China to subsidise energy-efficient light bulbs

China, the world's largest light bulb manufacturer, has this week unveiled an extensive subsidy program to boost sales of energy-efficient bulbs.

According to Reuters reports, the Ministry of Finance plans to introduce 50m low-energy bulbs in the first stage of the plan as it attempts to phase traditional incandescent lighting out of the market.

The Ministry touted the environmental benefits of the scheme, claiming that if everyone in China used energy-efficient lighting, the country could reduce its CO2 emissions by 60m tons.

The subsidies are set to ensure energy-efficient light bulbs are sold at a large discount to consumers, while companies will be reimbursed by the government for the shortfall. Under the plan consumers will see current prices for energy-efficient bulbs cut in half, while businesses will pay just under a third of the existing price.

The Ministry said that the move represented the first time the country has used financial subsidies to bolster demand for energy-saving products, adding that government procurement officials would also give preference to the most efficient bulbs.

The first batch of subsidised bulbs will be manufactured by 13 named companies including the Zhejiang Sunshine Group, said the Ministry of Finance.

In related news, China plans to build the first zero-emission coal-burning power plant by 2015.

Su Webin, president of energy company GreenGen, which is involved in the project and controlled by state-owned power firm Huaneng Group, told Reuters the proposed 400MW would enable China to use its huge coal reserves while still delivering cuts in emissions.