Improving the Water Quality of One of the World's Great Lakes: Tai Lake Case Study of Environmental Responsibility in the Developing World

China's Tai Lake is one of the world's great lakes. Located in eastern China near the city of Shanghai, over 30 million people live within the lake's watershed. In 2007 Tai Lake experienced a major algal bloom, which resulted in the suspension of water supplies to Wuxi City. In response, the Chinese central government tasked the China Development Bank (CDB) with creating an environmental loan program to assist in improving the lake's water quality. Ecology and Environment, Inc. (E & E) was hired by the CDB to assist in identifying loan opportunities that could be used to improved Tai Lake's water quality. A principle finding was the willingness of local authorities to fund large-scale environmental projects. Another significant finding was the recognition within the watershed of the need to shift funding away from wastewater treatment plants and toward measures to intercept polluted runoff from non-point sources. The approach presented in this paper provides a model for developing countries to create effective and comprehensive environmental loan programs and the supporting strategies needed to help ensure their success.