Special Action Plan for Energy Saving and Carbon Reduction in the Iron and Steel Industry
2024-06-13 00:00

The steel industry is a vital foundation of the national economy and a major contributor to energy consumption and carbon dioxide emissions. This Action Plan has been formulated to fully tap into the industry’s potential for energy conservation and carbon reduction, accelerate the transformation of energy-saving and carbon-reduction measures and the upgrading of energy-consuming equipment, and support the achievement of the binding targets for reducing energy intensity set out in the 14th Five-Year Plan.I. Main Objectives By the end of 2025, energy consumption per unit of product in the blast furnace and converter processes of the steel industry shall be reduced by at least 1% compared to 2023; energy consumption per unit of product in electric arc furnace smelting shall be reduced by at least 2% compared to 2023; comprehensive energy consumption per ton of steel shall be reduced by at least 2% compared to 2023; and the rate of self-generated power using waste heat, pressure, and energy shall be increased by at least 3 percentage points compared to 2023.From 2024 to 2025, energy-saving and carbon-reduction retrofits in the steel industry, along with the upgrading of energy-consuming equipment, will result in energy savings of approximately 20 million tons of standard coal and carbon dioxide emissions reductions of approximately 53 million tons.By the end of 2030, energy efficiency in the steel industry’s key processes will be further enhanced; the energy efficiency of major energy-consuming equipment will generally reach advanced levels; comprehensive energy consumption and carbon emissions per ton of steel will be significantly reduced; the energy consumption structure will continue to be optimized; breakthroughs will be achieved in advanced energy-saving and carbon-reduction technologies such as blast furnace oxygen enrichment and hydrogen metallurgy; and the industry will achieve significant results in green, low-carbon, and high-quality development.II. Key Tasks (1) Improve capacity regulation and production management. Strictly enforce steel capacity replacement policies; no new steel production capacity shall be added under the guise of mechanical processing, casting, ferroalloys, or similar activities. In key regions for air pollution prevention and control, steel production capacity shall only be reduced, not increased. Strengthen the inventory and assessment of steel smelting equipment at the local and enterprise levels, and restrict and phase out outdated capacity in accordance with laws and regulations.Gradually establish and improve steel output control policies based on standards for efficiency, energy consumption, environmental protection, quality, and safety, and strictly restrict exports of high-energy-consumption, low-value-added steel products, pig iron, coke, and other similar products. Continue to implement crude steel output controls in 2024. By the end of 2025, the proportion of steel production capacity meeting or exceeding the benchmark energy efficiency level shall reach 30%, and production capacity below the baseline energy efficiency level shall be either technically upgraded or phased out.In key regions for air pollution prevention and control, further raise requirements for the steel industry regarding energy consumption, environmental protection, quality, safety, and technology, and gradually phase out restricted processes and equipment. (Led by the National Development and Reform Commission and the Ministry of Industry and Information Technology; the Ministry of Ecology and Environment, the Ministry of Commerce, the General Administration of Customs, and the State Administration for Market Regulation are responsible according to their respective duties) (2) Improve the energy-saving and carbon-reduction levels of new projects.Strengthen the assessment and justification of the necessity and feasibility of new steel smelting projects. Strictly enforce energy efficiency reviews and environmental impact assessment approvals for fixed-asset investment projects; new and expanded steel smelting projects must meet the energy efficiency benchmark level and Grade A environmental performance standards, and major energy-consuming equipment must reach advanced energy efficiency levels. Resolutely suspend the approval and construction of steel projects that fail to meet requirements regarding industrial planning, capacity replacement, reduction and substitution of coal consumption, total control of key pollutants, and regional reduction of pollutant emissions.Promote integrated layouts for steel, coking, and sintering operations to reduce the number of standalone coking, sintering, pelletizing, and hot-rolling enterprises and processes. (The National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Ecology and Environment shall be responsible in accordance with their respective duties.) (3) Accelerate energy-saving and carbon-reduction retrofits and the upgrading of energy-consuming equipment. Encourage steel enterprises to increase the height and volume of the carbonization chambers in their self-owned coke ovens and promote technologies such as single-chamber pressure