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8 Billion Yuan to Support Energy Conservation and Emission Reduction

2016-05-08

On March 20, National Development and Reform Commission announced the Notice on Organizing the Applications of 2015 Central Budgetary Investment Projects for Resource Conservation and Environmental Protection (hereinafter referred to as the Notice). According to the Notice, the budgetary investments of this year focus on key demonstration projects and major projects in ecological conservation, energy saving and emission reduction, circular economy and environmental protection. The central government will allocate 8 billion Yuan to support resource conservation and environmental protection with 3.5 billion Yuan for environmental improvement projects and 4.5 billion Yuan for energy conservation, circular economy and resource saving.

The Notice specifies that under the principle of delegating power as well as corresponding responsibilities, except that only a handful of funds will be allocated directly to certain projects by NDRC, it is delegated to provincial development and reform commissions to arrange funds for the projects through reporting and filing.

1.5 billion Yuan will be invested to prevent and control haze.

It is noticed by China Energy News that the fund allocated for the comprehensive prevention and control of haze is 1.5 billion Yuan, the highest among the major environmental treatment projects supported by the total 3.5 billion Yuan arranged by the central government. The fund will be assigned in bundles to support the air pollution treatment projects in Beijing, Tianjin, Hebei, Shanxi, Shandong and Inner Mongolia.

According to an insider, “for the investment projects assigned in bundles, it’s just required to report the project lists in order of priority and there is no need to submit the single document of the projects item by item any longer.”

In addition, the Notice also provides the standards for subsidies, that is, the air pollution treatment projects of the non-electric industries (such as the desulfurization and denitrification and dust extraction in producing steel, cement, nonferrous metals and sheet glass, the treatment of volatile organic compounds in the petrochemical industry and gas stations, the dust improvement and so on) account for no more than 15% with 30 million Yuan at most for a single project; and in principle, the other projects will be supported with subsidies no more than 8%, 10% and 12% of the total sum in the east, middle and west areas respectively with 10 million Yuan at most for a single project.  

“As shown by the February report on urban air quality released by Ministry of Environmental Protection, the haze is very serious in the Beijing-Tianjin-Hebei Region,” an insider said. But, the 1.5 billion Yuan investment demonstrates the determination of the central government to reduce haze in this region and the air pollution treatment is also speeding up. 

Among the major environmental improvement projects, the central government plans to arrange 1 billion Yuan budgetary investment to support the comprehensive utilization of straws in Beijing, Tianjin, Hebei, Inner Mongolia, Shanxi, Shandong, Heilongjiang and Tibet. 

According to information, the central government will promote the comprehensive prevention and control of haze by focusing on the desulfurization and denitrification, efficient dust extraction, volatile organic compound treatment and fugitive dust control in certain key industries, the energy saving and environmental protection improvement of coal-fired boilers, and the construction of the distribution and sales and supply system of clean coal in the Beijing-Tianjin-Hebei Region and surrounding areas.

The investment focuses on major energy conservation projects.

It is noticed that major energy saving, cyclic economic and resource conservation projects are the top priorities in the central budgetary investment projects. According to the Notice, the projects that can save over 2000 tons of standard coal annually are qualified for the application of subsidies, including the energy saving and environmental protection improvement projects of coal-fired boilers, the energy conservation projects of motor systems, the energy system optimization projects, the waste heat and pressure utilization projects as well as the large scale production and application demonstration projects of major key energy saving technologies and products.

For the regions where it’s particularly difficult to meet the goals of energy conservation, the Notice plans to arrange 600 million Yuan central budgetary investment in total to Hainan, Ningxia and Xinjiang through assigning in bundles. And the subsidies for key energy conservation projects will account for no less than 40% in the above areas.  

Besides, the central government plans to assign in bundles 1.3 billion Yuan to the five ecological pilot demonstration provinces of Jiangxi, Guizhou, Yunnan, Fujian (including Xiamen) and Qinghai and 2.6 billion Yuan to other ecological pilot demonstration areas.

Source: China Energy News/www.cnenergy.org

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