The Multiplier Effect Engaging China's private sector in sustainable management of medicinal plants

The People’s Republic of China (hereafter China) is the origin for, and biggest centre of, production of many plant materials used in traditional Chinese medicine (TCM). China produces a wide variety of plant-based herbal medicines and ingredients that are consumed both within China and worldwide. Over 70% of the different species used in TCM, and about 30% by volume, come from wild medicinal plants. These resources are under threat owing to overharvesting to meet high demand from the TCM and herbal products industry, as well as other factors such as land conversion and pollution. Poor management is not only threatening wild species but also the livelihoods of millions of collectors and TCM healthcare system.

Between 1st March 2013 and 31st July 2015, TRAFFIC, with funding from the EU-China Environmental Governance Programme (EGP), together with the World Federation of Chinese Medicine Societies (WFCMS), WWF China Programme Office (WWF CPO), and Zhejiang Wecome Pharmaceutical Co. Ltd (Wecome), implemented the ‘Engaging China’s private sector in sustainable management of medicinal plants—the multiplier effect’ project (abbreviated as EGP MAPs). This focused on building sustainable supply chains of medicinal plants in the Traditional Chinese Medicine industry in Hunan and Zhejiang provinces, two important centres of TCM sourcing, trade and manufacturing.

The overall goal of the EGP MAPs project has been to achieve sustainable management of medicinal plants and to contribute to improved rural livelihoods and environmental governance in Hunan and Zhejiang Provinces, China, through establishing green supply chains among Traditional Chinese Medicine stakeholders. With leadership and leverage from TCM manufacturers and traders, the project connected various stakeholders in the TCM industry, including companies, their suppliers (farmers and wild-collectors), conservation NGOs, industry associations and academia, as well as government.

This project is the first of its kind; innovative in China and indeed globally in leveraging of commitment and resources from the TCM industry to address the issues of sustainability in the sector. The project used the FairWild Standard as a best-practice framework for sustainable wild harvesting and equitable trade in plants. The 11 principles of the FairWild Standard cover social, environmental and economic aspects of sustainability; a comprehensive framework for tackling the complex issues involved in sustainable wild collection. The project has contributed to building a sustainable TCM industry in the long term, and is piloting a participatory approach to governance of China’s environment and resource management. A particular emphasis has been placed upon exchange of experience between China, Europe and beyond, in line with the aims of the European Union–China EGP, and the global nature of the trade in Chinese medicinal and aromatic plants (MAPs).

EGP is a key priority of the EU–China environmental co-operation. It aims at developing opportunities for improving the environmental situation across China through the following four priorities:

• 1. Public access to environmental information
• 2. Public participation in environmental planning and decision making
• 3. Access to justice in environmental matters
• 4.Corporate environmental responsibility