Ecological Valuation and Compensation Mechanism in the Kubuqi Desert (ADB-54026-006)

  • China
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 8, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Government of the People's Republic of China
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Climate and Environment
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 0.26 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 26, 2021

Disclosed by Bank Dec 8, 2020

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank website, the project will be aligned with the following impact: resilient ecological protection and security in the Yellow River Basin achieved. The outcome of the TA is the sustainable financing for the ecological protection and green development in the Kubuqi Desert prompted. The project will include the following outputs:

(i) Output 1: Framework and methodology on ecological valuation of the Kubuqi Desert proposed. This output aims to set up the ecological valuation framework and methodology by learning from international and national experiences for accurately quantifying the ecological restoration effects and establishing the ecological value assessment model for the Kubuqi Desert. It will conduct (i) the literature review and a training workshop on international and national frameworks and methodologies on the valuation of ecological assets; and (iii) the valuation of the ecosystem services of the Kubuqi Desert, including valuation on forest, grassland, wetland, and cropland; and based on surveys, monitoring, statistics, and integration with the existing data platform and management system.

(ii) Output 2: Policy advice on ecological compensation mechanism for the Kubuqi Desert finalized. This output will develop the ecological compensation mechanism. Its activities include (i) conduct of a case study on the cost benefit analysis of the Kubuqi Desert's model of industry-based ecological restoration for its sustainability and replication in other regions in the PRC and in ADB's developing member countries (DMCs), particularly in the central Asian countries; (ii) conduct of an international exchange on eco-compensation and sustainable financing, and (iii) development of ecological compensation mechanisms, including the policies or guidelines and accounting tools for the public goods of large-scale ecosystem restoration led by the private sector.

(iii) Output 3: Knowledge of multiple stakeholders on ecological valuation and compensation enhanced. The output will support the capacity building on developing the eco-compensation mechanisms and sharing knowledge with all stakeholders and DMCs. Activities under Output 3 will include (i) organization of workshops to be participated in by multiple stakeholders for guidelines on ecological valuation and eco-compensation; (ii) conduct of knowledge sharing on the TA subproject 5's results at the high-level Kubuqi Desert Forum to facilitate the sustainable development of the Kubuqi Desert; and (iii) publication of at least one knowledge product for sharing with other DMCs, especially the central Asian and regional economic cooperation (CAREC) countries.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Guo, Dongmei (Project Officer)

Project contacts not available at the time of disclosure.


You can submit an information request for project information at:

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at:


The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at:

How it works

How it works