Eco-Compensation System 

The decision to establish an eco-compensation system was made by the 18th CPC Central Committee at its third plenary session. The system aims to prevent damage to the environment, and enhance and promote ecological conservation and protection. It targets those involved in business and other activities, including production, exploitation, and use of natural resources, which has or might have negative environmental impacts. It represents a new approach to environmental stewardship that relies on market-based mechanisms and a legal framework to promote the management of ecosystem protection and restoration.

The eco-compensation approach can be understood in both a broad and a narrow sense. Broadly speaking, it involves compensation for environmental pollution or for damage to ecosystem functions. In a narrow sense, it refers specifically to compensation for damage to ecosystem functions and their value. 

The Chinese government will implement the "polluter pays" principle to make those responsible for producing pollution and benefiting therefrom responsible for paying for the damage done to the environment. Efforts will be stepped up to improve the compensation mechanism for key ecosystem function conservation areas and to establish cross-regional eco-compensation programs.

生態補償制度

中共十八屆三中全會《決定》提出實行生態補償制度。生態補償制度，是以防止生態環境破壞、增強和促進生態系統良性發展為目的，以從事對生態環境產生或可能產生影響的生產、經營、開發、利用者為對象，以生態環境整治及恢復為主要內容，以經濟調節為手段，以法律為保障的新型環境管理制度。它可分為廣義和狹義兩種。廣義包括對污染環境的補償和對生態功能的補償，狹義則專指對生態功能或生態價值的補償。中國政府將堅持誰污染環境、誰破壞生態誰付費和誰受益、誰補償原則，完善對重點生態功能區的生態補償機制，推動地區間建立橫向生態補償制度。