China's energy intensity, or energy consumption per unit of the GDP, is expected to decrease by over three percent in 2024, exceeding the annual target, a deputy chief of the country's top economic planner said on Friday.
Speaking at a press conference in Beijing, Zhao Chenxin, deputy director of the National Development and Reform Commission, said that China will further strengthen efforts in controlling the volume and intensity of energy use.
Eying a significant increase in energy efficiency, China aims to lower its energy consumption per unit of the GDP by 13.5 percent during the 2021-2025 period, according to the country's 14th Five-Year Plan period (2021-2025).
"In 2024, China made new strides and achieved significant results in green and low-carbon development. Efforts to promote energy conservation and carbon reduction were vigorously advanced, with the energy consumption intensity projected to reduce by more than three percent, surpassing the annual target," Zhao said.
In March 2024, the government launched an action plan to promote large-scale equipment renewal and trade-in of consumer goods as part of efforts to boost domestic demand and support economic growth.
Over the past year, work related to the programs has accelerated the green transition amid the booming sales of new energy vehicles and energy-efficient household appliances, said the official.
"In the Jan-Nov period of 2024, national investment in the purchase of equipment and tools increased by 15.8 percent year-on-year, contributing 65.3 percent to the overall investment growth. During the implementation of trade-in programs, more than 60 percent of consumers opted for new energy vehicles, driving the domestic market penetration rate of new energy passenger vehicles to exceed 50 percent for six consecutive months," Zhao noted.
In 2025, China will further improve the relevant policies and systems of standards for finance, taxation, investment, and pricing to support sound development of green and low-carbon industries, according to Zhao.
"We will continue to advance the operations intended to promote the level of environmental infrastructure construction, and carry out major projects for ecosystem protection and restoration, with continued adoption of promotional efforts. We will deepen the exploration of mechanisms for realizing the value of ecological products. Efforts will be made to achieve greater results in promoting large-scale equipment renewal and trade-in of consumer goods. The year 2025 will see the adoption of new policies to increase funding for promoting large-scale equipment renewal and trade-in of consumer goods, with expansion of their coverage, improvement of the means of their implementation, and amplification of their leverage effect," said the senior official.
China's energy consumption intensity expected to drop for 3 pct in 2024: official
China's energy consumption intensity expected to drop for 3 pct in 2024: official
China's central bank has set forth detailed plans for boosting financial support in key areas of economic development in the new year.
The People's Bank of China (PBOC) outlined its monetary and financial priorities for 2025 following a two-day meeting that ended Saturday.
The central bank pledged to utilize structural policy tools to promote steady economic recovery and development, with priorities given to technology finance, green finance, inclusive finance, pension finance, and digital finance.
The PBOC set apart 500 billion yuan of loan renewal funds to support technological innovation and industrial upgrades in 2024 in a bid to direct financial resources toward technology-driven small and medium-sized enterprises (SMEs). Over the past three years, medium- and long-term loans to high-tech manufacturing industries and loans for technology-based SMEs have consistently grown at rates exceeding 20 percent. The loan approval rate for technology-driven SMEs has increased from 35 percent to 50 percent.
"We will continue to refine the re-loan policies regarding technological innovation and industrial upgrades and increase support with policy tools. With loans and new bonds, we shall actively cultivate a financial market ecosystem that supports technological innovation. We will improve financial services for science and technology in key areas while actively and steadily promoting the construction of science and technology finance pilot zones," said Peng Lifeng, director of the credit market department at the PBOC.
In terms of green finance, the POBC will optimize tools for advancing carbon reduction and improve the evaluation of green financial initiatives. Efforts will also be made to form innovative lending and bond programs to support green development, according to Peng.
The bank is also expanding inclusive financing efforts, continuing to ramp up its support for the agricultural sector, including the use of monetary policy tools such as re-loans and reserve requirements.
"We will continue to improve the credit guarantee system and enhance financial service evaluations for private SMEs. We will also ensure the effective implementation of entrepreneurial guarantee loans and student loans to increase accessibility, convenience, and coverage in the inclusive finance sector," said Peng.
The credit market director also outlined plans to strengthen the financial support system for the elderly and improve the efficiency of pension re-loan funds. The central bank will guide financial institutions to offer greater support for health industries and the senior care sector, focusing on long-term solutions for an aging population.
On digital finance, Peng said the bank aims to optimize services, customize new policy measures to support new industrialization, foster a high-level financial data market and promote the digital and intelligent transformation of financial services.
"Focusing on the key task of boosting consumption in 2025, we will explore innovative financial products and tools, further enhancing financial support for key consumption sectors," he said.
China to boost financial support in key areas with structural policy tools