regulation and automatic heating control for coke ovens.Implement large-scale upgrading and retrofitting of sintering and pelletizing equipment, and promote technologies such as sintering flue gas recirculation and low-energy-consumption, low-emission high-ratio pellet smelting. Promote the upgrading and retrofitting of blast furnaces producing pig iron for steelmaking with a capacity of 1,000 cubic meters or less. Strengthen the integration of steel production processes and promote interface integration technologies between processes, such as "one ladle from start to finish" for molten iron, hot charging and hot delivery, near-net-shape continuous casting, and headless rolling.In accordance with the "Advanced, Energy-Saving, and Accessibility Levels for Energy-Intensive Products and Equipment (2024 Edition)," accelerate the replacement and upgrading of energy-consuming equipment in steel enterprises, including inefficient motors, boilers, oxygen generators, air compressors, water pumps, fans, and transformers.Promote the application of specialized equipment such as large-scale high-efficiency chain roasters—rotary kilns, belt roasters, and universal rolling mills—as well as enclosed mechanized raw material yards. Strengthen system compatibility upgrades and operational control optimization for energy-consuming equipment. Improve the level of clean transportation in the steel industry and promote the conversion of transportation, operational vehicles, and machinery to new energy sources based on local conditions.(Led by the National Development and Reform Commission; the Ministry of Industry and Information Technology, the State Administration for Market Regulation, and other relevant departments shall assume responsibility according to their respective duties) (4) Promote the utilization of residual energy throughout the entire process. Strengthen retrofits for residual energy utilization in the steel industry; systematically update equipment for self-generated power from residual energy; optimize methods for the direct utilization of secondary energy; and reduce the number of energy conversion steps. Actively promote the utilization of by-product gas and adopt high-efficiency utilization technologies such as gas-steam combined cycle power generation, subcritical gas power generation, and ultra-high-temperature, ultra-high-pressure power generation.Accelerate the promotion of waste heat power generation technologies in sintering and coking processes, and support the application of technologies such as the efficient recovery and utilization of sensible heat from metallurgical slag, coal gas back-blowing in steel rolling furnaces, bottom-blown CO₂ steelmaking in converters, top-pressure equalization gas in blast furnaces, high-temperature and high-pressure dry quenching of coke, and the utilization of medium- and low-temperature waste heat and energy. Promote the use of low-grade waste heat from the steel industry for urban heating and cooling based on local conditions.(The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, and the National Energy Administration shall be responsible in accordance with their respective duties.) (5) Increase the proportion of short-process electric arc furnace steelmaking. Actively develop new types of electric arc furnace equipment and, subject to compliance with policies on energy conservation, carbon reduction, environmental protection, and industrial development, accelerate the transition of eligible blast furnace–converter long-process steelmaking to short-process electric arc furnace steelmaking.Support the high-quality and efficient utilization of scrap steel resources, expand imports of recycled steel raw materials, and promote the integrated development of scrap steel collection, dismantling, processing, sorting, and distribution. Improve the scrap steel collection, processing, and distribution system, and advance the standardization and industrialization of scrap steel processing. By the end of 2025, scrap steel utilization should reach 300 million tons, and the proportion of electric arc furnace steel production in total crude steel output should strive to increase to 15%.(Led by the Ministry of Industry and Information Technology and the National Development and Reform Commission; the Ministry of Ecology and Environment and the General Administration of Customs are responsible according to their respective duties) (6) Accelerate the development of new low-carbon smelting models. Accelerate research and development of non-blast furnace ironmaking technologies such as hydrogen-based direct reduction and hydrogen-enriched molten reduction, and encourage the use of existing blast furnaces to conduct low-carbon metallurgy using hydrogen-enriched carbon-cycle oxygen blast furnaces.In principle, new steel projects shall no longer include new self-owned coal-fired power units; support will be provided for the replacement of existing self-owned coal-fired power units with clean energy sources. Support will be provided for steel enterprises with the necessary conditions to build industrial green microgrids, and the integrated development and utilization of wind, solar, biomass, geothermal, high-efficiency heat pumps, new energy storage technologies, hydrogen, and industrial