Under the lush canopy of Fujian’s forests, farmer Yang Shuiming carefully tends to his thriving Solomon’s seal plants, a cherished herb in traditional Chinese medicine. For Yang, these leaves symbolize not only natural healing but also a prosperous future for his community.
Back in 2014, Yang established a cooperative in Guangze County, southeast China’s Fujian Province, with the vision of cultivating medicinal herbs beneath the towering trees. He began working on over 133 hectares of forest land. However, the lengthy planting cycles—spanning three to five years—and minimal early income soon led to financial strain.
Everything changed when Yang’s cooperative secured an 800,000-yuan (about $111,000) forest development loan in 2022. “With this funding, our medicinal herb plantation expansion has progressed smoothly,” Yang said, acknowledging how the infusion of capital allowed him to add 13 hectares to his plantation.
Yang’s story is a testament to how green finance is transforming lives in Fujian Province. Known for its rich biodiversity, this subtropical region is pioneering financial initiatives to unlock the value of forest resources while preserving the environment.
Since the launch of a dedicated forest development loan program in March 2022, Guangze’s rural credit cooperative has issued loans totaling 95.6 million yuan (about $13.3 million), according to an official from the local forestry bureau. These funds are empowering forest farmers like Yang to expand sustainable operations—from medicinal herb cultivation and bamboo processing to carbon sink projects.
Nanping City, where Guangze is located, now boasts a growing portfolio of green financial products supporting forest-based industries. Characterized by large credit lines, low interest rates, and extended loan terms, these financial tools are enabling rural entrepreneurs to invest in long-term ecological ventures.
“By bringing inclusive, flexible financing directly to the forest floor, Nanping is channeling capital into sustainable growth while advancing rural revitalization,” said a representative from the city’s forestry department.
Fujian’s commitment to green finance began in 2020 when the province designated Sanming and Nanping as pilot zones for green finance reform, integrating sustainability goals into its financial development strategy. Subsequent policies encouraged banks and insurers to tailor services to the unique needs of the forestry sector.
Home to one of China’s largest collective forest areas, Fujian has over 121 million mu (about 8 million hectares) of forest, with nearly three-quarters available for further development. The province’s mild climate and fertile soil make it ideal for forest-based industries.
Looking ahead, Fujian aims to develop 35 million mu (about 2.33 million hectares) of forest land into productive ecosystems by 2030, generating over 130 billion yuan in output. The ambitious plan includes areas designated for planting, breeding, harvesting and processing, as well as eco-tourism and landscaping.
As green finance continues to fuel sustainable growth, farmers like Yang are optimistic about the future. “We are not just growing herbs; we’re cultivating a better life for our community and contributing to environmental protection,” he said.
