The Ministry of Finance has released the Administrative Measures for the Special Fund for Clean Energy Development (hereinafter referred to as the Measures) to accelerate clean energy adoption, support the transition to low-carbon energy, and enhance national energy security.
Original By NLS
The Ministry of Finance has released the Administrative Measures for the Special Fund for Clean Energy Development (hereinafter referred to as the Measures) to accelerate clean energy adoption, support the transition to low-carbon energy, and enhance national energy security. The Measures were officially issued on March 12 and took effect immediately.
Under the Measures, the Special Fund for Clean Energy Development (the Special Fund) will be financed through the central government’s general public budget. It is designated to support projects related to renewable energy, cleaner fossil fuels, and the clean utilization of traditional energy sources. The fund will be in effect from 2025 to 2029, with an option to extend it through an official approval process.
The Special Fund will focus on several key areas, including: Demonstration and commercialization of critical clean energy technologies; Large-scale development, utilization, and capacity building in clean energy; Construction of public infrastructure for clean energy; Pilot projects integrating various clean energy applications; Other major initiatives assigned by the Communist Party of China (CPC) Central Committee and the State Council.
Funding will be allocated based on project objectives, investment needs, and the overall efficiency of energy resource utilization. Distribution methods may include competitive grants, incentive-based subsidies, and reimbursement based on actual expenses. Additionally, the fund will offer financial incentives for the extraction and use of unconventional natural gas sources, such as coalbed methane, shale gas, and tight gas. These subsidies will follow a "more production, more support" principle.
By establishing this fund, China aims to accelerate the shift toward a cleaner, more sustainable energy system while maintaining energy security.