From China Watch:
China’s government will enact new fiscal policies to encourage the development of biomass energy, according to a CCTV report. Biomass energy is energy derived from plant matter such as trees, agricultural crops, and a range of organic wastes and residues. These resources can be processed to produce electricity, biofuels, and chemicals.
Zhu Zhigang, China’s Vice Financial Minister, told participants at a June 7 national fiscal meeting that the Ministry of Finance is deliberating a cost-sharing and risk-sharing mechanism for biomass energy to encourage its development.
“A risk-sharing mechanism allows [biomass energy] companies to reserve risk funds before taxation during oil price hikes. Those funds will be used to compensate losses and sustain companies’ operations if oil prices plummet,” said Zhu. [Full Text]
