Original Title: Notice from the General Office of the People’s Government of Shandong Province on Matters Concerning Resolutely Curbing the Blind Development of “High-Energy-Consumption and High-Emission” Projects and Promoting the High-Quality Allocation and Utilization of Energy and Resources
To the People’s Governments of all cities, the People’s Governments of all counties (cities, districts), relevant departments of the Provincial Government, and major enterprises:
To thoroughly implement Xi Jinping’s Thought on Ecological Civilization, carry out the decisions and arrangements of the Party Central Committee and the State Council regarding dual-control of energy consumption and resolutely curbing the blind development of “high-energy-consumption and high-emission” projects, and adhere to the principle of “strictly controlling high-energy-consumption and high-emission sectors while optimizing others,”ensure that the total energy and coal consumption of “high-energy-consumption and high-emission” industries only decreases and does not increase, strengthen energy and resource guarantees for non-“high-energy-consumption and high-emission” projects, promote more rational allocation of energy and resources, continuously improve energy efficiency, and sustainably optimize the energy structure, and resolutely achieve the energy and coal consumption control targets for the 14th Five-Year Plan, the Provincial Party Committee and the Provincial Government have agreed to issue the following notice on relevant matters.
I. Clarify Scope, Assess Current Status, and Strengthen Energy Budget Management
1. Define the scope of “high-energy-consumption and high-emission” industries. These industries primarily include 16 sectors: refining and petrochemicals, coking, coal-to-liquid fuels, basic chemical raw materials, fertilizers, tires, cement, lime, asphalt waterproofing materials, flat glass, ceramics, steel, ferroalloys, non-ferrous metals, foundries, and coal-fired power generation. The scope of these industries will be dynamically adjusted based on national regulations and the actual conditions in Shandong Province.
2. Accurately Assess Actual Conditions.Led by the Provincial Development and Reform Commission, the Provincial Bureau of Statistics, the Provincial Department of Industry and Information Technology, and other relevant departments, and in accordance with the requirements of the “Four Distinctions,” specific criteria will be established. Leveraging the capabilities of the “Four-Pronged” working groups, municipalities will be organized to conduct specialized surveys of the 16 “high-energy-consumption and high-emission” industries. For each industry and enterprise, the baseline data on existing capacity, production capacity, facilities, output, energy consumption, and coal consumption will be ascertained. Electronic ledgers will be established to implement dynamic monitoring and management.
3. Strengthen energy budget management. Establish and improve an energy budget management system to promote standardized, orderly, and rational energy use. The Provincial Development and Reform Commission and the Provincial Bureau of Statistics will jointly establish and dynamically update a list of energy-consuming units with annual comprehensive energy consumption of 10,000 metric tons of standard coal or more, as well as enterprises in “high-energy-consumption and high-emission” industries. Municipalities must break down and implement energy-saving and coal-reduction tasks to key energy-consuming units, and intensify the evaluation and assessment of their energy-saving and coal-reduction targets.In accordance with the principles of graded responsibility and territorial management, organize evaluations and assessments of the achievement of energy conservation and coal reduction targets by key energy-consuming units. Strengthen the application of evaluation results and the implementation of rewards and penalties. Units that fail to meet their targets shall be designated as key targets for energy conservation supervision in accordance with the law, and the unmet targets shall be accumulated and included in the following year’s targets.Municipalities must scientifically assess increases in energy consumption and energy expenditure budgets. While fully ensuring energy supply for non-industrial and public welfare purposes, they should reasonably promote the development of new industrial projects in their regions by taking into account the growth rate of value-added output from industrial enterprises above a certain scale and the projected increase in energy consumption from planned projects scheduled for completion and commissioning.
II. Total Volume Control and Closed-Loop Management to Drive Structural Transformation in Existing “High-Energy-Consumption, High-Emissions” Industries
4. Strictly uphold the bottom line that energy and coal consumption in “high-energy-consumption and high-emission” industries must decrease and not increase. Strictly implement energy conservation reviews and the system of reduction and substitution for energy and coal consumption. New projects in the 16 “high-energy-consumption and high-emission” industries must implement energy consumption reduction and substitution; coal-consuming projects must implement coal consumption reduction and substitution, and the substitute sources must come from projects within the “high-energy-consumption and high-emission” industries.For new coal-fired power, refining and petrochemical, steel, coking, cement (including clinker and grinding stations), and tire projects, a higher-level approval process will be implemented, with approval or filing handled at the provincial level. New “high-energy-consumption, high-emission” projects with an annual comprehensive energy consumption exceeding 50,000 tons of standard coal must be submitted to relevant ministries such as the National Development and Reform Commission and the Ministry of Ecology and Environment for guidance.Energy and coal consumption quotas allocated separately by the state for “high-energy-consumption and high-emission” projects in Shandong Province may be used for project construction in accordance with national regulations.
