ChinaCASE STUDY 3 Background and objectives China has incorporated clean fuels into its broader energy security and industrial competitiveness strategy. The Administrative Measures for the Special Management Measures for Central Budgetary Investment in Energy Conservation and Carbon Reduction (October 2025) aim to standardize and strengthen central funding for carbon reduction initiatives. For the first time, sustainable aviation fuel (SAF) and green methanol are explicitly eligible for national financial support, transitioning from scattered local pilots to a coordinated, multi-mechanism framework designed to mobilize investment and accelerate progress towards China’s dual-carbon goals – to reach absolute peak CO2 emissions before 2030 and to achieve net-zero emissions by 2060. Key policy pillars –China’s nationwide funding framework covers six project categories, including low-, zero- and negative-carbon demonstration projects, such as SAF, green methanol, CCUS and zero-emissions transport corridors. –Central investment may cover up to 20% of approved project costs, with higher ratios (60–80%) for foundational infrastructure depending on region. Mechanisms include direct investment, capital injections and subsidies administered by the National Development and Reform Commission (NDRC) and provincial authorities. –Preferential and provincial finance is also available for clean fuel projects, including: access to concessional loans from policy banks (e.g. China Development Bank, Exim), interest-subsidy programmes, provincial guarantees and green funds, as well as green bonds and credit quotas. Combined, these lower project weighted average cost of capital (WACC) and complement central budget support. Impact –Establishes the first coordinated national investment framework for clean fuels. –Expected to catalyse first-of-a-kind large-scale SAF and methanol projects, bridging financing gaps. –Enhances policy alignment towards the goals of 2030 peak emissions and 2060 carbon neutrality. Exportable lessons –Central investment as catalyst: Even modest public co-funding can de-risk early clean fuel ventures and crowd-in private capital. –Policy clarity drives confidence: Clear eligibility and forward-looking scope improve accountability and attract long-term investors. –Strategic signalling matters: Naming SAF and green methanol explicitly sends powerful market signals that accelerate industrial learning and scale-up. Sources: World Economic Forum, NDRC.60 Fuelling the Future: How Business, Finance and Policy can Accelerate the Clean Fuels Market 27

Fuelling the Future 2026