Six ministries jointly issued a document, bringing further benefits to industrial and commercial photovoltaics

Recently, six ministries and commissions including the National Development and Reform Commission issued the "Implementation Opinions on Creating a Better Development Environment to Support the Healthy Development of Private Energy-Saving and Environmental Protection Enterprises", which clearly advocates actively promoting energy performance contracting and third-party environmental pollution control. At the same time, bidding activities must not set restrictive regulations that affect the access of private enterprises, must not set enterprise size thresholds unrelated to energy-saving and environmental protection business capabilities, and must not set achievements thresholds that significantly exceed project needs.

Actively support private enterprises in participating in the battle to prevent and control air, water, and soil pollution, and guide private enterprises to participate in the green and circular transformation of industrial parks and the demonstration of clean production in key industries.

Vigorously develop green financing. Actively develop green credit, strengthen communication of information on major national energy-saving and environmental protection projects, and actively increase financing support for eligible projects.

This document is equivalent to encouraging industrial and commercial enterprises and large industrial parks to use photovoltaic power generation to achieve energy saving, environmental protection, and energy performance contracting. Currently, calculated over the past 10 years, the cost of photovoltaic power generation is less than 0.4 yuan per kilowatt-hour, which is much lower than the industrial and commercial electricity price. Installing photovoltaic power stations can generate green electricity and save electricity costs, achieving energy saving and environmental protection, which is a win-win situation.

The original text of the policy is as follows:

Development and Reform Commissions, Science and Technology Departments (Commissions), Industry and Information Technology Commissions (Departments), Ecological Environment Departments, Banking and Insurance Regulatory Bureaus, and the All-China Federation of Industry and Commerce of all provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps:

Private energy-saving and environmental protection enterprises are an important force in winning the battle to prevent and control pollution, playing an important role in protecting the ecological environment and building a beautiful China. In order to implement the "Opinions of the Central Committee of the Communist Party of China and the State Council on Creating a Better Development Environment to Support the Reform and Development of Private Enterprises", to coordinate the work of epidemic prevention and control and economic and social development, we are now further optimizing the market business environment in the field of energy conservation and environmental protection, ensuring that private enterprises participate in competition fairly and justly, and promoting the healthy development of private energy-saving and environmental protection enterprises, the following opinions are put forward:

I. Creating a Fair and Open Market Environment

(1) Further opening up the market in key industries. In key industries and fields such as petroleum, chemicals, electricity, and natural gas, further introduce market competition mechanisms, open up competitive businesses in energy conservation and environmental protection, and actively promote energy performance contracting and third-party environmental pollution control. When promoting the construction of environmental infrastructure such as sewage and garbage, third-party environmental pollution control in parks, collection, treatment, and disposal of medical waste and hazardous waste, and the construction of comprehensive utilization bases for large-scale solid waste, all localities must be fully open and treat private energy-saving and environmental protection enterprises equally, ensuring equal rights, equal opportunities, and equal rules. Encourage state-owned enterprises and private energy-saving and environmental protection enterprises to establish mixed-ownership companies, giving play to their respective advantages and cooperating to carry out related businesses.

(2) Continuously improving the bidding mechanism. Advocate for the principle of quality-first bidding, encourage appropriately increasing the weight of technical bidding, and strictly prevent vicious low-price competition. Bidding activities must not set restrictive regulations that affect the access of private enterprises, must not set enterprise size thresholds unrelated to energy-saving and environmental protection business capabilities, and must not set achievements thresholds that significantly exceed project needs. Local governments must not use the signing of strategic cooperation agreements to obtain competitive advantages for specific enterprises in bidding; must not set industry access and qualification standards linked to the nature of enterprises.

(3) Actively fulfilling commitments to enterprises. Local governments must keep their promises and actively fulfill policy commitments made in accordance with the law, and must not blindly promise preferential conditions to enterprises. Continue to deepen the work of clearing up arrears owed to private enterprises, establish work ledgers, and through situation consultations, problem handling, supervision and inspection, and follow-up assessments, settle accounts item by item and ensure that no new arrears are added. Further promote local governments and large state-owned enterprises to fulfill contracts legally concluded with private energy-saving and environmental protection enterprises, and strictly pay accounts in accordance with contract agreements, and must not violate the wishes of private enterprises or extend payment periods in the form of acceptance bills beyond the agreed payment method.

(4) Supporting participation in projects to make up for shortcomings and strengthen weaknesses. Local governments should actively support private energy-saving and environmental protection enterprises in participating in the construction of projects such as medical waste treatment and disposal, sewage and garbage treatment, etc., in response to shortcomings and weaknesses in environmental infrastructure exposed during the COVID-19 epidemic response, in order to provide strong support for normalized epidemic prevention and control.

