Ⅰ. Background
Plastic pollution is the world's second most critical environmental challenge[1], following climate change. It poses significant threats to human health and global sustainable development. In March 2022, the United Nations Environment Programme (UNEP) approved a landmark resolution to end plastic pollution, committing countries to establish a legally binding international agreement[2]. In response, the Chinese government, in collaboration with the International Network for Bamboo and Rattan (INBAR), launched the "Bamboo as a Substitute for Plastic" initiative in November 2022[3], advocating for bamboo as a sustainable alternative to plastic products globally.
Bamboo, as a green, low-carbon, fast-growing, renewable, and biodegradable material, holds immense potential to replace non-biodegradable plastics across various sectors such as packaging and construction[4]. Bamboo forests also play a critical role in carbon sequestration, significantly reducing carbon footprints. China's bamboo ecosystems sequester 113 million tonnes of carbon annually, contributing 7.1% of the total carbon absorbed by the nation's forests, despite representing only 3.3% of its forest area[5]. Moreover, carbon emissions from bamboo processing are minimal—just 30 kg of carbon dioxide per tonne processed, which is merely 1/19th of the emissions produced during plastic manufacturing[6].
Despite these environmental and carbon-reduction advantages, the industrialization of the “Bamboo as a Substitute for Plastic” initiative faces notable challenges, including high costs, a limited range of products, and insufficient market acceptance[7]. From a production standpoint, bamboo harvesting remains labor-intensive; the cost of cutting, loading, and transporting one tonne of moso bamboo is approximately 450 RMB, while the average market price of bamboo materials stands at less than 600 RMB[8]. This high cost impacts the final product's market price,reducing its competitiveness. To address these issues, enterprises must focus on maintaining worker motivation while simultaneously reducing labor costs and expanding profit margins—achievable through the introduction of innovative production technologies and automation equipment to improve production efficiency[9]. However, many bamboo processing enterprises are small or medium-sized, with low levels of automation and a limited range of products[10], which further constrains their growth and ability to scale. From a consumer perspective, although bamboo products offer evident environmental benefits, the relatively high cost and limited availability of bamboo alternatives mean that consumers often favor cheaper, widely available plastic products.
To tackle these challenges, Anji County signed a strategic cooperation agreement with INBAR on August 16, 2023, to accelerate the industrialization of this initiative[11]. Known as "China's Bamboo Town," Anji possesses 1.08 million mu of bamboo forests and over 900 enterprises in the bamboo industry, generating an output value of nearly 20 billion RMB, contributing 20% of the nation's bamboo industry value with only 1.8% of the country's bamboo stock[12]. Its products are widely used in construction, furniture, packaging, textiles, and single-use items. Leveraging these resource advantages, Anji County has rapidly established a closed-loop financial support system encompassing R&D, production, and consumption for the “Bamboo as a Substitute for Plastic” initiative and has been actively exploring new approaches to realize ecological value and leverage bamboo's potential in mitigating plastic pollution as a designated National Forestry Carbon Sinks Pilot County.
Ⅱ. Practices
1、Reducing Costs and Increasing Efficiency through Intensification
To address high production costs and low efficiency, Anji County has promoted the scaling and intensification of the bamboo industry through land and financial support. Using the “Forestry Standard Land” model[13], bamboo forest resources have been integrated to achieve standardized production and intensive management. This unified approach has improved production quality and management efficiency, transforming scattered resources into sustainable and productive areas. For administrative villages with more than 1,000 acres, Anji adopts a “Farmers + Bamboo Decomposition + Company” model, integrating the strengths of farmers, collectives, and enterprises to manage and operate bamboo forests collectively. This model reduces harvesting and primary processing costs, thereby boosting production efficiency. To stabilize bamboo sales and mitigate market risks, Anji has implemented a “Contract-Based Forestry”, whereinproduction contracts are signed with cooperative enterprises to ensure a stable income for bamboo farmers and encourage production. These measures have effectively addressed the high harvesting costs, market risks, and low production efficiency, reducing production costs and enhancing the competitiveness of bamboo products. Additionally, the county has deepened forestry management reform by establishing bamboo forest shareholding cooperatives, which quantify farmers' interests in bamboo forests into shares, promoting the scale of bamboo forest management and organized development.
