Shanghai (ZXZC)- China plans to appropriate around 38.5 billion yuan ($6.033 billion) next year to subsidize the projects for saving energy and cutting carbon emissions, according to a notice recently issued by China’s Ministry of Finance.

The money will be distributed to 26 provinces or cities, including Beijing, Tianjin, Shanghai, Jiangsu, Hebei, Shanxi, and Liaoning.

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Of the cash to be handed out, about 9.984 billion yuan ($1.565 billion) and 10.185 billion yuan ($1.596 billion) will be allocated to liquidate the NEV promotion subsidies generated during 2016-2018 and in 2019 respectively. Besides, about 18.31 billion yuan ($2.869 billion) are prepared as government subsidies that occurred during 2019-2020.

China hopes new energy vehicle (NEV) sales can reach around 20% of all car sales in 2025, China's State Council said in Nov. 2020 in a plan for development of the NEV sector.

For the first ten months of 2021, NEV sales in China amounted to 2.542 million units, accounting for 12.12% of the country's total new car sales, according to data from the China Association of Automobile Manufacturers (CAAM). Of the new vehicles sold in October, 18.88% were NEVs.