II. Improving Stable and Inclusive Industrial Support Policies

(5) Encouraging participation in major energy-saving and environmental protection projects. Actively support private enterprises in participating in the battle to prevent and control air, water, and soil pollution, and guide private enterprises to participate in the construction of environmental infrastructure such as sewage and garbage, the collection, treatment and disposal of hazardous waste, the treatment of black and odorous water bodies in urban and rural areas, the green and circular transformation of industrial parks, the demonstration of clean production in key industries, the desalination and comprehensive utilization of seawater (brackish water), the resource utilization of sewage, as well as major ecological and environmental protection projects such as pollution control projects in the Yangtze River Economic Belt tailing ponds and chemical industrial parks. At all levels, development and reform departments should treat enterprises of all ownership types equally and fairly in the application and review of central budgetary investment in ecological civilization construction projects, local government special bonds, and special national bonds, and must not illegally restrict private enterprises from applying and must not add additional requirements.

(6) Implementing current preferential tax policies. Implement preferential tax policies for enterprise income tax, resource comprehensive utilization enterprise income tax and value-added tax, energy-saving and water-saving and environmental protection special equipment enterprise income tax, as well as energy performance contracting and third-party pollution control. Continue to implement convenient preferential tax processing methods in accordance with regulations, and facilitate access to tax benefits for enterprises.

(7) Increasing support for green finance. Encourage financial institutions to incorporate environmental, social, and governance requirements into their business processes, improve the level of green financial professional services for private energy-saving and environmental protection enterprises, and vigorously develop green financing. Actively develop green credit, strengthen communication of information on major national energy-saving and environmental protection projects, and actively increase financing support for eligible projects. Support eligible private energy-saving and environmental protection enterprises to issue green bonds, unify domestic green bond definition standards, and publish a green bond support project catalog consistent with the "Green Industry Guidance Catalog (2019 Edition)". Broaden the ways to increase credit for the energy-saving and environmental protection industry, and actively explore incorporating energy rights, carbon emission rights, emission rights, future income rights of energy performance contracting, and franchise fees into the scope of financing pledge guarantees. Private energy-saving and environmental protection enterprises should adhere to the principle of prudent operation and strictly prevent the blind increase in leverage. For problems with the capital chain of private energy-saving and environmental protection enterprises, relevant local departments, under the premise of compliance with laws and regulations, should build communication platforms to promote the active participation of asset management companies, investment funds, and state-owned capital in assisting private energy-saving and environmental protection enterprises, and reasonably resolve stock pledge risks. Local governments should, in accordance with the principles of law and compliance, actively provide assistance to private enterprises with core advanced technologies and good long-term development prospects but encountering temporary operational difficulties, and help them overcome difficulties.

III. Promoting Improvement of Enterprise Operating Levels

(8) Enhancing green technological innovation capabilities. Increase support for green technological innovation by private enterprises, and support private enterprises to independently or jointly undertake green technology R&D projects supported by major national science and technology projects and national key R&D plans. In mixed-ownership reforms, if the reward and remuneration methods and amounts are not specified or agreed upon with researchers, for the inventors or R&D teams of enterprises that transform the results of their green technological innovation through technology transfer, licensing or investment, rewards and remuneration will be given in accordance with the relevant provisions of the "Law of the People's Republic of China on Promoting the Transformation of Scientific and Technological Achievements". Give play to the role of the national science and technology achievement transformation guidance fund, select a batch of key environmental protection technology innovation achievements of private enterprises to support transformation and application, and guide various angel investments, venture capital funds, and local venture capital funds to support key technological innovation and transformation of private energy-saving and environmental protection enterprises. Support private energy-saving and environmental protection enterprises to lead or participate in the construction of national technology innovation centers in the field of green technology.

(9) Promoting innovation in business models. Encourage private energy-saving and environmental protection enterprises to further innovate contract energy management service models. According to the characteristics of energy users, adopt new business models such as energy management, guaranteed energy saving, and financing leasing, and expand service content from the provision of single equipment to process-based energy-saving transformation and regional energy efficiency improvement. Focusing on enterprises and parks in industries such as steel, metallurgy, building materials, electroplating, chemicals, and dyeing, support private enterprises in carrying out third-party environmental pollution governance. Actively implement the pay-for-performance mechanism, be guided by the effectiveness of environmental governance, and promote the improvement of environmental protection enterprise service levels. Actively support private enterprises in carrying out comprehensive environmental governance management services and participating in the innovation of eco-environmental-oriented development models.

