Be cautious of a one-size-fits-all approach to the dual controls on energy consumption”

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Since the beginning of this year, relevant central departments and local authorities have conducted extensive research and discussions to establish timelines and roadmaps for achieving \"carbon peak\" and \"carbon neutrality.\" As a precursor to the efforts aimed at achieving carbon neutrality, the dual control of total energy consumption and energy intensity has become a key mechanism to drive the green and low-carbon transformation of the economy. To achieve the goals of dual control over energy consumption, authorities at all levels have repeatedly tightened regulations on high-energy-consuming and high-emission projects. It is worth noting, however, that the practice in China of breaking down the targets for energy consumption control at various levels – from provinces and cities down to counties and districts, and further to individual enterprises – as well as the strict restrictions imposed on projects with high energy consumption and high emissions, puts considerable pressure on the relevant departments and enterprises. The increasingly strict restrictions caught off guard some companies that had intended to take advantage of this period of economic growth to launch large-scale projects at full speed; as a result, some projects that had been approved, submitted for approval, or even already under construction were forced to come to a halt urgently. Regarding this, an article in the latest issue of the news weekly Outlook states that under the pressure of the \"dual-control\" policy, some local authorities rush to assign tasks and set targets, which not only affects the survival and development of enterprises but also disrupts the normal lives of ordinary people. Care must be taken to prevent the \"dual control\" of energy consumption from turning into \"single control,\" so as to avoid equating energy savings with reduced production capacity, and to prevent blanket shutdowns and production restrictions that could affect the economic fundamentals. Haste makes waste; all parties must seek truth from facts and act according to their capabilities, advancing the dual control of energy consumption in a scientific and cautious manner to lay a solid foundation for achieving the dual carbon goals. And what’s most awkward at the moment are the projects that have already been launched this year; companies are faced with a dilemma. On the one hand, with inspections and verifications at all levels, terms in the notices such as \"suspending all approvals,\" \"ordering suspension of operations,\" \"ordering cessation of production,\" and \"taking severe action\" give companies the feeling that they are waiting for a judgment, with no way forward ； On the other hand, companies invested a great deal of manpower and resources in the initial stages of planning and design, land acquisition, and equipment procurement; a halt to these efforts is likely to render all those previous investments wasted, representing a severe blow to their confidence in future development. The formulation of the 14th Five-Year Plans for most chemical enterprises took one year; the direction of development and the projects to be undertaken were subject to repeated evaluations, taking into full account both industry policy guidelines and the resources available to the enterprises. However, this time the crackdown on the \"high-priority\" projects at all levels came rather suddenly, and enterprises were not mentally prepared for it. If the earlier foundational and platform projects fail, then a series of subsequent industrial projects will also be unable to be carried out. This also means that the company’s 14th Five-Year Plan has to be adjusted. The development of the chemical industry follows inherent patterns and connections; it generally relies on the expansion of existing products. If one tries to venture into the field of new chemical materials, stepping onto this \"narrow path,\" significant risks will arise. First, there is no technical source for the products in short supply; second, once a technical source becomes available, everyone rushes to produce those products, which quickly leads to overcapacity, and another competition will arise in the future. Moreover, corporate transformation takes time, and efforts to reduce energy consumption and coal use should be carried out in a gradual manner. If a one-size-fits-all approach is adopted toward high-energy and high-carbon projects solely for the sake of achieving the \"dual carbon\" goals, and if all new projects that involve energy consumption are shut down outright, there is a high risk of shortages in the energy, chemical, and basic product sectors. The recent sharp rise in prices of key upstream commodities serves as a warning sign. Furthermore, strict control over the approval and implementation of new \"high-high\" projects must be based on the resolute elimination of existing outdated production capacity in various industries. Otherwise, it undoubtedly protects outdated production capacities; this not only makes it impossible to achieve a true substitution in terms of energy consumption and emissions, but also hinders the future healthy and sustainable development of the industry. To accomplish the tasks related to dual control of energy consumption, it is recommended that local authorities and relevant departments first strike a balance between carbon reduction and economic development, as well as between transformation and safety. Energy consumption and carbon emissions should be reduced on the premise of achieving comprehensive modernization and high-quality development, avoiding blanket restrictions on the launch of new projects. At the same time, strict controls on high-energy and high-emission projects must not inadvertently hinder normal technological upgrades and optimization initiatives; instead, efforts should be made to encourage the replacement of old with new, and of small-scale with large-scale projects. This will allow old, polluting facilities, low-end production capacities, and high-emission sources to be phased out, while new technologies, large-scale projects, and high-end production capacities take their place. By enhancing carbon sequestration and improving efficiency in carbon reduction, it is possible to facilitate the transition from old to new forms of energy production.