In the past few months, China has faced a record pollution problem. In January this year, Beijing's air pollution index far exceeded the standards of the National Environmental Protection Agency and the World Health Organization. But compared with the attention paid to air pollution, the shortage of water resources is likely to become a more troublesome problem for China. Fortunately, the Chinese government is actively taking measures to prevent the occurrence of water crisis.

The shortage of water resources may interrupt China's development process and further aggravate the current social tension. At the same time, it also limits the opportunities for Beijing to develop shale gas and other energy.

The Chinese government has recognized this challenge and is actively seeking solutions. In the "Twelfth Five-Year Plan", the Chinese government promised to reverse the trend of deterioration of the ecological environment from the source, adhere to the priority of protection and natural restoration, and strengthen ecological protection and construction. At the same time, accelerate the establishment of ecological compensation mechanism and protect key ecological functional areas.

This is not empty words. The non-profit organization "Forest Trends" recently released a report saying that in 2011, 61 of the 205 river basin governance investment projects in the world were in China, second only to the United States. If calculated according to the amount of investment, China may surpass the United States and rank first.

China's ecological compensation mechanism touches all levels of society. The government attaches importance to cooperation with families, communities and other institutions to solve the problems caused by ecological degradation. This means that many of China's policies to deal with water shortage are aimed at alleviating social injustice caused by economic development and promoting sustainable development. An example is the three large reservoirs of Heishan Gorge, Qikou and Guxian built on the main stream of the Yellow River. After completion, they will help to prevent floods and soil erosion, enhance the allocation and utilization of water resources, and improve the comprehensive management of river basins. Another project currently under way in Zhuhai, Guangdong Province, requires pollution enterprises to provide compensation directly to pollution victims. The project aims to help local people benefit from "the achievements of economic reform, industrialization and modernization in Guangdong".

"Forest Trends" studied 54 projects with obvious social purposes and found that nearly half of the projects were in China. The organization believes that the ecological compensation mechanism can be considered as a part of the rural welfare support project, and its purpose is to distribute the results of economic growth more equitably to poorer areas.