(10) Urging enterprises to operate in compliance with laws and regulations. Relevant departments should urge private enterprises in the energy-saving and environmental protection field to vigorously promote the excellent entrepreneurial spirit of observing laws and disciplines, focusing on quality, pursuing excellence, being honest and trustworthy, fulfilling responsibilities, daring to take responsibility, and serving society, building a solid foundation for operating in compliance with laws and regulations, and promoting enterprises to improve internal incentive and restraint mechanisms, daring to undertake urgent, difficult, dangerous, and heavy tasks such as epidemic prevention and control and disaster relief, actively fulfilling social responsibilities, and enhancing the social image of enterprises. For illegal and irregular problems of energy-saving and environmental protection enterprises, legal liabilities shall be investigated in accordance with the law.

IV. Establishing a Smooth Information Communication and Feedback Mechanism

(11) Strengthening information communication. Relevant departments should adopt various forms to understand the needs of private energy-saving and environmental protection enterprises, smooth the channels for enterprise opinions and appeals, listen to the opinions of relevant stakeholders when major policies are introduced, and leave a reasonable buffer period for policy implementation and standard adjustments, and avoid abrupt brakes. Give full play to the role of industry associations and chambers of commerce, support relevant social organizations to strengthen industry self-discipline, promote information communication, reflect the demands of enterprises, and study major policies. Relevant departments such as development and reform at all levels should strengthen communication and contact with industry associations, chambers of commerce and enterprises, timely understand the potential problems of the energy-saving and environmental protection industry, and build a close and clear relationship between government and business.

(12) Creating a positive public opinion atmosphere. All localities should strengthen the publicity of energy-saving and environmental protection industry policies, comprehensively publicize the national policies on price, finance and taxation, investment, and industry supporting the development of the energy-saving and environmental protection industry, help enterprises fully understand, use, and make full use of policies, and boost the confidence of private energy-saving and environmental protection enterprises. Strengthen public opinion guidance, actively publicize the advanced technologies, advanced deeds, and advanced figures of private energy-saving and environmental protection enterprises, treat private enterprises and entrepreneurs equally in various selection and commendation activities, and create a good atmosphere for the development of private energy-saving and environmental protection enterprises.

Development and Reform departments at all levels should, together with relevant departments, promptly analyze and assess the development status of the energy-saving and environmental protection industry in their respective regions, summarize and study solutions to the problems encountered in the development, and help enterprises solve practical difficulties. Good information reporting should be done, and new situations and problems should be reported in a timely manner.

National Development and Reform Commission

Ministry of Science and Technology

Ministry of Industry and Information Technology

Ministry of Ecology and Environment

China Banking and Insurance Regulatory Commission

All-China Federation of Industry and Commerce

Relevant responsible comrades of the Department of Environmental and Resource Conservation, National Development and Reform Commission, Q&A on "Opinions on Creating a Better Development Environment to Support the Healthy Development of Private Energy-Saving and Environmental Protection Enterprises"

On May 21, 2020, six departments including the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the China Banking and Insurance Regulatory Commission, and the All-China Federation of Industry and Commerce jointly issued the "Opinions on Creating a Better Development Environment to Support the Healthy Development of Private Energy-Saving and Environmental Protection Enterprises" (hereinafter referred to as the "Opinions"). Recently, relevant responsible comrades of the Department of Environmental and Resource Conservation of the National Development and Reform Commission answered reporters' questions on the "Opinions".

Q: Could you briefly introduce the background of the issuance of the "Opinions"?

A: The Central Committee of the Communist Party of China and the State Council have always attached great importance to the reform and development of private enterprises. In November 2018, General Secretary Xi Jinping presided over a symposium on private enterprises and delivered an important speech, pointing out that we should continuously create a better development environment for the private economy, help the private economy solve the difficulties in its development, and support the reform and development of private enterprises. In December 2019, the Central Committee of the Communist Party of China and the State Council issued the "Opinions on Creating a Better Development Environment to Support the Reform and Development of Private Enterprises", which made deployments and arrangements for various tasks. The Central Economic Work Conference further called for optimizing the development environment for the private economy.

Private energy-saving and environmental protection enterprises are an important force in winning the battle against pollution prevention and control and play an important role in protecting the ecological environment and building a beautiful China. In recent years, with the strong support of national policies such as vigorously promoting ecological civilization construction and resolutely winning the battle against pollution prevention and control, the scale of the energy-saving and environmental protection industry has continued to expand, technological progress has accelerated significantly, and business models have continued to innovate, showing a generally good development momentum. At the same time, with the changes in the market environment, many new situations and problems have emerged in the energy-saving and environmental protection industry, especially reflecting that private energy-saving and environmental protection enterprises have many problems in market environment, supporting policies, operating levels, and information acquisition.

