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these funds’ capital are mainly the donation by naturalized persons,
legal persons or other organizations at home and abroad, governmental
funding and value increase of the funds themselves. According to
estimates by China Charity and Donation Information Center, the total
donation in kind and currency accepted by China within its homeland
and abroad amounted to about RMB 84.5 billion in 2011, with
4.62 per cent of the donation streaming into the eco-environment field.8
However, enterprises are the key force in the philanthropy of China,
with private enterprises making the greatest contribution. The China
Green Foundation enjoyed total revenue of RMB 324 million in 2011,
with RMB 315 million coming in the form of grants.9
Some countries give tax advantages (income tax) to enterprises or
individuals for their grants made to low carbon growth in their area.
From the donators’ point of view, to spend part of their income in the
form of donation, enables them to pay less income tax and therefore
spend less in comparison with the circumstance where they do not
donate (that is to say, their spending when they do not donate would
be greater than the sum of the income tax and the grant when they
donate). We recommend that China gives 100 per cent or even a higher
rate of tax advantage to individuals or enterprises who give grants
to the low carbon growth area, in an effort to fuel the enthusiasm of
donation in the private sector.
2.4.2 Carbon Financial Instruments10
International Carbon Market
At present, the CDM market is the main mode and source through
which we have access to capital in the international carbon market.
The international carbon market used to play a very active role
in promoting flow of social capital into low carbon projects.
However, affected by the recent international economic situation
and adjustments of the CDM mechanism, the international carbon
market is very sluggish. After 2012—as an alternative for the CDM
mechanism has not yet been determined—the financial flows in the
8 Beijing News,‘Giving China 2011: Per Capita Donation in China Stands
at Only 62.7 Yuan’, June 2012. Available at http://news.anhuinews.com/
system/2012/06/29/005050344.shtml
9 China Green Foundation, 2011 and 2012 Audit Report. Available at http://
www.cgf.org.cn/jiandu/
10 Section 4.2 is mainly based on information from websites of major carbon
exchanges, such as Lanhong, carbon finance and business innovation, 2012;
TuYongqian, Carbon Finance Laws Recreation, extracted from 3rd edition, 2012
106 Low Carbon Development in China and India
legal persons or other organizations at home and abroad, governmental
funding and value increase of the funds themselves. According to
estimates by China Charity and Donation Information Center, the total
donation in kind and currency accepted by China within its homeland
and abroad amounted to about RMB 84.5 billion in 2011, with
4.62 per cent of the donation streaming into the eco-environment field.8
However, enterprises are the key force in the philanthropy of China,
with private enterprises making the greatest contribution. The China
Green Foundation enjoyed total revenue of RMB 324 million in 2011,
with RMB 315 million coming in the form of grants.9
Some countries give tax advantages (income tax) to enterprises or
individuals for their grants made to low carbon growth in their area.
From the donators’ point of view, to spend part of their income in the
form of donation, enables them to pay less income tax and therefore
spend less in comparison with the circumstance where they do not
donate (that is to say, their spending when they do not donate would
be greater than the sum of the income tax and the grant when they
donate). We recommend that China gives 100 per cent or even a higher
rate of tax advantage to individuals or enterprises who give grants
to the low carbon growth area, in an effort to fuel the enthusiasm of
donation in the private sector.
2.4.2 Carbon Financial Instruments10
International Carbon Market
At present, the CDM market is the main mode and source through
which we have access to capital in the international carbon market.
The international carbon market used to play a very active role
in promoting flow of social capital into low carbon projects.
However, affected by the recent international economic situation
and adjustments of the CDM mechanism, the international carbon
market is very sluggish. After 2012—as an alternative for the CDM
mechanism has not yet been determined—the financial flows in the
8 Beijing News,‘Giving China 2011: Per Capita Donation in China Stands
at Only 62.7 Yuan’, June 2012. Available at http://news.anhuinews.com/
system/2012/06/29/005050344.shtml
9 China Green Foundation, 2011 and 2012 Audit Report. Available at http://
www.cgf.org.cn/jiandu/
10 Section 4.2 is mainly based on information from websites of major carbon
exchanges, such as Lanhong, carbon finance and business innovation, 2012;
TuYongqian, Carbon Finance Laws Recreation, extracted from 3rd edition, 2012
106 Low Carbon Development in China and India
