The sustained growth of Chinese economy in the new century is a silver lining in the continuouslydepressed global economy. Meanwhile, the rapid development of Chinese economy is still confronted withconstraints from deteriorating environment and rural poverty issues. It has become a significant policyoption in maintaining high speed, efficiency and sound development of Chinese economy to rehabilitateforest resources, improve ecological conditions, increase farmers income and get on a sustainable roadfeaturing coordinated development of population, resources and environment. The Grain for Green Program,as a CDM activity of Chinese style, launched on trial in 1999 and implemented in 2002 across the country,is the biggest land use transition, watershed management and poverty alleviation program involving thelargest population in Chinese history and across the globe. It covers 25 provinces/regions/cities and gets over1 600 counties, 15 million households and 60 million farmers were involved. Hence the Grain for Tree policyhas a significant bearing on ecological protection and farmers poverty alleviation in the soil and watererosion-prone region. A review and assessment of the background, essentials, effects, problems and trend ofthe Grain for Tree policy is of great significance for both China and the other developing countries in theworld in their efforts to combat the deteriorating environment and alleviate poverty.
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