and local governments; retraining of loggers; reforestation and forest maintenance. The Grain to Green program subsidizes individual households - farmers are paid for grain, trees and maintenance and promised the right to use the trees they plant. These two large-scale programs present perhaps the best opportunity to protect ecosystems and landscapes, but significant gaps remain in these programs and their implementation. In addition, both programs expire in 2010 and their long-term ecological impact is still uncertain. While they offer an opportunity to solidify and expand protection of key biodiversity areas, there is obviously enough space to work on longer-term solutions. For example, the recently announced Ecological Compensation Fee would help restructure the Chinese timber industry in favor of sustainable forestry. A comprehensive land use plan is necessary to define different patterns of forest use (commercial, protected and subsistence), accommodating both local needs and the public interest in environment and sustainable development. Above all, to achieve long-term ecological protection-the objective stated by both programs-their scope should be broadened from merely tree plantation and forest protection to an integrated ecosystem restoration and biodiversity conservation to maximize the ecological return on such a large investment.

The National Endangered Plant and Wildlife Protection and Nature Reserve Construction Program (NCP) is a new government program aimed at protecting China's biodiversity in the next 50 years. The total budget is $16.5 billion. The program is intended to improve the existing protected area system, establish new reserves, and protect and restore 15 species of endangered plants and animals nationwide. Yunnan and Sichuan provinces developed their provincial plans accordingly. In the hotspot region, the program aims to expand the nature reserve system by increasing reserves from 60 to 260 by the year 2010 and to triple the number of protected areas. The program will support 30 wildlife corridors, a few wildlife monitoring stations and conservation plans for key endangered species such as giant panda, golden monkey, musk deer and orchids. This is the largest governmental investment in biodiversity conservation ever. In 2002 alone, Yunnan and Sichuan provinces received more than $8 million, more than the total funding for protected areas in these two provinces in the last 10 years. However, like previous government investment, this fund is mostly earmarked for construction of infrastructure and provides little for improved management.

It is also worth mentioning that following the 1992 Rio Summit and signing of the Convention on Biological Diversity, the Chinese government, under the support of GEF, developed a National Biodiversity Conservation Action Plan in 1995. The plan provides a useful guideline for foreign assistance in biodiversity conservation in China.

Bilateral and Multilateral Donors

The World Bank/GEF and the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) fund the largest multilateral and bilateral aid conservation programs in the region. Between 1997 and 2001, GTZ funded the panda nature reserve program in Sichuan. A second phase is being planned to continue this program. GTZ's focus is to enhance nature reserves by improving local community livelihoods. The World Bank through the GEF has been involved in biodiversity conservation since 1995. The World Bank/GEF is financing a nature reserves management project with an investment of $17.5 million to improve management of 10 nature reserves in China. In Yunnan province, the project included the development of management plans for two nature reserves in the ecoregion. A new World Bank/GEF and European Union (EU) sustainable forestry development project was recently approved. This new project includes three component: a GEF grant ($16 million) for nature reserve management (nine in this region), focusing on participatory reserve management, and capacity building; an EU grant ($15 million) for natural forest management, targeting the gaps existing in the National Natural Forest Protection Program such as development of sustainable forestry techniques and training on forestry management, vocational training for laid-off loggers and community development; and a World Bank loan ($93 million) for plantation establishment to meet the increasing demand for wood and other forest products as a result of the logging ban. In this new project, Sichuan is included in the first two components and Yunnan in the second component. The United Nations Development Programme (UNDP) through the GEF has invested in conservation in northwest Yunnan and in a series of energy and climate projects in the region.

The British, Dutch and Italian governments fund other bilateral aid projects in the region. The Japanese government assisted researchers and experts in conducting joint training and scientific research on animals and plants in Yunnan.

Two working groups under the China Council for International Cooperation on Environment and Development (CCICED) conducted relevant policy research and provided recommendations. The Biodiversity Working Group (BWG) has drafted a number of technical reports on diverse topics including nature reserve management, use of native species in reforestation efforts, sustainability of traditional Chinese medicine and conservation of grasslands. With EU funding, BWG helped establish the China Species Information System that provides Internet-based information on nature reserves, endangered species, experts, invasive species and other topics. The Forest and Grassland Taskforce dealt with the issues related to the National Natural Forest Protection and Grain to Green programs and implementation through case studies and provided suggestions for these programs. It intends to broaden the debate on forest policies beyond the government.

The advantage of these multilateral and bilateral programs is their direct access to government and national policies. One example is the World Bank/GEF nature reserve project, in which the information gathered and approaches presented have been incorporated into new national plans for a reserve network. However, multilateral and bilateral programs generally work only through the national government, potentially limiting their scope of work and their impact on civil society. The sustainable benefits of these programs are also limited by governmental personnel systems and structures.

