Global Environment Facility (GEF) Projects in China

(World Bank as Implementing Agency)

  Overview
  Persistent Organic Pollutants (POPs)
  Global Climate Change
  Biodiversity
  International Waters
  Land Degradation
  GEF Projects in China

Overview

The Global Environment Facility (GEF) provides grants and concessional loans to UNDP and World Bank-eligible countries to co-finance projects and programs that both protect the global environment and promote sustainable economic growth.  The GEF is an independent financial institution which began as a pilot program in 1991 and was formally established in 1994. It funds the agreed incremental costs of activities that benefit the global environment in six focal areas:  climate change; biological diversity; international waters; persistent organic pollutants, land degradation and stratospheric ozone depletion.  The Climate Change, Biodiversity and POPs Conventions have designated the GEF as their funding mechanism.  Countries must ratify the relevant convention to qualify for GEF support in these three focal areas.

Countries access GEF resources through either one of three "implementing agencies":  the UN Development Program (UNDP), the UN Environment Program (UNEP) and the World Bank, or through several "executing agencies" (including the Asian Development Bank (ADB). The GEF Secretariat, which is functionally independent from the three implementing agencies, reports to and services the GEF Council (Board) and Assembly. The Ministry of Finance is the Focal Point for coordinating GEF projects in China.

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The following completed and ongoing GEF co-financed projects have been facilitated by the World Bank:

Persistent Organic Pollutants (POPs)

Polychlorinated biphenyls (PCBs) management and disposal demonstration project.  This project received a GEF grant of $18.34 million and was approved by the World Bank Board of Executive Directors on December 15, 2005 as a pilot of innovative policy, institutional and disposal measures to eliminate PCBs in the Zhejiang Province. PCBs are broadly used in electrical equipment as dielectric fluid and caused widespread contamination of their storage sites. The project will demonstrate environmentally sound policies, and cost-effective approaches for safely disposing PCBs, PCB waste and decontaminating PCB sites. The total cost of the project will exceed $35 million, of which more than half is funded by the China, and $2.02 million is funded by Japan, Italy and the United States.

Demonstration of Alternatives to Chlordane and Mirex in Termite Control.  This project received a GEF grant of $14.36 million and was approved by the World Bank Board of Executive Directors on June 27, 2006 to eliminate the use of two highly toxic termiticides. The first project of its kind in the World Bank or GEF portfolio, it will assist China to phase out use of 15,000 kilograms (33,000 pounds) of chlordane and mirex, close their largest manufacturing facility, and adopt modern termite control methods based on integrated pest management (IPM). The total project cost is $27.7 million with China co-financing the remaining $13.34 million

Global Climate Change

Issues and Options and Greenhouse Gas (GHG) Emissions Control.  This $2 million GHG control strategy study was conducted in partnership with the State Development Planning Commission, State Environmental Protection Agency, Ministry of Industry and Shanxi Provincial Government and was completed in November 1994. It identified a pipeline of priority GHG reduction projects, many of which the GEF has subsequently co-financed, through the World Bank, as summarized below. 

Sichuan Gas Transmission and Distribution Rehabilitation.  A $10 million GEF grant for this project was approved in March 1994, which complemented a World Bank loan for natural gas development in Sichuan Province.  The GEF funds helped rehabilitate the provincial gas transmission and distribution systems to reduce methane gas losses and improve network performance.  The project was completed in June 2003.

Efficient Industrial Boilers.  A $32.8 million GEF grant was approved in December 1996 to support a Ministry of Machine Building Industry program to transfer nine more fuel-efficient, small and medium-sized coal-fired industrial boiler designs to China. The project was completed in June 2004.

Energy Conservation.  A $22 million GEF grant, supplemented by a World Bank loan of $63 million and a European Commission grant of $5 million, was approved in March 1998 to establish, demonstrate and disseminate the Energy Service Company (EMC) concept for improving energy efficiency. This project is nearing completion, and is scheduled to be completed by the end of June 2006.

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Energy Conservation Phase II.    A $26 million follow-up GEF grant is helping to expand China's nascent Energy Management Company industry from the 3 pilot EMCs launched under the first Energy Conservation Project to a nationwide network of EMC businesses.

Renewable Energy Development. A $27 million GEF grant and a companion World Bank loan of $13 million is promoting photo-voltaic electric power systems and grid-connected wind generation.   The project is coordinated by the National Development and Reform Commission.

Beijing Environment II.  A $25 million GEF grant and a World Bank loan of $349 million were approved in mid-2000 for this project.  It supports the Beijing municipal government's efforts to alleviate air and water pollution by converting scattered coal-fired boilers to natural gas, improving the efficiency of coal-fired heating systems, providing wastewater collection and treatment to the Liangshi River basin, which covers over a quarter of the city, and strengthening environmental management.

Heat Reform and Building Energy Efficiency.  This $18 million GEF grant was approved in March 2005 and would support improvements in building energy efficiency through demonstrations of better building designs, improved construction, and new materials, and through new building codes and standards and their implementation.  Institutional relationships between developers, equipment and material manufacturers, and government regulators would be improved to promote energy efficient buildings within a market economy.

Renewable Energy Scale-Up Program.  This program was just approved in June 2005, with Phase 1 GEF grant assistance in the amount of $40 million, complementing a World Bank Loan of $87 million.  It will give major emphasis to development of grid-connected renewable energy from mature technologies such as wind-power, small hydropower and biomass, and to off-grid applications of renewable energy, including PV.  The Project aims to reduce GHG emissions from coal-fired electricity generation by creating sustainable commercial markets for power from renewable energy.

