Chapter V Incentive Measures

Article 60 The Central Government and the local governments at the provincial level shall allocate special funds for energy conservation to finance research and development of energy conservation technologies, demonstration and popularization of energy conservation technologies and products, construction of key energy conservation projects, dissemination of and training in the knowledge of energy conservation and provision of information and commendation and rewarding of achievements in this respect.

Article 61 The State applies supportive policies such as preferable tax policies to support the manufacture and use of the energy conservation technologies and products included in the catalogue for popularization, as specified in Article 58 of this Law, that need such support.

Through government subsidies, the State supports the popularization and use of such energy-saving products as energy-saving lighting appliances. Article 62 The State shall adopt the tax policies that are advantageous to conservation of energy resources and improve the sound system for paid use of energy mineral resources, to promote the conservation of energy resources and their exploitation and utilization at a higher level.

Article 63 The State shall use taxation and other policies to encourage the import of advanced energy conservation technologies and equipment and to restrict the export of the products for the manufacture of which excessive quantities of energy are consumed and excessive quantities of pollutants are discharged.

Article 64 The regulatory authority for government procurement shall, in conjunction with the relevant departments, compile the catalogue of energy-saving products and equipment for government procurement and, in doing so, shall give first priority to the products and equipment to which energy conservation certificates are granted.

Article 65 The State shall give guidance to financial institutions so that they shall give more support to energy conservation projects in the form of loans or credits and provide loan on favorable terms to such qualified projects as research and development in energy conservation technologies, manufacture of energy-saving products and innovation of energy conservation technologies.

The State shall urge the relevant sectors of the society to increase their input of funds in energy conservation for the purpose of speeding up the innovation of energy conservation technologies and give them guidance in this respect.

Article 66 The State shall adopt the pricing policies, which are advantageous to energy conservation as a means of guide to energy consumers in their conservation of energy.

The State shall, through financial, tax and pricing policies, support and popularize the measures for energy conservation, such as lateral control over the demand for power, contracted control of energy and voluntary agreement on energy conservation.

The State applies a electricity pricing system consisting of peak load rates, seasonal rates and interruptible load rates, to encourage electricity consumers to adjust their power load in a rational manner. With respect to the enterprises in iron and steel, nonferrous metal, construction materials and chemical industries and other major energy consuming industries, the policy of differential rates shall be implemented among different enterprises, according to the different categories they belong to, namely, the ones that are to be eliminated or the ones whose development is restricted, permitted or encouraged.

Article 67 The people’s governments at all levels shall commend and reward units or individuals that achieve outstanding successes in energy conservation control or in research or wide application of energy conservation technologies, or that report against serious energy waste.