Shanxi advisors submit proposal on energy supply, compensation mechanism


Updated: 2024-03-08

Shanxi province's members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) recently submitted a joint proposal to the CPPCC National Committee. 

These national political advisers suggested establishing a national energy supply and compensation mechanism. 

Shanxi, together with other major coal-producing provinces, has effectively fulfilled the national task of increasing coal production in order to ensure energy supply and stable economic and social development. However, maintaining this coal supply has posed significant challenges for these resource-based provinces in terms of resource renewal, ecological restoration in mining areas, and sustainable development. 

The proposal submitted by CPPCC National Committee members from Shanxi suggested establishing a mechanism for central fiscal transfer payments to energy supplying provinces. It also suggested increasing transfer payments and coal supply incentives, as well as setting up a national energy security guarantee fund to improve the financial support system for the energy sector.

The proposal also outlined the establishment of an inter-regional interest linkage mechanism for areas that supply energy and areas in need of it. This will gradually form a diversified, large-scale, and modern coal production and sales cooperation pattern. 

Additionally, the proposal recommended increasing support for major new energy projects in Shanxi, such as energy internet pilot projects, as well as enhancing support for the restoration and management of Shanxi's mines.