The country is further promoting green growth.

On Wednesday, the State Council Executive Meeting, chaired by Premier Li Keqiang, decided that China will implement targeted re-lending to support the clean and efficient use of coal and promote green, low-carbon development.

China’s energy resources are predominantly coal-based; therefore, it is imperative to advance the clean and efficient utilization of coal in light of the country’s specific conditions.

“At present, coal is the energy source that China can truly rely on to meet its own needs, and it will remain so for a considerable period to come—this is crucial to China’s development,” Premier Li Keqiang said. “In other words, we must embark on a transformation in our development path… We cannot afford to remain stuck on a trajectory of energy‑intensive growth.”

In addition to the financial instruments launched earlier to support carbon emission reductions, a targeted relending program with a quota of RMB 200 billion (USD 31.3 billion) will also be introduced to promote the clean and efficient use of coal.

Priority support will be given to safe, efficient, green, and smart coal mining; clean and efficient coal processing; clean and efficient utilization of coal-fired power; clean industrial combustion and heating; clean residential heating; and the comprehensive utilization of coal resources. Development and utilization of coalbed methane will also be advanced.

The National Bank will, at its discretion, extend loans to eligible projects in supported regions, with interest rates broadly aligned with the most favorable rate for loans of comparable tenor.

The People’s Bank of China may provide banks with refinancing support equivalent to the principal amount of the loan.

“Coal’s potential for clean utilization is immense. At present, coal’s energy intensity remains relatively high. We must accelerate the commercialization of existing mature technologies, steadily upgrade them in light of domestic experience, and continue to deepen international cooperation,” Li said.

Explore measures such as reducing project capital contributions, offering appropriate tax incentives, increasing funding support through government special-purpose bonds, and accelerating depreciation, to strengthen support for clean and efficient coal utilization projects.

“Financial and fiscal support can play a significant role; we must carefully consider the integrated application of various fiscal and tax policies to help reduce costs and boost efficiency,” Li said.

(From ChinaDaily)