The country plans to spend around one-tenth of its 2006 GDP in
the next decade or so to develop renewable energy and cut
greenhouse gas emissions, the top economic planner revealed
Tuesday.
"Overall, around 2 trillion yuan (US$265 billion) of investment
is needed to meet the renewable energy target by 2020," the
National Development and Reform Commission (NDRC) said in a
statement.
Chen Deming, vice-minister of NDRC, reiterated China's medium-
and long-term target to boost the renewable energy sector.
The NDRC plans to raise the ratio of renewable energy in total
energy consumption to 10 percent by 2010 and 15 percent by 2020,
compared to 8 percent now, Chen said.
China generates much less greenhouse gases than developed
countries, but treats the issue seriously and spares no effort to
cut carbon dioxide emissions by enhancing energy efficiency and
developing renewable energy, Chen said.
Setting an explicit target for renewable energy generation is
part of the country's commitment to save energy and cut emissions,
he added.
"We will adopt measures to guide and encourage the development
of renewable energy. We will come up with various taxation and
fiscal incentives, including subsidies and tax breaks," Chen
said.
The preferential policies will treat all companies, either
private or State-owned, equally, Chen promised.
Other measures are also being implemented.
"We will require real estate developers to install solar power
equipment in their projects. Large State-owned energy enterprises
will be set quotas to invest in the development of renewable
energy," Chen said.
Analysts say most of the 2 trillion yuan investment by 2020 will
come from the market, with only a small proportion from the
government.
"As long as there are favorable policies from the government,
market investment will support the development of renewable
energy," Han Xiaoping, an independent analyst with China5e.com,
said.
Market-oriented preferential policies may include setting higher
prices for electricity generated by renewable energy, Han
added.
He said hydropower and wind power are priorities for developing
renewable energy, because of the vast potential and advanced
technology.
(China Daily September 5, 2007)
