Shanghai is piloting “Haze Fees” on automobile industry

On 16 December, Shanghai Municipal Development and Reform Commission, Shanghai Municipal Finance Bureau, and Shanghai Municipal Environmental Protection Bureau introduced Implementing measures for charging VOCs pollution discharge fees in Shanghai Municipality (Trial) (short for Implementing Measures). Shanghai will start charging VOCs pollution discharge fees over three periods with different charging standards.

According to relevant responsible person of Shanghai Municipal Environmental Protection Bureau, VOCsare the material base for the form of haze and PM2.5, the discharge of which into air and the subsequent photochemical reaction will result a secondary pollution. “Currently, VOCs accounts for the largest percentage of air pollution.” The pilot sectors of charging VOCspollution discharge fees include 71 sub-sectors belonging to 12 sectors including Petrochemical, Shipbuilding, Automobile Manufacturing, Package Printing, Furniture Manufacturing, Electronics and other industries, mainly covering the prior VOCs discharging industries in the city.

According to Shanghai Municipal Environmental Protection Bureau, the charging standards of VOCs pollution discharge fees will gradually be improved to cover the costs of curbing the pollution. The first phrase starts from 1 October 2015 with the charging fees of 10 RMB/Kg. The second phrase starts from 1 July 2016 with the charging fees of 15 RMB/Kg, and the third phrase starts from 1 January 2017 with the charging fees of 20 RMB/Kg.

In the meantime, those companies which has followed the requirements of above Implementing Measures and completed the pollution treatment, the emission concentration of which is no large than 50% of bound range and which has not been punished by environmental protection authorities in the year, will be charged 50% fees of charging standards. In contrast, companies which has not completed treatment, or which treatment facilities has abnormal operation, or has excessive VOCs pollution discharges, will be charged 200% of charging standards.

Differentiated fees will be charged towards relevant enterprises, technic, facilities and products under elimination or restriction by the state or municipality, among which eliminated enterprises will be charged 2 times fees and restricted enterprises will be charged 1.5 times fees.

Shanghai Municipal Environmental Protection Bureau indicated that, it’s predicted the total discharge of industrial VOCs pollution in the city will be minimized by over 50% till the end of 2017. The use of pollution discharge fees will strictly follow two lines of income and payment, with all charged discharge fees turned over to state treasury,brought into general public budget management and used mainly on environmental pollution prevention and curbing under relevant state stipulations.