These Measures are formulated according to the relevant state laws and administrative regulations, the Notice of the State Council on Printing and Distributing the Plans Regarding the Restructuring of the Power Industry(No.5 [2002] of the State Council) and the Notice of the General Office of the State Council on Printing and Distributing the Plans Regarding the Power Price Reform (No.62 [2003] of the General Office of the State Council) for the purpose of perfecting the mechanisms of grid power price setting and promoting the restructuring of the power industry.

To promote the development of energy-saving and new-energy automotive industry, in accordance with the provision in Article 4 of the "Law of the People's Republic of China on Vehicle and Vessel Tax" and in Article 10 of the "Regulation on the Implementation of the Vehicle and Vessel Tax Law of the People's Republic of China", upon approval by the State Council, the catalogue of the first group of energy-saving and new-energy vehicles entitled to vehicle and vessel tax reduction and exemption is hereby announced as follows. As of January 1, 2012, the vehicle and vessel tax shall be reduced by half for energy-saving vehicles; the vehicle and vessel tax shall be exempt for new-energy vehicles.

To promote the development and utilization of renewable energy, the Ministry of Finance, the National Development and Reform Commission and the National Energy Administration have jointly formulated the Interim Measures for the Administration of the Collection and Use of the Renewable Energy Development Fund in accordance with the relevant provisions of the Renewable Energy Law of the People's Republic of China.

To regulate and strengthen the administration of the Sino-EU SME (small and medium enterprise) Energy Conservation and Emission Reduction Scientific Research Collaboration Fund, and improve the efficient use of the Fund, the Ministry of Finance and the Ministry of Science and Technology formulated the Interim Administrative Measures for the Sino-EU SME Energy Conservation and Emission Reduction Scientific Research Collaboration Fund.

To accelerate the promotion of advanced energy conservation technologies, improve the efficiency of energy utilization, and realize the binding target of reducing energy consumption per unit of GDP by 16% during the “12th Five-Year Plan” period, and in accordance with the Energy Conservation Law and the Outline of the 12th Five-Year Plan for National Economic and Social Development, the Central Treasury shall, by means of “replacing subsidies with rewards,” continue to arrange special funds to provide appropriate support and rewards for enterprises to carry out energy conservation technology retrofits. To strengthen the administration of financial funds and improve the efficiency of fund utilization, we have formulated the Administrative Measures for the Financial Incentive Funds for Energy Conservation Technology Retrofits for your compliance and implementation.

To further regulate conduct regarding prices for electricity trading, maintain normal order in market trading, and promote the optimized allocation of electric power resources, the relevant issues are notified to The development and reform commissions, economic and trade commissions (economic commissions) and price bureaus of all provinces, autonomous regions and municipalities directly under the Central Government; all regional electricity regulatory bureaus, and all urban electricity regulatory offices; State Grid Corporation of China; China Southern Power Grid Co., Ltd.; Inner Mongolia Electric Power Corporation; China Huaneng Group; China Datang Corporation; China Huadian Corporation; China Guodian Corporation; and China Power Investment Corporation.

The "Measures for the Administration of Energy Efficiency Labels" were published in order to strengthen the administration of energy conservation, propel the progress of energy conservation technologies, and improve energy efficiency. The said measures have been formulated in accordance with the "Law of the People's Republic of China on Energy Conservation", the "Product Quality Law of the People's Republic of China" and the "Regulation of the People's Republic of China on Certification and Accreditation".

To enhance the development and utilization of renewable energy, and according to the Renewable Energy Law of the People's Republic of China, the National Development and Reform Commission (NDRC) has formulated the Trial Measures for the Management of Prices and Allocation of Costs for Electricity Generated from Renewable Energy. Scope of the measures includes: wind power, biomass power (direct combustion from agricultural and forestry wastes, gasification power generation, waste incineration and landfill gas and biogas), solar power, ocean power generation and geothermal power generation.

To promote energy conservation in state-funded institutions, improve their energy efficiency and give play to their model role in the energy conservation of the whole country, this Regulation is formulated in accordance with the Energy Conservation Law of the People's Republic of China. The term “state-funded institution” as mentioned in this Regulation refers to the state organs, public institutions and incorporations which are all or partly funded by the state treasury.

The automobile industry is a major pillar industry for the national economy, and plays an important role in the national economy and social development. Along with the sustained and rapid growth of the Chinese economy and accelerated promotion of urbanization in China, the demand for automobiles will still keep growing in a relatively long period of time, and the resulting energy shortage and environmental pollution issues will become more conspicuous. To accelerate the fostering and development of energy-saving and new energy automobiles is not only an imperative task for effectively easing pressure on both energy and environment and promoting sustainable development of the automobile industry, but is also a strategic approach for accelerating the systemic transformation and upgrading of the automobile industry and fostering new economic growth points and advantages in international competition. To implement the State Council's decisions and arrangements for the development of strategic emerging industries and strengthening energy conservation and emission reduction and accelerate the fostering and development of the energy-saving and new energy automobile industry, this Planning has been formulated for the period of 2012-2020.