PETROCHINA Co, the country's largest oil company, will invest 300 million yuan (US$40 million) in developing biofuels production and to set up a fund with the forestry ministry to support carbon emission cuts.

The company will spend 200 million yuan on forestry and biofuels projects in the provinces of Sichuan, Yunnan and Hebei, Jia Zhibang, head of the State Forestry Administration, said yesterday. A further 100 million yuan will be used to start the China Green Carbon Foundation.

China plans to spend 1.5 trillion yuan in the 15 years ending 2020 to increase use of renewable resources and cut reliance on oil, according to Bloomberg News.