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Notice of Tianjin Municipal Bureau of Finance on issuing the Implementation Opinions on Financial Support for Carbon Peak Carbon Neutrality in Tianjin

Tianjin financial support to do a good job of carbon peak carbon neutral implementation opinions

In order to fully implement the major strategic decisions and plans of the CPC Central Committee and The State Council on carbon peaking and carbon neutrality and the work requirements of the CPC Municipal Committee and the Municipal government, According to the relevant tasks and arrangements of the Ministry of Finance, such as Notice on Issuing Opinions on Financial Support for the Work of Carbon Peak Neutrality (No. 2022) and Notice of Tianjin Municipal People’s Government on Issuing Implementation Plan of Carbon Peak in Tianjin (No. 18, 2022), The following suggestions are put forward for the implementation of our city’s financial support for carbon peak carbon neutrality.

First, general requirements

(1) Guiding ideology

Carbon neutrality is included in the overall layout of ecological civilization construction and overall economic and social development. Adhere to the coordinated promotion of carbon reduction, pollution reduction, green expansion and growth, accelerate the establishment and improvement of a financial policy system that promotes efficient resource utilization and green and low-carbon development, give full play to the foundation and important pillar role of finance, guide and drive more policy resources to support green and low-carbon development, promote better integration of a promising government and an effective market, and support the city to achieve the goal of carbon peak and carbon neutral as scheduled.

(2) Working principles

Based on the present, take a long-term view. Focusing on the city’s target of carbon peaking and carbon neutrality as scheduled, strengthen the connection between financial support policies and the city’s “14th Five-Year Plan” and the 2035 vision goal, seize the key period and window period of the “14th Five-Year Plan” carbon peaking work, implement active fiscal policies to improve efficiency, pay more attention to the requirements of precision and sustainability, and establish and improve the policy system of financial support for carbon peaking and carbon neutrality.

Focus on key areas and make coordinated progress. We should take into account the basis and reality of peaking carbon neutrality, adhere to the concept of a system, advance the work in a steady and orderly way, and implement policies based on classification. We will strengthen overall coordination of financial resources, put existing funds to good use, and ensure that funding is commensurate with our tasks. We will promote coordinated efforts in funding, taxation, and government procurement policies and make fiscal policy more effective.

Result-oriented, reward the good and punish the bad. Strengthen budget constraints and performance management, municipal finance to promote the relevant work outstanding achievements of the district to reward support; For those districts that are not active in promoting relevant work or whose results are not obvious, appropriate deduction of relevant transfer payment funds should be made to form an incentive and restraint mechanism.

Government guidance and diversified input. We will make full use of reform policies in energy and related fields, ensure funding in key areas and key links, improve market-based and diversified investment mechanisms, integrate government funds with private capital, guide market players in green transformation, and speed up the formation of a green, low-carbon and circular economic development system.

(3) Main objectives

By 2025, a fiscal policy framework conducive to green and low-carbon development has been initially established to strongly support all districts and industries in accelerating green and low-carbon transformation. By 2030, a fiscal policy system conducive to green and low-carbon development will be basically in place, a long-term mechanism for promoting green and low-carbon development will be gradually established, and the goal of achieving the carbon peak will be achieved smoothly. Before 2060, the policy system of financial support for green and low-carbon development will be mature and complete, and the goal of carbon neutrality will be successfully realized in our city.

Second, supporting key directions and areas

1. Supporting the building of a clean, low-carbon, safe and efficient energy system. On the premise of ensuring energy security, we will continue to do a good job in coal control and promote clean and efficient use of coal. In an orderly manner, we will replace self-owned coal-fired power units with fuel and shut them down, and support the energy conservation and flexible upgrading of existing coal-fired power units. We will implement tax breaks and other incentives for renewable energy, and promote the construction of wind, solar and other renewable energy projects. We will support the development of biomass energy in light of local conditions and encourage the comprehensive utilization of biomass energy in various forms. We will support geothermal exploration, development, utilization and protection projects, and encourage areas with good resource conditions to intensify development and utilization, so as to supplement or replace existing resources. We will support the development of the hydrogen energy industry. We will promote the construction of a new type of power system and optimize the allocation of clean power resources. We will promote the application of new types of energy storage, actively develop “renewable energy plus energy storage”, integration of charge and storage in source networks and multi-energy complementarization, support the rational allocation of energy storage in new energy sources, and encourage the development of centralized and shared energy storage.

