What does this "solemn statement" from the Ministry of Ecology and Environment indicate?

Author: Hongjie Water

In the popular drama "In the Name of the People" back then, Secretary Dakang transformed the coal collapsed area of Lincheng into a wetland park and development zone. This development model is actually an early model of the EOD model, and the real project based on the story comes from the Pan'an Lake National Wetland Park project in Xuzhou, Jiangsu.

Since the Ministry of Ecology and Environment, the National Development and Reform Commission and the China Development Bank jointly promoted the pilot work of EOD mode in 2020, various measures have been taken to adapt to local conditions. Beneficial exploration and practice have been carried out in industrial integration, implementation path, policy mechanism and other aspects, and some project results have begun to appear.

The EOD model meets the requirements of China's high-quality development stage and also helps China achieve carbon peaking and carbon neutrality. But often new things arise, and people try to fish in troubled waters. Recently, the official WeChat account of the Ministry of Ecology and Environment issued a solemn statement: "Some unknown organizations and individuals claim to be authorized by the Ministry of Ecology and Environment to carry out activities related to the planning, evalsuation, inspection and verification, and data review of the 'Ecological Environment Oriented Development (EOD) model' project in local areas. Here, we solemnly declare that our department has never authorized any unit or individual organization to carry out the above activities

Can't help but ask, what are the characteristics of EOD? How to identify and distinguish the formal declaration process, and how to shine your eyes?

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Simply put, the EOD model deeply integrates ecological and environmental governance with industrial development, internalizes the value brought by ecological and environmental governance, balances the overall benefits of the project, and achieves "zero investment" of government funds.

In 2020, the official definition given in the "Notice on Recommending Pilot Projects for Ecological and Environmentally Oriented Development Models" (Huan Ban Ke Cai Han [2020] No. 489) is that EOD is based on ecological protection and environmental governance, supported by characteristic industry operations, and supported by regional comprehensive development. It adopts methods such as industrial chain extension, joint operation, and combined development to promote strong public welfare The effective integration, coordinated promotion, and integrated implementation of ecological environment governance projects with poor profitability and related industries with good returns, internalizing the economic value brought by ecological environment governance, is an innovative project organization and implementation method.

Some experts said that EOD mode is expected to find the golden key to break the internalization of external economy of environmental governance, achieve win-win ecological environment protection and economic development, and is the project operation practice of "Clear waters and green mountains".

From a practical perspective, the Ministry of Ecology and Environment has currently released a list of 94 EOD pilot projects in the first and second batches, with rich related industries and high enthusiasm for local pilot projects.

As an emerging thing, China's EOD model has been continuously explored and improved, and although it is still in the pilot stage, its achievements are commendable.

Shandong Province has established a guidance and assistance system, adhering to market-oriented promotion and innovative supporting policies and measures. At the national and provincial levels of pilot linkage, six projects have entered the ecological and environmental protection financial support project reserve, with a total investment of 28.4 billion yuan and a credit of 4 billion yuan. Eleven projects have entered the provincial EOD project library. After two years of exploration and practice, the EOD model has made significant progress in Shandong. The first batch of national pilot projects has been fully carried out, and the first batch of other projects have also been launched. The Rizhao Reservoir was successfully selected as an excellent case of "Beautiful Rivers and Lakes" by the Ministry of Ecology and Environment.

Zhejiang Province has established a leading group for promoting major ecological and environmental projects, coordinating and promoting the management of EOD mode, strengthening the full lifecycle management of EOD projects, and organizing experts to provide on-site technical assistance.Hold a provincial EOD model promotion conference to effectively promote innovation in the EOD model.Thirteen projects have entered the ecological and environmental protection financial support project reserve, with a total investment of approximately 69.1 billion yuan and a credit of 33.4 billion yuan.At the same time, establish a provincial-level EOD project reserve database.

In addition, Jiangsu, Anhui, Hubei, Chongqing, Guangxi and other provinces and cities have introduced policies and working mechanisms to promote the EOD model according to local conditions.

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When the reporter sorted out the application conditions and requirements for EOD projects, it was found that the relevant departments and entities involved in the application process include: municipal and below people's governments or park management committees, project undertaking units (only one market entity), provincial ecological environment departments, development and reform departments, ecological environment departments, and the National Development and Reform Commission.

Therefore, the relevant departments and entities involved need to establish a complete and detailed management process for the application of EOD projects. According to the application requirements in official documents, the main body responsible for the preparation of the "Ecological Environment Oriented Development (EOD) Model Pilot Implementation Plan" should be clearly defined, and the responsible person and manager should be identified to implement responsibilities at each stage.

In September 2020, the Ministry of Ecological Environment, the National Development and Reform Commission and the China Development Bank issued the Notice on Recommending Pilot Projects of Ecological Environment Oriented Development Mode, which specified the declaration requirements for EOD projects, and required that the municipal and below people's governments or park management committees that met the declaration conditions should organize the declaration work and organize the preparation of the Implementation Plan for Pilot Projects of Ecological Environment Oriented Development (EOD) Mode, And fill out the project application form. After being reviewed and approved by the provincial ecological and environmental departments and the development and reform departments, the summary shall be submitted to the Ministry of Ecology and Environment and the National Development and Reform Commission. The declared quantity for each province shall not exceed 3. This time, the focus is on supporting the implementation of pilot projects with good foundations, moderate investment scale, clear project boundaries, clear feedback characteristics, and significant environmental benefits.

