Prof. Wang Jin, professor at Peking University Law School and director of Peking University Resources, Energy and Environmental Law Institute, discussed the development of eco-compensation legislation in the People’s Republic of China (PRC). Twenty years since the PRC government put forward the concept of eco-compensation in its official documents, numerous laws, regulations, policies, and departmental rules relating to eco-compensation have been issued both by the Standing Committee of the National People’s Congress and the State Council. However, eco-compensation legislations in the PRC are fraught with many challenges, such as lack of sustainable funds, lack of specific fiscal and institutional provisions, low compensating standards, and absence of market-driven operating mechanism. It is thus important to accelerate innovations on management institutions of eco-compensation, define the interest relationship between protectors and beneficiaries in a scientific and reasonable way, and establish a diversified eco-compensation investment mechanism, among others.