Energy & Resources Talking Points | 28/03/2018

In Todays Talking Points: Changes to Tax-Exempt Status for Non-profit organisations; China launches its first oil futures market; IRENA agrees to deliver low-carbon 2022 Winter Olympics; China to improve standardisation in the Electric Vehicle Industry.

IRENA agrees to deliver low-carbon 2022 Winter Olympics

 Beijing and Zhangjiakou – hosts for the 2022 Winter Olympics game have agreed with the People’s Government of Hebei Province to provide Zhangjiakou with a renewable energy plan to generate 50% of its power from renewable sources by 2020. Air quality concerns were first raised for the 2008 Olympic games in Beijing. The agreement requires “low-carbon” zones in Zhangjiakou and for the Olympic facilities to draw on renewable energy. The region in Zhangjiakou is said to have major renewable energy potential with an abundance of wind, solar and biomass.

Read More: Energy Business Review

China to improve standardization in the Electric Vehicle industry in order to battle pollution

As demand for electric vehicles (EV) increases, the need for Lithium – the key component in EV batteries, is also expected to increase. However the challenge of standardizing electric cars has also increased. The government is focusing its efforts on battery design and fuel efficiency. The standardization of EV’s is expected to facilitate the creation of more cost-efficient and safe recycling facilities.

Read More: Investing News

Changes to Applying for Tax Exempt Status as a Non-profit organisation in China

The Chinese Ministry of Finance and the State Administration of Taxation recently made an announcement concerning the application for tax exempt status as a non-profit organisation in China. In this announcement, they clarified key concerns about the tax-exempt status of NPOs, amending the qualification standards previously set out. The Ministry of Finance issued eight requirements that must be met to be eligible for tax-exempt status, and clarified the required documentation needed when applying for this status. The new notice does not relate to foreign NGOs, unless setting up a domestic non-profit organisation.

Read More: China Briefing.

China launches its first oil futures market denominated in RMB

On Monday 26th March, China launched the long anticipated, RMB denominated oil futures market, signalling further efforts to increase domestic pricing power. In 2017, China surpassed the US to become the largest crude oil importer and since this eclipse it has been expected that China would launch its own market for oil futures. This market is the first Chinese future product that can be traded by foreign entities without a presence in China, signalling Beijing’s efforts to promote the internationalisation of the RMB and increased financial openness. At least 10 foreign companies have registered to trade the future, including behemoths such as JPMorgan, Bands Financial and Straits Financial Services.
Read More: Financial Times