China Looks Set to Clean-up Energy
by China Water Risk 11 October, 2014
As Li Junfeng, Director General of the National Center of Climate Change Strategy Research at the National Development and Reform Commission, says: It is hard to predict, but we do have lessons to learn from other countries. We need to “walk on two legs”: one is to accelerate the development of non-fossil fuels, and the other is to make fossil energy cleaner. See more of Li Junfeng’s thoughts on China’s energy future here.
11 October, 2014 – China will levy a resource tax on coal based on sales rather than production from 1 December, 2014 and the rate will be between 2 to 10 percent.
The Ministry of Finance and the State Administration of Taxation said in a joint statement that the tax rate will be decided by provincial governments within the range.
However, coal sales from mines close to the end of their reserves will receive a 30% tax reduction. Also, coal mines that are shutting down and complete mine filling will receive a 50% tax reduction.
The tax is part of ongoing tax reform in the coal sector initiated in a State Council executive meeting late September.
See the resource tax joint statement here.
This comes off the back of an National Energy Administration proposition in late September that regional governments should ensure by next year, at least 2 to 10 per cent of electricity consumption in their jurisdictions will come from non-hydro renewable energy sources.
The quotas will vary according to a region’s renewable energy resource, with the northeastern, northwestern and some northern provinces subject to 10 per cent, while the southern and central regions will bear lighter quotas of 2 to 4 per cent.