Government funds green purchases

China will provide financial subsidies of 26.5 billion yuan ($4.2 billion) to stimulate the consumption of energy-saving products, mainly automobiles and household appliances, said the State Council.

The green measure also aims to expand domestic demand in a bid to provide stable growth for the world's second-largest economy. The subsidy will be available for household appliances including air conditioners, refrigerators and washing machines for one year.

Among the subsidies, 6 billion yuan will be used to promote the consumption of energy-saving vehicles with engine capacities of 1.6 liters or less, and 2.2 billion yuan is going to subsidize the use of energy-conserving light bulbs and LEDs.

Moreover, 1.6 billion yuan will be allocated to efficient electric motors.

China said in its 12th Five-Year Plan (2011-15) that it would slash domestic energy consumption per unit of GDP by 16 percent, and carbon dioxide emission per unit of GDP by 17 percent, from 2010 levels, by 2015.

lifangfang@chinadaily.com.cn