Private enterprises that protect the environment by controlling and cleaning up pollution will be able to apply for more financial aid and policy support from the central government next year as an incentive to do even better, China's top environmental watchdog said recently.

The Ministry of Ecology and Environment has also arranged for financial institutions to launch a national green development fund for private enterprises next year to help them combat pollution.

Pollution treatment companies with good performance records will be able to apply for tax reductions, including withholding about 10 percent of their investment in environmental protection equipment from their income tax. Tax reductions will also be given to companies that keep discharges of pollutants below applicable standards.

The ministry will also change some of its supervision and inspection rules, aiming to reduce unnecessary checks on well-behaved private enterprises and increase inspections of former law breakers.

The policy initiatives set for 2020 were announced in January. Their progress was reviewed at a meeting between the ministry and private enterprises on Nov 15.

Under an existing policy regulating production on days with heavy pollution, private enterprises classified as excellent protectors of the environment by their local governments do not need to reduce operating hours, unlike other companies.

Tianrui Cement Group in Zhengzhou, Henan province, has already benefited from that policy, and Ling Jinhui, its assistant manager, said it would try to be even more environmentally friendly with help from the government.

"We invested about 58 million yuan ($8.24 million) in pollution treatment equipment this year," he said. "When the green development fund comes into effect, we plan to apply for some financial aid to upgrade facilities and cut pollutants even further."

Li Ganjie, the minister of ecology and environment, said the green development of private enterprises plays a vital role in combating pollution.

"We need to learn and understand enterprises' demands and provide targeted, favorable service to them to fight pollution, especially things like streamlining administrative processes related to the environment and providing technical and financial aid," he said.