In order to implement the major decision-making arrangements of the CPC Central Committee and the State Council on promoting carbon neutrality in peak carbon dioxide emissions, give full play to the role of fiscal functions, and promote the goal of carbon neutrality in peak carbon dioxide emissions as scheduled, the Ministry of Finance issued the Opinions on Financial Support for Doing a Good Job in Carbon Neutralization in peak carbon dioxide emissions on May 30th (hereinafter referred to as the Opinions). The Opinions support carbon neutrality in peak carbon dioxide emissions from four aspects: general requirements, key directions and areas of support, fiscal policy measures and safeguard measures.
In addition, the relevant person in charge of the Ministry of Finance answered the reporter’s questions about the Opinions.
The "Opinions" pointed out that by 2025, the fiscal policy tools will be continuously enriched, and the fiscal and taxation policy framework conducive to green and low-carbon development will be initially established, which will strongly support all industries in various regions to accelerate green and low-carbon transformation.Before 2030, a fiscal and taxation policy system conducive to green and low-carbon development will be basically formed, and a long-term mechanism to promote green and low-carbon development will be gradually established to promote the smooth realization of peak carbon dioxide emissions’s goals. Before 2060, the policy system of financial support for green and low-carbon development is mature and sound, and the goal of carbon neutrality is promoted smoothly.
The Opinions call for strengthening the overall planning of financial resources, optimizing the structure of fiscal expenditure, and increasing support for carbon neutrality in peak carbon dioxide emissions.Improve the market-oriented diversified investment mechanism. Study and set up a national low-carbon transformation fund to support the green transformation of traditional industries and resource-rich areas. Give full play to the guiding role of existing government investment funds, including the National Green Development Fund. Encourage social capital to set up green and low-carbon industry investment funds in a market-oriented way. Incorporate eligible green and low-carbon development projects into the scope of government bond support. Take various ways to support government and social capital cooperation (PPP) projects in the field of ecological environment, and standardize local governments’ performance of PPP projects.
The "Opinions" proposes to give play to the incentive and restraint role of tax policies.. Implement tax policies such as environmental protection tax, resource tax, consumption tax, vehicle and vessel tax, vehicle purchase tax, value-added tax and enterprise income tax; We will implement preferential tax policies such as energy saving and water saving and comprehensive utilization of resources, study and support tax policies related to carbon emission reduction, and give full play to the role of taxation in promoting the green and low-carbon development of market players. Optimize the tariff structure according to the requirements of accelerating green and low-carbon development and continuously improving environmental quality.
In the direction of key support areas, the Opinions pointed out that renewable energy such as photovoltaic, wind power and biomass energy should be supported.And the new energy with steady output replaces fossil energy. Improve support policies to encourage unconventional natural gas exploitation to increase production and quantity. Encourage qualified areas to try first, develop new energy storage and pumped storage according to local conditions, and accelerate the formation of an electric power development mechanism based on energy storage and peak shaving capacity. Strengthen energy conservation supervision of key industries and key equipment, and organize energy measurement review.
Vigorously support the development of new energy vehicles, improve the charging and replacing infrastructure support policies., steadily promote the demonstration and application of fuel cell vehicles. Promote the synergy of pollution reduction and carbon reduction, continuously carry out comprehensive management of coal-fired boilers and industrial furnaces, expand the support scope of clean heating in winter in northern China, and encourage the use of clean energy for heating according to local conditions.
To support peak carbon dioxide emissions’s carbon-neutral work, the relevant person in charge of the Ministry of Finance said,The Ministry of Finance has comprehensively used various policies and measures such as financial fund guidance, tax adjustment and government green procurement to support the promotion of carbon neutrality in peak carbon dioxide emissions., and support the development of clean energy through the following channels:
The first is to implement the financial subsidy policy for the promotion and application of new energy vehicles.The Ministry of Finance, together with relevant departments, will continue to improve the subsidy policy for the purchase of new energy vehicles, continuously raise the threshold of subsidy technology, reasonably grasp the strength and pace of subsidy standards, and promote the high-quality development of the new energy vehicle industry. In 2021, China’s new energy (600617) automobile sales reached 3.521 million, up 1.6 times year-on-year, ranking first in the world for seven consecutive years. At the end of 2021, the Ministry of Finance, together with relevant departments, issued a notice, comprehensively considering factors such as the development plan of the new energy vehicle industry, the market sales trend and the smooth transition of enterprises, and clarifying that the purchase subsidy policy for new energy vehicles will be terminated on December 31, 2022.
The second is to implement the subsidy policy for renewable energy power generation.Since 2006, the central government has implemented a subsidy policy for renewable energy power generation based on fixed electricity prices, and strived to promote the high-quality leap-forward development of renewable energy. By the end of 2021, the installed capacity of renewable energy power generation in China reached 1.063 billion kilowatts, including 328 million kilowatts of wind power generation, 306 million kilowatts of photovoltaic power generation and 37.98 million kilowatts of biomass power generation. In 2021, the national renewable energy generation capacity reached 2.48 trillion kWh.
