IN a move designed to boost domestic consumption and cut carbon emissions, the Chinese Government has earmarked 26.5 billion yuan (US$4.2 billion) in subsidies for energy-saving home appliances.

    Under a resolution reached at a State Council executive meeting Wednesday, the subsidies for energy-saving air conditioners, flat-screen televisions, refrigerators, washing machines and heaters will tentatively last for a year. The resolution did not specify when subsidies would be made available.

    The Central Government launched various policies aimed at boosting sales of home appliances to help weather the 2008 financial crisis. These included subsidies for manufacturers to sell their products in rural areas and incentives for consumers to buy home appliances via the so-called “old-for-new” replacement scheme.

    However, most of the schemes ended in 2011, resulting in a drop in home appliance sales in the country and creating a massive inventory backlog in air conditioners.

    A recent report by CICC Research said China retailers’ total air conditioner inventory stood at 20 million to 30 million units at the end of last year, equivalent to three or four months of sales.

    Citing the China Household Electrical Appliances Association, China Business News reported that the new round of subsidies would likely take the form of cash incentives for consumers buying large, energy-saving electrical goods.

    On top of subsidies for energy-saving appliances, officials at Wednesday’s meeting also decided to spend 2.2 billion yuan to promote energy-saving lighting devices and LED light bulbs, along with 1.6 billion yuan on energy-efficient electric motors.

    A further 6 billion yuan was earmarked for environmentally friendly vehicles with engine displacements of 1.6 liters or less.(SD-Agencies)