waste heat will be accelerated.Strengthen the integration and efficiency gains between the steel industry and sectors such as power, building materials, and chemicals. Support the use of by-product gas from steel production to manufacture high-value-added chemical products; promote the substitution of cement and concrete raw and auxiliary materials with blast furnace slag and steel slag; and accelerate the application of technologies for producing hydrogen from coke oven gas in conjunction with liquefied natural gas (LNG).Encourage steel enterprises to strengthen the design, R&D, and production of products featuring high strength and toughness, corrosion and wear resistance, as well as energy and material conservation. (The National Development and Reform Commission, the Ministry of Industry and Information Technology, and the National Energy Administration shall be responsible in accordance with their respective duties.) (7) Enhance digital management capabilities. Improve the construction and operation of online energy consumption monitoring systems for key energy-consuming units; support steel enterprises in building smart energy management platforms; strengthen the collection, analysis, and management of energy consumption and carbon emission data during steel production processes; and enhance enterprises’ capabilities in energy conservation and carbon reduction management.Accelerate the deep integration of information technologies such as big data, artificial intelligence, and the Internet with iron ore mining and steel manufacturing and processing operations; establish “Industrial Internet + Energy Efficiency Management” application scenarios to achieve intelligent control of energy-consuming equipment and production processes. By the end of 2025, the rate of numerical control in key processes of the steel industry should reach approximately 80%. (The National Development and Reform Commission and the Ministry of Industry and Information Technology shall be responsible in accordance with their respective duties) III. Policy Guarantees (1) Strengthen Incentives and Constraints.Support the full utilization of production capacity at steel enterprises that meet benchmark energy efficiency levels and achieve Grade A environmental performance, while accelerating the transformation and upgrading of enterprises below the energy efficiency benchmark. Encourage all regions to enhance the precision of management for high-energy-consumption and high-emission projects, and implement differentiated management for steel production capacity that meets the advanced values or benchmark levels of mandatory energy consumption limits, as well as for high-end steel production capacity (such as high-temperature alloy steel, precision alloy steel, and high-speed tool steel) and all-scrap electric arc furnace steelmaking capacity.Comprehensively consider energy consumption and environmental performance levels to improve the tiered electricity pricing system for energy-intensive industries. Study the implementation of tiered electricity pricing for steel projects that do not meet the benchmark energy efficiency level or have environmental performance rated at C or D, based on the gap in energy efficiency and environmental performance. Implement pricing policies to support power generation using waste heat and pressure.(Led by the National Development and Reform Commission; the Ministry of Industry and Information Technology and the Ministry of Ecology and Environment are responsible according to their respective duties) (2) Increase financial support. Leverage the multiplier effect of government investment to actively support energy-saving and carbon-reduction upgrades and the renewal of energy-consuming equipment in the steel industry. Support local governments in coordinating existing funding channels, such as government investment, in accordance with regulations to promote energy conservation and carbon reduction in the steel industry. Fully implement existing tax preferential policies related to energy and water conservation, as well as comprehensive resource utilization.Actively develop green finance and transition finance products and services. Relying on the special initiative to expand medium- and long-term loans for the manufacturing sector, facilitate smooth communication between banks and enterprises, and guide financial institutions to provide financial support for energy-saving and carbon-reduction retrofits and the upgrading of energy-consuming equipment in the steel industry in accordance with market-oriented and rule-of-law principles. (Led by the National Development and Reform Commission; the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the People’s Bank of China, the State Taxation Administration, and the National Financial Regulatory Administration are responsible according to their respective duties) (3) Promote the upgrading of standards.Accelerate the revision of standards such as energy consumption limits per unit of product for key crude steel production processes and energy consumption limits per unit of product for electric arc furnace smelting, and reasonably raise energy efficiency targets. Establish and improve a technical specification system for carbon emissions in the steel