The third is to encourage the exploitation and utilization of unconventional natural gas.Since shale gas was included in the scope of subsidies in 2012, domestic unconventional natural gas production has increased steadily for nine consecutive years. Since 2019, unconventional natural gas included in the scope of subsidies includes shale gas, coalbed methane and tight gas. According to the principle of "more subsidies and more subsidies in winter", unconventional natural gas subsidies are based on the results-oriented method of incremental assessment, encouraging local and enterprises to increase gas production. With the support of policies, the actual exploitation and utilization of unconventional natural gas in 2021 will account for more than one third of China’s total natural gas production, which will become an important guarantee for production.
The fourth is to promote clean heating in winter in the northern region.In recent years, the central government has allocated special funds for the prevention and control of air pollution to support the clean heating work in the northern region in winter, including 88 cities in five batches, guiding local governments to carry out clean heating renovation and energy-saving renovation of existing buildings according to local conditions, effectively reducing loose coal consumption, promoting the synergy of pollution reduction and carbon reduction, and promoting the green transformation of energy structure.
The following is the original text of "Opinions on Financial Support for Carbon Neutralization in peak carbon dioxide emissions":
In order to thoroughly implement the major strategic decision of the CPC Central Committee and the State Council on carbon neutrality in peak carbon dioxide emissions, according to the relevant work arrangements of "Opinions of the Central Committee of the Communist Party of China and the State Council on Completely, Accurately and Comprehensively Implementing the New Development Concept and Doing a Good Job in Carbon Neutralization in peak carbon dioxide emissions" and "peak carbon dioxide emissions Action Plan by 2030" (Guo Fa [2021] No.23), we hereby put forward the following opinions on financial support for doing a good job in carbon neutrality in peak carbon dioxide emissions.
I. General requirements
(1) Guiding ideology.
Guided by the Supreme Leader’s Socialism with Chinese characteristics Thought in the New Era, we will fully implement the spirit of the 19th National Congress of the Communist Party of China and the previous plenary sessions of the 19th National Congress, thoroughly implement the Supreme Leader’s ecological civilization thought, adhere to the general tone of striving for progress while maintaining stability in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, fully implement the new development concept based on the new development stage, build a new development pattern, promote high-quality development, adhere to the systematic concept, and incorporate carbon neutrality in peak carbon dioxide emissions into the overall layout of ecological civilization construction and the overall economic and social development. Adhere to the coordinated promotion of carbon reduction, pollution reduction, green expansion and growth, actively build a fiscal and taxation policy system conducive to promoting efficient use of resources and green and low-carbon development, promote a better combination of promising government and effective market, and support the realization of peak carbon dioxide emissions’s carbon neutrality goal as scheduled.
(2) Working principles.
Based on the present, focus on the long-term. Focusing on achieving the goal of carbon neutrality in peak carbon dioxide emissions as scheduled, we should strengthen the connection between financial support policies and the national "14th Five-Year Plan" outline, seize the critical period and window period of peak carbon dioxide emissions’s work during the 14th Five-Year Plan, implement proactive fiscal policies, improve efficiency, pay more attention to accurate and sustainable requirements, and rationally plan financial support for peak carbon dioxide emissions’s carbon neutrality policy system.
Adjust measures to local conditions and make overall plans. Local financial departments make overall consideration of local work basis and reality, promote work in a steady and orderly manner, make classified policies, and formulate and implement financial support measures that are both in line with their own reality and meet the overall requirements. Strengthen the overall planning of financial resources and normalize the implementation of the direct mechanism of financial funds. Promote the coordinated efforts of funds, taxation, government procurement and other policies to improve the effectiveness of fiscal policy.
Results-oriented, rewarding the superior and punishing the inferior. Strengthen budget constraints and performance management, and the central government will give incentives and support to areas that have achieved outstanding results in promoting related work; Appropriately deduct relevant transfer payment funds in areas where the relevant work is not active or the effect is not obvious, and form an incentive and restraint mechanism.
Strengthen communication, internal and external smooth. Adhere to the principles of common but differentiated responsibilities, fairness and respective capabilities, strengthen multilateral and bilateral international financial dialogue, exchange and cooperation, coordinate domestic and international resources, promote advanced green and low-carbon technologies and experiences at home and abroad, deeply participate in global climate governance, and actively strive for international resources support.
(3) Main objectives.
By 2025, fiscal policy tools will be continuously enriched, and a fiscal and taxation policy framework conducive to green and low-carbon development will be initially established, which will strongly support all industries in various regions to accelerate green and low-carbon transformation. Before 2030, a fiscal and taxation policy system conducive to green and low-carbon development will be basically formed, and a long-term mechanism to promote green and low-carbon development will be gradually established to promote the smooth realization of peak carbon dioxide emissions’s goals. Before 2060, the policy system of financial support for green and low-carbon development is mature and sound, and the goal of carbon neutrality is promoted smoothly.
