Focus on Arts and Ecology

The big environmental stories in the Chinese media this week (29 June-5 July)

More than 80% of subsidy funds supposedly earmarked for renewable energy projects have been directed to unconventional gas projects such as shale gas and coalbed methane, a report published by China Energy News has revealed. The article notes a 20 June notice from the Ministry of Finance which makes clear that such projects are eligible for funds from the Renewable Energy Development Fund.

“Renewable energy companies have repeatedly aired their grievances about the situation”, writes the journalist.

An unnamed source at the Ministry of Finance told China Energy News that the fund, initiated in 2015, categorises unconventional gas sources as “new energy” which are therefore eligible for funding support. Ministry statistics show that in 2018 nearly 5 billion yuan (about US$700 million) – more than 80% of the fund – went to support coal methane and shale gas extraction projects. 

Zhu Qingzhong, vice general manager of PetroChina Huabei Oilfield Company, told reporters that the subsidies are especially important to the coal methane industry, which is expensive and in need of new technological breakthroughs in order to sustain itself. Another industry insider told China Energy News that the unconventional gas companies factor the annual subsidies into their annual profit estimates.

Read more about China’s shale gas ambitions on chinadialogue here.