The International Conference on Eco-compensation Mechanism and Policy in Agriculture in Transitional Period of Chinese Economy was held on March 20 in Beijing. The conference was jointly organized by Institute of Environment and Sustainable Development in Agriculture (IEDA) of Chinese Academy of Agricultural Sciences （CAAS) and Japan International Cooperation Agency (JICA). More than 70 experts from 20 scientific research institutions from China, Japan, Germany, UK and international organizations such as FAO and UNEP attended the conference.

The conference brought together the world top economists and environmentalists to share their updated research progress and insight on Eco-compensation or Payment for Environmental Service (PES) in agriculture. This is follow up of the China central government’s proposition on promoting the ecological progress and developing environmentally friendly agriculture.

Prof. Mikitaro Shobayashi from Gakushuin Women's College-Tokyo gave his presentation on the linkage between agricultural and agri-environmental policies in OECD countries, indicating that many OECD countries have been shifting from price support to direct payments, and also from coupled payments to decoupled payments. The share of agri-environmental payments has been increasing in many OECD countries in past recent due to this arrangement. Prof. Ian Hodge from University of Cambridge (UK) gave a review of thirty years’ evolution of European agri-environment policies. He showed changes of agricultural environmental policy with social development and challenges. The review reviled the fact that the implementation of policy is a learning process for both governments and farmers and has the scope for improvements in cost effectiveness.

The principles for the design and implementation of efficient agri-environmental policies, presentation of Prof. Uwe Latacz-Lohmann from University of Kiel pointed out splitting total payment into two installments (one linked to activities and one linked to outcomes). This arrangement is effective solution to ensure farmer’s conservation activities and outcomes. However, innovative design approaches and implementation strategies can mitigate the adverse impact from information asymmetry and lack of appropriate incentives for environmental policy performance.

Prof. Jin leshan from China Agriculture University,  Prof. Zhang Keqiangfrom Agro-environmental Protection Institute-MOA, Prof. Zhang Huiyuan from Chinese Research Academy of Environmental Sciences and Prof. Luo Liangguo from the IEDA of CAAS gave their presentations on policies, regulations and practices and explorations on ecological compensation for promoting environment-friendly agriculture technologies in China. After each presentation, in-depth discussion on hot issues concerning agricultural eco-compensation were given priority to ensure understanding of the subject matter by members.