Energy Efficient Rural Health Clinics.  Co-financed by a GEF grant of $750,000 and executed by the Ministry of Health, this project is demonstrating more energy efficient passive solar building designs for rural health clinics that will make buildings warmer in winter, save fuel and reduce indoor air pollution.  This GEF medium-sized project was completed in December 2004.

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Biodiversity

Biodiversity Action Plan.  Financed through UNDP and executed by the World Bank, this Action Plan outlined priority areas for focus on biodiversity in China.  It was completed in May 1994.

Nature Reserves Management.  A $17.9 million GEF grant was approved in June 1995 to support a program, coordinated by the State Forestry Administration, to: (a) prepare and implement management plans in nine priority national Nature Reserves, and associated investment and training, (b) re-structure the Changqing Forest Enterprise, and create a core protected area of giant panda habitat; and (c) increase the capacity of Nature Reserve Management staff. The project was completed in June 2002.

Sustainable Forestry Development (Protected Areas ManagementComponent).A US$16 million GEF grant was approved in April 2002 to support the conservation and improved management of significant biodiversity in 13 high-priority nature reserves in natural forest areas, through components focused on participatory Nature Reserve planning and management; community-based nature conservation; and training and capacity building.

Lake Dianchi Freshwater Biodiversity Restoration.     A $1 million GEF grant, executed by the Kunming Institute of Zoology, is co-financing endemic aquatic biodiversity restoration activities in Lake Dianchi that will complement the World Bank-supported Yunnan Environment Project, which is helping to reduce pollution of the lake.

Guangxi Integrated Forestry Development and Conservation Project : A $5.25 million GEF Grant and a World Bank Loan of $100.00 million was approved on February 28, 2007 in support of this project.  It is designed to assist the government of Guangxi Zhuang Autonomous Region in achieving its objectives of sustainable management of forest resources and biodiversity conservation.  Specifically, the Project would assist in: (a) improving the effectiveness of forest management and institutional arrangements for timber production, watershed protection and nature reserve management; and (b) strengthening and improving the management effectiveness.

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International Waters

Ship Waste Disposal.  A GEF grant of $30 million was approved in May 1992 in a Bank-managed program combining GEF, IDA and local financing to reduce pollution in international and territorial waters caused  by ship wastes.  Implementation was organized by the Ministry of Communication, State Oceanic Administration and six Chinese Port Authorities.  The project was completed in June 1997.

Guangdong Pearl River Delta Urban Environment Project. The GEF has provided a grant of $10 million (complementing IBRD loan of $165 million) to strengthen the water quality monitoring program in the PRD, and would develop a framework and pilot the implementation of better cooperation among local governments in the planning, constructing, and operating of shared environmental facilities. It would also help introduce the private sector into new areas of urban environmental services like hazardous waste management.

Hai River Basin Integrated Water Resources Management.  The Bo Hai Sea is a semi-enclosed international sea with globally important ecological resources that provide significant fishery benefits to China, North & South Korea, Japan, and Taiwan.  The GEF has provided a grant of $17 million to develop and implement an integrated water resources management framework for the Hai Basin.  The project, approved in April 2004, would, among other things, demonstrate strategies for addressing land-based activities in the Hai Basin that degrade marine waters such as municipal, industrial, and livestock wastes.  The project will aim to play a catalytic role in demonstrating ways to overcome barriers to the adoption of best practices limiting contamination of International Waters.

Second Shandong Environment Project : A $5.00 million GEF Grant and a World Bank Loan of $147.00 million was approved on February 27, 2007 in support of this project.  It is designed to assist the government of Shandong Province in:  (a) improving the environmental conditions in participating municipalities/counties through a package of priority interventions, including upgrading and development of wastewater collection and treatment facilities, river embankment rehabilitation, solid waste management, water supply improvements, industrial pollution monitoring, and enhancement of financial performance efficiency of key urban environmental service agencies; and (b) reduce land-based pollution along the Yantai coast and the Bohai Sea through development of a pilot septic tank management system in Yantai and dissemination of Yantai model in Shandong Province and other parts of China.

Second Liaoning Medium Cities Infrastructure Project:   A $5.00 million GEF Grant and a World Bank Loan of $173.00 million was approved on June 26, 2007 for this project.  It is designed to support the government of Liaoning Province in: (a) improving the performance and sustainability of water supply, wastewater and solid waste in medium sized cities in the province; and (b) reducing the discharge of land-based pollutants into the Bohai Sea through investments in wastewater and solid waste infrastructure and improvements in utility regulation, planning and management throughout the province.

NingboWater and Environment Project :  A $5.00 million GEF Grant was approved by the World Bank Board of Executive Directors on June 29, 2006 for this project. It is designed to assist the Ningbo Municipal and Cixi Governments in: (a) demonstrating an innovative wastewater treatment technology - wetland treatment - to reduce land -based pollution on East Asia's large marine ecosystems; and (b) promoting the replication of innovative, simple and effective wastewater treatment techniques, and encouraging coastal zone conservation.

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Land Degradation

Gansu and Xinjiang Pastoral Development.      The GEF has provided a grant of $10 million to co-finance additional actions under this sheep pasture management project that will reduce land degradation, conserve biodiversity and sequester carbon (complemented a World Bank of $66 million).  The project, approved in September 2003, aims to improve livelihoods of herders and farmers in the project areas, through establishment of improved grassland management, livestock production and marketing systems, while sustaining pastoral resources. It empowers farmers and herders households and pastoral associations to better manage their grassland resources, thus increasing incomes through efficient livestock production, establishment of improved livestock marketing systems and generating marketable surpluses.

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GEF Projects in China

(As of June 30, 2007)

Unit: US$ million