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Subsidies to Coal Production in China
The report identifies 18 subsidies to coal extraction in China for the 2013–2015 period, quantifying 11 of them. For 2013, quantifiable subsidies (excluding credit support) totaled CNY 35.7 billion (USD 5.8 billion). The most significant quantified measures include temporary tax and fee relief from provincial and local governments (USD 1.65 billion), state budget investment in fixed assets (USD 1.27 billion), and compensations for mine shutdowns under phase-out plans (USD 1.03 billion). Credit support is identified as a potentially massive but uncertain subsidy, estimated between CNY 3.5 billion and 35.7 billion annually depending on the scenario. The report argues that these subsidies, particularly those driving long-term investment, lock in coal use and act as barriers to renewable energy deployment.
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Document type: Report