Fiscal policy has key role in green development: Vice-minister

Fiscal policy can play a key role in driving green development in China, through adopting tax and subsidies to support low-carbon production and lifestyle, according to a senior official from the Ministry of Finance on Saturday.

Fiscal and tax measures will support the country's green economic recovery, including the reduction of tariffs on some imported products to promote waste recycling, increasing government-led investment in new energy automobiles and green construction materials, and support the public-private-partnership financing model in pollution prevention projects, said Vice-Finance Minister Zou Jiayi at the Global Asset Management Forum in Beijing.

By the end of June, 4,156 projects of the PPP model in the pollution prevention and green low-carbon fields had been signed in China, with total investment of 4.1 trillion yuan ($632.6 billion), Zou said.

More measures have been taken to encourage local governments to protect the ecological system, especially in areas along the Yellow River and Yangtze River, Zou added.

To achieve the nation's carbon neutrality goal, the Ministry of Finance will improve the fiscal and tax policy system and strengthen financial support to promote green economic recovery and low-carbon development.

"At the same time, we should adhere to the principle of common but differentiated responsibilities, actively carry out international exchanges and cooperation, and work together to address the challenge of climate change," the vice-minister said.