Recently, The China Ministry of Finance issued the notice on printing and distributing the opinions on financial support for carbon peak and carbon neutralization. The opinions pointed out that by 2025, fiscal policy tools will be continuously enriched, a fiscal and tax policy framework conducive to green and low-carbon development will be initially established, and strong support will be given to all regions and industries to accelerate green and low-carbon transformation. By 2030, a fiscal and tax policy system conducive to green and low-carbon development will be basically formed, a long-term mechanism to promote green and low-carbon development will be gradually established, and the goal of carbon peak will be smoothly achieved. Before 2060, the policy system of fiscal support for green and low-carbon development was mature and sound, and the goal of carbon neutrality was successfully achieved.

The opinions proposed to support six key directions and areas, including: supporting the construction of a clean, low-carbon, safe and efficient energy system, supporting green and low-carbon transformation in key industries, supporting green and low-carbon scientific and technological innovation and infrastructure capacity building, supporting green and low-carbon life and resource conservation and utilization, supporting the consolidation and improvement of carbon sink capacity, and supporting the improvement of the green and low-carbon market system. And the Ministry of Finance proposed to introduce paid distribution in due course for the first time.

The opinions emphasizes that we should support the construction of a clean, low-carbon, safe and efficient energy system. Orderly reduction and substitution, and promote the transformation and upgrading of coal consumption. We will optimize clean energy support policies, vigorously support the high proportion of renewable energy, and promote the construction of a new power system in which the proportion of new energy is gradually increasing. Support renewable energy such as photovoltaic, wind power and biomass energy, as well as new energy with stable output to replace fossil energy. We will improve support policies and encourage unconventional natural gas production to increase production. We will encourage regions where conditions permit to take the lead in making trials, develop new types of energy storage and pumped storage according to local conditions, and accelerate the formation of a power development mechanism based on energy storage and peak shaving capacity. We will strengthen supervision over energy conservation in key industries and equipment, and organize energy measurement reviews.

Support green and low-carbon transformation in key industries and fields. Support the development of industrial sectors towards high-end, intelligent, green and advanced manufacturing. We will deepen the establishment of demonstration counties for the integration of urban and rural transport, and improve the equalization of urban and rural transport services. Support the optimization and adjustment of transportation structure. Vigorously support the development of new energy vehicles, improve the supporting policies for charging and switching infrastructure, and steadily promote the demonstration and application of fuel cell vehicles. Promote the synergy of pollution reduction and carbon reduction, continue to carry out comprehensive treatment of coal-fired boilers and industrial furnaces, expand the scope of support for clean heating in winter in the northern region, and encourage the use of clean energy heating according to local conditions. We will support the northern heating areas to carry out energy-saving transformation of existing urban residential buildings and rural houses, and promote carbon peak and carbon neutrality in urban and rural construction. We will continue to promote the substitution of electric energy in industries, transportation, construction, agriculture and rural areas, and implement “electricity instead of coal” and “electricity instead of oil”.

In terms of fiscal policies and measures, the opinions proposed to strengthen the guiding role of financial funds, study the establishment of a national low-carbon transition fund, study and support tax policies related to carbon emission reduction, and require to strengthen the main responsibility of purchasers, clarify green and low-carbon requirements in government procurement documents, and strengthen the procurement of green and low-carbon products.

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