By Special Correspondent

China will allocate 122.9 billion yuan in transfer payments in 2026 to support key ecological protection areas as part of efforts to strengthen environmental protection and promote green development, according to the draft central and local budgets submitted to the national legislature.

The report states that the funds will be transferred to key ecosystem service zones to enhance the provision of basic public services in these areas.

In addition to these transfer payments, the central government will allocate 32.3 billion yuan for the prevention and control of air pollution, 25.4 billion yuan for water pollution control and 4.2 billion yuan for soil pollution prevention and treatment.

Authorities will continue supporting programs aimed at improving air quality, protecting rivers and lakes and addressing pollution risks associated with heavy metals.

The report notes that fiscal policy will also support the recycling of waste electrical and electronic equipment and promote the comprehensive utilization and circular development of resources.

China will continue improving trans-regional ecological compensation mechanisms for major river basins, including the Yangtze River and the Yellow River.

The government will also explore compensation mechanisms for other key ecological factors.

Authorities will support the integrated conservation and restoration of ecosystems, including mountains, rivers, forests, farmland, grasslands and deserts.

The report states that ecological restoration programs will continue in abandoned mining areas, while protection and restoration projects will also be implemented for marine, forest and grassland ecosystems.

China will further develop the national park-based system of protected areas and continue implementing large-scale greening programs.

These efforts form part of the ongoing national shelterbelt program being implemented in northwest, north and northeast China.

According to the report, fiscal policies will also support the country’s transition toward green and low-carbon development.

The government will refine green taxation policies and explore environmental protection taxes on volatile organic compounds.

Authorities will also strengthen green government procurement policies to expand purchases of energy-efficient and environmentally friendly products.

The report states that China will accelerate the development of renewable energy and promote the establishment of a new energy system.

Pilot programs aimed at promoting the comprehensive utilization of hydrogen energy will also be launched.

In addition, new pilot projects will address gaps in battery charging and swapping infrastructure at the county level while expanding charging facilities in rural areas to encourage the use of new-energy vehicles.

Credit: INP-WealthPk