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其他
Favorable Policy Changes in Power Market & Environment Industry
Chinese government continues to reduce prior approvals, while emphasizing on process-supervision in the power market. Favorable policies are published to promote the environmental equipment manufacturing industry.
A More Efficient Regulation on Power Generation and Supply Schedules
The Chinese central government recently decided to cancel certain governmental approval items, including the approval of provincial and inter-provincial power generation and power supply schedules (the “Schedules”).
In the past, provincial governments, State Grid Corporation of China and China Southern Power Grid Company used to be required to report the analysis of their local power demandand supply to the National Development and Reform Commission (the “NDRC”)annually, and submit their Schedules to NDRC for prior approval. As a part of the power market reform, the Chinese central government decided to cancel this prior approval requirement, while emphasizing on the regulation during the course and afterwards as follows:
(1) NDRC plans to formulate a set of new rules (the “New Rules”), to simplify the procedures for provincial governments, State Grid Corporation of China and China Southern Power Grid Company to formulate their Schedules respectively.
(2) While participants are given more freedom to do business in the electricity market, they will be imposed on more social supervision exercised by public organizations, self-regulatory associations and social media.
(3) A system will be established to track the credit records of the electricity market participants and their directors in charge. Those who have good credit records will be rewarded and those with bad credit records will be punished accordingly.
(4) NDRC encourages coal companies and electricity companies to enter into medium and long-term contracts, in order to prevent coal prices from suffering drastic fluctuations, and ensure a stable coal supply for the power generation. Those companies will also be given benefits, such as priority for coal transportation, power generation and consumption, etc.
(5) An information disclosure platform will be established to enable the government to better regulate the power market participants, and also make the administration and regulation open and subject to public supervision.
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Promoting the Environmental Equipment Manufacturing Industry
As environment protection is becoming increasingly more important in China, the environmental equipment manufacturing industry is also drawing more and more attention. The Ministry of Industry and Information Technology (the “MIIT”) recently issued a Guideline for Developing the Environmental Equipment Manufacturing Industry (the “Guideline”).
The Guideline points out nine types of environmental equipment which shall be given priority in their manufacturing and industry development. They are:
Air pollution control equipment
Water pollution control equipment
Soil restoration and remediation equipment
Solid waste disposal facilities
Integrated resources utilization facilities
Environmental emergency management system
Pollutant detectors and monitors
Special materials and chemicals for environment pollution control
Noise and vibration control equipment
The Guideline also sets out regulatory policies for promoting the environmental equipment manufacturing industry (the “Industry”):
(1) In order to form an industrial standard system, the government will formulate industry standards for different types of environmental equipment, and make a list of equipment types that entitle national supports and incentives.
(2) Aside from existing policies, i.e. preferential income tax policies for energy-efficient or water-saving equipment, and insurance and compensation policies for first significant technical facility of the field, the government intends to support the Industry using financial products, such as “Green Credit”, “Green Bond”, financial leasing, and intellectual property pledged loan, etc.
(3) Third parties, such as industry associations, research institutes, and advisory organizations will take an active part in building the bridge between the companies and government, by helping companies maintain self-discipline and promote technology development.
(4) The government will also emphasize on the Industry-related personnel training and cultivation, to meet the needs of the Industry development.