2、Stimulating Industry Vitality through Innovation and R&D
To expand the range of bamboo products, Anji County has focused on innovation and R&D to invigorate the industry. The government has established key R&D projects in collaboration with domestic and international research institutes, such as the International Centre for Bamboo and Rattan (ICBRT) and Zhejiang Forestry Research Institute (ZFRI), forming high-end think tanks to overcome key technological bottlenecks[14]. A bidding mechanism for scientific and technological innovation has also been introduced to stimulate local enterprises to collaborate with universities and research institutions, facilitating the technological advancement of bamboo products from simple processing to high-end applications. In 2022, Anji successfully attracted the “National Bamboo Industry Research Institute,” which launched 23 projects in 2023 focusing on key technological research, including breakthroughs in extracting bamboo cellulose and lignin for creating bamboo film bags and bamboo straws. These projects have already shown significant progress, with bamboo film bags developed by local enterprises achieving mass production and a natural degradation rate of over 93% within six months, showcasing a shift from basic bamboo products to advanced applications. Furthermore, Anji regularly hosts the International Bamboo Architecture Summit Forum and Creative Design Competition to foster industrial innovation and promote the sustainable growth of the bamboo sector[15].
3、Increasing Market Demand through Scene Expansion and Product Promotion
To increase market demand and consumer acceptance, Anji has expanded the application scenarios for bamboo products[16]. Online, the county supports local e-commerce companies in building sales platforms and optimizing processes. Offline, bamboo products are promoted at harvest stations, exhibition centers, and integrated into scenic spots, lodgings, hotels, and supermarkets, broadening the reach of “Bamboo as a Substitute for Plastic” products. Anji has also developed a national bamboo industry demonstration park spanning over 333 hectares and five micro-parks, focusing on emerging sectors like bamboo bio-based materials, intelligent equipment, health foods, and building materials. By combining bamboo operations with rural tourism and leveraging locations like “Crouching Tiger, Hidden Dragon,” Anji offers diversetourism experiences, driving both the bamboo industry and local tourism growth.
Anji also promotes bamboo products in administrative and life services through government-led initiatives. Bamboo products have been included in government procurement, and public institutions extensively promote products like bamboo fiber biodegradable bags. Bamboo materials are encouraged in public construction, furniture, and chemical industries, while product liability insurance is provided to boost market confidence. These coordinated efforts among government, businesses, and society have effectively boosted bamboo product adoption and created a supportive environment for their widespread use.
Ⅲ. How Green Finance Supported the Practices
1. Providing an Enabling Policy Environment
Since June 2022, Anji County has introduced a series of policies to promote bamboo industry development, such as the “Guidelines for Accelerating Bamboo as a Substitute for Plastic and Promoting Product Innovation in Anji County,” the “Bamboo as a Substitute for Plastic Implementation Plan Anji County, 2023,” “Bamboo as a Substitute for Plastic Procurement Incentive Measures in Anji County”, and the “Work Plan for Establishing Promotion Bases for Bamboo as a Substitute for Plastic in Anji County, 2024.” These policies have created a favorable environment for green finance. For instance, the “Implementation Opinions on Promoting the Revitalization and Development of the Bamboo Industry in Anji County” encourages bamboo product applications through government procurement policies, market access support, and the establishment of special funds[17]. The “six projects” policy provides effective support for bamboo product promotion. Anji has carried out a pilot project for bamboo product promotion in one street and one township, focusing on bamboo tableware and biodegradable bags. Each year, 20 million RMB of financial funds are invested to support the bamboo industry, with an additional 3 million RMB allocated to promote bamboo products through the “six projects” (scenic spots, lodgings, hotels, pavilions, supermarkets, and neighborhoods). Currently, 80 hotels have formally purchased bamboo products, achieving broad coverage. Additionally, bamboo biodegradable bags have been promoted to administrative organizations, schools, and enterprises, with a signed quantity of 2 million. Anji's financial system actively supports government policies by promoting the wide application of bamboo products.
At the circulation end, Anji Branch of China Banking and Insurance Regulatory Commission (CBIRC) guides banks to implement the policy of banning and restricting plastics in high-use scenarios such as express delivery and farmers' markets, supporting the promotion of plastic alternatives. To further encourage bamboo products in the market, Anji Rural Commercial Bank collaborates with government departments like the Development and Reform Bureau and the Market Regulation Bureau to promote fully-degradable bamboo bags. The government provides financial incentives for markets with a high adoption rate of degradable bags, while Anji Rural Commercial Bank offers preferential lending rates for eligible market stall tenants and management companies[18]. Currently, three farmers' markets have participated in the pilot scheme, with Sanliting and Tianhuangping markets successfully passing the “bamboo instead of plastic” market creation acceptance.