Second, support key directions and areas
(1) Support the construction of a clean, low-carbon, safe and efficient energy system. Orderly reduce and replace, and promote the transformation and upgrading of coal consumption. Optimize the clean energy support policy, vigorously support the high proportion of renewable energy applications, and promote the construction of a new power system with a gradually increasing proportion of new energy. Support renewable energy sources such as photovoltaic, wind power and biomass energy, as well as new energy sources with stable output to replace fossil energy. Improve support policies to encourage unconventional natural gas exploitation to increase production and quantity. Encourage qualified areas to try first, develop new energy storage and pumped storage according to local conditions, and accelerate the formation of an electric power development mechanism based on energy storage and peak shaving capacity. Strengthen energy conservation supervision of key industries and key equipment, and organize energy measurement review.
(2) Support the green and low-carbon transformation in key industries. Support the industrial sector to develop into high-end, intelligent and green advanced manufacturing. Deepen the establishment of urban-rural transportation integration demonstration counties and improve the equalization level of urban-rural transportation services. Support the optimization and adjustment of transportation structure. Vigorously support the development of new energy vehicles, improve the supporting policies for charging and replacing infrastructure, and steadily promote the demonstration and application of fuel cell vehicles. Promote the synergy of pollution reduction and carbon reduction, continuously carry out comprehensive management of coal-fired boilers and industrial furnaces, expand the support scope of clean heating in winter in northern China, and encourage the use of clean energy for heating according to local conditions. Support northern heating areas to carry out energy-saving renovation of existing urban residential buildings and rural houses, and promote peak carbon dioxide emissions’s 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 "replacing coal with electricity" and "replacing oil with electricity".
(3) Support green and low-carbon scientific and technological innovation and basic capacity building. Strengthen support for the research and development, popularization and application of green technologies such as low carbon, zero carbon and negative carbon, energy conservation and environmental protection. Encourage qualified units, enterprises and regions to tackle key problems of low-carbon, zero-carbon and negative-carbon energy storage new materials, new technologies and new equipment, as well as industrialization and large-scale application, and establish and improve a green and low-carbon technology assessment and trading system and a scientific and technological innovation service platform. Strengthen the research on peak carbon dioxide emissions’s basic theory, basic methods, technical standards and realization path of carbon neutrality. Strengthen the basic support of carbon sink in ecosystem. Support the capacity building to adapt to climate change, and improve the capacity of disaster prevention and mitigation.
(4) Support green and low-carbon life and resource conservation and utilization. Develop circular economy, promote comprehensive utilization of resources, and strengthen the utilization of urban and rural garbage and rural waste resources. Improve the recycling system of waste materials and promote the recycling of renewable resources to improve quality and efficiency. Establish and improve the extended producer responsibility system for automobiles, electrical and electronic products, and promote the healthy development of the renewable resource recycling industry. Promote the resource utilization of crop straw and livestock manure, and promote the recycling of plastic film. Support the construction of "waste-free cities" and form a number of replicable and popularized experience models.
(5) Support the consolidation and improvement of carbon sink capacity. Support the improvement of ecological carbon sink capacity of forests, grasslands, wetlands and oceans. Carry out integrated protection and restoration of mountains, rivers, fields, lakes, grass and sand. Implement major projects for the protection and restoration of important ecosystems. We will further promote large-scale land greening, comprehensively protect natural forests, consolidate the achievements of returning farmland to forests and grasslands, support the management and protection of forest resources and the prevention and control of forest and grassland fires, strengthen the ecological restoration of grasslands, and strengthen the protection and restoration of wetlands. Support pastoral and semi-pastoral provinces to implement the grassland compensation policy, accelerate the transformation of the development mode of grass and animal husbandry, and promote the steady recovery of grassland ecological environment. Promote the protection and restoration of marine ecosystems as a whole, and enhance the carbon fixation capacity of mangroves, seagrass beds and salt marshes. Support the comprehensive control of soil erosion.
(6) Support the improvement of the green and low-carbon market system. Give full play to the role of trading markets such as carbon emission rights, energy use rights and emission rights, and guide the optimization of industrial layout. Improve the statistical accounting and supervision system of carbon emissions, improve the relevant standard system, and strengthen the construction of carbon emission monitoring and measurement system. Support the unified supervision and management of national carbon emissions trading, improve the quota allocation management of the national carbon emissions trading market, gradually expand the scope of trading industries, enrich trading varieties 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 of pollutant discharge rights, and actively cultivate the trading market. Improve the carbon emission reporting and information disclosure system of enterprises and financial institutions.
Third, fiscal policy measures
(1) Strengthen the guiding role of financial funds. Strengthen the overall planning of financial resources, optimize the structure of fiscal expenditure, and increase support for carbon neutrality in peak carbon dioxide emissions. The financial fund arrangement closely revolves around the deployment of the CPC Central Committee and the State Council on carbon neutrality in peak carbon dioxide emissions. The fund allocation highlights key points, strengthens the protection of key industries and improves the accuracy of the fund policy. When allocating the existing central-local related transfer payment funds, the central government will give incentives and support to areas that have achieved outstanding results in promoting related work and played a leading role in demonstration.
