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Policies work together to accelerate energy conservation and emission reduction. 2008 was a crucial year for achieving the energy conservation and emission reduction targets set for the 11th Five-Year Plan period. The Central Economic Work Conference held not long ago proposed that the achievement of energy conservation and emission reduction targets should be used as an important criterion for assessing the effectiveness of economic development. To successfully accomplish the tasks of energy conservation and emission reduction, various departments have worked closely together to introduce a range of credit, fiscal, tax, and trade policies that support these efforts as well as environmental protection; thus, environmental protection and economic development are beginning to be integrated strategically. Stricter credit policies: On January 20, Agricultural Bank of China announced that it would enforce stricter environmental standards for credit approvals, implementing a \"one-vote veto\" system regarding environmental considerations in corporate lending. Previously, the Fujian Provincial Environmental Protection Bureau collaborated with the Fuzhou Branch of the People’s Bank of China to incorporate environmental enforcement information into the People’s Bank’s credit management system, in order to impose greater economic constraints and oversight on enterprises’ environmental violations. Green credit policies are being gradually extended from large state-owned banks to commercial banks, and from certain regions to the whole country. Implementing a \"one-vote veto\" system for corporate credit based on environmental considerations means relying on **industrial policies and energy-saving and emission-reduction policies to strengthen the connection between credit policies for specific industries and those industrial policies, thereby cutting off the funding flow to polluting enterprises. Last July, the People’s Bank of China, the China Banking Regulatory Commission, and the **Ministry of Environmental Protection jointly issued guidelines such as the \"Opinions on Implementing Environmental Protection Policies and Regulations to Prevent Credit Risks,\" which impose credit controls on enterprises and projects that do not comply with industrial policies or environmental regulations. The \"green credit\" mechanism is used to curb the uncontrolled expansion of industries that are highly energy-intensive and polluting. Thanks to favorable fiscal policies, 11 enterprises in Ningxia, including Fengyou Chemical Co., Ltd. and Qingtongxia HuiNeng Thermal Power Generation Co., Ltd., have recently received 85.05 million yuan in funding from the central government for energy-saving technology upgrades. These are the first batch of enterprises in Ningxia to benefit from the **policy of using incentives in place of subsidies**. To achieve the energy conservation and emission reduction targets during the 11th Five-Year Plan period, starting from last August, the central government has implemented a policy of providing incentives in place of subsidies for ten key energy-saving technology upgrade projects; for every ton of standard coal saved, the central government awards enterprises a subsidy of 200 to 250 yuan. In recent years, our country has increased financial investment to promote energy conservation and emission reduction. In 2007, the central government allocated 23.5 billion yuan to support energy conservation and emission reduction. At the same time, local governments are also increasing their support for energy conservation and emission reduction; regions such as Shandong Province have introduced policies to offer substantial rewards to enterprises that excel in these areas. “In 2008, the finance sector will also increase investment in energy conservation and emission reduction. ”Finance Minister Xie Xuren noted that this will be evident in the financial support provided for enterprises’ energy-saving technology upgrade projects. It is reported that in 2007, China awarded incentives to 700 enterprises for their energy-saving technology renovation projects. Efforts will be intensified this year, with an expectation that 130 million tons of standard coal worth of energy savings will be achieved during the 11th Five-Year Plan period. In addition, the central government will also provide appropriate subsidies and incentives to economically underdeveloped areas, and increase investment in the management of key river basins such as the \"Three Rivers and Three Lakes\" as well as the Songhua River. Increase support for the construction of sewage pipelines and pollution reduction supervision systems in the central and western regions. Tax policy adjustments: Xie Xuren also said that this year, tax policies aimed at promoting energy conservation and emission reduction will be further improved and encouraged. A policy of regular reductions or exemptions from corporate income tax is implemented for eligible energy-saving and environmental protection projects as well as investments in specialized equipment; input VAT credits are provided for investments in energy-saving and emission-reduction equipment. Tax incentives for the reuse of waste materials and resources are improved, and fiscal and tax policies to support the development of new and renewable energy sources are enhanced. Imposing an environmental tax will be one of the key tax reforms to be pursued in 2008. It is understood that the specific research and formulation work is carried out jointly by three departments: the Tax Policy Department of the Ministry of Finance, the Local Tax Department of the State Taxation Administration, and the Policy and Regulation Department of the **Environmental Protection Administration. Environmental protection requirements can be addressed either by introducing a separate environmental tax or by reforming and improving certain existing taxes, such as raising the rates on resource taxes and consumption taxes, while also expanding the scope of taxation and changing the methods of calculation. With the advancement of environmental tax reform in China in 2008, it became inevitable for the tax burden related to environmental pollution to increase significantly. At the same time, some new tax categories are being gradually developed. For example, in line with the State Council’s call to restrict the production, sale, and use of plastic bags after June 1, 2008, the finance and tax authorities will promptly formulate tax policies to curb plastic waste pollution, using tax measures to regulate the production, sale, and use of plastic shopping bags. Shift in trade policy: The adjustment of foreign trade policies has also played a positive role in curbing the rapid growth in the export of China’s \"high-energy, high-pollution, and capital-intensive\" goods. The tariffs on some goods are rising, while those on others are falling. In recent years, the Ministry of Commerce, in conjunction with relevant departments, has cancelled export tax rebates for 1,115 products classified as \"high energy-consuming, high pollution-intensive, and capital-intensive\" in 10 batches, and imposed export tariffs on more than 300 goods in 4 batches. As of August 1, 2007, the Ministry of Finance reduced the import tariff on electrolytic aluminum from 5% to 0% on a provisional basis ； Temporary export tariffs of 15% are imposed on aluminum bars that are not made of aluminum alloy. Starting this year, the Ministry of Finance will impose provisional import tariffs on over 600 types of goods, including resources and energy products such as coal and fuel oil. At the same time, export tariffs on products like coal, crude oil, and metal ores will continue to be levied under provisional tariff rates. An export tariff of 15% will be imposed on certain stainless steel products, while an export tariff of up to 25% will be applied to certain steel products. In 2008, import tariffs on alumina, refined copper, and electrolytic aluminum will be eliminated.