Red Star News:

The 2023 fiscal budget report shows the central government has allocated 33 billion yuan for air pollution control, emphasizing support for clean heating in northern regions during winter. Could you please provide an update on the progress of the initiative? Given rising heating costs, how can we ensure the long-term and stable operation of the initiative? What are the specific plans for the next steps? Thank you.

Liu Bingjiang:

The clean heating initiative has been underway for many years. The issue of phasing-out dispersed coal use for heating in rural households, in particular, is truly groundbreaking, involving many challenging issues. It's a topic that comes up every year. From its initial conception to its current scale of implementation, the project has transformed 37 million rural households as of the end of last year. This year, an additional 2 million households are expected to be added, reaching a total of over 39 million households. Such a large-scale project is unprecedented worldwide; it's not just an environmental project but also a livelihood improvement initiative. Currently, 88 cities have been included in the central government's financial support for clean heating, with the central fiscal budget increasing annually, reaching 33 billion yuan this year. The funds allocated for clean heating amount to half of the total, totaling 100.88 billion yuan. This initiative has achieved significant results in the revolution of energy consumption: reducing coal consumption by over 70 million tons, cutting carbon dioxide emissions by more than 100 million tons, and enabling people to bid farewell to coal heating. The way rural areas consume energy has fundamentally changed.

You mentioned that costs have increased, and stabilizing them is indeed an issue we are currently facing. Our considerations are in several main aspects: First, we will use financial funds every year to subsidize the operation of clean heating in rural areas, with subsidies from the national, provincial and municipal levels. Overall, the cost of electricity and natural gas after subsidies should not, in principle, be higher than the cost of coal. Since 2020, subsidies for clean heating have been included in the funds for air pollution prevention and control. Second, there is the issue of preferential pricing for natural gas and electricity. Urban residents receive national subsidies for gas usage, and now rural clean heating also benefits from subsidies, providing rural areas with more favorable gas prices. However, some places are not currently implementing this very well. There are also peak and off-peak electricity prices, which are well utilized. Energy needs to be stored at night and the heat released during the day, so the price is relatively low. Previously, the off-peak period was quite short, but it has now been extended. Third, there is the issue of guaranteeing the clean energy supply. This is our focus every year, coordinating with relevant departments to ensure the supply of natural gas and electricity. Fourth is supervision and assistance. The MEE inspects newly added clean heating households in rural areas every year, checking whether contracts have been signed and if they are guaranteed. For rural households that have stably adopted clean heating, if we find any issues, we will promptly coordinate and communicate with the local government to resolve them quickly.

The focus of the clean heating work has shifted from increasing the proportion of clean heating on a large scale to consolidating existing resources and adding new ones in an orderly manner. The work we are currently doing and planning to do next includes: First, we will effectively ensure the continuous operation of clean heating, consolidate the achievements of clean heating, continuously improve the long-term mechanisms of clean heating, ensure that there is management of the operations, continuation of support policies, security of heating supply, and prevention of the resurgence of isolated coal burning. Second, we will implement new clean heating transformations in an orderly manner. In areas currently rolling out clean heating, we will orderly advance according to established implementation plans; while in areas not yet being transformed, we will adhere to practical conditions and tailor measures to local circumstances to prudently implement new clean heating transformations. Third, during the transformation process, we will adhere to consistent principles, prioritize keeping people warm in winter, base transformations on gas availability, determine demand based on supply, and ensure a stable energy supply. We will establish new heating facilities before demolishing old ones. We will not remove existing coal heating facilities if the new ones do not yet have safe and stable gas supply conditions or have not undergone a year of practical operational testing. Additionally, we will persist in choosing diversified clean heating methods that are suitable for local conditions to lay a foundation for the sustainable operation of clean heating.

With the joint efforts of all departments, local governments, and all sectors of society, we are confident in continuously carrying out this significant project for the people's well-being and winning the hearts of the public, ensuring that the people's needs for a safe, clean, and warm winter are met in practice. Thank you.