Nature Related Sustainable Finance in China 2025

Sustainable water governance through the EOD model in Tianjin-Jizhou canal42 In addition to the RMB 6.5 billion investment, the EOD project is pursuing additional funding sources, including long- term insurance capital and government support, to further leverage equity capital. Revenue model Government payouts: Stable revenue from government purchasing water governance and maintenance services. User payments: Income generated from integrating industries like tourism, wellness and agriculture into the project. Additional revenues: Income from sharing of land value appreciation post-ecological restoration and supplementary funding from specialized governance and The Chinese Ministry of Ecology and Environment’s “Ecological Optimization and Development” (EOD) model, launched in 2018, brings together government, enterprises and financial institutions to create sustainable, nature-positive projects.43 This model enables the internalization of ecological benefits by making ecological projects profitable. The project of comprehensive water system governance of the Tianjin-Ji Canal, with an RMB 6.5 billion investment and a 20-year timeline, is a prime example of the EOD model. The project focuses on water management, ecological restoration and environmental improvement (see Figure 12). Funding structure 30% equity: Contributed by social capital based on equity ratios, involving both state-owned and private enterprises. 70% financing: Primarily from policy banks (China Development Bank, Agricultural Development Bank) via medium- and long-term loans.ecological service payouts. Tianjin Jizhou government Project companiesEcological recoveryDistrict water authority Planning, supervision, assessmentDistrict SASAC* Construction and operation State-owned enterprise Government capitalPPP Social capital Financial institutionIntegrated developmentLand value appreciation and tax revenue Land value appreciation and operating revenuePerformance-based payment for governanceCapital injection Finance injectionFinancial support SupervisionFigure 12: Financing structure of the Tianjin-Ji canal ecological restoration project *State-owned Assets Supervision and Administration Commission of the State Council. A Brief Review Nature-Related Sustainable Finance in China: 20