Detailed analysis of eco environment oriented EOD development model

Mondo Social Updated on 2024-01-31

"Lucid waters and lush mountains are invaluable assets" (referred to as the "Two Mountains Theory") is a vivid metaphor for the win-win concept of economic development and environmental protection put forward by the general secretary of the company in 2005. This development concept points out the direction of development for man and nature from conflict to harmony, that is, the common realization of the dual value of man and nature. Keeping green and taking the path of sustainable development is an important part of realizing the Chinese dream of the great rejuvenation of the Chinese nation. On April 16, 2018, the Ministry of Ecology and Environment of the People's Republic of China was officially inaugurated, replacing the former Ministry of Environmental Protection and officially raising the construction of ecological civilization to the institutional level. Since then, the state has promulgated a series of laws and regulations on ecological environmental protection and governance to provide legal and policy guarantees for the construction of the ecological environment. Among them, the eco-friendly development model (EOD) is the most important part of the practical level.

1. What is EOD mode?

On September 16, 2020, the General Office of the Ministry of Ecology and Environment, the General Office of the National Development and Reform Commission and the General Office of the China Development Bank issued the Notice No. 2020 No. 489 on Recommending Pilot Projects of the Eco-Environment-Oriented Development Model, which has clarified the definition of the EOD model.

That is, the EOD model is an eco-environment-oriented development model (EOD model), which is guided by the idea of ecological civilization, with sustainable development as the goal, based on ecological protection and environmental governance, supported by the operation of characteristic industries, and based on regional comprehensive development. It is an innovative way to organize and implement the project organization and implementation of the effective integration, overall promotion and integrated implementation of the ecological environment governance project with poor profitability and the related industries with good returns, and internalize the economic value brought by the ecological environment governance.

Diagram of the operating mechanism of EOD mode.

2. The essence of the implementation of the EOD model

Considering that the investment funds for ecological environmental governance are mainly from the funds in the financial budgets at all levels, local bonds, social capital, etc., as well as the possible financial risks, local debt risks, and the value enhancement brought about by the improvement of ecological environment governance and ecological environment quality, the environmental protection industry lacks self-hematopoietic function, and the sustainable development ability needs to be improved. The core essence of the EOD model is to incorporate ecological environmental governance into the input elements of development projects, so as to reduce the financial investment in public welfare ecological environmental governance projects by locking in the income generated by ecological environmental protection in advance and converting it into feedback on the investment in ecological environmental governance-related projects. That is, while improving the hematopoietic function of ecological environmental governance projects, it is necessary to reduce the investment or payment of public welfare ecological environmental governance projects, so as to improve the sustainable development ability of the environmental protection industry, which is the goal of promoting the EOD model.

Specifically, there are three main connotations:

The first is integrationThat is, to effectively promote the integration of public welfare ecological environment governance and related industry development projects, and match fat and thin.

The second is integrationThat is, a market entity will coordinate the implementation, promote the integration of ecological environmental governance as the input element of the overall project, integrate the implementation of construction and operation and maintenance, and internalize the economic value brought by ecological environmental governance.

The third is feedbackWithin the boundaries of the project, we strive to achieve a balance between the overall benefits and costs of the project, and reduce the investment or payment of funds.

3. The relationship between the EOD model and other development models

Compared with BOT (Build-Operate-Transfer), ABO (Authorize-Build-Operate), EPC (Engineering Procurement Construction), PPP (Public-Private-Partnership), IOD (Industry Innovation Oriented Development), REITs (Real Estate Investment Trust), iOS (Integrate- Operate- Share, resource integration - unified operation - benefit sharing of the whole village restructuring business model) and other development models, EOD model is not an independent development model, but a value orientation of development model design, can be a single or comprehensive use of traditional development model, its core essence is to achieve integrated development, that is, the development of the city and the development of people have always been as the "starting point" and "foothold" of planning, construction and management, and more importantly, the current development and future development into one, so that " "Ecology" is truly and effectively implemented, practicing the concept of "lucid waters and lush mountains are invaluable assets", and implementing the deployment of "turning lucid waters and lush mountains into invaluable assets". It is necessary not only to make good use of financing means, but also to overcome their drawbacks and risks.

In addition, it should be noted that ABO (Authorize-Build-Operate, i.e., authorized business model) is generally not recommended due to suspected violations. According to the Ministry of Finance's Reply to Recommendation No. 9528 of the Fourth Session of the 13th National People's Congress (Cai Jin Han 2021 No. 40), "due to the tightening of PPP supervision and other reasons, some places have begun to adopt "authorization-construction-operation" (ABO), "financing + engineering general contracting" (F + EPC) and other modes that have not yet been standardized to implement projects, and there are hidden debt risks in certain places. Therefore, the use of the ABO model of direct administrative authorization has the risk of hidden debt of the local governmentIt is advisable to use other compliance methods to choose the right company.