5. Implement closed-loop management for “high-energy-consumption and high-emission” industries. Based on industry classification, conduct independent accounting of energy and coal consumption for “high-energy-consumption and high-emission” and non-“high-energy-consumption and high-emission” industries. Implement full closed-loop management of energy and coal use in “high-energy-consumption and high-emission” industries, and strictly enforce the five standards of environmental protection, safety, technology, energy consumption, and economic efficiency.Projects that fail to meet mandatory energy consumption limits and energy efficiency standards must be upgraded or phased out within a specified timeframe. Energy and coal consumption quotas reallocated from “high-energy-consumption, high-emission” industries shall be exclusively used for new “high-energy-consumption, high-emission” projects that contribute to the advancement of industrial foundations and the modernization of industrial chains. Energy and coal consumption quotas reallocated from non-“high-energy-consumption, high-emission” industries shall not be used for “high-energy-consumption, high-emission” projects.Supervise enterprises to benchmark against national energy efficiency standards for key sectors in high-energy-consumption industries, ensuring they fully meet baseline levels within a specified timeframe and accelerate progress toward benchmark levels.
6. Formulate and implement a work plan for ensuring energy and coal consumption quotas during capacity consolidation in “high-energy-consumption and high-emission” industries. The Provincial Development and Reform Commission shall lead the research and formulation of a work plan for the transfer of energy and coal consumption quotas accompanying capacity relocation in these industries. For energy and coal consumption quotas freed up through cross-regional consolidation of “high-energy-consumption and high-emission” industries (including projects relocating capacity outside the province), provincial-level paid reserve purchases shall be implemented on a sector-by-sector basis according to different ratios.In principle, except for industries such as coking and coal-fired power generation, where the ratios for provincial reserve acquisition and municipal retention are reasonably determined, other “high-energy-consumption and high-emission” industries shall adopt a 50-50 split.
III. Strengthen Coordination, Streamline Channels, and Support Energy Security for Non-“High-Energy-Consumption, High-Emission” Industries
7. Coordinate planning and make precise use of the energy consumption increment under the 14th Five-Year Plan.In accordance with the principle of balancing provincial coordination with the full mobilization of municipal initiative, the 35.5 million metric tons of standard coal equivalent (STCE) in energy consumption increments shall be planned and utilized in a coordinated manner. Of this, 15 million STCE shall be allocated to guide municipalities in accelerating the transformation of growth drivers, fostering the “Four New” economy, and optimizing and upgrading industrial structures; the remaining quotas shall be retained at the provincial level for coordinated allocation and use. Except as adjusted by national policies, the total new energy consumption for the province during the 14th Five-Year Plan period shall not exceed 35.5 million STCE.
8. Standardize the use of energy consumption quotas retained at the provincial level. Strictly implement the provisions of the “Shandong Province Energy Consumption Quota Reserve and Utilization Management Measures (Trial)” and the “Shandong Province Implementation Rules for the Trading of Provincially Reserved Energy Consumption Quotas (Trial).” Adhere to the principles of government leadership, market-driven operations, precise allocation, and efficiency-first to ensure the standardized and effective use of provincial-level retained quotas.All provincially retained quotas shall be subject to paid use. Except for major national and provincial industrial layout projects, they shall be used exclusively to support the construction of projects in non-“high-energy-consumption, high-emission” (two-high) industries. For major “two-high” projects that promote the upgrading of industrial foundations and the modernization of industrial chains, if the municipal-level authorities face temporary difficulties in securing the required energy-consumption replacement quotas, the city where the project is located may submit a commitment and a phased procurement plan for the “14th Five-Year Plan” period. In such cases, the province may provide advance support through a “bridge financing” mechanism.The host city must return the allocated quotas to the province upon expiration as promised. If the city fails to return them as committed, the review of all “high-energy-consumption, high-emission” projects in that city—excluding those involving public welfare—shall be suspended, and the city’s eligibility to use provincial reserve energy consumption quotas for new projects shall be revoked.
9. Allocate and utilize energy consumption quotas for each city in a scientific and reasonable manner. Energy consumption quotas allocated to cities must be used to meet the energy needs of public welfare and major non-“high-energy-consumption, high-emission” projects. Cities may utilize their allocated quotas on an annual and phased basis according to their actual development circumstances. For projects utilizing the allocated energy consumption quotas, a project list must be established and submitted to the Provincial Development and Reform Commission for implementation and guidance.
