Article 1 In order to protect the resources of public welfare forests and maintain ecological security, according to the Forest Law of People's Republic of China (PRC) and the Decision of the State Council, the Central Committee of the Communist Party of China on Accelerating Forestry Development (Zhong Fa [2003] No.9), governments at all levels establish compensation funds for forest ecological benefits according to the division of powers. The central government arranges special funds to establish the central financial forest ecological benefit compensation fund (hereinafter referred to as the central financial compensation fund), and these measures are formulated to standardize and strengthen the management of the central financial compensation fund.

Article 2 The forest ecological benefit compensation fund shall be used for the construction, tending, protection and management of public welfare forests. The central financial compensation fund is an important source of forest ecological benefit compensation fund, which is used for the construction, tending, protection and management of key public welfare forests.

Article 3 The term "key public welfare forest" as mentioned in these Measures refers to the public welfare forest land whose ecological position is extremely important or whose ecological condition is extremely fragile, which is approved by the State Forestry Administration in conjunction with the Ministry of Finance in accordance with the Measures for the Division of Key Public Welfare Forests (Lin Ce Fa [2004] No.94) issued by the State Forestry Administration and the Ministry of Finance.