industry; promote the formulation of standards for carbon emission accounting and low-carbon process technologies; and strengthen the management of carbon emission measurement and testing equipment.Accelerate the formulation and revision of recommended standards such as the Energy Efficiency Benchmarking Guidelines for Key Steel Production Processes and the Energy Efficiency Benchmark Assessment Specifications. Encourage local governments to establish stricter energy-saving standards and improve the standard adoption mechanism. Encourage industry associations, enterprises, and standardization bodies to actively participate in the formulation and revision of international standards. (Led by the State Administration for Market Regulation; the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Ecology and Environment shall be responsible in accordance with their respective duties.) (4) Accelerate technological innovation.Improve insurance policies for the first-of-a-kind major technical equipment and the initial batches of key new materials. Support enterprises in increasing R&D investment in intelligent technologies, hydrogen-based smelting, and green electric arc furnace short-process steelmaking technologies and equipment, and support the application of qualified green and low-carbon technologies, equipment, and materials in the steel industry. Encourage industry associations to regularly collect and publish lists of advanced and applicable energy-saving and carbon-reduction technologies in the steel industry, as well as lists of key technical renovation projects for energy conservation and carbon reduction, to accelerate the promotion and application of advanced energy-saving and carbon-reduction technologies.(The National Development and Reform Commission and the Ministry of Industry and Information Technology are responsible according to their respective duties) IV. Implementation (1) Strengthen Organizational Leadership. The National Development and Reform Commission, in conjunction with the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the State Administration for Market Regulation, and the National Energy Administration, shall strengthen coordination and cooperation to form a synergistic effort and jointly ensure the thorough implementation of all objectives and tasks outlined in this Action Plan.All regions must fully recognize the significance of promoting energy conservation and carbon reduction in the steel industry. They should refine work measures based on local conditions, break down tasks, clarify responsibilities, and ensure the solid and orderly implementation of this Action Plan. The roles of industry associations and research institutions should be fully leveraged to strengthen service and guidance for steel enterprises, thereby supporting the green and low-carbon transformation of the steel industry.(2) Accelerate Project Implementation. Provincial-level energy conservation authorities shall conduct in-depth energy efficiency assessments of the steel industry, comprehensively surveying energy consumption volumes, energy consumption structures, comprehensive energy consumption per unit of product, and the energy efficiency levels of major facilities and energy-consuming equipment within their regions. They shall strengthen the project pipeline for energy conservation and carbon reduction retrofits and energy-consuming equipment upgrades in the steel industry, formulate retrofit plans, and specify implementation timelines.The National Development and Reform Commission, in conjunction with relevant departments, will establish a project reserve pool for energy-saving and carbon-reduction retrofits and energy-consuming equipment upgrades in key industries. Following the principle of supporting projects as they become ready, project construction will be advanced in a phased and overlapping manner to achieve tangible energy-saving and carbon-reduction results as soon as possible.(3) Strict Supervision and Management. Energy conservation authorities and industrial and information technology authorities at all levels shall intensify energy conservation inspections and supervision in the steel industry. The implementation of the energy conservation review system and the execution of review recommendations shall be included in the scope of energy conservation inspections. Violations such as the unauthorized addition of new production capacity, inadequate phasing out of outdated capacity, and falsification of energy-saving and carbon-reduction figures shall be dealt with strictly in accordance with laws and regulations.

(4) Strengthen Publicity and Guidance. Leveraging key platforms such as National Ecology Day and National Energy Conservation Awareness Week, efforts should be intensified to publicize advanced experiences in energy conservation and carbon reduction within the steel industry. State-owned enterprises and leading companies in the steel sector are encouraged to play a leading and driving role by actively making and implementing voluntary commitments to energy conservation and carbon reduction, thereby fostering a favorable environment for promoting the green, low-carbon, and high-quality development of the steel industry.


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