China issues new version of Benchmark Level of Energy Efficiency in Key Industrial Areas

On July 5, five departments, including the National Development and Reform Commission and the Ministry of Industry and Information Technology, issued a notice on the Benchmark Level of Energy Efficiency in Key Industrial Areas (2023 Version), focusing on further expanding the scope of energy-saving, carbon reduction transformation and upgrading in key industrial areas.

Compared with the provisions in the previous version, the scope of key industrial areas has been expanded, and there is a clear timetable for technological transformation or phase-out. The notice requires that, for 25 industrial areas previously specified, including oil refining, coal-to-coke, coal-to-methanol, coal-to-olefins, coal-to-ethylene glycol, caustic soda, soda ash, calcium carbide, ethylene, PX, yellow phosphorus, synthetic ammonia, monoammonium phosphate, diammonium phosphate, cement clinker, flat glass, building ceramics, sanitary ceramics, ironmaking, steelmaking, ferroalloy smelting, copper smelting, lead smelting, zinc smelting, electrolytic aluminum, etc. In principle, the technological transformation or phase-out should be completed by the end of 2025. 

For the 11 fields newly included in the new version, such as EG, urea, titanium dioxide, polyvinyl chloride, PTA, radial tires, industrial silicon, toilet paper, tissue base paper, cotton, chemical fiber and blended woven fabrics, knitted fabrics, yarns, viscose staple fibers, the technical transformation or phase-out should be completed by the end of 2026.

It can be seen from the regulations that, besides from coal-based EG and PX, polyester raw materials including EG and PTA are also included in the new version. In fiber textiles and downstream related fields, cotton, chemical fiber and blended woven fabrics, knitted fabrics, yarns, viscose staple fibers and radial tires, are added into the list. At present, the actual impact of the regulations still needs to be assessed step by step.