Clean energy industry worldwide grows continuously. China is still in the leading position in investing in clean energy with one third of the global investments, albeit the drop of 39% recorded in the first half of 2019. This drop is caused by the gradual withdraw of government subsidies. However, as China cares about its energy generation and regeneration so much, the market of new energy is still boosting.
On 30th June 2019, the National Development and Reform Commission published a revised version of the Catalogue of Encouraged Industries for Foreign Investments. Foreign investments in new energy installation and key equipment are much welcomed, so are new energy powered vehicles and engines. The Catalogue of Priority Industries for Foreign Investment in Central and Western China (2017 version) has been invalidated by this new 2019 Catalogue.
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Starting from the second half of 2019, the enforcement of the Renewable Energy Law of China has gained more priority. The Standing Committee of National People’s Congress has started to review the enforcement of the Renewable Energy Law in 6 provinces directly and in another 12 provinces indirectly by delegation to regional committees. The purpose of running a series of review is to check the progress on implementing policies attached to the Renewable Energy Law and locate any difficulties in enforcement.
The adjustments on the fees of utilizing the land for establishing new energy stations and cranes have been proposed to follow a unified standard from the National Tax Bureau and the Ministry of Finance. This is yet to be brought up in the upcoming meetings of the government along with other issues. A unified standard can help with high costs on establishing such new energy stations, because it is a common practice for the local governments to charge a fee from the development undertakers for using the premise for energy stations.
Furthermore, the 8th Catalogue of Renewable Energy Subsidies is expected to be announced shortly. The trend is expected to progress towards more affordable new energies both for businesses and consumers.
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Global Connect Admin B.V. | Xuan Hao
