Deserts and desert margins are unique, highly adapted ecosystems that support important plant and animal diversity as well as over 500 million people – nearly 8 per cent of the global population. One of the harshest terrains inhabited by humans, they can also be a major driver of innovation.

The Kubuqi Desert, the 7th largest desert in China, is almost completely encircled by the Great Bend (Ordos Loop) of the Yellow River in the west, north, and east. Situated at an altitude of 850–2130 meters above sea level, it is a unique geographical feature, with a sandy and denuded landscape contrasting sharply with the adjacent areas.

The Kubuqi Ecological Restoration Project of Elion Resources Group, located in the Kubuqi Desert, is a tremendous example of perseverance and innovation creating new Green Economy options.
Setting up any business in the area is difficult; creating a business that is both economically and
environmentally sustainable requires true ingenuity.

Temperatures there can range from -32.1 ºC to 38.7 ºC with sandstorms occurring on over 13 days per year and annual precipitation averaging only 280 mm. Mobile dunes account for 61 percent of its area and the majority of its surface is covered by loose fine sand. Climate change and geomorphological processes exacerbated by human impacts have prompted desertification.

Globally, long-term vision and planning are needed to steer a path away from over exploitation and
degradation to an alternative, more balanced path of sustainable development.

This report is divided into two parts: Part 1 provides the background and a description of the Elion Kubuqi Project and Part 2 provides an appraisal of the impacts and sustainability of the project, summarized in the form of an economic risk-return model.