Energy is the material foundation on which human beings depend for survival, and the basic support for national economy. China is a major energy consuming country, and energy supply mainly relies on fossil fuels such as coal, oil and natural gas. The finiteness of fossil energy resources and the huge pressure they put on the environment and ecology in the process of exploitation and utilization seriously restrict the sustainable development of the economy and society. In this situation, the development of clean renewable energy has become an urgent topic in China's energy field.

Applying the theory of circular economy to the agricultural system, until the product life cycle during agricultural production, reduce the input of resources and materials and the discharge of plant production, achieve the "win-win" of agricultural economy and ecological environment benefits, maintain and improve the ecological dynamic balance within the system as the guiding ideology of the overall planning of the system, reasonably arrange the production structure and product layout, promote the circulation and multiple utilization of materials within the system, as far as possible reduce the input of fuel, fertilizer, feed and other raw materials, so as to obtain as many products as possible output, thereby obtaining a comprehensive effect of production development, ecological environment protection, renewable energy utilization and economic benefits that unify the four.

"Strengthening the development and utilization of renewable energy is the only way to deal with the increasingly serious energy and environmental problems, and also the only way for human society to achieve sustainable development." The Outline of the Eleventh Five-Year Plan for National Economic and Social Development clearly proposes to "speed up the development of biomass energy". The "Opinions of the CPC Central Committee and the State Council on Actively Developing Modern Agriculture and Steadily Promoting the Construction of a Socialist New Countryside" proposes that "the biomass industry, which takes bio-energy, bio-products and biomass raw materials as the main content, is a sunrise industry to expand agriculture and promote resource utilization", "launch pilot projects for solidified and shaped fuel processing of crop straw", "encourage localities to develop biomass raw materials as plantings by utilizing resources such as barren mountains and barren land". Policies issued successively since 2013, including the State Council's "Opinions on Accelerating the Development of Energy-Saving Environmental Protection Industry", the "Twelfth Five-Year Plan for Energy Conservation and Emission Reduction", and the "Comprehensive Work Plan for Energy Conservation and Emission Reduction in the Twelfth Five-Year Plan", cover many aspects such as financial rewards, tax incentives and financial innovation, all pointing out the need to vigorously promote the contract energy management mechanism and accelerate the development of the energy industry.

In 2014, policy support was further increased. The State Administration of Taxation and the National Development and Reform Commission jointly issued the "Announcement on Several Issues Concerning the Collection and Management of Enterprise Income Tax Preferential Policies for Energy Conservation and Emission Reduction Enterprise Contract Energy Management Projects" (Announcement No. 77). The announcement clarifies many practical operational issues that were not clarified in Document No. 110, and is a supporting regulation to Document No. 110. The introduction of Announcement No. 77 is another major milestone in the development history of contract energy management in China, which will certainly greatly promote the healthy development of energy management in China. The "Twelfth Five-Year Plan for Energy-Saving Environmental Protection Industry Development" proposes that by 2015, the total output value of the energy-saving environmental protection industry will reach 45,000 billion yuan, and the proportion of value-added to the gross domestic product will be about 2%. Driven by environmental events and policy support, investment in the energy-saving environmental protection industry has accelerated significantly. Industry insiders believe that under the continuous effect of favorable policies, it is expected that the total output value of the energy-saving environmental protection industry will still maintain high-speed growth in 2014, and the total output value growth rate will continue to exceed 30%. In order to actively implement the Party Central Committee and the State Council's instructions on the development of agricultural biomass energy, and in accordance with the Renewable Energy Law, the "Agricultural Biomass Energy Production and Development Plan" (2007-2015) formulated by the Ministry of Agriculture and other policies and plans all require increasing the research and development of biomass energy and accelerating the production speed of biomass energy.