New China fund aims to reward emission reductions

China has set up a new fund to reward cities and regions that make good progress on reducing air pollution. Some Rmb 10 billion (£985 million) has been set aside for the fund by the central government. It is hoped that the monetary incentive will help areas of the high-polluting country to comply with environmental standards.

Cities and regions found to have made "significant progress" when it comes to controlling emissions and improving air quality will receive a cut of the funding, according to the state-run news agency Xinhua. The news comes at a time when China's air pollution problems are being played out across the world's media and attempts are being made to cut down on emissions.

The funding is the latest attempt by the country to improve air quality on a national scale, which is particularly important for cities that have spent months out of recent years being shrouded in thick smog made up of particulate pollution. According to the State Council, a key task being taken on by China is now the control of PM2.5 and PM10 pollution and this funding is continuing on from previous efforts.

This latest move suggests that, despite new environmental standards being imposed, cities throughout China have struggled to get companies to comply with regulations that would see emissions reduced. As the country has been focussed on economical and industrial growth for a number of years, it seems that many government officials and companies are reluctant to stem progress for the sake of cutting down on emissions. 

The fund is in addition to other money that has been set aside for the process of improving air quality, including the Rmb 100 billion that has been allocated to a five-year roll-out of emissions monitoring. This will first be made to cover China's cities and then move on to provincial capitals, smaller cities and then, eventually, all country seats.

However, as the main source of industry throughout China is coal-fired plants, it would seem that there is no real fix for the emissions problem unless companies get on board with the environmental regulations that have been imposed.