China To Improve Pricing Mechanism To Boost Green Development

- Jul 02, 2018-

BEIJING - China will further improve its pricing mechanism to stimulate environmental protection and green development, according to a guideline issued by the National Development and Reform Commission (NDRC) Monday.

China aims to establish a pricing mechanism and pricing policies in favor of green development by 2020. By 2025, the pricing mechanism will be further perfected and fully implemented, said the NDRC.

The pricing mechanism should "fully reflect market supply-demand and scarcity of resources, as well as ecological value and the cost of environmental damage," so as to incorporate ecological costs into economic operation and attract more social capital to the environmental protection sector, said the guideline.

"The new pricing mechanism will focus on prominent environmental issues and let polluters pay the cost," said Yue Xiuhu, head of the NDRC's price department, at a press conference Monday.

China will speed up the establishment of a pricing mechanism that can cover the cost of sewage, sludge and solid waste treatment while bringing profit to these businesses.

The government will build a system to push for garbage sorting, as well as garbage reduction, recycling and environmentally friendly waste treatment, according to the guideline.

For water use, the government aims for a new pricing mechanism that encourages better quality and more conservation to ensure sustainable use of water resources.