The fact that energy consumption for raw materials is not included in the overall energy consumption limits – is this good news for the coal chemical industry?

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On November 16, Meng Wei, spokesperson for the National Development and Reform Commission, said that not including energy used for raw material production in the overall control of energy consumption is an important measure taken to thoroughly implement the spirit of the Party’s guidelines and decisions, as well as those of the State Council; it serves to improve the regulation of total energy consumption and its intensity, thereby ensuring sufficient energy supply for high-quality development. **The Notice on Further Improving the Work Related to Not Including Energy Used for Raw Materials in the Total Energy Consumption Control, issued recently by the National Development and Reform Commission and the **Statistics Bureau, strengthens the foundation for accounting for energy used for raw materials from various aspects. It defines the basic concept and specific scope of energy used for raw materials, sets out specific requirements for improving the statistical and accounting systems related to such energy use at all levels, details the procedures for deducting this energy use in the evaluation of energy-saving targets and responsibilities, enhances coordination with the energy-saving review system for fixed-asset investment projects, and puts forward specific requirements for ensuring proper implementation. The concept of energy consumption for raw materials outlined in the Notice is in line with international standards; the deduction associated with energy use for raw materials enables a more scientific and objective reflection of the actual energy consumption patterns in industries such as petrochemicals, coal chemicals, and related sectors. This approach enhances the flexibility in managing total energy consumption, creates space for high-quality development, ensures rational energy use for high-standard projects, and provides support for strengthening the resilience of industrial and supply chains. It is of great significance for the stable and healthy operation of the economy. It should be emphasized that the energy deduction for raw materials does not mean a relaxation of the requirements for the development of industries such as petrochemicals, chemical engineering, and coal chemicals, nor does it encourage regions to develop such projects indiscriminately. On the one hand, it is necessary to continue to strictly enforce the project admission requirements. The development of related industries must still comply with industrial plans and policies, go through the necessary approval procedures, achieve advanced levels of energy efficiency, and effectively control carbon emissions and pollutant discharges – these requirements remain consistent. All regions and relevant agencies must implement the relevant policy requirements, resolutely curb the indiscriminate development of projects with high energy consumption, high emissions, and low standards, and strictly enforce entry criteria for such projects in terms of policy compliance, procedural adherence, and technological advancement. On the other hand, continuous efforts are made to promote energy conservation and improve energy efficiency in industries. The fact that energy used for raw materials is not included in the total energy consumption control does not mean that such energy can be used indefinitely and inefficiently. Tasks such as energy conservation reviews and energy conservation standards will continue to impose requirements on energy consumption for raw materials. All regions and relevant organizations should encourage the accelerated development, promotion, and application of advanced energy-saving and carbon-reduction technologies in order to sustain efforts to improve energy efficiency.