The Government of Japan has contributed to several collaborative projects between the two countries, focusing on conserving biodiversity in the Yunnan Province of China with funding provided through the Ministry of the Environment of Japan. Professor Iwatsuiki and Professor Ohba of Tokyo University are conducting research projects on floral diversity in the Yunnan Province, in collaboration with the Yunnan Branch for Chinese Academy of Science.

Under the auspices of the collaborative project for establishing an international monitoring network on migratory birds, the Ministry of the Environment, Japan co-hosted a technical training course for bird-banding survey in Yunnan Province in 1997. The Forestry Department of Chinese Government, Yunnan University, Yamashina Institute of Ornithology of Japan, and other stakeholders participated in the training course.

Upon the request of the Chinese Government's National Environmental Protection Agency (NEPA) a project funding mission from the Japan International Cooperation Agency has evaluated establishing a biodiversity centre in Yunnan Province.

International NGOs

International institutions have taken a relatively comprehensive approach to biodiversity protection in the region. To date, the Ford Foundation, TNC and WWF are the most active and influential organizations operating projects on the ground. Local and national projects focus on species conservation; integrated conservation and development projects; regional planning; sustainable community development; environmental education; and effectiveness of nature reserves. NGO projects have helped close the gaps in governmental programs and brought in new ideas and approaches in conservation, especially in participatory processes in project design, planning and management and in local capacity building. While a number of successes have been recorded, the primary gaps in current international NGO programs are geographic (i.e., in areas where no projects exist) and a lack of coordination. Tighter links and data sharing between projects in different organizations and localities would significantly improve the results of these programs. This could compensate for inadequate monitoring and evaluation and help create a useful base of shared knowledge. The Biodiversity Conservation Priority-Setting Workshop for the Upper Yangtze illustrated the importance of these benefits and was a good first step.

World Wide Fund for Nature has perhaps the longest history of conservation work in China. WWF's work began with Panda conservation in the Wolong Nature Reserve in 1980, followed by a national panda and habitat survey and a national panda conservation plan in late the 1980s. Since 1995, WWF has launched a number of Integrated Conservation and Development Projects (ICDP's) in the Upper Yangtze, in areas such as Wanglang Nature Reserve (Pingwu County, Sichuan) and Baimaxueshan Nature Reserve (Deqin County, Yunnan). One notable feature of the ICDPs is their strong emphasis on participatory planning and capacity building, including training for trainers in Sichuan Forestry School. Recently, WWF also initiated an ecoregional planning process in northern Minshan area, and has developed a strong forest policy and sustainable forestry program in China. WWF has offices in both Beijing and Sichuan. Its program areas include species and protected areas, forest, ecoregional planning, environmental education, wetlands conservation and public advocacy.

The Nature Conservancy is engaged in a large-scale ecoregional conservation project located in northwest Yunnan province. The project encompasses four prefectures and 15 counties, an area of approximately 66,000 km2, and falls within the hotspot. The Yunnan Provincial government and TNC committed $5 million to the project over five years, beginning in 1997. The project includes five modules, (1) biodiversity protection; (2) cultural resource protection; (3) sustainable economic development; (4) regional planning; and (5) geographic information system mapping. As part of this project, a regional conservation and development action plan and an ecoregional conservation plan have been developed. Current activities are focused on conservation management activities and sustainable development initiatives in Meilixueshan/Kawagebo in Deqin County, Laojunshan in Lijiang, Jianchuan and Lanping counties, Nujiang Grand Canyon in Gongshan, Fugong and Lishui counties, and Lashihai Watershed in Lijiang County.

Conservation International is an emerging actor in conservation in the region, focusing mainly on South-Central Sichuan. Aside from advising government agencies and local communities on the sustainability of economic development in areas of biological richness in the Hengduan Mountains, CI has supported the ecoregional conservation priority-setting process for the Upper Yangtze region. CI's presence in the region should increase substantially over the next few years as it orients toward more ground-level conservation and development activities.

Ford Foundation began its China Program in the late 1970s. Its aim in the hotspot region is to help poor upland communities in southwest China to derive sustainable livelihoods from natural resources. It focuses on capacity building for community forestry practice and policy; people-centered development approaches; and the nexus between minority culture and natural resources management. Ford Foundation support has raised the capacity of Chinese NGOs, increasing their ability to influence governmental agencies, such as the Forestry Department, in implementing government-funded projects.

Wildlife Conservation Society has sponsored and conducted continuous and extensive wildlife research and surveys in Sichuan, Tibet and other remote areas in this region since the early 1980s. WCS also conducted reserve management training and environmental education projects in Yunnan and Sichuan.

