China government will allocate 100 billion yuan to support photovoltaic and wind power projects in 2021

Recently, the Ministry of Finance announced the answer to the recommendation No. 9142 of the Fourth Session of the 13th National People's Congress. Responded from three aspects: suggestions on speeding up the issuance of green bonds to solve subsidy arrears, suggestions on speeding up the issuance of green bonds to solve subsidy arrears, and suggestions on encouraging the development of innovative financial products for stock power stations.

Regarding the issue of subsidy arrears and gaps, since renewable energy subsidies are gratuitous financial subsidies, there is no corresponding debt repayment cash flow, and they are not eligible for special treasury bonds. Therefore, we will further improve my country's green certificate issuance and transaction management mechanism and carbon emission rights trading mechanism, and rationally subsidize the environmental benefits of new energy through green certificates and carbon emission rights trading, so as to provide strong support for the healthy development of new energy.

The reply also stated that in recent years, some banking institutions have also carried out active exploration and practice. The China Development Bank formulated the “Work Plan for Supporting the Energy Sector to Achieve the Strategic Objectives of “Carbon Peaking and Carbon Neutrality”, and proposed to set up a total scale of 500 billion yuan in the energy sector “Carbon Peaking and Carbon Neutrality” during the “14th Five-Year Plan” period. "Special loans. Among them, a special loan of 100 billion yuan was issued in 2021 to support photovoltaic power generation, offshore wind power and other projects to help build a clean, low-carbon, safe and efficient energy system.

In addition, the China Development Bank issued the world's first "carbon neutral" green financial bond in March 2021. The funds raised were used for wind power, photovoltaic and other carbon emission reduction projects, effectively promoting the decarbonization of the power system and realizing the transition of the energy system.