A recent State Council opinioni (the
"Opinion") offers detailed suggestions
to policy-makers for encouraging the development of China's
coalbed methane (CBM) industry. Although the Opinion does not
contain binding rules, it does list recommendations for future CBM
policies and regulations and may provide valuable insights to CBM
investors as to what may be coming.
Published by the Central Government on September 22, 2013, the
Opinion covers a range of topics, from subsidies to coordination
with coal mine operators. Highlights of these topics are discussed
below.
- Increasing Government Financial Support for the CBM
industry
The State Council recommends increasing government subsidies for
CBM, from the current level of RMB 0.2 per cubic meter, to a level
jointly determined by the MOFii, the NDRCiii
and the NEAiv. The State Council further recommends
additional government support for certain aspects of the industry
to encourage: (i) the reorganization or
