ANNOUNCEMENT 14 Feb 2016

On the 14th of February 2016, the Chinese Ministry of Finance announced an increase to the state subsidy for coalbed methane gas extraction as part of the 13th Five-Year Plan.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

PRC Ministry of Finance, 14th January 2016. (财建[2016]31号 关于“十三五”期间煤层气(瓦斯)开发利用补贴标准的通知)
http://jjs.mof.gov.cn/zhengwuxinxi/zhengcefagui/201602/t20160226_1787180.html

Inception date: 14 Feb 2016 | Removal date: open ended

Production subsidy

Stemming from ideas put forward in China's 13th Five-Year Plan, in February 2016, the PRC Ministry of Finance announced a raise in the state subsidy on the production of coalbed methane gas, from USD 0.0304 to 0.0456 (CNY 0.2 to 0.3)/m3, in document Cai Jian 2016/31.

The stated reasons for this are twofold. Firstly, coalbed methane is found between strata of underground coal deposits. China's coal mining industry is far from nascent: such well-developed infrastructure and extant coal mines make it easy to access such methane reserves, without the need for opening up new mines or acquiring large amounts of specialised equipment.

Secondly, China is currently looking to decrease its reliance on coal as a fuel in general, due to its appalling environmental footprint and contribution to the now infamous Chinese smog endemic. Methane burns a lot more cleanly than coal, thus an increase in use thereof is hoped to reduce consumption of coal and, in turn, pollution.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A