10. Cities are encouraged to vigorously develop new and renewable energy. For offshore wind power projects planned and constructed under provincial coordination, 50% of the incremental energy generated upon completion and commissioning shall be allocated by the provincial government, while 50% shall remain with the host city; for other renewable energy projects such as photovoltaic power generation, all incremental energy generated upon completion and commissioning shall remain with the host city;For nuclear power units commissioned during the 14th Five-Year Plan period, 50% of the resulting energy increment shall be allocated by the provincial government, and 50% shall be retained by the host city. The energy increment from new energy sources retained by cities must be used entirely for non-“high-energy-consumption, high-emission” projects, except for major projects planned and constructed by the state or the province.
11. Improve regulatory frameworks to force energy-inefficient enterprises to exit the market. Further refine regulatory frameworks and raise energy efficiency standards for key energy-consuming enterprises, emphasizing the leading role of standards. Based on energy efficiency benchmark and baseline levels, implement upgrades and phase-outs in batches within specified timeframes.Implement differentiated energy consumption policies: For existing enterprises, key energy-consuming units that meet or exceed the benchmark levels specified in the *Benchmark and Baseline Energy Efficiency Levels for Key Sectors in High-Energy-Consuming Industries* (2021 Edition) or the advanced values of national standards for energy consumption per unit of product may receive preferential energy allocation from their respective cities; for those meeting Shandong Province’s local standards, energy consumption should be reasonably allocated, and upgrades to meet advanced standards should be encouraged;For those whose energy efficiency levels fail to meet national benchmark levels or the specified limits of local standards, they shall be ordered to rectify within a specified timeframe; those failing to rectify by the deadline shall be phased out. Improve the comprehensive evaluation of output-to-energy-consumption efficiency, and strengthen the application of evaluation results in task allocation, project approval, resource allocation, and policy support.
IV. Strengthen Accountability, Implement Scientific Assessments, and Resolutely Achieve Energy Conservation and Coal Reduction Targets
12. Clarify Responsibilities and Division of Labor. Strengthen the leadership of the Provincial Leading Group on Carbon Peaking and Carbon Neutrality regarding energy consumption dual-control and coal consumption reduction tasks, and treat energy conservation and coal reduction as key levers and pathways for achieving the “dual carbon” strategic goals. The Provincial Development and Reform Commission shall play a leading and coordinating role, while the competent authorities of each industry shall ensure the implementation of energy conservation and coal reduction measures within their respective jurisdictions.The Provincial Bureau of Statistics shall take the lead in improving and refining statistical data on renewable energy, non-fossil energy, and energy consumption in “high-energy-consumption and high-emission” industries, and shall regularly conduct monitoring and analysis. Municipal people’s governments shall bear overall responsibility for energy consumption dual-control and coal consumption reduction efforts within their jurisdictions, formulate work plans, ensure effective implementation, and fulfill the energy consumption dual-control and coal consumption reduction targets and tasks assigned by the province.
13. Strengthen Regulatory Oversight and Services. Strengthen the construction of the three-tier energy conservation supervision system at the provincial, municipal, and county levels; intensify supervision and inspection of the implementation of energy conservation laws, regulations, and standards; and investigate and punish illegal and non-compliant energy use in accordance with the law. Improve policies related to taxation, pricing, and finance; continue to increase financial investment; and support the implementation of key energy conservation and coal reduction projects. Actively promote innovative models such as integrated energy services and energy performance contracting to stimulate the potential and vitality of the energy conservation market. Organize green development initiatives and energy conservation publicity campaigns to foster a strong atmosphere of energy conservation and low-carbon living throughout society.
14. Strengthen scientific evaluation. Taking into comprehensive consideration factors such as the province’s advancement of the “Three Resolute Commitments,” the integration and optimization of production capacity, the commissioning of major projects, and energy supply security, scientifically set energy consumption dual-control and coal reduction targets for the province and each city. Optimize the frequency of evaluations to ensure that responsibilities at all levels are firmly established while avoiding simplistic annual assessments.In accordance with national policy requirements, newly added renewable energy shall not be included in the total energy consumption control of each city, and newly added energy used as raw materials shall not be included in the dual-control assessment of energy consumption for each city. Continue to incorporate energy consumption dual-control and coal consumption reduction efforts into the province’s comprehensive assessment of municipal economic and social development, with the assessment results serving as an important basis for the evaluation of leadership teams and leading officials, as well as for exit audits.Municipalities that exceed their targets for reducing energy intensity and curbing coal consumption will be exempt from total energy consumption assessments; municipalities that fail to meet their targets will face restrictions on the approval of “high-energy-consumption, high-emission” projects, and the unmet portion of their targets will be carried over to the next phase; municipalities with severely lagging progress or inadequate performance will have the relevant responsible officials held accountable in accordance with laws and regulations.
General Office of the People’s Government of Shandong Province
January 28, 2022
