The Chinese government will make comprehensive use of interest-rate subsidies and other incentives to support its renewable energy and materials market, reports The Wall Street Journal.
China’s stated goal is to significantly reduce pollution and cut carbon emissions by 2025, lowering them as much as 45 percent from 2005 levels. China’s aim by 2020 is to raise its energy mix of non-fossil fuels, such as nuclear and renewable energy sources, from 8 percent (current rate) to 15 percent.
China already applies subsidies to promote the use of wind and solar power, as well as energy-efficient cars, but critics of its renewable energy program claim it is poorly planned. According to the article, a significant part of China’s wind-power generating capacity throughout the country sits idle due to insufficient grid connection.
Additionally, China’s use of subsidies prompted the United States to file a complaint with the World Trade Organization, in response to a petition from the U.S. Steelworkers labor union last September. The grievance alleged that Chinese companies now have an unfair pricing advantage to sell wind and solar equipment on international markets.
To read The Wall Street Journal article cited in this story, click here