by Li Zhuoxi

In broad terms， three types of ecological compensation have been devised： rewarding protection of the ecosystem and natural resources， compensating losses caused by damage to the ecosystem and natural resources， and charging for environmental pollution.

The Chinese government implements the “polluter pays” principle to make those profiting from producing pollution responsible for paying for damage to the environment. Efforts will be made to improve the compensation mechanism for key ecological functional zones and promote the establishment of a horizontal eco-compensation system among regions.

China will pilot a comprehensive ecological compensation mechanism in 50 county-level areas to better balance economic development and environmental protection， according to a plan released by the National Development and Reform Commission. The pilot program aims to establish an ecological compensation mechanism that substantially boosts voluntary protection and suits local economic development levels by 2022.