A major challenge in trading ecosystem services is the need to quantify and commoditise services, for monitoring and verification as well as for trade. This is relatively straightforward for goods such as forest honey or shade-grown coffee, but potentially complex for services such as water purification, reducing risk from floods or other disasters or carbon sequestration.

Policymakers should recognise the size and value of the woodfuel sector and its importance to many people. Harvesters and producers need better access to trees and land to promote better management and reduce conflicts. The tax system for woodfuel should be revised to be transparent and pragmatic. Woodfuel from plantation forests and agroforestry should be favoured over woodfuel from valuable or threatened tree species. More attention should be paid to energy-efficient charcoal kilns and cooking stoves, as well as activities to promote their use.

In recent years, in line with China’s Going Out strategy announced in 2000, China’s overseas investment activities have increased greatly and at increasing rates. By the end of 2009, the total value of China’s outward foreign direct investment had reached US$5.6 billion. Policies have played strong supporting roles in bringing about this trend by facilitating and encouraging Chinese companies to make overseas investments. This working paper summarises these policies based on an analysis of policy changes over time and identifies the main drivers of these changes.