Institute for China Studies

The Impact of China’s 2024-2025 Energy Conservation and Carbon Reduction Action Plan on Industries

As the global climate agenda intensifies, energy conservation and carbon reduction have become pivotal elements of sustainable development strategies. The Chinese government’s 2024-2025 Energy Conservation and Carbon Reduction Action Plan sets ambitious goals, aligning with the broader objectives of achieving carbon neutrality and reaching peak carbon emissions.

This action plan reflects the determination to not only drive economic growth but to do so within the framework of environmental stewardship, aiming for a green transformation of the nation’s industrial and social fabric.

In our previous article we have discussed the key objectives of the action plan and the key tasks that have been defined to achieve these. In this second article out of two, we will discuss the impact the approach has to energy conservation and carbon reduction across various industries. 

This detailed plan is particularly targeting high-emission sectors such as petrochemical, non-ferrous metals, building materials, transportation, and public institutions. The key points across different sectors include:

Petrochemical Industry:

  • Capacity Control: Strict policies to limit new capacities in refining and high-emission production like calcium carbide and polyvinyl chloride, with a focus on shutting down inefficient facilities.
  • Efficiency Improvements: By 2025, aim for 30% of production in industries like oil refining to meet energy efficiency benchmarks. This includes recovering waste heat and promoting advanced energy-saving equipment.
  • Renewable Energy & Electrification: Push for renewable energy substitution, especially hydrogen production, and transition from steam to electric drives where feasible.

Non-Ferrous Metal Industry:

  • Capacity Optimization: Enforce capacity replacement for energy-intensive processes like electrolytic aluminum and promote recycled metals.
  • Efficiency Standards: Ensure new projects meet high energy efficiency benchmarks.
  • Carbon Reduction Transformation: Promote advanced processes (e.g., stable aluminum electrolysis) and increase renewable energy use to 25% in the aluminum industry by 2025.

Building Materials Industry:

  • Capacity and Output Management: Control the production of high-emission products like cement and flat glass while promoting the use of waste materials for production.
  • New Projects Access: Ensure new building material projects meet energy efficiency benchmarks, with 30% of production capacity in cement and ceramics reaching efficiency standards by 2025.
  • Emission Reductions: Drive technological innovations for low-emission production, and target 50% of cement clinker production to undergo ultra-low emission transformation by 2025.

Buildings:

  • Energy-Efficient Construction: By 2025, new urban buildings must meet green standards, with a significant increase in rooftop photovoltaic installations and renewable energy use.
  • Renovation of Existing Buildings: Large-scale upgrades for energy-saving technologies, aiming to renovate over 200 million square meters of existing buildings by 2025.
  • Building Operations: Improve energy use monitoring and optimize heating and cooling in large public buildings.

Transportation:

  • Low-Carbon Infrastructure: Promote electrification at stations, airports, and railways. Encourage the use of renewable energy at transport hubs and increase the network for electric vehicle charging stations.
  • Vehicle Electrification: Expand the use of electric vehicles in public transport and freight fleets, phasing out older, less efficient vehicles.
  • Shift to Rail and Water Transport: Increase the share of freight transport by rail and waterways, cutting emissions from long-distance trucking.

Public Institutions

  • Energy Management: Implement stricter energy-saving targets in public institutions, with goals to reduce energy consumption per unit of building area by 5% by 2025.
  • Facility Upgrades: Public institutions will focus on upgrading energy-using equipment like boilers and elevators to higher efficiency standards, reducing coal reliance.

Key Management Mechanisms:

  • Target Evaluation and Accountability: Set regional and industry-specific carbon reduction targets with regular evaluations.
  • Energy-Saving Review: Ensure that new infrastructure projects, especially in high-emission industries, comply with stringent energy-saving requirements.
  • Enhanced Supervision: Establish a monitoring system for energy use in key industries, strengthening enforcement and supervision of energy-saving laws.
  • Statistical Systems: Improve data accuracy and timeliness for energy consumption and carbon emissions, integrating them with the carbon market for better analysis and monitoring.

This comprehensive strategy shows a commitment to achieving significant energy savings and emission reductions across major industries, targeting structural changes, efficiency improvements, and a gradual shift toward renewable energy by 2025. Through pragmatic steps in energy consumption reduction, fostering non-fossil fuel energy, and transforming high-energy-consuming industries like steel, China is laying the groundwork for a more sustainable, resilient economy. With clear targets and a robust implementation strategy, the plan supports the dual objectives of economic growth and environmental protection, making substantial progress toward achieving carbon peak and carbon neutrality.