The State Council, China's cabinet, on Sunday issued a guideline on exploration of coal bed gas.

Subsidies from central government shall be raised in the sector, with full consideration on costs and prices in extracting coal bed gas, said the government's website.

The specific subsidy standards will be fixed jointly by departments including the Ministry of Finance, the National Development and Reform Commission and the National Energy Administration.

Favorable tax policies will also be mapped out to boost coal bed gas exploration.

These policies are also expected to improve workplace safety.