In March 2022, the Ministry of Ecology and Environment issued the Guidelines for the Warehousing of Ecological and Environmental Financial Support Project Repository (for Trial Implementation) (HBKCC [2022] No. 6), built the ecological and environmental financial support project repository, and established a precise financial support mechanism with 10 financial institutions, including the China Development Bank and the Agricultural Development Bank of China, to transition the EOD model from pilot to normalization. Further clear provisions have been made for the organization and implementation of the E0D project:

(1) In principle, the total investment of EOD projects that are declared and implemented by governments at or above the prefecture level shall not exceed 5 billion yuan; The total investment of projects declared and implemented by district and county governments should not exceed 3 billion yuan in principle.

(2) The number of individual sub projects in the EOD project shall not exceed 5.

(3) In principle, each province (autonomous region, municipality) should not exceed 5 EOD projects per year.

(4) The provincial-level ecological and environmental department proposes project demonstration and evalsuation opinions, and submits the relevant application materials to the Ministry of Ecology and Environment through the online system on the 5th of the odd month.

(5) The Ministry of Ecology and Environment shall organize storage guidance, provide guiding opinions, and push financial institutions that meet the requirements; Those that do not meet the requirements are directly eliminated or returned for modification.

During the application process, local ecological and environmental departments should take the initiative to play a role, grasp the core essence of EOD, and guide the planning and implementation of EOD projects.

From the name of EOD, it can be seen that "E" ranks first. In this model, the ecological environment occupies an important position, and ecological protection and environmental governance are the foundation and purpose of the EOD model. It should be noted that it is necessary to carefully identify prominent ecological and environmental issues in the local area that belong to public welfare and government responsibility, conduct cause analysis, identify key factors, apply appropriate medicine to the case, and select content that has a significant supporting role in solving prominent environmental problems, strong implementation necessity, good work foundation, and significant benefits. Avoid tasks that are large and complex, and blindly bundle tasks that do not contribute significantly to improving the quality of the ecological environment.

The core meaning of EOD mode has three keywords, namely integration, integration, and feedback.

Integration "refers to the effective integration of public welfare ecological environment governance and related industry development.

Integration "refers to the coordinated implementation of a market entity, which integrates ecological and environmental governance as an input element of the overall project to promote the integration of construction, operation and maintenance.

Backfeeding "refers to striving to achieve a balance between the overall benefits and costs of a project within the project boundary without relying on government funding, in order to increase profits and reduce losses.

Based on the core principles of the EOD model and the characteristics and problems of local ecological environment, local ecological environment departments should take the initiative in key stages of the project, and participate in guidance in overall planning, application and approval, promotion of implementation, and strengthening management. At the same time, clarify the requirements for the effectiveness of ecological environment governance, establish and improve performance evalsuation and assessment mechanisms, effectively play the management responsibilities of all parties involved in the project, and strengthen the supervision of the project implementation process. Establish corresponding guarantee or incentive mechanisms based on local conditions.

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In the implementation of EOD projects, the government is the organizational entity of the entire project. During the project planning phase, the government entrusts a social third-party organization with a working foundation to provide technical services and assist in preparing the EOD project implementation plan or feasibility study report. After the EOD project is put into storage, it will enter the standardized procurement process and determine the project implementation entity.

In the process of promoting the implementation of EOD, social third-party institutions play an important role, which is a key link for the implementation and effectiveness of EOD projects. However, what should be paid attention to?

The primary focus is on professional skills. Third party institutions should exercise their "internal skills", deeply understand the core essence of EOD, help local governments identify key ecological and environmental issues and advantageous related industries, make project planning, and be familiar with relevant policies such as environmental protection, land, investment, finance, and industrial operation, to ensure that various requirements and procedures in the project are in accordance with the law and regulations.

Secondly, it is necessary to have a pragmatic attitude. Third party institutions should truthfully explain the characteristics and requirements of EOD projects to the local authorities. They should not blindly cater to local needs, expand the scope of project implementation, increase the content of ecological environment governance, bundle industrial projects, or expand investment for the purpose of providing consulting services.

Without faith, one cannot stand, and without faith, one cannot thrive. Honesty and law-abiding are the way for enterprises to survive and the foundation for their development. As an emerging thing, the EOD project naturally encourages the active participation of third-party institutions in society and fair competition. All types of institutions should regard law-abiding and integrity as the foundation of their lives, uphold integrity, follow the right path, and abide by laws and regulations. They should not resort to deception in order to undertake business, and should work together to protect the emerging model of EOD, which is becoming more mature and long-term.

The EOD project utilizes innovative project organization and implementation models to fully leverage the role of market mechanisms and effectively transform the value of ecological products. Many regions are eager to give it a try.

It should be noted that EOD is not a universal "basket" and has its inherent logic and implementation requirements, so not all places and projects can adopt it