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Mandatory renovation, upgrading, and phasing out! **The benchmark and baseline levels for energy efficiency in 14 key chemical industry sectors were established. On November 15, five departments including the National Development and Reform Commission jointly issued a notice titled \"Benchmark and Baseline Levels for Energy Efficiency in Key Sectors of High-Energy-Consuming Industries (2021 Edition)\”), aimed at guiding local authorities in carrying out technological upgrades to reduce energy consumption and carbon emissions in these industries in a scientific and orderly manner, and at curbing the uncontrolled development of projects with high energy consumption and high carbon emissions. The 2021 version sets clear standards and benchmarks for energy efficiency in 14 key chemical industries, including oil refining, coal-based coke production, coal-based methanol production, coal-based olefins (ethylene and propylene), coal-based ethylene glycol production, caustic soda, soda ash, calcium carbide, ethylene (from naphtha), p-xylene, synthetic ammonia, yellow phosphorus, monoammonium phosphate, and diammonium phosphate. These standards will come into effect on January 1, 2022. The Notice requires that efforts be made to improve the efficiency of projects in a categorized manner so that they meet the required standards: For projects that are planned or under construction, their development should be carried out in line with energy efficiency benchmarks, with every effort being made to raise their energy efficiency levels, with the goal of achieving those benchmarks across the board. For existing projects whose energy efficiency is below the industry benchmark, a reasonable transition period for the implementation of relevant policies should be established to guide enterprises in carrying out energy-saving and carbon-reduction technological upgrades in an orderly manner, thereby improving the energy efficiency of their operations. Backward production capacities, outdated processes, and inferior products must be phased out in strict accordance with laws and regulations. Strengthen the promotion and application of green and low-carbon process technologies and equipment to foster the development of a strong domestic market. The notice also requires that, based on the energy efficiency benchmark levels and baseline levels, upgrades, renovations, and phasing out should be carried out in phases within a specified time frame: for projects that require technical upgrades, local authorities must set clear deadlines for such upgrades and phasing out (usually not exceeding 3 years), as well as annual plans for these actions, so that energy efficiency can be raised above the baseline level and, where possible, reach the benchmark levels ； Projects that cannot be completed for renovation on schedule are eliminated. Resolutely curb the unreasonable use of energy in high-energy-consuming projects; for those projects whose energy efficiency is below the industry benchmark and that have failed to undergo renovation and upgrading on schedule, their energy use should be restricted. The notice states that existing policy tools should be integrated and utilized, with measures such as tiered electricity pricing, **special energy-saving inspections for industries, and environmental supervision and enforcement, to enhance market-based regulation and oversight in the area of energy conservation and carbon reduction. Encourage financial institutions to provide high-quality financial services for key projects that offer significant benefits in terms of energy conservation and emission reduction. Implement tax incentives for energy-saving equipment, technological upgrades, and the comprehensive utilization of resources, in order to accelerate the transformation and upgrading of enterprises and improve the overall energy efficiency of the industry. The notice emphasizes the need to advance energy-saving and carbon-reduction technological upgrades in a steady and orderly manner, to effectively avoid one-size-fits-all approaches and short-term, campaign-style efforts to reduce carbon emissions, and to ensure the stability of industrial and supply chains as well as the smooth operation of the economy and society.