Multilateral ties key to spur global green drive

China's efforts to turn ecological gains into economic value can provide alternative solutions for developing countries and tangible public goods for the global green transition, while stronger multilateral financing is needed to bring such practices to scale, officials and experts said.

Greater access to long-term funding, green technologies and policy expertise would be crucial for developing economies seeking to align growth with environmental conservation efforts, they added.

The remarks were made at a seminar on Monday co-hosted by the China-WBG Global Center for Ecological Systems and Transitions — a platform jointly established by China's Ministry of Finance and the World Bank Group — and the Land Consolidation and Rehabilitation Center under China's Ministry of Natural Resources.

Liao Min, vice-minister of finance, said China has explored practical ways to unlock the economic value of ecological assets, including by investing in eco-friendly industries.

Green agriculture and resource recycling have grown into sustainable sectors in China, Liao said. In 2025, the country's under-forest economy, a form of green agriculture, generated more than 1.3 trillion yuan ($193.7 billion) in output, providing employment for 34 million people and supporting 950,000 business entities, said the National Forestry and Grassland Administration. The under-forest economy includes various industrial models, including under-forest planting, under-forest farming, the collection and processing of related products, and the use of forest landscapes.

China has also leveraged payments for ecosystem services, using market mechanisms to channel more funding into ecological protection, he said.

By mid-July, cumulative trading in China's national carbon market had reached 924 million metric tons of carbon emission allowances, with transactions valued at more than 62.2 billion yuan, official data showed.

Ecological compensation, meanwhile, can help address the externalities of ecosystem protection, he said, citing the Xin'an River, which flows from Anhui province into neighboring Zhejiang province.

In 2012, the two provinces launched China's first cross-provincial river-basin ecological compensation pilot program. Under the original arrangement, downstream Zhejiang paid upstream Anhui when agreed water-quality targets were met.

Similar arrangements have since spread nationwide, with 33 cross-provincial river-basin ecological compensation mechanisms established across 24 provincial-level regions, according to the National Development and Reform Commission.

"China has accelerated its green transition," Liao said, noting that the economy has grown by about 6 percent each year on average since 2012, while energy consumption per unit of GDP has fallen by about 27 percent.

With forest coverage currently exceeding 25 percent, China has also become the largest contributor to global greening, he added.

"These practices are not just for China. They also offer valuable lessons for other developing countries," Liao said.

China's large-scale production of wind and solar equipment has helped make renewable energy technologies more affordable worldwide, he said.

China's contribution has extended beyond green products. The country has actively participated in negotiations under the three major global environmental conventions and promoted synergies among climate action, biodiversity conservation and efforts to combat land degradation.

Through South-South climate cooperation, China has signed 55 memorandums of understanding with 43 developing countries and trained more than 10,000 participants from over 120 developing countries, Liao said.

Even so, developing countries are finding it increasingly difficult to mobilize resources for the green transition amid a complex international environment, he said.

"The role of multilateral development banks has become even more crucial," Liao said, calling on the World Bank Group and other multilateral lenders to scale up long-term financing and support for green infrastructure in developing countries.

China stands ready to work with such institutions — particularly the World Bank Group — to provide developing countries with technologies, expertise and capacity-building support, he added.

Echoing Liao's view, Tatiana Rosito, World Bank division director for China, Mongolia and South Korea, said China has accumulated valuable experience in turning ambitious ecological goals into practical programs at scale.

"China's approaches cannot simply be replicated," Rosito said, adding that knowledge cooperation should help developing countries adapt relevant practices to their own circumstances.

Financing alone would not be enough, Rosito added. Trusted partnerships, sustained dialogue and practical knowledge are also needed to translate ecological ambitions into action.

Contact the writers at zhangchenxu@chinadaily.com.cn