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Abstract

Market-oriented ecological restoration is vital for advancing ecological civilization and promoting harmonious human–nature relationships. However, the precise implementation pathway remains unclear. Few studies specifically address challenges that arise during ecological restoration implementation. Ensuring the smooth and effective implementation and landing of ecological restoration projects harmonizes ecological and economic objectives at the regional scale and fosters sustainable development in the region. Based on the policies of market-oriented ecological restoration collected from various Chinese provinces, and through multi-level institutional analysis, the policy measures are categorized into three phases: early, middle, and late. For each phase, we summarize the challenges encountered in implementing market-oriented ecological restoration projects. Finally, by the method of constructing theoretical models, we propose sustainable countermeasures based on multiple theoretical models. The results show (1) China’s ecological restoration sector is experiencing rapid growth, and market-oriented policies in China, multiple Chinese provinces, and municipalities have enacted successive market-oriented ecological restoration policies, and the outlook for ecological restoration marketization in China remains highly promising. (2) The implementation process of current market-oriented ecological restoration projects confronts and encounters several challenges. These include the absence of project screening and evaluation mechanisms, limited investment and financing channels, ill-defined approval processes, ambiguous delineation of departmental responsibilities, insufficient industry incentives, and the absence of effective operational and management mechanisms. (3) To address the identified challenges, taking forest ecological restoration as an example, theoretical models should be developed encompassing six critical dimensions: the aspects of the mechanism, mode, approval process, management system, industrial chain, and platform. This aims to provide sustainable pathways for the effective implementation of market-oriented forest ecological restoration projects.