(2) Improve the market-oriented diversified investment mechanism. Study and set up a national low-carbon transformation fund to support the green transformation of traditional industries and resource-rich areas. Give full play to the guiding role of existing government investment funds, including the National Green Development Fund. Encourage social capital to set up green and low-carbon industry investment funds in a market-oriented way. Incorporate eligible green and low-carbon development projects into the scope of government bond support. Take various ways to support government and social capital cooperation (PPP) projects in the field of ecological environment, and standardize local governments’ performance of PPP projects.
(3) Give play to the role of tax policy as an incentive and restraint. Implement tax policies such as environmental protection tax, resource tax, consumption tax, vehicle and vessel tax, vehicle purchase tax, value-added tax and enterprise income tax; We will implement preferential tax policies such as energy saving and water saving and comprehensive utilization of resources, study and support tax policies related to carbon emission reduction, and give full play to the role of taxation in promoting the green and low-carbon development of market players. Optimize the tariff structure according to the requirements of accelerating green and low-carbon development and continuously improving environmental quality.
(4) Improve the government’s green procurement policy. Establish and improve the government procurement demand standard system for green and low-carbon products, and formulate the government procurement demand standards for green buildings and green building materials by classification. Vigorously promote the application of prefabricated buildings and green building materials to promote the improvement of building quality. Increase the government procurement of new energy and clean energy official vehicles and ships. In addition to special geographical environment and other factors, official vehicles such as confidential communications should purchase new energy vehicles in principle, giving priority to the rental services of new energy vehicles, and official ships should give priority to the purchase of new energy and clean energy ships. Strengthen the main responsibility of purchasers, specify the requirements of green and low carbon in government procurement documents, and increase the procurement of green and low carbon products.
(5) Strengthening international cooperation in tackling climate change. Based on China’s position as a developing country, we will stabilize the existing multilateral and bilateral climate financing channels and continue to seek technical, financial and project assistance from international financial organizations and foreign governments. Actively participate in the United Nations Climate funding negotiations, promote the full and effective implementation of the United Nations Framework Convention on Climate Change and its Paris Agreement, build a green and low-carbon brand of the Belt and Road Initiative, and jointly promote global climate and environmental governance. Closely follow and actively participate in the formulation of international sustainable disclosure standards.
Fourth, safeguard measures
(1) Strengthen the implementation of responsibilities. The financial departments at all levels should earnestly improve their political stance, attach great importance to the work related to carbon neutrality in peak carbon dioxide emissions, and promote the realization of the goal of carbon neutrality in peak carbon dioxide emissions as scheduled in accordance with the relevant requirements of the division of financial affairs and expenditure responsibilities between the central and local governments. Provincial financial departments should improve the working mechanism, study and formulate local financial support to do a good job in peak carbon dioxide emissions’s carbon-neutral policies and measures, compact responsibilities at different levels, clarify the division of responsibilities, and strengthen supervision and guidance to the financial departments of cities and counties. The financial departments of cities and counties are responsible for the financial support of the administrative region for carbon neutrality in peak carbon dioxide emissions, and do a good job in the implementation of central and provincial policies.
(2) Strengthen coordination and cooperation. Establish and improve the collaborative promotion mechanism of financial departments’ up-and-down linkage and horizontal interaction between finance and other departments. The financial departments at all levels should speed up sorting out the existing policies, clearly support the investment channels related to carbon neutrality in peak carbon dioxide emissions, include the tasks related to carbon neutrality in peak carbon dioxide emissions in the scope of support, strengthen coordination with the departments of development and reform, science and technology, industry and informatization, natural resources, ecological environment, housing and urban and rural construction, transportation, water conservancy, agriculture and rural areas, energy, forestry and grass, meteorology, etc., and fully mobilize the enthusiasm of all aspects to form a joint effort.
(3) Strict budget management. Continuously improve the allocation efficiency of financial resources and the efficiency of financial support for carbon-neutral funds in peak carbon dioxide emissions. We will promote the full coverage of budget fund performance management in supporting carbon neutrality in peak carbon dioxide emissions, strengthen budget fund performance evaluation and daily supervision, and harden budget constraints. Improve the incentive and restraint mechanism to support peak carbon dioxide emissions’s carbon-neutral work by linking the budget arrangement of relevant funds with performance results. Adhere to the convergence of capital investment with policy planning and tasks, and strengthen supervision and evaluation of the completion of objectives and tasks. The local regulatory bureaus of the Ministry of Finance shall evaluate the relevant funds supporting carbon neutrality in peak carbon dioxide emissions, find problems in time, propose improvement measures, and supervise the local authorities to implement rectification measures.
(4) Intensify study and publicity. Financial cadres at all levels should consciously strengthen the study and research on policies and basic knowledge related to carbon neutrality in peak carbon dioxide emissions, regard the contents related to carbon neutrality in peak carbon dioxide emissions as an important part of the education and training system for financial cadres, and enhance the ability of financial cadres at all levels to do a good job in carbon neutrality in peak carbon dioxide emissions. Increase financial support to do a good job in peak carbon dioxide emissions’s carbon-neutral propaganda and popular science work, encourage qualified areas to strengthen ecological civilization propaganda and education in various ways, build a carbon-neutral theme popular science base in peak carbon dioxide emissions, promote the concept of ecological civilization to be more deeply rooted in people’s hearts, and promote the formation of a good atmosphere for green and low-carbon development.
