BUSINESS

Affordability Hampers Effort to Bring Greener Gas Heating to China’s Frigid North

Published: Jan. 13, 2026 7:06 p.m. GMT+8

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Many residents in Hebei province are refusing to turn on their more expensive gas boilers this winter.

Despite nearly a decade of government efforts to promote cleaner heating across North China, many residents in Hebei province are refusing to turn on their gas boilers this winter.

“People can’t bring themselves to use it. They can’t afford to,” said the owner of a gas company in the city of Xingtai. A typical rural household will spend 2,500 yuan ($359) to 4,000 yuan for heating over the winter without government subsidies, based on a local gas price of 3.18 yuan per cubic meter, the person calculated.

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Many Hebei residents cannot afford clean gas heating, costing 2,500-4,000 yuan per winter, due to reduced government subsidies.
Local governments face financial strain, with subsidies costing up to 1 billion yuan yearly while property revenues decline.
The coal-to-gas campaign, launched in 2017 with insufficient long-term planning and central support, has left households and gas companies struggling.

AI generated, for reference only

Who’s Who

China Securities Co. Ltd.: China Securities Co. Ltd. estimated that the total subsidies under the pilot programs for clean heating upgrades in northern China could reach 47.4 billion yuan for the entire three-year period.

AI generated, for reference only

What Happened When

2017：: The government launched a campaign to convert millions of households in the Beijing-Tianjin-Hebei region and surrounding areas from coal-fired heating to natural gas or electricity.

May 2017：: The Ministry of Finance, the Ministry of Housing and Urban-Rural Development, the Ministry of Ecology and Environment, and the National Energy Administration issued a notice launching pilot programs to support clean heating upgrades in northern China with central government subsidies.

2017–2019：: Central government subsidies were provided for clean heating upgrades in northern China as part of the pilot program launched in May 2017.

Prior to winter 2023：: Repeated winter gas shortages occurred in Hebei, as gas distributors struggled to absorb losses from selling gas at regulated prices while buying at higher rates.

2023：: Local governments in Hebei started subsidizing gas distributors to ensure a stable supply.

As of 2026：: Many residents in Hebei province refuse to turn on their gas boilers due to affordability issues; local governments are in a difficult financial position concerning ongoing subsidies.

AI generated, for reference only