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Renewable Energy――Comprehensive Utilization of Straw Enjoys Multiple National Policy Support and Tax Incentives
2011/12/12 10:08:46

>In the process of accelerating the construction of a resource-conserving society, the comprehensive utilization of renewable energy - straw has become a major issue of great concern and has always been a key development project strongly supported by the state, enjoying multiple national policy support and tax incentives.

1. In 2000, the State Council issued the "National Ecological Environmental Protection Outline," which clearly proposed prohibiting straw burning.

2. On February 28, 2005, the "Renewable Energy Law of the People's Republic of China" was deliberated and adopted by the 14th meeting of the 10th Standing Committee of the National People's Congress. President Hu Jintao signed Presidential Decree No. 33 to promulgate it, officially implementing it from January 1, 2006. The law emphasizes: the state encourages clean and efficient development and utilization of biomass combustion, encourages the development of energy crops. Gas and heat produced using biomass resources that meet the technical standards for urban gas pipeline networks and heating pipeline networks to connect to the grid, enterprises operating gas pipeline networks and heating pipeline networks should accept their connection. The state encourages the production and utilization of bio-liquid fuels.

3. On September 15, 2005, the National Development and Reform Commission and the National Energy Office jointly organized an expert demonstration meeting for the "Renewable Energy Medium and Long-term Development Plan." The plan established "increasing fiscal investment and implementing preferential tax policies" as a principle for renewable energy development and utilization. Adjusting and improving renewable energy VAT policies from the tax perspective; adjusting and improving renewable energy enterprise income tax policies; adjusting and improving renewable energy equipment import tariff policies; strengthening policy support for renewable energy research and development; improving national fiscal subsidies for renewable energy.

4. On November 12, 2006, the Ministry of Finance, National Development and Reform Commission, Ministry of Agriculture, State Administration of Taxation, and five ministries including the State Forestry Administration jointly issued the "Implementation Opinions on Financial and Tax Support Policies for Developing Bioenergy and Biochemicals."

5. In April 2007, the National Development and Reform Commission announced the "Bio Industry Development 'Eleventh Five-Year Plan,'" pointing out: "Vigorously develop bioenergy and bio-based materials, accelerate the application of bio-manufacturing technology in high-consumption, widespread application in high-pollution industries, which is conducive to reducing China's dependence on oil and non-renewable energy sources such as coal, and is conducive to promoting clean production, reducing pollutant emissions, and is an important guarantee for taking a new industrialization path and achieving sustainable development."

6. In July 2007, the Ministry of Agriculture issued the "Agricultural Biomass Energy Industry Development Plan (2007-2015)," proposing the construction of a batch of straw solidification molding fuel application demonstration points and straw gasification centralized gas supply stations, moderately developing energy crops using marginal land to meet the state's demand for liquid fuel raw materials.