The Ministry of Finance will increase support for technological innovation and energy conservation next year

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The Ministry of Finance will increase support for scientific and technological innovation as well as energy conservation and emission reduction next year. Xinhua News Agency, Beijing, December 19 (Reporter Han Jie) – Minister of Finance Xie Xuren said on the 19th that in the first 11 months of 2007, central and local governments spent 117.393 billion yuan on science and technology, a 33% increase compared with the same period last year. On this basis, fiscal support for technological innovation will continue to increase next year. 　　Xie Xuren said at the National Financial Work Conference held here that, in order to promote scientific and technological innovation, the Ministry of Finance will establish a mechanism for steady growth in financial investment in science and technology, implement preferential fiscal and tax policies to support the construction of **laboratories and key laboratories, foster close collaboration among industry, academia, and research institutions, and ensure the smooth implementation of major scientific and technological projects. Promote the development of regional science and technology innovation systems, and foster the revitalization of China’s major equipment manufacturing industry. Actively carry out pilot programs for venture capital investment and improve the policies regarding venture capital guidance funds. Expand the scope of support provided by the special funds for the development of small and medium-sized enterprises. 　　Next year, the finance sector will increase investment in energy conservation and emission reduction. By adopting measures such as incentives in place of subsidies and mandatory procurement policies, support is provided for the development of ten key energy-saving projects, sewage pipeline networks in the central and western regions, and pollution reduction and control systems, with a view to accelerating the establishment of new mechanisms to promote energy conservation and emission reduction. A mechanism for phasing out outdated production capacity should be established; areas that have the necessary resources should allocate funds to support the elimination of such capacity, while the central government should provide appropriate subsidies and incentives to economically underdeveloped regions. Increase investment in the management of key river basins such as the “Three Rivers and Three Lakes” as well as the Songhua River. 　　Xie Xuren said that the finance sector will also improve the fiscal and tax policies to encourage energy conservation and emission reduction. A policy of periodic reductions or exemptions from corporate income tax is implemented for eligible energy-saving and environmental protection projects as well as investments in specialized equipment. Tax credits for value-added tax are provided for investments in energy-saving and emission-reduction equipment. Improve the tax and fee incentives for the comprehensive utilization of waste materials and resources. Improve fiscal and tax policies to support the development of new and renewable energy. Comprehensively advance the reform of the system for the paid use of mineral resources, gradually establish and improve an ecological compensation mechanism for resource exploitation, and carry out pilot projects for pollutant emission rights trading in the Taihu Lake basin. Implement **actions to address climate change.