The draft amendment to China's renewable energy law which has just been reviewed by the Standing Committee of the National People's Congress of China reveals that China will set up a fund for renewable energy development soon.

It is reported that the fund will be financed by the country's central finance department and the additional income of renewable energy power.

Wang Guangtao, the director of the Environment and Resource Protection Commission of NPC, said that the establishment of the renewable energy development fund is an important economic control mechanism and it has been suggested by various levels of the NPC and by the State Council.

Wang stated that problems have come out with the rapid development of the renewable energy, such as a lack of scientific oversight of objectives and the reconciliation of national and local plans. He commented that China's Renewable Energy Law, which was passed in 2005, has not only become an important guarantee for China's renewable energy development, it has also been well spoken of by the international community.

The draft states that full amount guaranteed will be allocated to renewable energy projects.