ADB Approves $142M Loan to Boost Climate Resilience, Wetlands in Fujian, China

A key innovation is the eco-compensation mechanism, which provides financial incentives for farmers and aquaculture operators to adopt sustainable practices.

The Asian Development Bank (ADB) has approved a CNY 1,013.56 million loan (US$142.25 million) to enhance climate resilience, strengthen biodiversity conservation, and protect vulnerable coastal communities in Fujian Province, one of China’s most climate-exposed regions. The Fujian Coastal Cities Climate-Resilient Development and Biodiversity Conservation Project will benefit 4.4 million residents in Fuzhou City and Yunxiao County, including more than 2.15 million women, by reducing flood risks and restoring ecologically significant wetlands and mangrove habitats.

Strengthening Coastal Protection Through Nature-Based Solutions

The project uses nature-based solutions, such as wetland restoration and mangrove rehabilitation, to reduce the growing threats of extreme rainfall, storm surges, sea level rise, and urban flooding—all of which have intensified due to climate change. These interventions will protect both people and ecosystems while improving the natural defenses that coastal cities rely on.

ADB Country Director for the PRC, Asif Cheema, emphasized the transformative nature of the initiative: “The project demonstrates vital benefits and synergies achieved by linking urban climate resilience, conserving biodiversity, and expanding key habitats. By restoring wetlands and mangroves, we will expand habitats for endangered species while delivering natural climate defenses for Fuzhou and Yunxiao.”

Restoring Critical Wetlands Along a Major Global Bird Migration Route

Fujian hosts two ecologically significant reserves:

• Minjiang River Estuary National Wetlands Reserve (Fuzhou)

• Zhangjiang River Estuary National Mangroves Reserve (Yunxiao)

These sites are critical stopover, breeding, and wintering habitats for migratory waterbirds along the East Asian–Australasian Flyway, one of the world’s most important bird migration corridors. However, they face serious threats from:

• Historical pollution

• Habitat fragmentation and degradation

• Invasive species

• Urban encroachment

The project will restore over 220 hectares of coastal wetlands and mangroves, safeguarding the habitats of endangered bird species and improving ecosystem services such as carbon sequestration, flood regulation, and water purification.

Upgrading Infrastructure to Reduce Urban Flooding

To strengthen climate resilience, the project will:

• Upgrade urban drainage networks

• Improve stormwater detention parks and lakes

• Rehabilitate eco-friendly dikes designed to absorb tidal and storm surge energy

• Establish an integrated emergency response center in Yunxiao to coordinate climate disaster preparedness and response

These investments will significantly reduce the risk of urban waterlogging and coastal flooding that threaten homes, businesses, and public infrastructure.

Supporting Sustainable Farming, Aquaculture, and Eco-Compensation

The project also targets a 630-hectare area for transforming conventional agriculture and aquaculture into sustainable, wildlife-friendly systems. This includes:

• Reducing chemical inputs

• Promoting regenerative farming

• Supporting eco-friendly aquaculture practices

• Restoring hydrological functions in degraded landscapes

A key innovation is the eco-compensation mechanism, which provides financial incentives for farmers and aquaculture operators to adopt sustainable practices. Payments will be partially linked to improved livelihoods and environmental outcomes, ensuring long-term behavioral change.

Harnessing Digital Innovation and AI for Climate Adaptation

The project will strengthen institutional capacity and embed cutting-edge technologies into wetland management and disaster preparedness. This includes:

• Smart ICT platforms for climate monitoring

• AI-enabled systems for real-time flood forecasting and wetland health assessment

• Digital tools to improve coordination across government agencies

Training and capacity-building activities will support local authorities in climate adaptation, wetland conservation, emergency response, and biodiversity management.

A Regional Model for Coastal Climate Resilience

This initiative is the second flagship project under ADB’s Regional Flyway Initiative, which supports conservation and sustainable development along major migratory bird routes. It also aligns closely with China’s national strategies for climate resilience, coastal zone protection, and wetland conservation.

Lessons learned from the Fujian project—particularly around eco-compensation, digital monitoring, and nature-based climate solutions—will be shared with other coastal regions in Asia and across ADB member countries.

Protecting People, Nature, and Climate Futures

By restoring ecosystems, modernizing infrastructure, and strengthening institutional capacity, the project aims to create safer, greener, and more resilient coastal cities. It will help protect lives, preserve globally important biodiversity, and support sustainable development in Fujian—offering a replicable model for climate adaptation worldwide.