2. Supporting green transformation and upgrading of industrial sectors We will strive to build a national demonstration zone for high-quality development of the manufacturing industry. We will support the development of key industrial chains, strengthen chain reinforcing chains, and build an industrial chain that is independent, controllable, safe, efficient, green, and low-carbon. We will promote the integrated development of digital, intelligent and green industries, and explore a new model of “Internet Plus” green manufacturing. We will comprehensively promote energy-saving technology upgrading in energy-intensive industries, support major energy-saving technological upgrading projects, and improve energy efficiency in key industries and enterprises. We will promote synergies in reducing pollution and carbon emissions, and continue to carry out comprehensive treatment of coal-fired boilers and industrial furnaces.

3. Supporting green and low-carbon transition in urban and rural development Combined with the characteristics of our city, continue to promote the construction of sponge city. We will support the upgrading of existing urban residential buildings and rural housing to conserve energy, improve the energy efficiency of public buildings, and support the upgrading of old residential communities. We will support clean heating in winter and choose suitable heating methods according to local conditions.

4. Supporting green and low-carbon development of transport We will develop a green comprehensive transport system. We will support the development of a green port in Tianjin. We will accelerate the construction of railway lines in Jincheng and Bincheng, and steadily promote the construction of urban (suburban) railways. We will support the upgrading and upgrading of transport infrastructure, transport hubs and stations. Orderly progress will be made in the construction of charging piles, supporting power grids, refueling (gas) stations, hydrogen refueling stations and other infrastructure. We will promote energy – and clean-energy transport equipment, and increase the proportion of new energy vehicles in urban public transport, taxis, logistics, sanitation and cleaning.

5. Supporting green and low-carbon technological innovation and basic capacity building. We will innovate the way projects are organized and support efforts to tackle key low-carbon, zero-carbon and carbon-negative core technologies. We will encourage enterprises to take the lead or participate in green technology R&D projects supported by government funds and green technology innovation projects with clear market orientation. Using the national and Tianjin Science and Technology Plan projects, support universities, research institutes and science and technology enterprises to develop renewable energy hydrogen production, hydrogen smelting, zero-carbon industrial process reengineering, carbon dioxide capture, utilization and storage and other key core technologies. We will support capacity-building in adapting to climate change and improve our capacity for disaster prevention, mitigation and relief.

6. Supporting green and low-carbon living and conserving resources. We will carry out intensive efforts to create conservation-oriented institutions and green series. We will improve the waste material recycling network, build a three-level recycling system of “trading points, transfer stations and sorting centers”, and promote the “Internet + recycling” model. We will strengthen the management of household garbage classification and accelerate the establishment of a household garbage collection, transportation and disposal system covering the whole society. We will orderly carry out nationwide construction of “waste-free cities”. We will intensify efforts to turn livestock and poultry waste into resources, and optimize policies to support the comprehensive utilization of straw and the recycling and utilization of farmland residue. We will promote pilot projects to develop green farming and recycling agriculture.

7. Supporting consolidation and improvement of carbon sink capacity We will implement the requirements for establishing a system of protected natural areas with national parks as the mainstay, and support efforts to stabilize and enhance the capacity of forests, wetlands, oceans, soils and other ecological carbon sinks. We will scientifically promote afforestation and improve forest quality and stability. We will carry forward the “871” major ecological improvement project, comprehensively strengthen the protection and restoration of wetlands, deepen the construction of a green ecological barrier area between the two cities, and strengthen the protection and restoration of coastal beaches, shorelines and bays. We will coordinate urban ecological restoration and build a belt of ecological parks around the city. We will continue to support the protection and improvement of cultivated land, and implement the policy of subsidizing agricultural machinery for deep loosening and land preparation.

8. Supporting the improvement of the green and low-carbon market system. We will give full play to the role of trading markets for carbon emission rights, energy use rights and emission rights, and guide the optimization of industrial distribution. In accordance with the unified arrangements of the state, we will explore the trading of energy use rights. Actively connect with the national carbon emission trading market, deepen the municipal carbon emission trading pilot construction. We will prudently carry out trials for paid use and trading of emission rights. According to the unified requirements of the state, establish and standardize the city’s carbon emission statistical accounting system. To support the industries and enterprises in the city to carry out research on carbon emission accounting methodology according to their own characteristics, and establish a sound carbon emission measurement system.

Third, fiscal policy measures

1. Strengthening the guiding role of government funding To implement the “double carbon” work plan of the municipal Party Committee and the municipal government, strengthen the overall coordination of financial resources, actively strive for the support of central funds, increase the efforts of local fund raising, optimize the structure of financial expenditure, focus on key areas of fund allocation, strengthen the guarantee of key industries and fields, and improve the precision of financial policies. We will implement the reform plan for the division of fiscal powers and expenditure responsibilities at the municipal and district levels in the areas of ecological environment and natural resources. For fiscal powers with a wide range of benefits, municipal finance will give incentives and support to those districts that have made outstanding achievements in promoting the “dual carbon” initiative and have played a leading role in the allocation of transfer payments from the city to the district in accordance with the degree of spilover of fiscal powers.

