{"id":1730,"date":"2026-06-30T18:00:00","date_gmt":"2026-06-30T10:00:00","guid":{"rendered":"https:\/\/oriseen.cn\/2026-2028-energy-saving-and-carbon-reduction-transformation-campaign-a-practical-manual-for-corporate-managers-on-compliance-and-revenue-growth\/"},"modified":"2026-10-07T16:21:20","modified_gmt":"2026-10-07T08:21:20","slug":"2026-2028-energy-saving-and-carbon-reduction-transformation-campaign-a-practical-manual-for-corporate-managers-on-compliance-and-revenue-growth","status":"publish","type":"post","link":"https:\/\/oriseen.cn\/en\/2026-2028-energy-saving-and-carbon-reduction-transformation-campaign-a-practical-manual-for-corporate-managers-on-compliance-and-revenue-growth\/","title":{"rendered":"2026-2028 Energy Saving and Carbon Reduction Transformation Campaign: A Practical Manual for Corporate Managers on Compliance and Revenue Growth"},"content":{"rendered":"\n

I. Policy Background<\/strong><\/strong><\/h3>\n\n

This policy is based on the “Three-Year Action Plan for Energy Saving and Carbon Reduction Transformation in Key Industries (2026-2028)” (NDRC Huan Zi [2026] No. 698) issued by five departments. It covers nine high-energy-consuming industries: steel, electrolytic aluminum, cement, flat glass, oil refining, ethylene, synthetic ammonia, methanol, and coal-fired power. The policy explicitly requires that production capacity below the energy efficiency baseline level be basically eliminated by the end of 2028, achieving a cumulative energy saving of over 100 million tons of standard coal and a reduction of over 200 million tons of carbon dioxide over three years. As a business leader, completing energy-saving technical transformations on schedule allows you to enjoy policy subsidies and avoid heavy penalties.<\/p>\n\n

II. Self-Inspection and Elimination of Obsolete Equipment and Capacity (All rectifications to be completed by 2028)<\/p>\n\n

\"\u539f\u89c1\u80fd\u6e90<\/figure>\n\n

1. Unified Upgrade of General Plant Equipment<\/p>\n\n

1) Eliminate Grade 3 and below motors, fans, water pumps, air compressors, and transformers, and replace them with Grade 1\/2 high-efficiency energy-saving equipment;<\/p>\n\n

2) Shut down or technically transform small self-provided coal-fired units, kilns without waste heat recovery, and high-loss steam pipe networks;<\/p>\n\n

3) Build an online energy consumption monitoring system and improve energy and carbon emission ledgers<\/a>; failure to rectify within the deadline will result in restrictions.<\/p>\n\n

2. Deadline for Phasing Out Obsolete Capacity by Industry<\/p>\n\n

Steel: Eliminate top-charging coke ovens under 6 meters, tamping coke ovens under 5.5 meters, blast furnaces under 1200m\u00b3, converters under 100 tons, and alloy steel electric arc furnaces under 50 tons; equip with dry quenching, and promote gas recovery, hot charging and hot delivery, and short-process steelmaking.<\/p>\n\n

Electrolytic Aluminum: Upgrade electrolytic cells of 300kA and below to large energy-saving cells of 500kA and above.<\/p>\n\n

Cement: Completely shut down old-style shaft kilns; transform clinker lines under 2000 tons\/day and grinding stations under 600,000 tons\/year within a time limit; equip all clinker lines with waste heat power generation and low-nitrogen combustion devices.<\/p>\n\n

Flat Glass: Transform inefficient float kilns and production lines without flue gas waste heat recovery, and promote oxy-fuel combustion.<\/p>\n\n

Coal Chemical Industry: Eliminate atmospheric and vacuum distillation, small-scale cracking, and intermittent gasification units under 10 million tons\/year; perform system energy optimization and waste heat recovery.<\/p>\n\n

Coal-fired Power: Prioritize shutting down inefficient pure condensing units under 300,000 kW; if supply must be guaranteed, short-term flexibility transformation can be implemented; fully upgrade units above 300,000 kW for energy saving and peak shaving.<\/p>\n\n

Mandatory Requirement: If the energy efficiency of a production line still fails to reach the industry baseline by the end of 2028, the corresponding capacity will be shut down according to law; enterprises whose energy efficiency reaches the industry benchmark can enjoy policy dividends such as financial subsidies, electricity price discounts, and preferential energy consumption quotas.<\/p>\n\n

III. Full Process for Enterprise Project Application (Leaders to coordinate and assign dedicated personnel for implementation)<\/p>\n\n

(I) Application Process for Central Budgetary Energy-Saving Subsidies<\/p>\n\n

1. Preliminary Preparation: Identify eligible technical transformation projects and complete procedures such as project filing, energy assessment, and environmental impact assessment; only projects under construction or partially completed can apply; fully completed projects will not be accepted; calculate energy savings and prepare proof of funds.<\/p>\n\n

