By Wang Yu (China Daily)
Updated: 2007-09-05 09:04

A wind power plant is generating electricity in Xinjiang in August. China plans to spend two trillion yuan in the next decade to develop renewable energy and cut emissions. [newsphoto]

The country plans to spend around one-tenth of its 2006 GDP in the next decade or so to develop renewable energy and cut greenhouse gas emissions, the top economic planner revealed yesterday.

"Overall, around 2 trillion yuan (US$265 billion) of investment is needed to meet the renewable energy target by 2020," the National Development and Reform Commission (NDRC) said in a statement.

Chen Deming, vice-minister of NDRC, reiterated China's medium- and long-term target to boost the renewable energy sector.

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NDRC plans to raise the ratio of renewable energy in total energy consumption to 10 percent by 2010 and 15 percent by 2020, compared to 8 percent now, Chen said.

China generates much less greenhouse gases than developed countries, but treats the issue seriously and spares no effort to cut carbon dioxide emissions by enhancing energy efficiency and developing renewable energy, Chen said.

Setting an explicit target for renewable energy generation is part of the country's commitment to save energy and cut emissions, he added.

"We will adopt measures to guide and encourage the development of renewable energy. We will come up with various taxation and fiscal incentives, including subsidies and tax breaks," Chen said.

The preferential policies will treat all companies, either private or State-owned, equally, Chen promised.

Other measures are also being implemented.

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