In addition, the relevant person in charge of the Ministry of Finance answered a reporter’s question on the "Opinions on Financial Support to Do a Good Job in Carbon Neutralization in peak carbon dioxide emissions"
In order to implement the major strategic decision of the CPC Central Committee and the State Council on carbon neutrality in peak carbon dioxide emissions, the Ministry of Finance issued the Opinions on Financial Support for Carbon Neutralization in peak carbon dioxide emissions (No.53 [2022] of the Treasury Department, hereinafter referred to as the Opinions). Recently, the relevant person in charge of the Ministry of Finance answered a reporter’s question about the Opinions.
1. Q: What is the background and significance of the Opinions?
A: Achieving carbon neutrality in peak carbon dioxide emissions is a major strategic decision made by the CPC Central Committee with the Supreme Leader as the core, which is related to the sustainable development of the Chinese nation and the building of a community of human destiny. It is the only way for China to promote high-quality development in the new stage of development. As one of the "1+N" policy systems for carbon neutrality in peak carbon dioxide emissions, Opinions is the top-level design document for the financial department to implement the relevant major decisions and arrangements of the CPC Central Committee and the State Council, and it is also an important guarantee scheme for carbon neutrality in peak carbon dioxide emissions. The promulgation of the "Opinions" is conducive to clarifying the work objectives of financial support for carbon neutrality in peak carbon dioxide emissions, guiding financial cadres at all levels to improve their political positions, unify their thinking and understanding, and work hard to promote their work; It is conducive to guiding financial departments at all levels to clearly support the key directions and areas of carbon neutrality in peak carbon dioxide emissions, identify the focus points, and accelerate the establishment and improvement of a fiscal and taxation policy system that promotes efficient use of resources and green and low-carbon development; It is conducive to giving full play to the synergy of fiscal funds, taxation, government procurement and other policies, forming a collaborative promotion mechanism in which the financial sector is linked up and down and the financial sector interacts horizontally with other departments, and vigorously promoting the goal of carbon neutrality in peak carbon dioxide emissions.
2. Q: What are the general framework and main contents of the Opinions?
A: Based on the current stage of development, the Opinions focus on supporting the realization of peak carbon dioxide emissions’s work, and put forward the comprehensive use of financial funds guidance, tax adjustment, diversified investment, government green procurement and other policy measures to do a good job in financial security, including four parts. The first is the overall requirements. This paper mainly expounds the guiding ideology, working principles and main objectives of financial support for carbon neutrality in peak carbon dioxide emissions. The second is to support key directions and fields. Clearly focus on supporting the construction of a clean, low-carbon, safe and efficient energy system, green and low-carbon transformation in key industries, green and low-carbon technological innovation and basic capacity building, green and low-carbon life and resource conservation and utilization, consolidation and improvement of carbon sink capacity, and improvement of green and low-carbon market system. The third is fiscal policy measures. Including strengthening the guiding role of financial funds, improving the market-oriented diversified investment mechanism, giving play to the incentive and restraint role of tax policies, improving the government’s green procurement policy, and strengthening international cooperation in dealing with climate change. The fourth is safeguard measures. Specifically, it includes four aspects: strengthening the implementation of responsibilities, strengthening coordination and cooperation, strict budget management, and increasing learning and publicity.
3. Q: What are the principles of financial support for carbon neutrality in peak carbon dioxide emissions?
A: The Opinions put forward four principles. First, based on the current situation and focusing on the long term. Focusing on achieving the goal of carbon neutrality in peak carbon dioxide emissions as scheduled, we should strengthen the connection between financial support policies and the national "14th Five-Year Plan" outline, seize the critical period and window period of peak carbon dioxide emissions’s work during the 14th Five-Year Plan, implement proactive fiscal policies, improve efficiency, pay more attention to accurate and sustainable requirements, and rationally plan financial support for peak carbon dioxide emissions’s carbon neutrality policy system. The second is to adjust measures to local conditions and make overall plans. Local financial departments make overall consideration of local work basis and reality, promote work in a steady and orderly manner, make classified policies, and formulate and implement financial support measures that are both in line with their own reality and meet the overall requirements. Strengthen the overall planning of financial resources and normalize the implementation of the direct mechanism of financial funds. Promote the coordinated efforts of funds, taxation, government procurement and other policies to improve the effectiveness of fiscal policy. The third is result-oriented, rewarding the superior and punishing the inferior. Strengthen budget constraints and performance management, and the central government will give incentives and support to areas that have achieved outstanding results in promoting related work; Appropriately deduct relevant transfer payment funds in areas where the relevant work is not active or the effect is not obvious, and form an incentive and restraint mechanism. The fourth is to strengthen exchanges and smooth internal and external flows. Adhere to the principles of common but differentiated responsibilities, fairness and respective capabilities, strengthen multilateral and bilateral international financial dialogue, exchange and cooperation, coordinate domestic and international resources, promote advanced green and low-carbon technologies and experiences at home and abroad, deeply participate in global climate governance, and actively strive for international resources support.
