The World Bank's Board of Executive Directors has approved a US$200 million (€186.5 million) loan aimed at enhancing productivity, reducing methane and other greenhouse gas (GHG) emissions, and improving climate resilience in the livestock sector of China's Gansu province.
Gansu's livestock industry is a significant component of the province's economy but also a major contributor to rising GHG emissions, which drive climate change. The newly sanctioned Sustainable Fodder Production and Low Methane Livestock Development Program-for-Results seeks to mitigate the environmental impact while boosting productivity in this sector.
Drawing on the World Bank’s global expertise, the program will introduce low-emission technologies and practices to Gansu’s livestock farms. These include better animal health practices, sustainable fodder production technologies, and improved methods for collecting, treating, and recycling livestock manure. The initiative aims to increase productivity and enhance resilience against climate change.
A key feature of the program is the development of a Measurement, Reporting and Verification (MRV) system alongside technical standards and an incentive system. These components are designed to facilitate the scaling up of low-emission technologies across the province.
“This program represents a unique opportunity to pilot, in a comprehensive manner, a set of measures, technologies and practices that would enable credible reduction and measurement of GHG emissions in the livestock sector while also improving productivity for farmers,” said Mara K. Warwick, World Bank Country Director for China, Mongolia, and Korea. “As one of the first such Bank-supported operations in the world, the program will provide an opportunity to generate important lessons for replication in other client countries. In addition, the program is one of the operations supporting the World Bank’s COP28 commitment to reduce methane emissions.”
The program will support institutional strengthening through establishing an MRV system and scaling up green product certification within livestock value chains. This effort aligns with China’s Long-Term Strategy and National Climate Change Adaptation Strategy 2035 as well as its broader climate change commitments.