The fund for financial incentives was set up to implement the State Council's Development Plan for Energy Saving and New Energy Vehicle (NEV) Industry (2012 - 2020) by accelerating technological innovation in the NEV industry and accelerate commercialisation of new technologies. The Ministry of Finance, Ministry of Industry and Information Technology, and the Ministry of Science and Technology will coordinate and oversee the R&D projects supported by this fund. The fund comprises of two sub-funds.
- One focuses on technologies for energy conservation and emission reduction.
- The second fund focuses on supporting key breakthrough technologies, such as NEV modes (electric, hybrid, fuel cells)and power batteries.
The funds will be be disbursed as follows: 40% at the start of the project, 50% when the mid-term evaluation is passed and 10% when the project has been completed.