Innovating Eco-Compensation Mechanisms in Yangtze River Basin (YRB) To promote innovative eco-compensation mechanisms which contribute to improved and sustainable terrestrial and freshwater ecosystem health in the Yangtze River Basin Note: Disbursement data provided is cumulative and covers disbursement made by the project Agency. Multiplier effect:By strengthening ecosystems services in the project areas, this initiative will help take steps towards improved ecological carrying capacity within the upper and middle reaches of the YRB. Multi-stakeholder processes stimulated by the project will contribute to better analytical framework and options for nature positive investments and strengthening of climate resilience.Improved soil productivity and water management: Increased soil fertility from regenerating soil structures and natural nutrient pathways facilitated by the reduction of plastic pollution in the top soil will allow the reduction in the use of artificial fertilisers and other intensive growing methods. The return to a healthy soil and the associated invertebrate populations will increase overall productivity of the ecosystem through the food chain. The reduction of plastics and fertiliser run off entering the river systems will equally allow the regeneration of the aquatic fauna and flora, allowing a return to contribution of the rivers to the overall ecosystem productivity of the Yangtze River Basin, its biodiversity and its flood mitigation effects.Socio-economic benefits: The project will, particularly under Outcome 2, contribute to generating ‘alternative green livelihoods’. These could be at various points in the value chain for organic agricultural and forest products, eco-tourism (e.g. tour guides, accommodation, merchandizing, artistic and creative works, journalism etc). New and improved agricultural and eco-tourism products.Learning and education: Project interventions will contribute to building the scientific and technical body of knowledge on natural capital management and innovative financing. This would be at the formal level through improved curricula, courseware and case studies at universities and post-secondary technical / vocational institutions. The project will also cater to education for youth, through study tours, field visits and environmental education courses; in addition to helping farming and forest dwelling communities to take up new practices related to natural capital management.Applied technology and commercialization: The project, through a number of actions, will also develop new digital technologies for traceability throughout a chain of custody for agricultural commodities as well as plastics. This would be supported by a digital marketplace under the Natural Capital Lab. In the agricultural plastics sector, the project will catalyze new ways to recycle and/or re-use plastics, explore alternatives to plastics and bring some of these to commercial scale.            Financial and fiscal benefits: In the long run, the project could also contribute to such benefits for governments in particular, such as reduced costs of environmental remediation, reduced costs of health care through improved ecosystem health, and new sources of tax revenue; supplemented by new ways of natural resource accounting vis a vis traditional national accounts processes.