In order to fully implement the guidelines of the Notice on the Implementation of Fiscal Policy Counting in the Effect of Pollution Reduction and Carbon Drop issued by Jiangsu Provincial People's Government, the Huai’an municipal government has formulated and issued the Notice on Implementation of Fiscal Policy Counting in the Effect of Pollution Reduction and Carbon Drop in accordance with the principles of comprehensively implementing the policy, adapting to the actual situation of Huai’an, and strictly assessing rewards and punishments.

The target of the policy implementation is the people's government at the city level and the districts. It has defined the targets and regulatory factor, coordinated the standards, implemented the return mechanism for meeting the standards, and improved the incentive mechanism. The total amount of urban pollutant emissions is determined every year in line with seven indicators (chemical oxygen demand, ammonia nitrogen, total nitrogen, total phosphorus, nitrogen oxides, particulate matter and volatile organic compounds), and the total amount of funds collected by Huai’an Municipal Finance Bureau is determined by multiplying the product of 3,750 yuan per ton (per 100 kilograms of total phosphorus) and Jiangsu carbon emission intensity regulatory factor. According to the principle of “returning funds after reaching the target, enhancing the reward, and strictly handing out rewards and punishment”, five indexes including urban air quality days ratio, average concentrations of PM2.5, surface water sections evaluated by the provincial authorities and above, the urban centralized drinking water quality as well as carbon emission drop rate per unit of GDP will be assessed when the city reaches the provincial return standard and obtains the provincial return. The municipal units and districts that complete the tasks set by the city shall be refunded 10% of the overall funds, with the maximum refunded by 50%. For the four indicators, such as the ratio of good air quality days, the average annual concentration of PM2.5, the proportion of Grade-III surface water sections evaluated by the provincial authorities and above, and the reduction rate of carbon dioxide emission per unit of GDP, those who complete the task set by Huai’an and have further improved compared with the previous year, will be rewarded according to the improvement range, with a maximum cumulative reward of 35%. City assessment balance of returned funds, reward funds and collected substandard funds will be rewarded according to the proportion of the overall planning funds on the basis of the compliance (completion) of the corresponding indicators (tasks) of the subject under assessment. If the target (task) of the subject of assessment is completed well, the total amount of returned rewards may exceed the Jiangsu maximum return reward ratio of 85%. The policy implementation period is from 2021 to 2025.