China to launch $8bn environmental protection fund

China is planning to launch a 50 billion yuan (US$8.13 billion) environmental protection fund in a bid to reduce widespread pollution, according to media reports on Wednesday.

Investment in the fund would come from the National Development and Reform Commission (NDRC) and the Ministry of Finance, according to the China Securities Journal, in an attempt to boost investment in critical sectors through low or no-interest loans.

The government in Beijing has struggled to incentivise local governments and companies to scale up their pollution-fighting efforts.

The rapid industrialisation of the world’s second-biggest economy has also brought by chronic pollution to the air and water supplies.

The push to cut pollution has boosted share values for companies expected to benefit from increased government spending in recent months, in particular water treatment companies.

Official guidance for the fund expected to be published in December, the Journal report said.