Clear Waters: The Business of Conservation

This month, as China releases its State of Ecology & Environment 2025 Report, we look at how far it’s come in the business of conservation for its freshwater resources and coastal waters. Global water gurus Asit Biswas, Wang Hao and Cecilia Tortajada also say striving for ecological civilisation opens up a flood of opportunities, especially in times of shifting rainfall patterns. Meanwhile, ADMCF’s Kate Martin encourages more nature bonds for a resilient Asia.

2025 was the last year of the 14^th Five-Year-Plan (14FYP) so it’s a good time to take stock. How has China’s waters fared? Good news – all 14FYP targets were met! In fact, over 90% of national surface water quality reached “Excellent/Good” (Grade I-III) for 2 years in a row.

To achieve this, there has been a lot of “cleaning up”. On top of the targets set out in the 14FYP, the Ministry of Ecology & Environment also launched a 2-year action plan to protect & construct Beautiful Rivers & Lakes last year. This action plan aims to enhance the quality of over 2,500 rivers and lakes – good news here too, they’ve already achieved 20% of this.

But challenges still remain. Groundwater quality has worsened every year of the 14FYP and Grade V+ water (which is unsuitable for any use) have stubbornly persisted in the Yangtze River – more stats by river in our freshwater review.

For coastal waters, marine water quality recovered from a minor dip in 2024 and continues improving steadily. “Excellent/Good” seawater quality is almost 85% in 2025 up from 81% at the start of the 14FYP.

Zooming in on the 4 major seas for the year 2025 – while the Yellow Sea made the most progress cleaning up its Grade IV+ waters, the East China Sea remains the worst polluted.

China is also working to “beautify its coast” through a Beautiful Bay Development Action Plan with a goal of creating 114 beautiful bays by 2027 – currently there are already 74 completed.

As you can see, China is dead set on “beautifying” its freshwater resources and bays, so there will be lots of opportunities to invest in this “makeover”. Already, Zhejiang has just launched a 15FYP for Water Security that includes many directives which we called in our China’s 15FYP Water Outlook. So don’t miss out on the 2 Goals, 4 Directives & 8 Actions – China aims to build little giants in the water space.

Clear waters are an integral part of China’s “ecological civilisation”. This was written into the country’s constitution in 2018. Besides being crucial for health, globally renowned water professors Biswas, Wang, and Tortajada show that prioritising environmental protection alongside development has helped the country grow in spite of rapid climate change.

By adapting water management to shifting rainfall patterns, China’s been capturing the flood of opportunities that comes with climate change. Can water-scarce Northern China take advantage of heavier rains to replenish wetlands? Are warmer temperatures helping farmers extend their growing season? Can better water & land management and infrastructure like the South-North Water Transfer help China’s economy?

Read the opinion from Professors Biswas, Wang, and Tortajada for a fresh new perspective on turning climate challenges into growth opportunities.

But where’s the money? We still have to plug a US$700bn nature financing gap annually. On this front, ADMCF’s Martin says Hong Kong has all the right ingredients to help close this gap.

According to Martin, HK has the largest government green bond programme in APAC with US$31bn+ raised, covering 45% of all regional issuance plus the city’s updated Biodiversity Strategy & Action Plan recently committed to mobilising capital for nature conservation. The territory also has a wealth of natural assets from wetlands, coastlines, marine ecosystems to geologic formations.

So how can HK tap this opportunity? How do nature bonds build value for the Northern Metropolis development? Check out Martin’s op-ed on why now is HK’s moment to lead on nature financing for the city’s resilience & reputation as a leader in green finance innovation.

The time is now for innovative approaches to adaptation, particularly ones that manage water & climate & ecological risks holistically. This message was heard everywhere at the Singapore International Water Week 2026 last week.

As climate risks compound & escalate, fragmented approaches may not be enough to reduce risk exposure. We must make protecting & conserving nature our business – as President Xi said, “If we humanity do not fail Nature, Nature will not fail us”.