China to provide subsidies to bio-energy sector
(Xinhua)Updated: 2006-12-01 11:02
The Chinese government has issued a package of policies, including risk
reserves, subsidies and tax breaks, to encourage the development of the
bio-energy and bio-chemical industries, the National Development and Reform
Commission (NDRC) said Thursday.
Under the new policies, enterprises
should set up risk reserves, which will be used to offset their losses when the
oil price is low.
When the oil price is low for a sustained period, a
government subsidy regime will be triggered to cover the losses of
enterprises.
The new policies were jointly issued by the NDRC, the
ministries of finance and agriculture, the State Administration of Taxation, the
State Forestry Administration.
The government will also provide
subsidies to developers of raw material supply bases for the bio-energy and
bio-chemical industries, particularly those using non-arable land.
Subsidies will also be available to model projects with significant
technical innovations.
The bio-energy industry was important for
environmental protection, rural development, in addition to being a new source
of growth for the economy, an NDRC official said.
After years of trials
in selected provinces, the government has begun pouring huge investment into the
bio-energy sector.
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