Fourth, the project practice of the EOD model

First batch: 36 pilot projects

On September 16, 2020, the General Office of the Ministry of Ecology and Environment, the General Office of the National Development and Reform Commission, and the General Office of the China Development Bank (hereinafter referred to as the "three departments") jointly issued the Notice on Recommending Pilot Projects of the Eco-Environment-Oriented Development Model No. 2020 No. 489 of the Environmental Protection Office, soliciting alternative projects for the Ecology-Oriented Development (EOD model) for the first time. On April 27, 2021, the three departments issued the Notice on Agreeing to Carry out the Pilot of the Eco-Environment-Oriented Development (EOD) Model No. 2021 No. 201 of the Environmental Affairs Office, agreeing to carry out the pilot work of the eco-environment-oriented development (EOD) model for 36 projects, including the Ecological Restoration Governance and Health Industry Urban Active Health Complex Project in Jinghai District, Tianjin, for the period of 2021-2023.

Second batch: 58 pilot projects

On October 13, 2021, the three departments jointly issued the Notice on Recommending the Second Batch of Pilot Projects of the Eco-environment-Oriented Development Model No. 2021 No. 468 of the Environmental Protection Office. On April 26, 2022, the three departments issued the Notice on Agreeing to Carry out the Second Batch of Eco-Environment-Oriented Development (EOD) Model Pilots, No. 2022 No. 172, and agreed that 58 projects, including the Chaohe River Basin (Luanping Section) Ecological Governance and Rural Revitalization Industry Integration Development Project in Hebei Province, will carry out the second batch of eco-environment-oriented development (EOD) model pilot work, with a period of 2022-2024.

The 3-year period here is the investigation and evaluation period of the Ministry of Ecology and Environment and the Ministry of Ecology and Environment on the integration of the EOD pilot project and the implementation of the feedback mechanism, while the ecological environment governance project itself usually takes more than 15 years.

5. Policy documents related to the EOD model

Since 2016, the state has begun to actively explore the portfolio development model of ecological environmental governance projects and business development projects, and innovate the environmental governance model. In November 2016, the "Notice on Printing and Distributing the 13th Five-Year Plan for Ecological and Environmental Protection" (Guo Fa 2016 No. 65) was issued: to explore the development model of environmental governance projects and business development projects.

In June 2018, the "Opinions of the Communist Party of China on Comprehensively Strengthening the Protection of the Ecological Environment and Resolutely Fighting the Battle of Pollution Prevention and Control": innovating the environmental governance model;

In August 2018, the "Guiding Opinions on Further Deepening the Reform of "Delegating Power, Delegating Power, and Improving Services" in the Field of Ecological Environment and Promoting High-quality Economic Development (Huan Gui Cai 2018 No. 86) was proposed for the first time to explore and carry out the eco-environment-oriented urban development (EOD) model

In January 2019, the Opinions of the Ministry of Ecology and Environment and the All-China Federation of Industry and Commerce on Supporting the Green Development of Private Enterprises (Huan Zong 2019 No. 6): Exploring the Eco-Environment-Oriented Urban Development (EOD) Model;

In March 2020, the General Office of the Communist Party of China issued the "Guiding Opinions on Building a Modern Environmental Governance System": innovate the environmental governance model and encourage the adoption of the "environmental restoration + development and construction model" for industrial polluted plots

In May 2020, the "Implementation Opinions on Creating a Better Development Environment and Supporting the Healthy Development of Private Energy Conservation and Environmental Protection Enterprises" (Fa Gai Huan Zi No. 2020 No. 790): Promote business model innovation, actively support private enterprises to carry out comprehensive environmental management and hosting services, and participate in the innovation of ecological environment-oriented development models

In September 2020, the "Notice on Recommending Pilot Projects of the Eco-environment-Oriented Development Model" (Huanban Ke Cai Han 2020 No. 489): Soliciting alternative projects for the eco-environment-oriented development model from all over the world;

In September 2020, the "Guiding Opinions on Expanding Investment in Strategic Emerging Industries and Cultivating and Strengthening New Growth Points" (Fagai Gaoji 2020 No. 1409): explore and carry out eco-environment-oriented development (EOD) model and other environmental governance model innovations;

