context: The National Development and Reform Commission issued 'Management measures for central budgetary investment in energy conservation and carbon reduction special projects' on 14 October 2025. The measures coordinate and direct the allocation of central budget funds for energy conservation and carbon reduction. Superseding the 2024 version, the measures are effective immediately for a period of five years.
Central budget investment in energy conservation and carbon reduction focuses on directions including
- energy conservation and carbon reduction in key industries
- clean substitutes for coal
- circular economy initiatives that support carbon reduction
- low-, zero- and negative-carbon demo projects
- capacity building for carbon peaking and carbon neutrality
The low-, zero and negative carbon demo projects direction involves hydrogen energy through supporting
- demonstration of advanced green low-carbon tech
- projects such as energy supply facilities, infrastructure upgrades and process transformation to achieve carbon neutrality in zero-carbon industrial parks and transport corridors
- production projects for green methanol and sustainable aviation fuel
- large carbon capture, utilisation and storage project construction
Regarding funding standards
- for key industrial energy conservation and carbon reduction, circular economy and low-carbon demo projects, the central government will provide support equal to 20 percent of the total investment
- for local government carbon peaking and neutrality capacity building projects, central government support ratios are
- 60 percent for projects in eastern regions
- 70 percent for projects in central regions
- 80 percent for projects in western regions
- 80 percent for projects in northeast regions
- projects involving central and state agencies will, in principle, be fully funded
Central budget investment under this program must be used for newly planned or ongoing projects that have completed preliminary procedures and meet construction prerequisites. It must not be used for those already completed or in trial operation.