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expenditure sectors related to local low carbon economic development 2.2
in Table 2.4. As shown in Table 2.4, most of the expenditure in low
carbon sectors in China is borne by local governments; the expenditure
of which in low carbon economic sectors such as urban and rural
community affairs, energy conservation and environmental protection,
transportation, agriculture, forestry and water affairs, and land and
meteorological services, takes up almost the majority of the combined
expenditure of the central and local governments on related industries.
To provide extra financial source and improve the existing fund use
and management mode, fund use efficiency will be the key to ensuring
financial support of local governments to the development of low
carbon economy.
Different areas have different economic structures and development
phases; their capacity to finance and pay also varies. Figures 2.5 and
2.6 show that the per capita expenditure in low carbon sectors of local
governments in China can be distinguished by their geographical
characteristics and development types—measured against the per
capita GDP—to some extent. For instance, municipalities directly
under the central government such as Beijing, Shanghai, and Tianjin
are economically developed, and have higher per capita GDP, and
thus a higher capacity to pay for low carbon development. Qinghai,
Tibet, and Ningxia have a smaller per capita GDP, but the per capita
expenditure in low carbon sectors in these areas is high due to the small
population. Compared with these areas, the per capita expenditure in
low carbon sectors in other areas is between 1,500 Yuan/person and
2,500 Yuan/person. Among them, the per capita expenditure in low
carbon sectors in Xinjiang, Chongqing, Hainan, Liaoning, Jiangsu,
Shaanxi, Jilin, Heilongjiang, Gansu, Shanxi, and Guizhou is above the
national average of 2,090 Yuan/person, while that in Yunnan, Zhejiang,
Fujian, Sichuan, Hunan, Guangdong, Guangxi, Anhui, Hubei, Jiangxi,
Shandong, Hebei, and Henan is below the national average level, with
the lowest level in Henan (1,184 Yuan/person).
We conclude that the local governments in China are facing
financing pressures and challenges with regard to low carbon
development. With the comprehensive deepening of low carbon
development, infrastructure construction and renovation, and the
completion of major objectives of energy conservation and emission
reduction, the need for financial support in all aspects will be increasing.
Local governments which have smaller per capita investment in low
carbon sectors will face more low carbon financing pressure. Providing
feasible short-term and medium- and long-term financing instruments
Chapter 2 Innovative Financing for Low Carbon Development 83
in Table 2.4. As shown in Table 2.4, most of the expenditure in low
carbon sectors in China is borne by local governments; the expenditure
of which in low carbon economic sectors such as urban and rural
community affairs, energy conservation and environmental protection,
transportation, agriculture, forestry and water affairs, and land and
meteorological services, takes up almost the majority of the combined
expenditure of the central and local governments on related industries.
To provide extra financial source and improve the existing fund use
and management mode, fund use efficiency will be the key to ensuring
financial support of local governments to the development of low
carbon economy.
Different areas have different economic structures and development
phases; their capacity to finance and pay also varies. Figures 2.5 and
2.6 show that the per capita expenditure in low carbon sectors of local
governments in China can be distinguished by their geographical
characteristics and development types—measured against the per
capita GDP—to some extent. For instance, municipalities directly
under the central government such as Beijing, Shanghai, and Tianjin
are economically developed, and have higher per capita GDP, and
thus a higher capacity to pay for low carbon development. Qinghai,
Tibet, and Ningxia have a smaller per capita GDP, but the per capita
expenditure in low carbon sectors in these areas is high due to the small
population. Compared with these areas, the per capita expenditure in
low carbon sectors in other areas is between 1,500 Yuan/person and
2,500 Yuan/person. Among them, the per capita expenditure in low
carbon sectors in Xinjiang, Chongqing, Hainan, Liaoning, Jiangsu,
Shaanxi, Jilin, Heilongjiang, Gansu, Shanxi, and Guizhou is above the
national average of 2,090 Yuan/person, while that in Yunnan, Zhejiang,
Fujian, Sichuan, Hunan, Guangdong, Guangxi, Anhui, Hubei, Jiangxi,
Shandong, Hebei, and Henan is below the national average level, with
the lowest level in Henan (1,184 Yuan/person).
We conclude that the local governments in China are facing
financing pressures and challenges with regard to low carbon
development. With the comprehensive deepening of low carbon
development, infrastructure construction and renovation, and the
completion of major objectives of energy conservation and emission
reduction, the need for financial support in all aspects will be increasing.
Local governments which have smaller per capita investment in low
carbon sectors will face more low carbon financing pressure. Providing
feasible short-term and medium- and long-term financing instruments
Chapter 2 Innovative Financing for Low Carbon Development 83
