In July 2022, with the support of Energy Foundation China, the Chinese Academy for Environmental Planning released this report analyzing possible incentive policies for new investment and financing tools for clean heating and presenting a few cases that use those tools.

The report first summarizes the current investment and financing channels for clean heating, including fiscal spending, green credits, private investment, and user payment, then identifies the main challenges and looks into the reasons behind tepid investment return, before it analyzes typical cases. From the perspective of reducing costs and increasing benefits, the report proposes policy suggestions for four aspects, covering best available technologies, subsidies, green finance, and taxation and pricing.

The researchers hope their findings can help leverage more clean heating investment from financial institutions and private sources, and facilitate a sustainable long-term mechanism for diversified investment and financing.