Wendy Zhang/ Shanghai Daily news

hanghai has invested more than 10 billion yuan (US$1.2 billion) in environmental protection every year, over the last six years (from 1998 to 2003). The investments accounted for more than three percent of the local GDP for four consecutive years.
Last year, the city's investments in environmental protection amounted to 3.06 percent of the local GDP, the highest in the nation.
Over the past several years, Shanghai has stuck to a government-led market mechanism in environmental protection.
The local government mainly funds public projects such as green belts, waste-water disposal and water source protection.  It also funds the operation of sewage disposal plants and the construction of facilities that deal with domestic waste. Fines paid by polluters also contributes to the funding.