China,People'sRep.of AOTA: (N) PRC 40647-01
Project Name
Policy Study on Market-based Instrument for Water Pollution Control

Executing Agency
Ministry of Finance
Fax. No. : +8610 6855 2585
Address : Sanlihe, West District
Beijing 100820
People's Republic of China

State Environment Protection Administration
Address : 15 Nanxiaojie, Xizhimennei
Beijing, 100035
People's Republic of China

TA Amount (US$ '000)
400.00

Sector/Subsector
Water Supply, Sanitation & Waste Management /Waste Management

Date of First Listing
13 April 2007

Objectives and Scope
The core features of this intervention would include: (i) to develop a market-based mechanism for allocation of pollutant discharge permits, through which the major polluters are requested to compete and pay for discharge permits through entering into public auction for discharge quotas, and (ii) to formulate a legal and regulatory framework and operational mechanism that would provide an enabling environment for transactions of discharge permits among the stakeholders at primary and secondary market. The proposed discharge permit trading system (DPTS) is expected to play two roles in water pollution management: (i) force the major polluters to internalize the "external" environmental costs that they have imposed on the public; and (ii) reduce the overall pollution control costs through market-based allocation of mitigation resources. Providing assistance for policy development through knowledge products is a strategic focus and operational priority for ADB, particularly in the area of improving environmental sustainability in the People's Repulic of China. The study will support and supplement ADB's other lending and non-lending assistance in the areas of water resource management and waste management.

Consulting Services
Consulting services yet to be determined.

Project Processing Stage
Beginning of Fact-finding Mission: Apr 2007.

Recruitment of Consultants
Requirements for Consulting Services to be completed during Fact-finding mission.

Project Officer
Fei Yue (632-6499)
Social Sectors Division, EARD
fyue@adb.org