It was decided for the first time, at the Fifth Plenary Session of the 16th CPC Central Committee in 2005, that a mechanism for eco-compensation should be established in line with the principle that whoever develops the environment must protect it, and whoever benefits from such development must pay any costs incurred. In the resolution adopted at the Third Plenary Session of the 18th CPC Central Committee in 2013, it was declared that China will establish an eco-compensation system.
In a broad sense, eco-compensation falls into three categories: rewards for protecting the ecosystems and natural resources, compensation for damaging the ecosystems and natural resources, and fees charged to those who pollute the environment.
China practices the policy that whoever pollutes or damages the environment must pay, and whoever profits from it must compensate. It will improve the mechanism of compensation for key ecological functional zones and promote the establishment of a parallel system of eco-compensation among regions.