Therefore, the National Development and Reform Commission, together with relevant departments, issued the "Opinions", aiming to further optimize the business environment of the energy-saving and environmental protection industry, ensure that private enterprises participate in competition fairly and justly, and provide a solid guarantee for winning the battle against pollution prevention and control and coordinating the prevention and control of epidemics and economic and social development.

Q: Could you introduce the main content of the "Opinions"?

A: We adhere to a problem-oriented approach. Through Questionnaires, field research, and symposiums, we have learned in detail about the relevant situations reflected by relevant localities, enterprises, and industry associations, and conducted in-depth research on key issues, putting forward twelve policy measures. The main contents are:

Part 1 is to create a fair and open market environment. Firstly, further open up competitive businesses in key industries and fields of energy conservation and environmental protection to ensure equal rights, equal opportunities, and equal rules for all types of enterprises. Secondly, improve the bidding and tendering mechanism, not set restrictive provisions that affect the entry of private enterprises, and strictly prevent vicious price competition. Thirdly, fulfill all commitments to enterprises, continue to advance the work of clearing arrears owed to private enterprises, and promote local governments and large state-owned enterprises to fulfill contracts legally concluded with private energy-saving and environmental protection enterprises. Fourthly, support participation in the construction of projects to make up for shortcomings and strengthen weaknesses. It is required that localities actively support private energy-saving and environmental protection enterprises in participating in the construction of medical waste treatment and disposal, sewage and garbage treatment, and other projects to provide strong support for normalized epidemic prevention and control.

Part 2 is to improve stable and inclusive industrial support policies. Firstly, support private enterprises in participating in the construction of major energy-saving and environmental protection projects, treating enterprises of various ownership systems equally. Secondly, implement existing tax preferential policies well, continue to implement convenient tax preferential treatment procedures in accordance with regulations, and facilitate enterprises to enjoy tax preferential treatment. Thirdly, increase the support of green finance, actively develop green credit, support qualified private energy-saving and environmental protection enterprises to issue green bonds, and broaden the ways to enhance creditworthiness in the energy-saving and environmental protection industry.

Part 3 is to promote the improvement of enterprise management level. Firstly, improve green technological innovation capabilities, support private enterprises in undertaking national major scientific and technological projects, national key research and development plan supported green technology research and development projects and the construction of national technology innovation centers in the field of green technology, and guide relevant funds to support the key technological innovation and transformation of private energy-saving and environmental protection enterprises. Secondly, promote innovation in business models, encourage enterprises to innovate contract energy management service models, and support private enterprises in carrying out third-party environmental pollution governance in key industries and parks. Thirdly, urge enterprises to operate in compliance with laws and regulations and actively fulfill their social responsibilities.

The fourth part is to establish a smooth mechanism for information communication and feedback. First, strengthen information communication, requiring relevant departments to actively understand the needs of private energy-saving and environmental protection enterprises, and to solicit opinions from relevant stakeholders when major policies are introduced. Second, create a good public opinion atmosphere, requiring all localities to strengthen the publicity of policies on price, finance and taxation, investment, and industry that support the development of the energy-saving and environmental protection industry, treat private enterprises and entrepreneurs equally in various selection and commendation activities, and boost the confidence of private energy-saving and environmental protection enterprises.

Q: How will the "Implementation Opinions" ensure implementation?

A: Creating a better development environment and supporting the reform and development of private enterprises is an important decision and deployment made by the Central Committee of the CPC and the State Council. We must earnestly implement it, combining the work of coordinating the prevention and control of the epidemic and economic and social development, and focus on the following three aspects to ensure the implementation of the "Implementation Opinions." First, strengthen organization and coordination. The National Development and Reform Commission will, together with the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the China Banking and Insurance Regulatory Commission, and the All-China Federation of Industry and Commerce, do a good job in organization, leadership, and work coordination, promptly resolving problems encountered in the implementation of the "Implementation Opinions," and guiding all localities to support and guide the healthy development of private energy-saving and environmental protection enterprises. Second, fully implement responsibilities. Most of the enterprises in the energy-saving and environmental protection industry are small and micro-enterprises, which have been greatly impacted by the COVID-19 epidemic. All localities must, on the basis of grasping normalized epidemic prevention and control, earnestly implement the "Implementation Opinions," combine their own realities, formulate specific measures to promote the implementation of policies, break down tasks, implement work responsibilities, and effectively help private energy-saving and environmental protection enterprises overcome difficulties and achieve stable development. Third, strengthen analysis and judgment. Development and Reform departments at all levels should, together with relevant departments, strengthen statistical monitoring of the private economy, promptly analyze the development status of the energy-saving and environmental protection industry in their respective regions, study and resolve problems that arise during development, help enterprises solve practical difficulties, and do a good job in information reporting.