Using ecological criteria to develop CDM projects in Zhifanggou Valley, Loess Plateau, China

This study investigates the development of forestry Clean Development Mechanism projects on the Loess Plateau in China and analyzes its feasibility using Zhifanggou Valley as an example. The study considers the unique ecological environment and socio-economic situation of the project site, and applies the tree-shrub-grass model with the purpose of maximizing carbon sequestration in the area without compromising the quality of its environment. Income generation analysis and GIS analysis were applied in the research. Possible social and economic impacts of these projects are also discussed. Additional income opportunities for backward rural areas are explored, also in order to find new perspectives for conflicts between limited compensation periods to farmers involved in CDM projects and sustainable agro-forestry development. In particular, the study focuses on the impacts of forestry projects in rural areas on the Loess Plateau, from the perspectives of poverty reduction and, at the same time, ecological conservation policies. Results reveal that forestry CDM projects could generate CNY 140,000 annually for local residents or CNY 1240 per household when carbon sequestration of grasslands can be credited. Therefore, revenues generated by forestry CDM could make a significant contribution to vegetation conservation in these rural areas.