2. Material Preparation: Fund application report, business license, audit report, equipment contracts, certificate of no record of untrustworthiness, and various approval documents.<\/p>\n\n

3. Step-by-Step Application: Fill in the National Major Project Database online; report level by level from district\/county \u2192 municipal \u2192 provincial; central enterprise groups report directly to the state.<\/p>\n\n

4. Review and Implementation: Third-party technical review; energy-saving projects can receive a maximum subsidy of 20% of the total investment; after funds are issued, construct according to the plan, followed by completion acceptance and performance evaluation, with supervision throughout the process.<\/p>\n\n

(II) Application Process for Provincial and Municipal Energy-Saving Special Funds<\/p>\n\n

1. Project Screening: Provincial and municipal subsidies can be stacked, but projects that have received central subsidies cannot apply again; most regions require equipment to have operated stably for more than 3 months.<\/p>\n\n

2. Online and Offline Application: Upload transformation contracts, invoices, third-party energy saving audit reports, and a commitment letter of no duplicate fund applications.<\/p>\n\n

3. Joint Review: Industry and Information Technology Bureau + Finance Bureau conduct on-site equipment verification, and expert review determines a subsidy ratio of 5%-15%.<\/p>\n\n

4. Publicity and Disbursement: Funds are disbursed after 5 working days of public notice; enterprises must retain transformation ledgers for 3 years for inspection.<\/p>\n\n

\"\u539f\u89c1\u80fd\u6e90<\/figure>\n\n

IV. Carbon Asset Value-Added Operations (Leaders to plan ahead for extra income and compliant fulfillment)<\/p>\n\n

1. Emission Reduction Quota Replacement: Emission reductions from technical transformations, verified and filed by a third party, can be used for carbon emission replacement in new “Two Highs” projects, and surplus quotas can be sold for cash.<\/p>\n\n

2. Carbon Allowance Revenue: If carbon emission intensity is better than the industry benchmark, enterprises can obtain preferential free allowances and sell excess allowances in the carbon market; enterprises with lagging energy efficiency must buy allowances at high prices to fulfill their obligations.<\/p>\n\n

3. Green Electricity and Green Certificate Offsets: Use on-site photovoltaic green certificates and direct-purchase green electricity to complete renewable energy assessments and address the EU’s CBAM carbon border tax.<\/p>\n\n

V. Must Be Vigilant: Heavy Penalties for Non-Compliance (Core risk points for managers)<\/p>\n\n

1. Punitive Electricity Prices: If energy efficiency is below the industry baseline, the price per kWh can be increased by up to 0.1 yuan; the surcharge can only be canceled once the transformation meets the standard.<\/p>\n\n

2. Multiple Administrative Sanctions<\/p>\n\n

\u2460 A 6-month rectification period is issued; if overdue, production will be suspended and obsolete capacity shut down;<\/p>\n\n

\u2461 Energy-saving reviews for new projects will be stopped, and no new energy consumption quotas will be allocated;<\/p>\n\n

\u2462 Inclusion in the energy-saving untrustworthiness list, canceling all subsidies, tax incentives, and green loans;<\/p>\n\n

\u2463 Failure to complete annual energy-saving targets will lead to interviews with corporate leaders and the implementation of capacity control.<\/p>\n\n

3. Carbon Market Compliance Fines<\/p>\n\n

If carbon allowance gaps are not cleared on time, in addition to making up the allowances, a fine of 5-10 times the carbon price will be imposed; refusal to rectify will result in an equivalent reduction of the next year’s allowance, and serious cases will be ordered to stop production.<\/p>\n\n

VI. 4-Step Action Plan for Corporate Leaders to Implement<\/p>\n\n

\"\u539f\u89c1\u80fd\u6e90<\/figure>\n\n

1. Step 1: Comprehensive Plant-wide Energy Efficiency Audit<\/p>\n\n

Classify capacity into benchmark, baseline, and lagging categories; prioritize the transformation of motors, kilns, and waste heat recovery<\/a> to seize the three-year subsidy window.<\/p>\n\n

2. Step 2: Improve Energy and Carbon Management Systems<\/p>\n\n

Establish energy consumption ledgers and carbon footprint accounting to prepare materials in advance for subsidy applications, carbon compliance, and low-carbon export compliance.<\/p>\n\n

3. Step 3: Plan Integrated Energy Projects<\/p>\n\n

Simultaneously build distributed photovoltaics and energy storage to reduce electricity costs, obtain green certificates, and participate in virtual power plants for additional income.<\/p>\n\n

4. Step 4: Implement Technical Transformations Early, No Procrastination<\/p>\n\n

2026-2028 is the critical window; the later the transformation, the greater the pressure from electricity price penalties and application competition, and the higher the overall cost.<\/p>\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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