4. Q: How to ensure the effectiveness of the Opinions?
A: The Ministry of Finance will guide local financial departments to implement the requirements of the Opinions and focus on the following aspects. First, increase publicity and implementation. Guiding local financial departments to unify their thinking and understanding, improve their political stance, and thoroughly study and understand the major strategic decisions of the CPC Central Committee will promote the realization of carbon neutrality in peak carbon dioxide emissions into the overall financial work at all levels, improve the learning and training content, and promote the formation of a good atmosphere for green and low-carbon development. The second is to strengthen the implementation of responsibilities. Guide the provincial financial departments to improve the working mechanism, study and formulate local financial support to do a good job in carbon-neutral policies and measures in peak carbon dioxide emissions, compact responsibilities at different levels, clarify the division of responsibilities, strengthen supervision and guidance to the financial departments of cities and counties, and the financial departments of cities and counties are responsible for the work in their respective administrative areas and do a good job in the implementation of superior policies. The third is to strengthen coordination and cooperation. We will speed up the establishment and improvement of a collaborative promotion mechanism for the linkage between the financial departments and the horizontal interaction between finance and other departments, and bring the relevant tasks of carbon neutrality in peak carbon dioxide emissions into the scope of support, fully mobilize the enthusiasm of all parties and form a joint effort. The fourth is to continuously follow up and ask for results. Continuously improve the efficiency of financial resource allocation and the efficiency of financial support for carbon-neutral funds in peak carbon dioxide emissions, strengthen the performance evaluation and daily supervision of budget funds, and harden budget constraints. Adhere to the convergence of capital investment with policy planning and tasks, and strengthen supervision and evaluation of the completion of objectives and tasks.
Q: What measures has the Ministry of Finance taken to support carbon neutrality in peak carbon dioxide emissions?
A: Under the guidance of the supreme leader’s ecological civilization thought, the Ministry of Finance conscientiously implements the decision-making arrangements of the CPC Central Committee and the State Council, constantly innovates and improves the policy system, and comprehensively uses various policy measures such as financial fund guidance, tax adjustment and government green procurement to support the promotion of carbon neutrality in peak carbon dioxide emissions. First, strengthen financial guarantee and increase support through multiple channels. In 2021, the central government will strengthen the overall planning of resources, optimize the expenditure structure, and arrange about 350 billion yuan to support green and low-carbon development. The allocation of funds will focus on the promotion and application of clean energy, low-carbon transformation in key industries, scientific and technological innovation and capacity building, and the consolidation and upgrading of carbon sink capacity, so as to improve the accuracy of capital policies. The second is to give full play to the incentive and restraint role of tax policies. On the one hand, we will implement tax policies to support environmental protection and green development. Exempt qualified new energy vehicles from vehicle purchase tax and vehicle and vessel tax to guide green and low-carbon travel; Fully implement the reform of ad valorem collection of mineral resources tax and promote the rational development of resources. On the other hand, optimize the tariff structure, reduce tariffs on some environmental products such as diesel engine filter devices, and implement zero tariffs or low tariffs on resource-based products and steel primary products to guide and promote green and low-carbon development. The third is to promote the establishment of a diversified capital investment mechanism. Through the National Green Development Fund, social capital will be driven to support the green development of the Yangtze River Economic Belt, and market players in the field of green development will be accelerated by financial means to better serve the green transformation of the real economy. Standardize and orderly promote the cooperation between government and social capital in the field of ecological and environmental protection(PPP), give play to the inciting role of financial funds. The fourth is to continuously improve the government’s green procurement policy. Improve the implementation mechanism of government procurement policies for energy-saving and environmentally-friendly products. Energy-saving and environmentally-friendly products that fall within the scope of the item list can enjoy the support of government compulsory procurement and priority procurement policies as long as they pass the relevant national certification. Compacting the green procurement responsibility of purchasers, promoting the application of green procurement demand standards in the fields of construction, express packaging and commodity packaging, and implementing the green procurement policy objectives. Fifth, actively participate in the governance and cooperation of global environmental climate funding mechanism. Constructively participate in the negotiation on the funding issues of the United Nations Framework Convention on Climate Change and the Paris Agreement, defend the principle of common but differentiated responsibilities, safeguard the principle of voluntary capital contribution and the rights and interests of developing countries, and create an external environment conducive to achieving the goal of carbon neutrality in peak carbon dioxide emissions. Strengthen the strategic guidance to the Global Environment Facility and the Green Climate Fund, and actively use the funds of international multilateral and bilateral institutions to help achieve the goal of carbon neutrality in peak carbon dioxide emissions.
6. Q: What channels does the Ministry of Finance mainly support the development of clean energy? What are the next steps?
