Thread by @LHongqiao

NEW - China *cut 1/3* of central govt budget on the environment, making it the 2nd largest item experiencing cuts after transportation. t.ly/F3YA

Relevant govt organs also see significant budget shrinks on the environment, energy, biodiversity & climate.

THREAD

The National Energy Administration (NEA) aims to cut 72.25% of its expenses in 2021 vs. the final count in 2020, largely due to a financial allocation cut.

In particular:
Renewable energy -99.26%
Energy management -46.34%
Science & technology -99.25%

t.ly/eJUB

NEA explains why:

- Donation to intl organization on renewable energy pulled up the expense in 2020

- Reduction on one-off projects and implementation of central govt's order on "tightening up the expenses" lead to budget cut on energy affairs

- Closure of research projects

NEA says it focuses on reducing "non-urgent, non-rigid expenditures" involved in the public fund, as well as *specific fund on energy planning* and *industry management*, while securing expenses required for the safety supervision and energy market supervision.

Same trend in China's National Development and Reform Commission (NDRC):

Renewable energy -44.44%, mainly on research expense on low-carbon fossil fuel subsidies (what is this??)

Circular economy -40.24%, as the State Council says"tighten up"

t.ly/Wb3V

Of course, no exception for the Ministry of Ecology and Environment (MEE) t.ly/odNT

Climate management -70.78%
Foreign aid on climate -42.77%
Environment planning -38%
Nature & ecological protection - 76.29%
Biodiversity - 65.89%
Environment law enforcement -76.13%

In general, energy-saving and environmental protection account for half of MEE's expenditure.

Despite an overall 40% budget cut v 2020, MEE secures the expenses for environment monitoring & nuclear safety.

In particular, it adds a 17.15% budget for additional manpower on EIA.

No surprise with National Forestry and Grassland Administration (NFGA) t.ly/XhQp

Forestry resource management -47.98%
Natural conservation zone -53.95%
National Park -90.93%
Wildlife conservation -67.2%
Sand prevention & treatment 39.95%
Foreign cooperation -50.32%

At the provincial level, it's hard to tell the year-on-year change in government spending and budget, as such information is rarely disclosed. See my previous thread.

https://twitter.com/LHongqiao/status/1372133592449613824?s=20

Economic Times, a state-owned media, says the budgets of the central government & its organs reflect the order of "tightening up (the expenses)" from the Central Committee of the Communist Party of China (CCCPC) and shows the progress of financial reform. t.ly/spjj

With such a striking budget cut, can China manage to fulfill its multiple commitments on the environment, energy, biodiversity, and climate? Does it also mean the govt is moving away from command & control and getting more comfortable with the market tools? The next "new normal"?

Correction: changes in central govt's general public budgets in 2021

Biggest cut: transportation -37.3% > health -33.9% > energy-saving & environment protection -33.6%

Biggest increase: interests on debt +8.3% > defense +6.8% > housing security +3.9%

https://twitter.com/LHongqiao/status/1376284565883469826?s=20

Despite a cut on general public budgets on the environment, the budget allocated for central-level infrastructure funds see an increase:

Pollution treatment, energy-saving, and carbon reduction +3.2%

Ecological protection & recovery in key areas +16.1%

t.ly/qylS

The budget on central-level infrastructure on energy & environment -28.6%.

But more central govt payment transfer on infrastructures of national strategy, incl:

- Belt & Road Initiative +10.5%
- Regional development (Beijing-Tianjin-Hebei, Yangtze River Economic Belt) +45.6%