Recently, the Natural Environment Conservation Act and the Act on the Conservation and Use of Biological Diversity were amended to promote biodiversity and support corporate ESG initiatives. These amendments establish a legal basis for private participation in ecological restoration projects and Payments for Ecosystem Services (PES).
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1. |
Private Participation in Ecological Restoration Projects |
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Methods of Participation: Companies seeking to contribute to biodiversity enhancement may now participate in ecological restoration projects by:
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(i) |
Donating property or land required for such projects to central or local governments; |
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(ii) |
Directly executing restoration projects and subsequently donating the restored area to the government; or |
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(iii) |
Providing rent-free leases of relevant properties (Paragraph 1). |
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Government Support & Performance Management: To ensure the efficient execution of these private-public projects, the government may provide administrative support, such as organizing consultative bodies, offering business consulting services, and formally recognizing participation efforts (Paragraph 3). To ensure such participation serves as a verified contribution to biodiversity improvement, performance records will be managed by the Ministry of Climate, Energy and Environment (Paragraph 4).
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Certification of Excellence: Furthermore, the government may designate certain projects that are ecologically and environmentally exceptional as “Excellent Ecological Restoration Projects” following evaluation by specialized institutions (Article 45-8).
These amendments will enter into force on March 19, 2026. Consequently, the enactment of subordinate statutes and implementing regulations regarding specific procedures for donations, usage/management, recognition of performance, and certification standards is expected to follow shortly.
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2. |
Private Participation in Payments for Ecosystem Services (PES) |
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Definition: PES is a system designed to provide fair compensation to landowners and others who participate in maintaining or enhancing ecosystem services—such as carbon absorption, recreation, and healing—which constitute the benefits nature provides to humans.
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Methods of Participation: Under this system, companies may participate by:
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(i) |
Directly entering into contracts to cover implementation costs; or |
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(ii) |
Depositing funds or assets to enable the newly established PES Contracting Support Center to execute such contracts (Paragraph 1). |
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Government Support & Performance Management: To promote private participation, the government may provide necessary administrative support, such as organizing consultative bodies, offering consulting services, and recognizing participation (Paragraph 3). To ensure such participation is utilized for the maintenance and enhancement of ecosystem services, performance records will be managed by the Ministry of Climate, Energy and Environment (Paragraph 4).
These amendments will enter into force on November 12, 2026. Accordingly, the enactment of subordinate statutes and implementing regulations regarding specific participation methods and performance management is expected to proceed in the near future.
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Implications |
