BIOFUELS - AT WHAT COST? Government support for ethanol and biodiesel in China

According to government data commissioned by the GSI, China provided a total of RMB 780 million (US$ 115 million, roughly US$ 0.40 a litre) in biofuel subsidies in 2006. These comprised support for ethanol in the form of direct output-linked subsidies paid to the five licensed producers, as well as tax exemptions and low-interest loans for capital investment. Further support is provided through mandatory consumption of ethanol-blended fuel in ten provinces (a ten per cent blend with gasoline, E10).