TRAFFIC has identified the region as a primary source for wildlife products used in traditional East Asian medicine and a priority for expanded conservation action. Following its recent comprehensive study of the international trade in China's traditional plant-based medicines (funded by the German Bundesamt für Naturschutz), TRAFFIC is exploring new opportunities to research markets for illegal and/or unsustainable wildlife collection and to identify the needs of local producers, wildlife law enforcers, policy makers and consumers. TRAFFIC places specific emphasis on ensuring that wildlife trade is maintained within sustainable and legal levels and does not endanger any species of plant or animal, or have negative impacts on ecosystems.

The World Conservation Union (IUCN) has been active in China for more than 15 years. As a member country, China participates in IUCN's regional and global activities and many Chinese scientists participate in the organization's six expert commissions. Its work includes implementation of international conventions and policy advice on biodiversity conservation through activities like the Red List Programme and relevant training. IUCN's geographical focus is in Southwest China. The Regional Forest Program has prepared project proposals on forest management in Southwest China.The Regional Biodiversity Programme for Asia (RBP) is actively working in China to help the Dujiangyan municipality develop a sub-national Biodiversity Action Plan (BAP).

MacArthur Foundation's focal area in Indo-Burma covers western Yunnan and southeastern Tibet. Since the mid-1990s, the MacArthur Foundation has funded a number of projects through WCS, Kunming Institute of Zoology and the Tibet Forestry Department on environmental education, biodiversity surveys and training.

The Bridge Fund has recently funded a series of studies looking at resource use in Tibetan communities in Western Sichuan and at the impact of the National Natural Forest Protection and Grain to Green programs. Other projects include reforestation and revegetation, environmental education by Buddhist leaders, and ecotourism training workshops.

Global Greengrants Fund is a global NGO network that provides small grants to grassroots NGOs for capacity building. Recently GGF initiated its support in China.

American Zoos such as the San Diego Zoological Society, Atlanta Zoo, Washington Zoo and National Zoological Society, which have a pair of pandas loaned from Chinese zoos and breeding centers, each pay at least $1 million per year to support panda conservation as part of the loan agreements. The agreements also require the zoos to conduct scientific research on pandas, including captive breeding and natural history in the field. Zoo Atlanta's new conservation education program in China and the United States is designed to reach people of all ages about endangered species in Asia.

Chinese NGOs

Due to China's political structure, civil society has not yet materialized as a major player in conservation efforts. While most universities and colleges have student environmental groups, they are predominately focused on occasional small-scale lobbying or media events. There are a few NGOs in the region doing solid projects on community development and resource management. The most significant is the Participatory Rural Appraisal Network in Yunnan and Sichuan. Members of the network recently formed several NGOs and have actively participated in projects in Yunnan and Sichuan with international NGOs and bilateral agencies. They have also initiated their own projects, mostly focusing on community development and natural resource management. Among them are the Center for Biodiversity and Indigenous Knowledge; Center for Community Development Studies; the Sichuan Aihua Institute for Community Development and Resource Management; and the Yunmen Development Institute. There are also environmental NGOs formed by committed environmentalists in the region, such as Green River and the Green Plateau Institute, connected to both national and international NGO networks and doing small-scale, volunteer work on environmental issues in the region. With help from non-Chinese organizations and others, a number of successful community groups have formed to support sustainable use of local resources. China's promotion of democratic elections at the village and township level presents a potential opportunity to integrate conservation and civil society capacity-building efforts. Scientific institutes, universities and associations are also actively involved in research and conservation projects in the region. Individual researchers often play the role of catalyst to promote conservation actions such as setting up nature reserves. In general, the capacity of Chinese NGOs needs to be greatly enhanced to meet the increasing needs of conservation in the region.

Private Businesses

To date, few Chinese private businesses have shown interest in promoting conservation through their businesses or have the capacity to deal with environmental issues, especially on biodiversity conservation. However, the following fields have great potential to develop business conservation partners in future: ecotourism operators, wildness clubs, nontimber forest product companies and the traditional medicine industry. The logging ban has magnified the importance of these sectors in regional development plans.

In summary, the biggest gaps in current investment are in conservation capacity at the grassroots level and in nature reserves; coordination of conservation activities by different stakeholders; and shared knowledge. There is also a geographical gap that has not yet received attention, such as the Tibetan areas of southwestern Sichuan. It is also important to leverage major government investment for a broader and long-term impact.

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Mountains of Southwest China Ecosystem Profile, English, June 2002 (PDF - 1.1 MB) ; Chinese, (PDF - 645 KB)