Renewable Energy——Comprehensive Utilization of Straw Enjoys Multiple National Policy Support and Tax Incentives
In accelerating the construction of a resource-conserving society, Renewable Energy——Comprehensive Utilization of Straw has become a major topic attracting widespread attention. It has always been a key development project vigorously supported by the state and enjoys multiple national policy support and tax incentives.
1. In 2000, the State Council issued the "National Ecological Environmental Protection Outline" clearly proposing the prohibition of straw burning.
2. On February 28, 2005, the "Renewable Energy Law of the People's Republic of China" was reviewed and approved at the 14th Session of the 10th National People's Congress Standing Committee, and was promulgated by President Hu Jintao with Presidential Decree No. 33, officially taking effect on January 1, 2006. The law emphasizes: The state encourages the clean and efficient development and utilization of biomass combustion and encourages the development of energy crops. Gas and heat produced from biomass resources that meet the technical standards for urban gas pipeline networks and heating pipeline networks shall be accepted for grid connection by enterprises operating such networks. The state encourages the production and utilization of bio-liquid fuels.
3. On September 15, 2005, the National Development and Reform Commission together with the National Energy Office jointly organized an expert review meeting for the "Renewable Energy Medium and Long-term Development Plan," which established "increasing fiscal investment and implementing preferential tax policies" as a principle for renewable energy development and utilization. This includes adjusting and improving renewable energy VAT policies from the tax perspective; adjusting and improving renewable energy corporate income tax policies; adjusting and improving renewable energy equipment import tariff policies; strengthening policy support for renewable energy research and development; and improving national fiscal subsidy policies 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 Fiscal and Tax Support Policies for Developing Bioenergy and Biochemical Industries."
5. In April 2007, the National Development and Reform Commission published 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 and high-pollution industries, which is conducive to reducing China's dependence on non-renewable energy such as oil and coal, while also promoting clean production and reducing pollutant emissions. It is an important guarantee for taking a new path of industrialization 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 number of straw solidification briquette fuel application demonstration sites and straw gasification centralized gas supply stations, utilizing marginal land for appropriate development of energy crops to meet the nation's raw material needs for liquid fuels.

