Dongshe village in Shanghai's Qingpu district has completed the city's first VEP (Value of Ecosystem Product in specific geographic units) verification, securing a 39.5 million yuan ($5.8 million) credit line from the bank, the district announced on Tuesday.

The loan is based on the village's ecological assets, valued at 245 million yuan, as calculated by professional agencies. This is the first project in Shanghai to complete VEP verification and successfully secure a green loan, and also marks the first one in the Yangtze River Delta Ecological and Green Integrated Development Demonstration Zone, according to the district.

The VEP verification basically refers to putting a "price tag" on a village's pristine natural environment. In the past, when rural areas sought development but lacked funds, banks would require collateral such as houses, land or machinery. But the village offered a new answer: clean river water, vast forests, ancient ruins dating back some 5,000 years, and a hydrangea festival that attracts tens of thousands of visitors annually.

Boasting splendid ecological asset, the village launched a village-wide operation project. Villagers' idle old houses were transformed into boutique homestays and wellness courtyards, and the vacant riverbank land was turned into hydrangea fields and a camping base. Furthermore, traditional crafts and local flavors were converted into intangible cultural heritage workshops where visitors can participate hands-on.

To date, the village has leased out 53 idle farmhouses, and saw a first batch of three guesthouses and 15 guest rooms officially open for business, directly benefiting over 100 households, said the district.