2. Improving the market-based and diversified input mechanism. Actively strive for the support of the National low-carbon transformation Fund. Give full play to the guiding role of Tianjin Haihe Industry Fund and other existing government investment funds in our city. Encourage social capital to set up a green and low-carbon industry investment fund in our city in a market-oriented way, leverage more social capital to invest in green and low-carbon development fields, and promote industrial transformation and upgrading, quality and efficiency improvement in our city. We will encourage eligible projects for green and low-carbon development, ecological protection and restoration, and ecological carbon sinks to actively apply for special bonds. All departments shall, according to the division of responsibilities, standardize the performance of signed PPP projects.

3. Giving play to the role of tax policies in encouraging and constraining. We will implement tax policies on environmental protection tax, resource tax, consumption tax, vehicle and ship tax, vehicle purchase tax, value-added tax, and corporate income tax. We will implement preferential tax policies for environmental protection, energy and water conservation, comprehensive utilization of resources, new and clean energy vehicles and vessels, and contracted energy management, and make better use of the role of taxation in promoting green and low-carbon development of market entities.

4. Increasing government green procurement We will strengthen the main responsibility of purchasers, strictly implement the new mechanism for government procurement of energy saving and environmental protection products, implement the requirements of compulsory procurement and preferential procurement policies, and encourage purchasers to put forward higher requirements for energy saving and environmental protection in their procurement needs, promote the spread and application of energy saving and environmental protection products, and increase their market share in government procurement. In principle, official vehicles such as confidential communications vehicles should be purchased from new energy sources, giving priority to leasing services for new energy vehicles.

Iv. Safeguard measures

1. Strengthening the implementation of responsibilities Financial departments at all levels should earnestly raise their political position, attach great importance to the work related to carbon peaking and carbon neutrality, divide relevant requirements according to the financial powers and expenditure responsibilities at the municipal and district levels, improve the working mechanism, clarify the division of responsibilities, consolidate responsibilities at various levels, coordinate and urge the implementation of key work, and promote the realization of the target of carbon peaking and carbon neutrality as scheduled. The financial department of each district shall, in light of the actual situation of the district, be responsible for the work of financial support for carbon peak carbon neutrality within its own administrative region, and make good efforts to implement the policies of the central government and the municipal level.

2. Strengthen coordination and cooperation. We will establish and improve a mechanism for promoting the work of financial departments in coordination with each other and in horizontal interaction with other departments. Financial departments at all levels should speed up the review of existing policies, clarify investment channels for carbon peaking and carbon neutrality, and include tasks related to carbon peaking and carbon neutrality in the scope of support. We should strengthen coordination with the departments of development and reform, science and technology, industry and information technology, planning, natural resources, ecological environment, housing, urban and rural development, transportation, urban management, agriculture and rural affairs, meteorology, government offices and other departments, fully mobilize the enthusiasm of all aspects of their work, and form joint efforts.

3. Strict budgetary management The implementation of proactive fiscal policies should be more effective, pay more attention to the requirements of precision and sustainability, and continuously improve the efficiency of fiscal resource allocation and the efficiency of the use of carbon-neutral funds. We will promote the performance management of budget funds to cover all areas in support of carbon peaking and carbon neutrality, and form a whole-process budget performance management chain that includes prior assessment, goal setting, implementation monitoring, post-evaluation and results application. We will conduct prior performance evaluation for major new policies and projects involving carbon peaking and carbon neutrality, and set clear, accurate and measurable performance targets. Strengthen the “double monitoring” of project performance targets and budget implementation progress, and harden the constraints of budget performance management. We will improve the incentive and restraint mechanisms that link budget arrangements and performance results in support of carbon-neutral work to make the use of funds and policy formulation more scientific, precise, and effective. We will ensure that capital input is consistent with policy objectives and work tasks, and strengthen supervision and evaluation of the completion of target tasks.

(4) Strengthen learning publicity. Financial cadres at all levels should focus on high-quality financial construction and consciously strengthen the study and research of policies and basic knowledge related to carbon peak carbon neutrality. Financial departments at all levels should take the content of carbon peaking carbon neutrality as an important part of the education and training system for financial cadres, so as to enhance the ability of financial cadres to achieve carbon peaking carbon neutrality. Further strengthen the investigation and research, enhance the understanding of the work of carbon peaking carbon neutrality within the administrative region, increase the financial support to do a good job in the publicity and science popularization of carbon peaking carbon neutrality, encourage districts and units where conditions permit, build science popularization bases of carbon peaking carbon neutrality theme, use various news media and position platforms to carry out publicity, and promote the concept of ecological civilization to be more popular among people. Promoting green and low-carbon development.

Source: Website of Tianjin Municipal Finance Bureau cz.t.j.gov.cn