According to a guideline issued by the Ministry of Finance (MOF) on 23 January 2020, China will promote the steady development of non-hydro renewable energy generation by optimizing subsidy policies.

The guideline states the central government will halt subsidies for new offshore wind power and concentrated solar power (CSP) projects. Since 2012, the central government has allocated more than 450 billion yuan to support the development of renewable energy, driving China's energy transition. However, with the development of the industry, the shortage of financial subsidy funds continues to increase, and the government needs to improve subsidy policies.

Additionally, the MOF said that China will commence a green certificate quota trading scheme from January 1 next year, adopting a market mechanism to boost the income of renewable power generators, expenses of high carbon emitters and step up clean energy consumption.

China has been carrying out voluntary green certificate trade since 2017. Under the new scheme, the government is expected to set a minimum quota on how much green certificate the consumers or thermal-power utilities need to purchase.