"By the end of 2020, about 4% of our iron and steel industry's iron-making capacity has energy efficiency above the benchmark level, and about 30% has energy efficiency below the benchmark level. About 6% of steelmaking capacity was above the benchmark for energy efficiency and about 30% was below it. To achieve energy conservation and carbon reduction in the steel industry and achieve the target as scheduled is an arduous task and a glorious mission, which requires all relevant departments and industry associations, especially steel enterprises, to form consensus, make concerted efforts and make joint efforts." On December 9, Xia Nong, first level inspector of the Industrial Development Department of the National Development and Reform Commission, said in a video address at the live launch of the three-year energy efficiency benchmarking action plan for the steel industry.

Shannon delivered a video message

To accurately understand the spirit and requirements of energy conservation and carbon reduction related documents

In order to implement the decisions and arrangements of the CPC Central Committee and The State Council, the National Development and Reform Commission, Since 2021, the Ministry of Industry and Information Technology and other departments have issued a series of documents, including the Opinions on Promoting Energy Conservation and Carbon Reduction in Key Areas under Strict Energy Efficiency Constraints, Energy Efficiency Benchmark Levels and Benchmark Levels in Key Areas of Energy-Consuming Industries (2021 edition), and Implementation Guidelines for Energy Conservation and Carbon Reduction Transformation and Upgrading in Key Areas of Energy-Consuming Industries (2022 edition).

"These documents are programmatic documents for energy conservation and carbon reduction in key industrial areas, and are the basis for our work. They have strong guidance and operability, and have made a comprehensive deployment for energy conservation and carbon reduction work in key industrial areas in the future." Shannon pointed out. To sum up, the main spirit and specific requirements of documents such as Opinions on Promoting Energy Conservation and Carbon Reduction in Key Areas through Strict Energy Efficiency Constraints are shown in the following aspects:

 We will fully tap the potential of technological transformation to save energy and reduce carbon, strengthen the concept of systems, promote comprehensive policies, exercise strict supervision and management, accelerate the pace of energy conservation and carbon reduction in key areas, drive the green and low-carbon transformation of the whole industry, and ensure that the target of achieving the carbon peak as scheduled is achieved.

From the perspective of basic principles, there are mainly the following four aspects:

First, the principle of focusing on key areas and implementing them step by step. We will take the lead in upgrading energy conservation and carbon reduction technologies in key industries, such as steel, where conditions are good. When substantial progress is made in key industries and relevant mechanisms are mature, we will extend them to other industries and product areas.

The second is the guiding principle of high calibration and classification. We will closely track advanced levels at home and abroad, and scientifically set energy efficiency benchmarks and energy efficiency benchmarks for key industries such as steel. For projects requiring technical transformation, the energy efficiency transformation should be upgraded to above the benchmark level within the specified time, and strive to reach the energy efficiency standard level. For projects whose energy efficiency is below the benchmark level and which cannot be upgraded on schedule, the energy use should be limited.

Third, the principle of upgrading and strict supervision. We will standard leading enterprises at home and abroad, strengthen the development of energy conservation and carbon reduction technologies, encourage high-energy-consuming enterprises to carry out technological upgrading, consolidate the main responsibility of enterprises, implement territorial oversight responsibilities, strengthen daily monitoring of energy consumption and carbon emissions of enterprises, and establish a sound mechanism for oversight and accountability for violations of regulations.

Fourth, the principle of a comprehensive, steady and orderly approach. We will integrate existing policy tools, strengthen regulation and supervision of the market for energy conservation and carbon reduction through tiered electricity prices, national special industrial energy conservation supervision, and environmental protection supervision and law enforcement, strengthen coordination and linkage between fiscal, financial and investment pricing policies and industrial environmental protection policies, and use market-based and law-based approaches to promote energy conservation and carbon reduction in key areas in a steady and orderly manner.

In terms of the main goals, it is determined that by 2025, through the implementation of energy conservation and carbon reduction actions, the proportion of production capacity in key industries such as steel reaching the benchmark level will exceed 30%, and the energy efficiency of the industry will be significantly improved. By 2030, energy efficiency benchmarks and benchmarks in key industries will be further improved, the proportion of enterprises that meet these benchmarks will rise significantly, and the overall energy efficiency and carbon emission intensity indicators of these industries will reach internationally advanced levels.

Xia noted that on the basis of scientific evaluation, the Implementation Guidelines for Energy Conservation and Carbon Reduction in Key Areas of Energy-Intensive Industries (2022 Edition) have respectively established benchmark and benchmark levels of energy efficiency for iron, steel and ferroalloy. Among them, the standard level and standard level of blast furnace process are 361 kg standard coal and 435 kg standard coal per ton, respectively. The benchmark level and benchmark level of the converter process are minus 30 kg standard coal and minus 10 kg standard coal, respectively.

Steel enterprises should conscientiously take the initiative to do a good job in energy conservation and carbon reduction

 To vigorously promote energy conservation and carbon reduction in key industrial areas such as steel is an inherent requirement for high-quality development in green transformation, which is of great significance for meeting the carbon peak target as scheduled and building China into a manufacturing power." Xia Nong pointed out that the next step should focus on the following work:

First, establish a list of enterprises for technological transformation. All local governments shall organize and carry out a survey on the energy efficiency of existing, under construction and planned steel industry projects in their own areas, register and record them, make reference to the energy efficiency benchmark and benchmark level, and establish a list of energy efficiency of enterprise installations, which shall be disclosed to the public in a timely manner for supervision.

Second, formulate the implementation plan of technological transformation. On the basis of fully soliciting the opinions of enterprises and other relevant parties, local governments should formulate an overall implementation plan for the technological upgrading of steel enterprises in their own areas, reasonably determine the timetable for the technological upgrading of steel enterprises, and specify the steps, deadlines, technical routes, work nodes and expected targets.

Third, we will prudently organize the upgrading of enterprises. In accordance with the overall implementation plan for technical upgrading of steel enterprises in the region, it strictly implements the policy requirements such as the filing of energy efficiency level and capacity replacement projects, guides enterprises to formulate work plans for technical upgrading, makes clear implementation measures, and organizes enterprises to carry out energy-saving and carbon reduction upgrading in a steady and orderly manner.

Fourth, summarize experience and publicize interpretation. We should promptly summarize typical experiences and practices in the implementation of energy conservation and carbon reduction, make full use of various news media to do a good job in policy interpretation and timely publicity and promotion.

"In carrying out the above work, CISA will play an indispensable and important role. Cisa has built a good platform for communication and interaction in the field of low-carbon development and achieved good results." Xia Nong affirmed, "I hope the China Iron and Steel Association can take this meeting as an opportunity to continue to implement the requirements of green and low-carbon development, further in-depth practical, pioneering and innovative, for practical results, to promote the green and low-carbon development of the steel industry to a new level."

Xia Nong further pointed out that, as the main body of the implementation of the transformation of energy saving and carbon reduction, steel enterprises should deeply study, understand the significance of energy saving and carbon reduction, fully understand the major opportunities and difficult challenges facing the current, with the spirit of the master of the initiative and solid to do a good job in energy saving and carbon reduction, accelerate the promotion of green low-carbon transformation of steel enterprises, to achieve high quality development.