¥20.4 Billion Allocated to Support Pollution Reduction and Carbon Mitigation Efforts

The Chinese Ministry of Finance recently issued the "Notice on the Early Allocation of the 2025 Air Pollution Prevention and Control Fund Budget," specifying that ¥20.4 billion has been allocated in advance for 2025 to support initiatives related to pollution reduction and carbon mitigation.

Key Objectives for the 2025 Air Pollution Prevention Fund (First Batch)

The overarching goals for the 2025 funding include:

• Supporting winter clean heating in northern China, deep industrial pollution treatment, and capacity-building efforts.
• Promoting continuous reduction of major pollutants and improving nationwide air quality.

Rural Clean Heating Subsidies to Prioritize Low-Income Groups

The Notice requires:

• Relevant provinces to accelerate the disbursement of winter heating funds for northern regions, coordinating with local governments to ensure safe and steady implementation.
• For rural clean heating programs:
  • Provinces with high operational subsidy demands may use factor-based block grants to allocate funds for subsidies, ensuring residents stay warm in winter.
  • Provinces with existing subsidy policies must distribute funds on time and in compliance with regulations.
  • Provinces planning to introduce or refine subsidy policies must consider:
    • Local operational realities
    • Rural residents' income levels
    • Fiscal sustainability
    • Preferential support for low-income households

Strict Budget Performance Management

The Notice emphasizes:

• Comprehensive performance-based budget management, including:
  • Refining performance targets.
  • Accurately completing the "Air Pollution Prevention Fund Regional Performance Target Submission Form."
  • Strengthening performance monitoring and evaluation to ensure safe and effective use of funds.

Performance Targets for Air Pollution Prevention Funds

The "Overall Performance Targets for Air Pollution Prevention Funds" include three key indicators:

1. Output Indicators

• Quantitative:
  • 100% compliance with PM2.5 reduction targets in funded provinces (autonomous regions/municipalities).
• Quality:
  • ≥80% pass rate in comprehensive performance evaluations for northern winter clean heating projects.
• Timeliness:
  • ≥80% project initiation rate.

2. Benefit Indicators

• Ecological Benefits:
  • Achieve national 2025 PM2.5 concentration targets.
  • Meet 2025 national NOx (nitrogen oxides) and VOC (Volatile Organic Compounds) reduction goals.
• Economic Benefits:
  • Leverage ≥¥30 billion in local and private sector investments.

3. Satisfaction Indicators

• Public satisfaction rate ≥90%.