2. Financial support
1) Credit support
Anji Rural Commercial Bank provides no less than 500 million RMB of special credit funds each year, focusing on supporting the technological innovation and product development of bamboo product enterprises[19]. Through products like the “Bamboo Industry Revitalization Loan,” the bank offers special loan support, reduces financing thresholds, and helps enterprises achieve scale expansion and technological upgrading. Green credit channels are also opened, with preferential interest rates provided based on environmental performance, thereby reducing financial pressure. For example, Anji Bamboo Biomass Energy Plant Factory obtained 10 million RMB through green loans to develop bamboo fiber extraction technology, contributing to the “Bamboo as a Substitute for Plastic” efforts.
(2) Financial Support for Carbon Sinks[20]
Through the bamboo forest carbon sink storage and trading center, Anji County has realized closed-loop management of the entire chain, from bamboo forest circulation to income feedback. Management rights of bamboo forests are transferred to a joint-stock bamboo cooperative, centrally managed by the county's “Two Hills Cooperative Society,” promoting large-scale and intensive management for sustainable development. The carbon sink center includes six scenarios: carbon background, carbon storage, enhancement, trading, footprint, and income. It has also established a bamboo forest carbon sink trading platform, achieving a closed-loop of “forest land transfer - unified management - carbon sink storage - platform trading.” Through the “two shares and three gains” mechanism, farmers quantify their bamboo resources into the cooperative to receive rent, dividends, and salaries, achieving both ecological and economic benefits.
Anji County also promotes innovative bamboo forest carbon sink financial products. To date, Anji Rural Commercial Bank has issued 240 million RMB in bamboo forest carbon sink loans, primarily supporting carbon sink trading and ecological protection projects. These loans provide financial support for sustainable bamboo forest operations, helping enhance carbon sink capacity. Additionally, carbon credits help enterprises and farmers participate in the carbon trading market, generating income through value-added credits. Anji County has also introduced products like the “Carbon Sink Beneficial Enterprise Loan”, “Carbon Sink Collection and Storage Loan”, and “Carbon Sink Common Wealth Loan”, offering preferential interest rates to encourage participation in bamboo forest carbon sink trading.
3) Green Consumption Behavior Incentives
Anji County has also promoted green finance in the consumption sector. The “Two Mountains Green Coins” program encourages residents to engage in environmental protection actions by awarding “green coins,” which can be used to purchase bamboo products, lowering the cost for consumers and boosting demand. To date, 45 million green coins have been awarded, involving 50,000 residents in green consumption. Green financial consumption scenarios are also set up, encouraging residents to connect with green consumption opportunities through green credit cards or e-banking.
4) Risk Protection and Innovative Products[21]
Anji County provides integrated financial services combining credit support with insurance products for bamboo enterprises and R&D projects. Product liability insurance is offered for bamboo products, ensuring consumer safety and boosting confidence. Preferential interest rates are also provided to enterprises participating in the “Bamboo as a Substitute for Plastic” initiative, reducing financing costs and supporting technological innovation.
Ⅳ. Impacts[22]
The “Bamboo as a Substitute for Plastic” initiative has significantly reduced the environmental impact of plastic waste by reducing reliance on traditional plastics. By the end of 2022, over 2,000 tonnes of plastic waste were avoided through the promotion of bamboo products in hotels, B&Bs, and other areas.
In 2023, the bamboo industry in Anji County exceeded an output value of 18 billion RMB. Although Anji's bamboo production accounts for only 1.8% of the nation's total, it contributes 10% of the industry's output value. Currently, Anji County has over 100 bamboo-based enterprises, with 37 classified as above-scale, covering various fields like decorative materials, daily necessities, and bamboo food products, forming over 3,000 types of products. In the same year, the bamboo forest carbon sink trading volume reached 25,000 tonnes, generating 1.72 million RMB. Additionally, 21,000 tonnes of bamboo forest carbon sinks were donated to the 19th Asian Games to support its carbon neutrality project.
The bamboo industry has also positively impacted local tourism. With 730 bamboo-themed B&Bs, Anji County received 3.785 million tourists in 2023, generating an income of 1.31 billion RMB. The bamboo industry's growth and the development of related tourism have created numerous employment opportunities for local residents. By converting bamboo resources into shares, local farmers receive income from rent, dividends, and wages, which has increased the village operating income by about 1 million RMB annually per village.
