August 29, 2008

China studying launch of environmental tax

According to China State Environmental Protection Administration, Chinese government is considering launching an environmental tax this year in order to encourage the efficient use of energy and stem the growth of greenhouse gas emissions.

Mr Zhou Shengxian a SEPA director in a statement said that the government will raise emissions charges and garbage disposal fees this year. He said that power producers above a certain size are required to complete the installation of desulphurization facilities this year.

In June, SEPA and the National Development and Reform Commission also announced that power firms with coal-fired plants must install desulphurization facilities in building new generators or upgrading existing ones. The two agencies said the move will help the country achieve its 10% emissions reduction target under the 11th Five Year Program.