BEIJING, Apr 04, 2006 -- AsiaPulse

 

China will establish special funds for the development of the renewable energy industry in line with the country's renewable energy law which went into effect on January 1 this year.

According to the law, financial institutions are permitted to grant preferential loans to renewable energy development projects which are listed in the government's guidance catalogue for the development of renewable energy sector.

The government will also grant tax preference to these projects.

Industry insiders indicate that the government should further improve the investment system for the development of renewable energy.

They said that the government should take active measures to introduce non-governmental capital in the development of the sector, establish renewable energy investment funds and risk investment funds, encourage the renewable energy industry to go public and tap international financing channels including foreign direct investment.

(XIC)

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