A: Supporting the construction of a clean, low-carbon, safe and efficient energy system is an important work to promote carbon neutrality in peak carbon dioxide emissions. The central government attaches great importance to this and has carried out a lot of work, which has achieved remarkable results. The first is to implement the financial subsidy policy for the promotion and application of new energy vehicles. The Ministry of Finance, together with relevant departments, will continue to improve the subsidy policy for the purchase of new energy vehicles, continuously raise the threshold of subsidy technology, reasonably grasp the strength and pace of subsidy standards, and promote the high-quality development of the new energy vehicle industry. In 2021, the sales of new energy vehicles in China reached 3.521 million, a year-on-year increase of 1.6 times, ranking first in the world for seven consecutive years. At the end of 2021, the Ministry of Finance, together with relevant departments, issued a notice, comprehensively considering factors such as the development plan of the new energy vehicle industry, the market sales trend and the smooth transition of enterprises, and clarifying that the purchase subsidy policy for new energy vehicles will be terminated on December 31, 2022. The second is to implement the subsidy policy for renewable energy power generation. Since 2006, the central government has implemented a subsidy policy for renewable energy power generation based on fixed electricity prices, and strived to promote the high-quality leap-forward development of renewable energy. By the end of 2021, the installed capacity of renewable energy power generation in China reached 1.063 billion kilowatts, including 328 million kilowatts of wind power generation, 306 million kilowatts of photovoltaic power generation and 37.98 million kilowatts of biomass power generation. In 2021, the national renewable energy generation capacity reached 2.48 trillion kWh. The third is to encourage the exploitation and utilization of unconventional natural gas. Since shale gas was included in the scope of subsidies in 2012,Domestic unconventional natural gas production has increased steadily for nine consecutive years. Since 2019, unconventional natural gas included in the scope of subsidies includes shale gas, coalbed methane and tight gas. According to the principle of "more subsidies and more subsidies in winter", unconventional natural gas subsidies are based on the results-oriented method of incremental assessment, encouraging local and enterprises to increase gas production. With the support of policies, the actual exploitation and utilization of unconventional natural gas in 2021 will account for more than one third of China’s total natural gas production, which will become an important guarantee for production. The fourth is to promote clean heating in winter in the northern region. In recent years, the central government has allocated special funds for the prevention and control of air pollution to support the clean heating work in the northern region in winter, including 88 cities in five batches, guiding local governments to carry out clean heating renovation and energy-saving renovation of existing buildings according to local conditions, effectively reducing loose coal consumption, promoting the synergy of pollution reduction and carbon reduction, and promoting the green transformation of energy structure.
7. Q: At present, what are the main tax policies to support green and low-carbon development?
A: Since the "Thirteenth Five-Year Plan", China has formed a green tax system framework with environmental protection tax, resource tax and farmland occupation tax "multi-tax governance" and systematic tax preferential policies such as value-added tax and enterprise income tax "multi-policy combination". In the current tax system, resources tax, consumption tax, value-added tax, income tax, vehicle purchase tax and vehicle and vessel tax are closely related to ecological environment protection. The policy design not only pays attention to the incentives for ecological protection and innovative development, but also strengthens the constraints on ecological destruction and extensive development. It also actively promotes tax reduction and fee reduction, releases policy dividends, and injects strong impetus into local high-quality development. First, the consumption tax is levied on refined oil to regulate energy consumption in the transportation field. China implemented the reform of refined oil tax and fee in 2009, and then raised the unit tax of refined oil several times. The second is to set the consumption tax rate differently, reduce the car purchase tax and car and boat tax, and guide green and low-carbon travel. According to the principle of "large displacement and more negative tax, small displacement and less negative tax", the applicable tax rate of consumption tax on passenger cars and motorcycles is set; Exempt new energy vehicles from vehicle purchase tax; Travel tax shall be exempted for new energy vehicles and vessels, and halved for energy-saving vehicles. The third is to levy environmental protection tax from 2018 to reduce pollutant emissions. Four kinds of pollutants, such as air pollutants, water pollutants, solid waste and noise, are levied. The emission costs of key energy users and emitters in thermal power, steel, cement, chemical industry and other industries have increased, which has played a positive role in encouraging cleaner production and promoting energy conservation and emission reduction. Fourth, since July 2016, the reform of ad valorem taxation of mineral resources tax has been fully implemented.Promote the conservation and intensive use of resources. Fifth, implement tax incentives related to value-added tax and enterprise income tax, and guide enterprises to replace fossil energy with clean energy and renewable energy. Improve the preferential tax policies for environmental protection, energy saving and water saving, and issue the Catalogue of Preferential Enterprise Income Tax for Environmental Protection, Energy Saving and Water Saving Projects (2021 Edition); Improve the tax policy for comprehensive utilization of resources, and issue the Announcement on Improving the VAT Policy for Comprehensive Utilization of Resources and the Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources (2021 Edition).
8. Q: At present, what is the implementation of the government green procurement policy of the Ministry of Finance? What are the next considerations?
