China to Step up Fiscal, Tax and Financial Policy Support for Large-Scale Equipment Renewal in Key Energy Sectors

On August 21, 2024, the website of the National Development and Reform Commission (NDRC) reported that the General Office of the NDRC and the General Affairs Department of the National Energy Administration recently issued the Action Plan for Large-Scale Equipment Renewal in Key Energy Sectors (the “Action Plan”), outlining key tasks in seven areas and setting forth three safeguard measures.

The Action Plan calls for promoting the renewal and recycling of photovoltaic equipment to support the transformation of photovoltaic power stations, advancing the development of photovoltaic module recycling and reuse technology, and supporting the low-cost green dismantling of photovoltaic modules based on physical and chemical methods, as well as the research and development of high-value components, efficient environmental separation technologies, and complete sets of equipment. As for safeguard measures, it calls for intensifying fiscal, tax and financial policy support; and increasing financial support for equipment renewal and technological transformation in key energy sectors. It also stresses strengthening bank-enterprise connectivity, and guiding financial institutions to increase support for equipment renewal and technological transformation, make good use of re-loans, fiscal interest discounts and other support policies, and expand medium - and long-term loans to the manufacturing industry.