Many Regions Have Invested Funds in Environmental Protection Construction and Energy-Saving Renovations, Striving to Achieve Carbon Peaking and Carbon Neutrality, And Promoting Ecological Civilization Construction

May 19, 2026

According to the "Report on the Implementation of the Central and Local Budgets in 2020 and the Draft Central and Local Budgets for 2021" submitted by the Ministry of Finance to the Fourth Session of the 13th National People's Congress for review on March 5, the central budget allocation for 2021 related to the fight against pollution is 53.6 billion yuan.

Of these, 27.5 billion yuan has been allocated for air pollution prevention and control, a 10% increase, primarily supporting clean heating in northern China during winter and the fight for blue skies; 21.7 billion yuan has been allocated for water pollution prevention and control, a 10.2% increase, mainly for water pollution control in key river basins such as the Yangtze River; and 4.4 billion yuan has been allocated for special funds for soil pollution prevention and control, a 10% increase, supporting soil pollution treatment and remediation. Furthermore, to promote key ecological protection and restoration, 88.2 billion yuan has been allocated for transfer payments to key ecological function zones, an 11% increase, guiding these zones to protect their ecological environment and provide ecological products. Support will be provided for achieving carbon peaking and carbon neutrality, further supporting the development of renewable energy sources such as wind power and photovoltaics, and the exploitation and utilization of unconventional natural gas, increasing the supply of renewable and clean energy.
 
Data shows that from 2016 to 2020, the central government allocated 97.4 billion yuan for air pollution prevention and control, 78.3 billion yuan for water pollution prevention and control, and 28.5 billion yuan for soil pollution prevention and control. Industry insiders believe that in recent years, the proportion and scale of my country's fiscal expenditure on environmental protection have been continuously expanding, and the driving effect of fiscal expenditure on my country's ecological and environmental protection construction has become increasingly evident. Provinces (autonomous regions and municipalities) have continuously increased their fiscal support for energy conservation and environmental protection, effectively promoting ecological civilization construction and ecological environmental protection.
 
I. Funds have been invested in environmental protection construction and energy-saving renovation in many places.
 
1. The Xinjiang Uygur Autonomous Region has allocated 440 million yuan to support the prevention and control of water, air, and soil pollution and the improvement of the rural environment.
 
2. Liaoning Province has raised 5.62 billion yuan to support the fight for blue skies, clear waters, and clean soil.
 
3. Henan Province allocated 7.91 billion yuan to promote air and water pollution prevention and control work such as "dual substitution" (alternative fuels and fuels). The use of scattered coal for heating in the northern part of the province has been basically eliminated, and water pollution in key river basins and black and odorous water bodies in cities have been effectively treated.
 
4. Energy-saving renovation projects implemented in Hainan's industrial, construction, transportation, and commercial/hotel sectors, with industrial projects achieving annual energy savings of 100 tons of standard coal or more, and non-industrial projects achieving annual energy savings of 50 tons of standard coal or more. Industrial energy-saving renovation projects will receive a reward of 500 yuan per ton of standard coal saved, with the reward amount for a single project not exceeding 30% of the project investment and not exceeding 5 million yuan. Non-industrial energy-saving renovation projects in construction, transportation, and commercial/hotel sectors will receive a reward of 20% of the equipment and technology investment, with the reward amount for a single project not exceeding 5 million yuan.
 
5. Energy-saving renovation projects of industrial enterprises (excluding thermal power plants and power companies) in Heilongjiang Province that meet the reward conditions will be awarded a reward of 1 million yuan to the enterprise.
 
6. Energy-saving renovation of industrial enterprises in Inner Mongolia, the first (set) of autonomous region-level technical equipment and the first (batch) of key components and new materials will be compensated with insurance (80% of the premium). Energy-saving technology renovation projects will be given a one-time reward of 150 yuan/ton of standard coal based on the energy saving achieved after the project is completed, with a maximum of 5 million yuan per project.
 
II. Actively support the exploration of new energy applications
 
While supporting pollution control efforts, local governments are also actively supporting the exploration of new energy applications to promote green development. In July 2020, the National Green Development Fund was established, focusing on green development along the Yangtze River Economic Belt, with key support for environmental protection and pollution prevention, ecological restoration and land greening, and energy conservation. The initial fundraising reached 88.5 billion yuan, of which 10 billion yuan came from the central government, with other contributors including 11 provinces and municipalities along the Yangtze River Economic Belt, some financial institutions, and related industry enterprises.
 
Shanghai's first batch of special funds for energy conservation and emission reduction in 2021 has been allocated, totaling RMB 395,614,099.51. The funds will support six areas: replacement and scrapping of old vehicles, renovation of combined sewer systems, subsidies for charging new energy vehicles, subsidies for environmental retrofitting of ships, development of renewable energy and new energy sources, and biodiesel production from waste cooking oil.
 
