Review of Renewable Energy Subsidy System in China

Abstract

In the context of the ‘carbon peaking and carbon neutrality goals’, renewable energy, with its clean and low-carbon characteristics, has become one of the key driving forces for sustainable development in China. However, the inherent disadvantages of the renewable energy industry, such as high initial investment costs, technical difficulties, and slow returns on investment, make it difficult to compete with traditional fossil energy sources in the market economy at the initial stage of its establishment. Therefore, after considering the environmental and ecological value, economic value, and industrial growth dilemma brought by the development of renewable energy industry, subsidies as a governmental incentive measure were created to support the development and growth of the renewable energy industry. At present, there are many problems with China’s renewable energy subsidy policy in practice, such as fragmented institutional policies, lack of procedural regulations, and lagging subsidy funds. The excellent legislative practice experience of foreign countries can be borrowed by China to make up for the corresponding loopholes and, on the basis of fully examining the specific conditions of China, to promote the progressive reform of China’s renewable energy subsidy system; form a trinity system of law, general strategy, and specific policies; strengthen collaboration; and enhance its scientific level. At the same time, China can actively broaden the sources of subsidy funds, explore diversified financing methods, further standardize the subsidy procedures, strengthen the supervision in implementation, and enhance the efficiency of the utilization of funds, so as to enhance the legalization of the subsidy system.