On July 7, 2022, the Ministry of Industry and Information Technology (MIIT), National Development and Reform Commission (NDRC) and the Ministry of Ecology and Environment (MEE) jointly issued the Carbon Peak Action Plan for Industrial Sectors (hereinafter referred to as “the Action Plan”). Key contents of the Action Plan are summarized as follows:    

The Action Plan aims at achieving a balance between development and emissions reduction, between overall and local imperatives, and between short-term and longer-term considerations. With Becoming Manufacturing Power and the National Cyber Development Strategy as the core guiding principles, the goals of carbon peak and carbon neutrality must be incorporated into the overall economic and social development framework. The main focuses would be on supply-side structural reform and setting up green manufacturing systems. Other key targets also include: improving efficiency of resource and energy use; promoting digital, intelligent and green integration; expanding the supply of green and low-carbon products; accelerating green and low-carbon transformation as well as high-quality development for the manufacturing industry.

Working Guidelines

l  Employing a systematic approach and pushing for key breakthroughs.

While maintaining a stable share of the manufacturing sector, ensuring the security of the supply chain and meeting reasonable consumption demands, all working tasks for the “dual carbon” goal should be carried out thoroughly, and the concept of pursuing carbon neutrality should be embedded in all aspects of throughout the process.

l  Prioritizing efficiency and having good control of the source.

Put energy conservation first. It strengthens inter-industry coupling, promotes synergy in pollution reduction and carbon emissions, continues to reduce energy and resource consumption per unit of output, and reduces carbon dioxide emissions at the source.

l  Strengthening technological and institutional innovation, and making full use of ICT technologies

Enhance innovation as a driving force in major low-carbon and equipment research. Strengthen the innovative application of new-generation information technology in the green and low-carbon field. 

l  Sticking to market-driven model and guide y policies.

Give full play to the role of the market. Encourage more innovation measures in green and low-carbon science and technology; deepen institutional reform in energy and other relevant fields, and stimulate the force and efforts by market stakeholders on low-carbon transition.

General Goals

l  During the 14th Five Year Plan Period

a.         Lay a solid foundation for carbon peaking in the industrial sector.

b.         By 2025, the energy consumption per added-value of industrial companies will be reduced by 13.5% when compared with 2020. The reduction of carbon dioxide emissions per added-value will also be greater than the whole of society, along with the carbon dioxide emission intensity of key industries will drop significantly.

l  During the 15th Five Year Plan Period

a.         Establish a modern industrial system featuring efficiency, greenness, recycling, and low carbon.

b.         Ensure the achievement of reaching peak industrial carbon dioxide emissions by 2030.

Six Key Tasks

l  Further adjust industrial structure

a.         Build an industrial layout that is beneficial to carbon emission reduction.

b.         Curb the blind development of projects with high energy consumption, or high emissions.

c.          Optimize the production capacity scale in key industries.

d.         Promote industrial low-carbon collaborative demonstration.

l  Promote energy saving and carbon reduction

a.         Adjust and optimize the energy consumption structure.

b.         Promote the electrification of industrial energy.

c.          Speed up the construction of industrial green microgrids.

d.         Accelerate the implementation of energy-saving and carbon-reducing transitions and upgrades.

e.         Improve the energy efficiency of key energy-consuming equipment.

f.          Strengthen the supervision and management of energy conservation.

l  Promote green manufacturing

a.         Build up green and low-carbon factories.

b.         Establish green and low-carbon supply chains.

c.          Build up green and low-carbon industrial parks.

d.         Promote the green and low-carbon development of SMEs.

e.         Comprehensively improve the level of clean production.

l  Develop circular economy

a.         Promote the substitution of low-carbon raw materials.

b.         Strengthen the recycling of renewable resources.

c.          Promote the remanufacturing of mechanical and electrical products.

d.         Strengthen the comprehensive utilization of industrial solid waste.

l  Accelerate the transformation of industrial green and low-carbon technologies:

a.         Push breakthroughs in green and low-carbon technologies.

b.         Enhance the promotion of green and low-carbon technologies.

c.          Carry out the demonstrations of upgrading and transformation in key industries.

l  Promote the digital transition of the industrial field

a.         Promote deep integration of the new generation of information technology and the manufacturing industry.

b.         Establish a digital carbon management system.

c.          Promote "Industrial Internet + Green and Low-Carbon".

Two Key Activities

1.       Actions on peaking carbon dioxide emissions in key sectors

Focus on key sectors, formulate implementation plans for carbon peaking in steel, building materials, petrochemicals and chemicals, non-ferrous metals etc.; study roadmaps for low-carbon development in consumer goods, equipment manufacturing, electronics and other sectors; implement sector-specific measures and promote sustained efforts to reduce carbon emission intensity and control carbon emissions.

l  Steel

a.         By 2025, the annual processing capacity of enterprises with access to steel scrap processing will exceed 180 million tonnes, and the proportion of short-stream steelmaking will reach more than 15%.

b.         By 2030, breakthroughs will be made with the proportion of short-stream steelmaking reaching more than 20% in the application of technologies such as hydrogen-rich carbon cycle blast furnace smelting and direct iron reduction in hydrogen-based shaft furnaces along with carbon capture and storage.

l  Building materials

a.         By 2025, the comprehensive energy consumption per unit product of cement clinker will be reduced by more than 3%.

b.         By 2030, the level of raw fuel substitution will significantly increase; making breakthroughs in low-carbon technologies such as preheating outside glass kilns and hydrogen calcination in kilns.

c.          Renovate or construct several green and low-carbon productions in cement, glass and ceramics industries to reduce pollution and carbon.

d.         Achieve the industrialization of carbon capture as well as the utilization and sequestration technologies found in kilns.

l  Petrochemicals