10 Proposals for Further Deepening Reform: Ecological System Reform

Shenzhen Innovation and Development Institute (SZIDI) released the China Reform Report 2017 in May 2018. Entitled Reform on Route, this year’s report evaluates twelve major aspects of the reform process in 2017, concludes reform experiences from the past five years and makes predictions on the future trend of reform in 2018 with ten policy recommendations. The report identifies 2017 as a crucial year during which series of planning and design culminate into implementation, and historical breakthroughs and periodical progresses rise to the surface. 

 

In the realm of ecology, reforms have been primarily driven by the government through administrative measures. The report suggests that China should let the market to play an increasingly important role in the reform and improvements of ecological system.

 

Long-term goals include the establishment of a equity exchange market for natural resources, a market for ecological products, an exchange market for emission rights, an exchange market for environmental information, and a market for environmental protection services.

 

The report points out that in the short-run, it is essential to

l  establish a functioning property rights system for natural resources to

n  clarify the ownership of natural resources such as minerals, forests, water, grassland and soil

n  identify the party with the user’s right of natural resources and clarify relevant responsibilities

n  establish an exchange system for natural resources user’s rights

l  build the asset and pricing system for natural resources and leave the market to decide the prices

l  build a market mechanism that can manage pollution and utilize resources reasonably by

n  promoting the notion of emission right

n  establishing an exchange market for emission right

l  encourage the role of market and the retreat of government from ecological governance