New World Bank Program Supports Sustainable Fodder Production, Lower Methane Emissions for China’s Livestock Industry

WASHINGTON, June 27, 2024- The World Bank's Board of Executive Directors approved a US$200 million (€186.5 million) loan to improve productivity, lower emissions of methane and other greenhouse gases (GHG) and enhance climate resilience in the livestock sector in China's Gansu province.

Gansu's livestock sector plays a crucial role in the province's economy. However, it is also a significant contributor to rising GHG emissions, which are the main driver of climate change. In response to this challenge, the newly approved Sustainable Fodder Production and Low Methane Livestock Development Program-for-Results aims to reduce the environmental and climate footprint of the livestock sector in Gansu while improving sector productivity.

The program will draw on the World Bank's global experience to bring low-emission technologies and practices to Gansu's livestock farms. Together with better animal health practices, sustainable fodder production technologies, and enhanced collection, treatment, and recycling of livestock manure, the program will also increase productivity and enhance the sector's resilience to climate change.

Development of a Measurement, Reporting and Verification (MRV) system, technical standards, an incentive system, and other components will enable low-emission technologies and practices to be scaled up in 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."

Program-supported institutional strengthening, establishment of the MRV system, and scaling up green product certification in livestock value chains will contribute to operationalizing and advancing China's global public goods agenda.

The program is aligned with China's climate change commitments and in line with China's Long-Term Strategy and National Climate Change Adaptation Strategy 2035.