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China Issues Action Plan for Industrial Carbon Peaking by 2030

China unveiled its carbon-peaking plan, highlighting 6 major tasks and setting targets for 7 key sectors, including steel, building materials, petrochemicals, nonferrous metals, consumer goods, equipment manufacturing and electronics.

On August 1, 2022, China’s Ministry of Industry and Information Technology (MIIT), National Development and Reform Commission (NDRC), and Ministry of Ecology and Environment (MEE) jointly released the Carbon Peaking Action Plan for Industrial Sectors, in an effort to shift towards green and low-carbon industry and achieve carbon peaking by 2030. 

Six Major Tasks 

1. Industrial Restructuring

 It is proposed to readjust the structuring of nonferrous metals, petrochemicals and steel sectors and form industry clustering with low-carbon sectors. The projects with high energy consumption and emissions are expected to be put under tight control. Industries such as steel, cement, flat glass and electrolytic aluminum will implement supply-side structural reform and eliminate excess capacity by means of marketization and legalization.

2. Energy Conservation

To further optimize the energy structure, the authorities will accelerate the electrification of industrial energy and reinforce supervision and management on energy conservation.

3. Green Manufacturing

 In order to develop green manufacturing, sectors like steel, building materials, petrochemicals, nonferrous metals, printing and dyeing, papermaking and chemical raw materials need to systematically reform manufacturing process by implementing energy conservation, pollutant abatement and carbon reduction.

4. Circular Economy

 It is encouraged for enterprises that meet the relevant conditions for circular economy to publish carbon footprints. Renewable recycling sectors such as scrap nonferrous metals, scrap paper, scrap plastics are expected to be subject to standardized management.

5. Technology Transformation

 The government also highlights its active promotion of the transformation of industrial green and low-carbon technologies. For industries in steel, building materials, petrochemicals, machinery, textile, it will conduct pilot project of implementing deep decarbonization in production process and industrial process restructuring.

6. Digitalization 

 To further integrate manufacturing with information technology, a digitalized carbon management system will be established to strengthen the development and deployment of information technology in energy consumption and carbon emissions.

Targets for 7 Key Sectors  

1. Steel

By 2025, steel suppliers are expected to achieve annual recycling capacity of 180 million tons. The proportion of steel produced from electric arc furnace (EAF) is expected to exceed 15% by 2025 and 20% by 2030.

2. Building materials

For cement clinker suppliers, energy consumed per unit needs to be cut by 3% or above by 2025. By 2030, for cement, glass and ceramic factories, a green and low-carbon production line should be established for decarbonization and pollutant abatement.

3. Petrochemical

By 2025, under new refining-chemical integration projects, the proportion of refined oil production should reduce to account for less than 40% of crude oil processing volumes. Companies are required to accelerate the deployment of Carbon Capture, Utilization and Storage (CCUS) facilities. By 2030, One-step synthesis of olefins, ethanol and other short-process synthesis technologies are expected to achieve large-scale application.

4. Nonferrous metals

By 2025, the output of recycled copper and aluminum is expected to reach 4 and 11.5 million tons respectively. By 2030, for electrolytic aluminum suppliers, 30% of their electricity consumption needs to come from renewable energy.

5. Consumer goods

For textile industries, they need to expand the proportion of utilized technologies for energy-saving and energy recycling to reach 50% and 70% respectively by 2025. For printing and dyeing industries, the proportion of utilized energy-saving technology needs to reach 60% by 2030.

6. Equipment manufacturing

By 2025, near net shape forming technologies such as integrated die-casting and dieless casting need to achieve industrial application. R&D of advanced green manufacturing technologies will significantly reduce energy consumption by 2030.

7. Electronics

By 2025, for lithium battery materials and optical fiber industry, non-electrical power is required to be limited under 7% and 2% respectively. By 2030, energy consumption from manufacturing of electronic materials and complete electronic products is expected to drop significantly.

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