The National Development and Reform Commission File Photo: VCG

China's National Development and Reform Commission (NDRC) and other relevant departments pledged to implement a campaign for energy-saving and carbon-reduction retrofits in nine key industries, including steel, electrolytic aluminum, and cement in a three-year action plan released on Monday, starting this year.

The NDRC said that a three-year push will ensure full retrofits in key industries, raising energy and carbon efficiency to support carbon peaking and provide green momentum for high-quality development.

The campaign proposes that by the end of 2028, in key industrial sectors such as steel, electrolytic aluminum, and cement, the proportion of production capacity reaching the current energy efficiency benchmark level shall increase by an average of 20 percentage points. In the coal-fired power sector, the target is to increase this proportion by 15 percentage points. 

Production capacity below the baseline energy efficiency level shall be basically eliminated. The cumulative energy savings will exceed 100 million metric tons of standard coal equivalent, with a reduction of more than 200 million metric tons of carbon dioxide emissions.

The policy focus has shifted from a general "energy conservation and emission reduction" approach to a more targeted "energy conservation and carbon reduction" strategy. The key difference is that the latter places greater emphasis on directly reducing carbon dioxide emissions while saving energy, so the policy direction clearly encourages enterprises to increase their use of clean energy, Lin Boqiang, chair professor and dean of the China Institute for Studies in Energy Policy of the School of Management at Xiamen University, told the Global Times on Monday.  

Although a full transition is not easy, as the costs of wind power, photovoltaics, and energy storage gradually approach those of fossil fuels, the economic feasibility of large-scale clean-energy adoption has significantly increased, Lin said. 

It is projected that within the next three years, the share of clean energy used by enterprises in key industries will markedly increase. This dual pressure - from both costs and policies - will force more energy-intensive industries to accelerate their transition to clean energy, Lin noted. 

The announcement said that the NDRC will work with relevant departments to increase central investment support, providing financial subsidies equivalent to 20 percent of the approved total investment for eligible projects, with priority given to projects that achieve benchmark energy-efficiency levels after retrofitting.

In addition, the new policy encourages local governments to coordinate existing funding channels to provide additional support, implement tax incentives for energy-efficient special equipment and technological retrofits, and encourage financial institutions to offer diversified products and services to meet retrofitting needs.

It will promote the application of advanced energy-saving and carbon-reducing technologies and equipment, including the upgrading and retrofitting of energy-using equipment such as boilers, motors, and fans. The transformation and upgrading of key processes and equipment, along with the greening and low-carbon trend of energy consumption, are also highlighted in the announcement.

The NDRC said that the move comes as China's energy consumption and carbon dioxide emissions in key industries are large in scale and high in intensity, making them the top priority for improving energy efficiency, reducing coal use, and lowering carbon emissions. 

Industry data shows that the proportion of production capacity meeting the energy-efficiency benchmark level in industries such as crude steel, electrolytic aluminum, cement clinker, and flat glass is still less than 30 percent. In some industries, more than 10 percent of production capacity falls below the baseline energy-efficiency level, indicating significant room for improvement through energy-saving and carbon-reduction retrofits, according to the NDRC. 

Energy-saving and carbon-reduction retrofits are key measures to improve energy efficiency and reduce carbon emissions, as well as important support for expanding effective investment and promoting industrial quality upgrading, the NDRC said.