On May 30, 2022, the Ministry of Finance issued the "Notice on The Issuance of The Opinions on Financial Support for Carbon Peak And Carbon Neutrality" (hereinafter referred to as the Opinions), specifying three important time points:
By 2025, more fiscal policy tools will be available, and a fiscal and tax policy framework conducive to green and low-carbon development will be in place, giving strong support to all regions and industries in accelerating green and low-carbon transformation.
By 2030, a system of fiscal and tax policies conducive to green and low-carbon development should be basically in place, a long-term mechanism for promoting green and low-carbon development should be gradually established, and the goal of peaking carbon emissions should be smoothly achieved.
By 2060, the policy system of fiscal support for green and low-carbon development will be mature and sound, and the goal of carbon neutrality will be achieved smoothly.
In this regard, the guideline also points out six key directions and areas of support:
1. Supporting the building of a clean, low-carbon, safe and efficient energy system
Support photovoltaic, wind power, biomass and other renewable energy, as well as stable output of new energy to replace fossil energy.
We will encourage regions where conditions permit to develop new types of energy storage and pumped storage in light of local conditions, and accelerate the formation of an electric power development mechanism based on energy storage and peak-regulating capacity.
We will strengthen supervision over energy conservation in key industries and equipment, and organize energy metering reviews.
2. Supporting green and low-carbon transformation in key industries
We will vigorously support the development of new-energy vehicles and improve policies to support infrastructure for charging and replacing electricity.
We will promote coordinated efforts to reduce pollution and carbon emissions and increase efficiency, continue comprehensive efforts to improve coal-fired boilers and industrial furnaces, expand the scope of support for clean winter heating in the northern region, and encourage the use of clean energy for heating and heating in light of local conditions.
We will support the northern heating region in upgrading existing urban residential buildings and rural houses to conserve energy, and encourage urban and rural development to achieve carbon neutrality at peak levels.
3. Supporting green and low-carbon technological innovation and basic capacity building
We will strengthen support for the research, development and application of green technologies such as low-carbon, zero-carbon and negative carbon technologies, energy conservation and environmental protection.
We will encourage competent units, enterprises and regions to make breakthroughs in low-carbon, zero-carbon and negative carbon energy storage materials, technologies and equipment, and apply them on an industrial and large-scale basis, and establish and improve green and low-carbon technology evaluation and trading systems and scientific and technological innovation service platforms.
4. Supporting green and low-carbon living and conserving resources
We will develop a circular economy, promote comprehensive utilization of resources, and strengthen the utilization of urban and rural garbage and rural waste resources.
We will improve the recycling system for waste materials and materials, and promote the recovery and utilization of renewable resources to improve their quality and efficiency. We will establish and improve the extended producer responsibility system for automobiles, electrical and electronic products, and promote the healthy development of the renewable resources recycling industry. We will promote the recycling of crop straws, manure and sewage from livestock and poultry, and promote the recycling and utilization of plastic film.
We will support the construction of "waste-free cities" and form a batch of experience models that can be replicated and extended.
5. Supporting the consolidation and improvement of carbon sink capacity
We will support efforts to increase the carbon sequestration capacity of forests, grasslands, wetlands and oceans.
We will protect and restore mountains, rivers, forests, farmland, lakes, grass and sand. We will carry out major projects to protect and restore important ecosystems.
We will intensify large-scale afforestation efforts, fully protect virgin forests, consolidate achievements made in returning marginal farmland to forests and grasslands, support the management and conservation of forest resources and the prevention and control of forest and grassland fires, strengthen grassland ecological restoration and improvement, and strengthen the protection and restoration of wetlands.
We will promote the overall protection and restoration of Marine ecosystems, and enhance the carbon sequestration capacity of mangroves, seagrass beds and salt marshes. We supported comprehensive treatment of soil erosion.
6. Supporting the improvement of the green and low-carbon market system
We will give full play to the role of trading markets for carbon emission rights, energy use rights and pollution discharge rights, and guide the optimization of industrial distribution. We will improve the statistical accounting and monitoring system for carbon emissions, improve the relevant standards system, and strengthen the monitoring and measurement system for carbon emissions.
We will support unified supervision and management of national carbon emission trading, improve the allocation and management of quotas in the national carbon emission trading market, gradually expand the scope of trading industries, diversify trading types and trading methods, and introduce paid distribution in due course.
We will fully implement the pollutant discharge permit system, improve the paid use and trading system for pollutant discharge rights, and actively foster trading markets.
We will improve carbon emission reporting and information disclosure systems for enterprises and financial institutions.