Act on Addressing Climate Change (Draft Proposal)
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E-mail China.org.cn, March 31, 2012
Chapter 5 Guarantees of Addressing Climate Change
Article 63 (General Requirements) The nation shall take comprehensively economic, technological, legal, and administrative safeguard measures to fully guarantee the climate change capacity construction. Development and reform department, taxation, industrial, commercial, land and resources, finance, customs, securities regulatory, credit and other administrative departments under The State Council and local people's governments at various levels shall, through performing their respective functions, develop industrial policies, technology policies, fiscal policies, financial policies, investment policies and export policies to help control and reduce greenhouse gas emissions, and create policy direction and institutional mechanism favorable to actively address climate change.
Article 64 (Planning and Protection) The national and local people's governments at all levels shall consider the regional and industrial differences when developing national economy and social development planning, and support key areas and industries of importance to climate protection.
Article 65 (Technology Guarantee) The nation shall encourage and support carbon capture and sequestration, and the development of science and technology dealing with climate change. Science and technology administrative department under the State Council and other provincial people's government shall be responsible for organizing the establishment of national and provincial technology support system on addressing climate change.
All levels of science and technology administrative departments and other relevant administrative departments shall provide guidance and support demonstration, promotion, research and development of technology, products, services which are related to energy conservation and emission reduction, deceleration and adaptation to climate change.
Governments and their relevant departments at all levels shall incorporate the independent innovation research, application demonstration and industrialization of key sci-tech projects on addressing climate change in national or provincial sci-tech development plans and high-tech industrial development plans, and appropriate certain fiscal capital for support.
Any unit using fiscal capital to introduce main technologies and equipment relevant to addressing climate change shall make a plan for digestion, absorption and innovation, submit the plan to competent departments for approval and implement it under the supervision of such departments.
Article 66 (Financial Guarantee) People's governments at or above the county level shall arrange for special funds on climate change and bring them into the budget.
The people's governments at all levels shall adopt financial incentives to industries and regions completing the task of energy conservation and emission reduction. The nation shall give capital subsidy or interest subsidy, interest free, interest rate cuts and other financial support to research on energy saving technologies, products, development, manufacturing, universality, and enterprises and institutions to take voluntary measures to reduce emissions. Detailed regulations shall be formulated by financial administrative department together with the development and reform department under the State Council.
Article 67 (Investment and Credit Guarantee) When formulating and implementing investment plans, people's governments above county level shall rank the projects that may save energy, water, and reduce emission as the major investment area.
Where any project meets national industrial policies that may save energy, water, land and reduce emission, financial institutions shall give a priority to make loans and provide relevant financial services actively. Detailed regulation shall be formulated by development and reform department together with credit and other administrative departments under the State Council. Where any enterprise produce, import, sell or use any technology, process, equipment, material or product under the catalogue of abandonment, financial institutions shall not grant any credit to it in any form.
Article 68 (Price and Taxation Measures of Energy Production) The nation shall promote energy price formation mechanism reform, improve energy and mineral resources paid utilizing system, and promote the level of the economical use and mining of energy and resources.
The nation shall take the tax and price preferences, support the grid-connected power generation projects utilizing waste heat and pressure, coal bed methane, coal gangue, coal slime, garbage and other low-calorie fuel combustion, as well as wind power, photovoltaic, biogas in power generation.
Article 69 (Energy Tax Measures) The nation shall implement a tax policy conductive to resource and energy conservation and reasonable use, limit the waste of resources and energy of the enterprises and institutions and promote the enterprises to carry out voluntary energy conservation and greenhouse gas emission reduction. Anyone who purchase or consume coal, oil, natural gas, alcohol and other fuels or electricity shall pay a carbon tax. The carbon tax is imposed during consumption chain, levied in accordance with per ton of fuel and per kilowatt, and ultimately borne by consumers. Carbon tax shall be contributed to government climate change funds. Hydroelectric power, nuclear power and other clean energy power generation shall enjoy the climate change addressing subsidies of government funds.