In April 2021, the General Office of the Communist Party of China issued the "Opinions on Establishing and Improving the Value Realization Mechanism of Ecological Products": Expanding the value realization model of ecological products: Encourage the linkage between ecological environmental protection and restoration and the rights and interests of ecological product operation and development

In April 2021, the Notice on Agreeing to Carry out the Pilot of the Eco-Environment-Oriented Development (EOD) Model (Huanban Ke Cai Han 2021 No. 201): 36 projects were identified to carry out the pilot of the EOD model;

In September 2021, the General Office of the Communist Party of China issued the "Opinions on Deepening the Reform of the Ecological Protection Compensation System": explore diversified compensation methods and promote the pilot of eco-environment-oriented development model projects

In October 2021, the "Opinions of the General Office on Encouraging and Supporting Social Capital to Participate in Ecological Protection and Restoration" (Guo Ban Fa 2021 No. 40) proposed that social capital can adopt the method of "ecological protection and restoration + industrial introduction" to use the right to use natural resource assets or concessions obtained to develop suitable industries;

In October 2021, the "Notice on Recommending the Second Batch of Pilot Projects of the Eco-environment-Oriented Development Model" (Huanban Ke Cai Han No. 2021 No. 468): The second batch of eco-environment-oriented development model candidate projects were solicited from all over the country;

In October 2021, the General Office of the People's Republic of China issued the Opinions of the General Office on Encouraging and Supporting Social Capital to Participate in Ecological Protection and Restoration (Guo Ban Fa 2021 No. 40), which proposes that social capital can adopt the method of "ecological protection and restoration + industrial introduction" to use the right to use natural resource assets or concessions obtained to develop suitable industries

On March 8, 2022, the General Office of the Ministry of Ecology and Environment issued a notice on the issuance of the "Guidelines for the Warehousing of Ecological and Environmental Protection Financial Support Project Reserves (Trial)" (Huanban Kecai 2022 No. 6), requiring local governments to strengthen the warehousing reserves of EOD projects

On April 26, 2022, the Notice on Agreeing to Carry out the Second Batch of Eco-Environment-Oriented Development (EOD) Model Pilots (Huanban Ke Cai Han 2022 No. 172): The second batch of 58 EOD pilot projects was determined.

In summary, the formation of the EOD model has also undergone a process of initial exploration and gradual improvement, with a total of 94 projects in two batches of pilot projects in progress, and the feedback of its implementation process and results will also make the eco-environment-oriented development (EOD) model more and more perfect and mature.

6. Identification of industries associated with the EOD model

The main identification principles of the EOD model are: it is in line with the actual local social and economic development, has a high degree of relevance to the ecological environment, and has strong project profitability.

The common types of EOD models are: ecological agriculture, tourism, health care and other ecological industry development projects;Development projects of environment-sensitive industrial agglomeration areas such as digital economy, clean medicine, and electronic components;"Photovoltaic", biomass energy utilization and other clean energy projects.

According to the list of the first and second batches of pilots announced by the Ministry of Ecology and Environment, the statistics of the projects that have been put into the warehouse are rich, and their associated industries are rich, mainly including the following types, involving.

There are many categories of primary, secondary and tertiary industries, which can include comprehensive development projects such as park development and urban development.

Photo: Ministry of Ecology and Environment.

Statistics on the direction of the first and second batches of EOD projects related to industries (unit: units).

7. Which areas of EOD projects support warehousing

According to the just-released Environmental Protection Office Kecai 2022 No. 6 "Guidelines for the Warehousing of Ecological and Environmental Protection Financial Support Project Reserves (Trial)", in the future, the previous pilot project system will no longer be implemented for the storage and filing management of projects in this field. In accordance with the spirit of the document, the warehousing items should belong to the following areas:

Conclusion:The EOD model is an innovative development model of environmental governance, and the current relevant laws and regulations have been promulgated one after another, so that EOD projects can be implemented and developed on the basis of legal compliance. With the clarification of the relevant support policies for the national team's EOD model, the EOD model will become an important model for achieving environmental governance and rural revitalizationAnd in terms of new development concepts, new ecological civilization construction, and high-quality development, it will provide new impetus for the development of the environmental protection industry. Deeply practice the win-win concept of economic development and environmental protection put forward by the general secretary in 2005, and implement the core concept that lucid waters and lush mountains are invaluable assets. In the process of implementing the innovative development of the EOD project, lawyers will also actively participate in and conduct beneficial exploration and research through the identification, evaluation and control of the legal risks of the project.

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