Through the integration of resource management, carbon trading, and green finance, Anji County has achieved large-scale and sustainable bamboo forest management, promoting the entire bamboo industry's reform. Anji's model serves as a replicable and promotable success for bamboo industry revitalization across China.
References
[1] Tonggu People's Congress. (2023). The opportunity for Jiangxi in the "Bamboo as a substitute for plastic" initiative. https://www.sohu.com/a/740066943_121106994
[2] United Nations Environment Programme (UNEP). (n.d.). UNEP and the Sustainable Development Goals. https://www.unep.org/explore-topics/sustainable-development-goals
[3] International Network for Bamboo and Rattan (INBAR). (2023). “Bamboo as a substitute for plastic” initiative. https://www.inbar.int/cn/basp/
[4] National Development and Reform Commission (NDRC). (2023). "Bamboo as a substitute for plastic" provides solutions for global plastic reduction. China Development and Reform Newspaper. https://www.ndrc.gov.cn/wsdwhfz/202312/t20231206_1362478.html
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[6] National Development and Reform Commission (NDRC). (2023). "Bamboo as a substitute for plastic" provides solutions for global plastic reduction. China Development and Reform Newspaper. https://www.ndrc.gov.cn/wsdwhfz/202312/t20231206_1362478.html
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[8] National Development and Reform Commission (NDRC). (2024). "Bamboo as a substitute for plastic": What's good? What's challenging? https://www.ndrc.gov.cn/xwdt/ztzl/slwrzlzxd/202401/t20240108_1363144.html
[9] People's Daily. (2023). Accelerating the industrialization of "Bamboo as a substitute for plastic" (Microscopic). http://opinion.people.com.cn/n1/2023/1207/c1003-40133427.html
[10] National Development and Reform Commission (NDRC). (2024). "Bamboo as a substitute for plastic": What's good? What's challenging? https://www.ndrc.gov.cn/xwdt/ztzl/slwrzlzxd/202401/t20240108_1363144.html
[11] Zhejiang Provincial Forestry Bureau. (2023). Anji: "Bamboo as a substitute for plastic" breaking through barriers. http://lyj.zj.gov.cn/art/2023/10/31/art_1285508_59061200.html
[12] Zhejiang Provincial Forestry Bureau. (2023). Anji, Zhejiang: "Using bamboo instead of plastic" contributes to common prosperity. http://lyj.zj.gov.cn/art/2023/7/14/art_1277871_59054946.html
[13] International Bamboo and Rattan Organisation (INBAR). (2024). China's bamboo industry | How does Anji, Zhejiang break through in the bamboo sector? https://www.thepaper.cn/newsDetail_forward_29269757
[14] International Bamboo and Rattan Organisation (INBAR). (2024). China's bamboo industry | How does Anji, Zhejiang break through in the bamboo sector? https://www.thepaper.cn/newsDetail_forward_29269757
[15] Zhejiang Provincial Forestry Bureau. (2023). Anji, Zhejiang: "Using bamboo instead of plastic" contributes to common prosperity. http://lyj.zj.gov.cn/art/2023/7/14/art_1277871_59054946.html
[16] International Bamboo and Rattan Organisation (INBAR). (2024). China's bamboo industry | How does Anji, Zhejiang break through in the bamboo sector? https://www.thepaper.cn/newsDetail_forward_29269757
[17] Zhejiang Provincial Forestry Bureau. (2023). Anji, Zhejiang: "Using bamboo instead of plastic" contributes to common prosperity. http://lyj.zj.gov.cn/art/2023/7/14/art_1277871_59054946.html
[18] Science and Finance Times. (2024). "Three-pronged" coordination drives a new "green and low-carbon" track for "using bamboo instead of plastic". https://news.qq.com/rain/a/20240920A063MI00
[19] Science and Finance Times. (2024). "Three-pronged" coordination drives a new "green and low-carbon" track for "using bamboo instead of plastic". https://news.qq.com/rain/a/20240920A063MI00
[20] Zhejiang Provincial Forestry Bureau. (2023). Anji, Zhejiang: "Using bamboo instead of plastic" contributes to common prosperity. http://lyj.zj.gov.cn/art/2023/7/14/art_1277871_59054946.html
[21] Science and Finance Times. (2024). "Three-pronged" coordination drives a new "green and low-carbon" track for "using bamboo instead of plastic". https://news.qq.com/rain/a/20240920A063MI00
[22] Anji County People's Government. (2023). "Using bamboo instead of plastic" becomes a popular trend in Anji. https://www.anji.gov.cn/art/2023/8/16/art_1229211477_58919449.html
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