Article 70 (Price Restrictions) The nation shall implement a differential electricity pricing policy for high-energy-consuming industries, impose electricity pricing penalties on products with super-high energy consumption, and promote the metered charging of heat supply by actual consumption, and guide the units, families and citizens to save and rationally use water, electricity, gas and other resources and energy, reduce greenhouse gas emissions.
Pricing departments under The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall carry out restrictive price policies for restrictive projects in high-energy-consumption industries in accordance with national industrial policies.
Article 71 (Tariff Measures) The nation shall use tariff and export tax rebate system to encourage import of advanced high efficiency, energy saving, low-carbon technologies, equipment and products, and slow down the export of high energy consumption, high emission and resource-based products. The detailed regulation shall be enacted by The State Council.
Article 72 (insurance policy) The nation shall encourage productive operators of the agricultural and forestry industry to participate in insurance to improve the ability to withstand extreme weather and climate disasters. The detailed regulation shall be formulated by the insurance regulatory department under The State Council together with the administrative department of agriculture, forestry and so on.
Article 73 (credit protection) The nation shall implement energy-saving emission reduction credit system to emission units.
Local people's governments and industry sector organizations shall carry out grading appraisal to emissions units of energy saving and emission reduction. And according to the situation of completing the task of energy saving, different credit rating shall be determined. The assessment results shall be public and reported to the credit industry, the securities industry, and insurance and guarantee industry as important reference of the credit rating of the emission units.
Local development and reform, environmental protection and other administrative departments shall give special supervision to units not filling emission reduction requirements. The nation shall take differences in taxation, credit and export allowances policy to emissions unit of different credit rate to improve the environment trustworthy benefits of emission units and increase the cost of environmental promises. The detailed regulations shall be developed by The State Council development and reform departments together with the tax, credit and business administrative departments of The State Council.
The nation shall establish the emission unit environment credit repair mechanisms. Emission units can improve the level of credit through technological innovation, renewal of equipment and other means.
Article 74 (Low-carbon Procurement Guarantee) The nation shall implement government procurement policy conductive to promote energy conservation and climate change mitigation. Governments at all levels shall consider the energy consumption of the product and service in public procurement, and products beneficial to energy conservation and emission reduction, and products made by renewable energy as well as reproduced products shall be purchased preferentially. Procurement administrative department of The State Council shall formulate government preferential procurement list of energy-conservation products and services together with relevant departments.
Article 75 (Funds and Fund Guarantee) The nation shall take measures to encourage capital to go into market of addressing climate change, promote financing, financial and trading market of energy-conservation and low-carbon development. The national and local people's governments at all levels establish government climate change funds on addressing climate change which come from government grants, carbon taxes, greenhouse gas emissions allowances fees, social contributions, etc. The funds shall be used to deal with climate change publicity and education, science and technology R & D, technology and product demonstration and extension, financial subsidies for energy conservation, implementation of the major climate change project, extreme weather emergency, industrial transformation and reward. The detailed regulation shall be enacted by The State Council. The nation shall encourage the community to initiate civil climate change funds on addressing climate change as supplement government funds to participate in energy conservation and emission reduction investment, technology research and development, technology promotion, greenhouse gas emissions allowances trading scheme and other activities. The establishment and operation management regulation of civil climate change funds shall be developed by The State Council.
Article 76 (Guarantee of Domestic Market Transaction) The nation shall rationally plan to establish transaction platform across provinces, autonomous regions and municipalities in Beijing, Shanghai and Tianjin and give full play to the fundamental role of the market mechanism, and realize the objective of controlling greenhouse gas emission at minimum cost.
The nation shall encourage civil climate change funds and public interest organizations to trade greenhouse gas emission allowances through the transaction platform. Regional transaction platform operation funds shall be guaranteed by charges of greenhouse gas emissions allowances trading and government climate change funds. Detailed regulations shall be formulated the development and reform department together with the relevant departments under The State Council.
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