Shandong Province has proposed a renewable energy doubling plan, aiming to reach an installed capacity of over 52 million kilowatts of new energy and renewable energy power generation by the end of 2021, accounting for over 32% of the total installed power capacity, with an investment of over 30 billion yuan completed within the year. Beijing's energy conservation and environmental protection expenditure in 2020 reached 14.2 billion yuan, including support for the operation of new energy vehicles for public transportation and the promotion and application of pure electric taxis, thus promoting the green and low-carbon development of the transportation industry. Chongqing Municipality also allocates a portion of its energy conservation and environmental protection expenditures to guide the promotion and application of new energy vehicles, support the development of renewable energy, and accelerate the development of green industries.
 
In the 2021 list of candidate projects for special funds for energy conservation and resource recycling in Henan Province, 34 projects, including the Henan Provincial Department of Ecology and Environment's comprehensive energy conservation and carbon reduction renovation project, were selected, with a proposed allocation of 75.27 million yuan in fiscal funds. This year, Henan Province will accelerate the development of emerging energy industries such as wind power and photovoltaics, promote the use of environmentally friendly and energy-saving equipment and products, support the development of green buildings and prefabricated buildings, and improve the level of green development; it will also continue to support the promotion and application of new energy vehicles and the construction of charging facilities to promote the development of the energy conservation and environmental protection industry.
 
III. Support carbon emission reduction and carbon peaking
 
As a key task this year, various regions are accelerating their efforts to achieve carbon peaking and carbon neutrality, naturally requiring substantial financial investment. In 2021, many provincial-level fiscal budgets explicitly allocated funds for carbon emission reduction. Guangdong Province specifically mentioned actively addressing climate change in its 2021 fiscal budget, allocating 4.2 billion yuan to support green circular development, energy conservation, and reducing carbon emission intensity. In 2021, Liaoning Province vigorously developed its ecological economy, established a clean energy fund, promoted the green and clean transformation of key industries and important sectors, cultivated and expanded new energy industries such as hydrogen energy, accelerated the promotion of new energy vehicles, promoted the clean, low-carbon, safe, and efficient use of energy, and supported the action to achieve carbon emission peaking.
 
Hebei Province has allocated 12.46 billion yuan (plus an additional 300 million yuan from newly issued general bonds, totaling 12.76 billion yuan) to further implement its sustainable development strategy and continuously improve environmental quality. Of this, 7.44 billion yuan will be invested in air pollution control, primarily for rural clean heating, subsidies for reducing coking capacity, and the promotion and application of new energy vehicles.
 
IV. Focusing on key areas to advance ecological civilization construction
 
This year, the central government will continue to ensure that funding is commensurate with the tasks of pollution prevention and control, and vigorously promote green development. This is also clearly reflected in the local government budgets. In 2021, Jiangsu Province plans to allocate 156.3 billion yuan in expenditures (including provincial-level expenditures and special transfer payments to cities and counties), an increase of 2.8% over the previous year's budget; among the major items, energy conservation and environmental protection expenditures increased by 10.3%, a significant increase. Specifically, 1.84 billion yuan has been allocated for ecological and environmental protection, 2 billion yuan for water environment management in the Taihu Lake Basin, and 1.5 billion yuan for transfer payments to key ecological function zones, to support pollution prevention and control and ecological and environmental protection efforts.
 
In 2021, Hubei Province continued to increase its financial support for ecological civilization construction, raising 5.6 billion yuan to strengthen the protection and management of key ecological function zones and promote the improvement of the watershed ecological compensation mechanism; it allocated 300 million yuan to continuously promote air pollution prevention and control and support soil pollution control and remediation; and it coordinated 950 million yuan to support the construction of urban and rural domestic waste treatment facilities and sewage treatment infrastructure.
 
Chongqing Municipality has also pledged 1 billion yuan to participate in the establishment of the National Green Development Fund, promoting increased investment in pollution prevention and ecological restoration from financial and social sources. Beyond the provincial level, many cities have also increased their financial support for ecological civilization construction. Xiamen City in Fujian Province will allocate 4.8 billion yuan this year to further promote the construction of the National Ecological Civilization Pilot Zone, continue to address issues raised in ecological and environmental protection inspections and marine inspections, fight the battle against pollution, promote the coordinated control of PM2.5 and ozone, and accelerate the construction of projects such as the first phase of the Gaoqi Sewage Treatment Plant and the third phase of the Eastern Waste Incineration Power Plant, adding 250,000 tons of daily sewage treatment capacity and 1,500 tons of daily waste incineration capacity.
 
Ningbo City in Zhejiang Province plans to allocate 3.679 billion yuan this year for energy conservation and environmental protection, an increase of 7.5%, mainly to support ecological and environmental protection work. This ample financial investment demonstrates the determination of various regions to improve the quality of the ecological environment and provides strong financial support for effectively protecting the environment and winning the battle against pollution.