A: In recent years, the Ministry of Finance has continuously improved the government’s green procurement policy and promoted state organs, institutions and organizations to actively purchase and use green and low-carbon products. First, increase compulsory procurement and give priority to energy-saving and environmental protection products. Improve the implementation mechanism of government procurement of energy-saving and environmental protection products. Products that fall within the scope of the list of energy-saving and environmental protection government procurement items can enjoy preferential procurement policies as long as they pass the national certification. In 2020, the procurement scale of energy-saving and environmental protection products will account for more than 85% of the government procurement scale of similar products, effectively promoting the development of related industries and playing a positive leading role in social green consumption. The second is to promote the application of green buildings and green building materials. Six cities including Shaoxing were promoted to use green building materials in public buildings such as hospitals and schools, and new construction methods such as assembly and intelligence were used. The amount of projects included in the pilot reached 102.5 billion yuan. The third is to build a standard system of government green procurement demand. In conjunction with the Ministry of Ecology and Environment and the State Post Bureau, the demand standards for express packaging were formulated, and indicators such as heavy metal content in packaging materials were specified from three aspects: green, reduced and recyclable, so as to guide suppliers to use recycled organic and renewable packaging products. Study and formulate government procurement demand standards such as green data center and printing and copying consumables. The fourth is to support the green procurement of key products. To promote the application of new energy vehicles, it is required that confidential communication, law enforcement duty and commuting vehicles with relatively fixed routes purchase new energy vehicles in principle, and guide Hainan Province to try to purchase domestic clean energy vehicles.In the fixed-point procurement scheme of furniture, printing, automobile maintenance and other central budget units, it is clearly required to use low-volatile raw and auxiliary materials to reduce air pollution. In the next step, the Ministry of Finance will accelerate the establishment and improvement of the government procurement demand standard system for green and low-carbon products, and classify and formulate the government procurement demand standards for green buildings and green building materials; Vigorously promote the application of prefabricated buildings and green building materials to promote the improvement of building quality; Strengthen the main responsibility of purchasers, specify the requirements of green and low carbon in government procurement documents, and increase the procurement of green and low carbon products.
9. Q: How does the Ministry of Finance support the R&D and promotion of green and low-carbon technologies and basic capacity building?
A: In supporting scientific and technological innovation. First, support scientific research activities related to green and low-carbon development by supporting the organization and implementation of science and technology plans (special projects, funds, etc.) of the central government, such as supporting the implementation of key national R&D plans such as clean and efficient utilization of coal and new energy-saving technologies, renewable energy and hydrogen energy technologies, new energy vehicles, green buildings and building industrialization, and nuclear safety and advanced nuclear energy technologies during the Thirteenth Five-Year Plan period, so as to upgrade the technologies supporting green and low-carbon development. From 2021, we will support the layout of key projects of the national key R&D plan "Earth System and Global Change (Research and Demonstration of Key Technologies of Carbon Neutralization in peak carbon dioxide emissions)". Second, provide stable support to relevant central scientific research institutes and state key laboratories in the field of green and low-carbon development, support them to improve the basic conditions of scientific research, and independently carry out research. Relevant units can independently carry out research related to green and low-carbon development around the national strategic deployment and the requirements of industry departments. In supporting basic capacity building. Mainly through the budget of relevant departments to support relevant departments to strengthen environmental quality monitoring, environmental monitoring and law enforcement, natural resources management, natural ecological protection and other key work, strengthen the construction of carbon emission statistical accounting and supervision system, carry out carbon monitoring and evaluation pilot, carbon emission statistical accounting and analysis, and at the same time strengthen the basic theory, basic methods and realization path research of carbon neutrality in peak carbon dioxide emissions.
10. Q: What funds does the Ministry of Finance mainly use to support the consolidation and upgrading of carbon sink capacity, and what is the effect?
A: The central government supports the enhancement of ecological carbon sink capacity of forests, grasslands, wetlands and oceans through central-local transfer payments. First, through key ecological protection and restoration funds, support the integrated protection and restoration project of mountains, rivers, fields, lakes, grass and sand, implement the demonstration project of ecological restoration of abandoned mines left over from history, promote the comprehensive management, systematic management and source management of mountains, rivers, forests, fields and lakes, effectively promote ecological restoration, improve the ecosystem quality of the core areas of key ecological areas such as Qilian Mountain (600720), Loess Plateau and the middle and lower reaches of the Yangtze River as a whole, and expand the ecological space. Second, through the transfer of funds from forestry and grassland, we will further promote large-scale land greening actions, comprehensively protect natural forests, consolidate the achievements of returning farmland to forests and grasslands, support forest resources management and protection and prevention of forest and grassland fires, strengthen grassland ecological restoration and management, and strengthen wetland protection and restoration. China’s forest coverage rate has increased to 23.04%, grassland comprehensive vegetation coverage rate has reached 56.1%, and wetland protection rate has reached 52%. The prevention and control of desertification land has become a global model. Third, through the marine ecological protection and restoration funds, we will promote the "Blue Bay" rectification action, mangrove protection and restoration, and coastal protection and restoration projects as a whole, and enhance the carbon fixation capacity of mangroves, seagrass beds, and Dunaliella salina. Fourth, through agricultural resources and ecological protection subsidy funds, we will implement the third round of grassland ecological protection subsidy and reward policies, accelerate the transformation of the development mode of grass and animal husbandry, promote the steady recovery of grassland ecological environment, promote the protection and utilization of black land in Northeast China, and carry out green planting and recycling agriculture pilot.Promote the comprehensive utilization of crop straw.
(Editor: Ma Jinlu HF120)
