Original Title: Shanghai’s Action Plan to Promote Green and Low-Carbon Industrial Development by Targeting New Growth Areas
I. General Requirements
(1) Basic Principles
Clean Energy. Further increase the share of renewable energy sources such as solar, wind, ocean, and geothermal energy, as well as clean energy sources such as nuclear and hydrogen energy, and expand the use of potential alternative energy sources such as ammonia.
Low-Carbon Raw Materials. Accelerate the substitution of low-carbon raw materials in key industries such as petrochemicals, chemicals, and steel. In the petrochemical industry, increase the proportion of raw materials such as natural gas, light hydrocarbons, and biomass; in the steel industry, increase the proportion of scrap steel; and promote the replacement of carbon with hydrogen in smelting processes.
Functional Materials. Promote the development of lightweight, high-strength, and functional materials to support improved conversion efficiency in new energy equipment and drive the mass production and application of key materials in new energy, energy conservation, and environmental protection sectors.
Process Efficiency. Promote the retrofitting and upgrading of energy-consuming systems such as electric motors, refrigeration units, water pumps, and air compressors; optimize production processes in key industries such as power generation, steel, and chemicals; and advance the application of new technologies in data centers.
End-use electrification. Guided by electrification and intelligentization, we will upgrade end-use energy consumption patterns and increase the level of electrification in sectors such as industry, construction, and transportation.
Resource Recycling. Improve the utilization of recycled resources, promote process technologies that use carbon dioxide as a feedstock, and intensify efforts in the cascading reuse of spent power batteries and the co-disposal of municipal solid waste.
(2) Main Objectives
Rapid Growth in Industrial Scale. By 2025, the scale of the green and low-carbon industry will exceed 500 billion yuan, with a development pattern featuring 2 industrial clusters worth 100 billion yuan each, 5 worth 10 billion yuan each, and several worth 1 billion yuan each.
Steady Improvement in Innovation Capabilities. Focusing on “new technologies, new processes, new materials, new equipment, and new energy,” we aim to cultivate 10 municipal-level or higher manufacturing innovation centers and enterprise technology centers, 5 R&D and testing/inspection verification platforms, and 5 research institutes of large enterprises and new-type R&D institutions. Breakthroughs will be achieved in a number of forward-looking and key core technologies, and process levels will be significantly improved.
Market entities are gradually expanding. We will advance the “Ten-Hundred-Thousand” initiative to foster more than 10 leading green and low-carbon enterprises, over 100 core enterprises, and more than 1,000 specialty enterprises, while establishing over 200 green manufacturing demonstration units.
The industrial park system will be further improved and perfected. Focusing on fields such as hydrogen energy, high-end energy equipment, low-carbon metallurgy, green materials, energy conservation and environmental protection, and Carbon Capture, Utilization, and Storage (CCUS), we aim to establish 5 specialized industrial parks and accelerate the development of several specialized parks or high-quality micro-parks.
II. Green and Low-Carbon Industry Cultivation Initiative
(1) Focusing on High-End Industries to Lead in Competitive Sectors
1. Cutting-Edge Technologies. Support enterprises in continuously conducting fundamental research on low-carbon, zero-carbon, and negative-carbon technologies, and intensify innovation efforts in disruptive production processes and alternative products.Conduct research on technologies such as multi-source power conversion, artificial photosynthesis, transformative carbon dioxide utilization, and non-carbon dioxide greenhouse gas emission reduction. Accelerate breakthroughs in key technologies and core equipment, including next-generation nuclear energy technologies, ultra-high-efficiency photovoltaic/solar thermal technologies such as new high-efficiency silicon-based photovoltaic cells, deep-sea floating wind farms, and tidal energy. Conduct research on mechanical energy storage and electrochemical energy storage.
2. High-End Equipment. Promote the development and application of key components and service technologies for heavy-duty gas turbines. Accelerate research and development of advanced nuclear energy systems and domestically developed nuclear equipment to establish stable manufacturing capabilities for third- and fourth-generation nuclear power equipment components.Advance research and development of core components such as wind turbine drives and blades, accelerate the modular design of wind power systems, and establish a competitive cost advantage. Explore remanufacturing services for key engine components, automobiles, and high-end medical equipment, and foster the clustering of remanufacturing enterprises for automotive parts and construction machinery.
3. Extreme Energy Efficiency. Promote technological and equipment innovation and application in key energy-intensive industries; in the power sector, accelerate the replication and promotion of ultra-low coal consumption power generation technologies; in the petrochemical and chemical industries, strengthen the recovery of process waste heat and pressure, as well as the cascaded utilization of energy; promote the use of liquid cooling and AI-driven operations and maintenance in data centers to reduce the Power Usage Effectiveness (PUE) ratio.Promote high-efficiency equipment such as magnetic levitation chillers, permanent magnet air compressors, and high-temperature, high-efficiency heat pumps. Drive digital transformation and upgrading, guide enterprises in establishing energy management centers, and advance the development of industrial software in the energy sector. Promote new models such as “one-stop” comprehensive energy-saving services, third-party environmental pollution management, and environmental stewardship services.
4. Low-Carbon Metallurgy. Support enterprises in tackling key technologies such as hydrogen-rich carbon-cycle blast furnaces and hydrogen-based vertical furnaces.Strengthen the production of high-quality green steel, consolidate technological advantages in products such as high-efficiency silicon steel, steel for nuclear power, and high-temperature alloys, and achieve breakthroughs in technologies for steel used in drive motors and batteries for new energy vehicles, as well as core soft magnetic materials for high-efficiency transformers. Cultivate a low-carbon metallurgy industrial ecosystem to form steel-related green and low-carbon industries dominated by hydrogen energy, new materials, smart manufacturing processes and equipment, and the circular economy.
(2) Promote cluster development and expand areas of competitive parity
5. New Energy Vehicles. Establish a supply system for key component technologies and products; accelerate breakthroughs in core power battery technologies; and advance the integration, high-density, and intelligent development of drive motors and control systems. Leverage the pull effect of leading new energy vehicle manufacturers to attract a group of “unicorn” enterprises specializing in key components. Develop the recycling industry for retired power batteries; build a city-wide traceability and management network for the entire power battery industry chain; and promote the clustered development of power battery recycling technologies, processes, equipment, and industries.
6. Hydrogen Energy Industry. Support commercial demonstration applications of fuel cell vehicles across multiple scenarios and sectors, including heavy-duty trucks, buses, and cold-chain logistics vehicles, to drive the development of upstream industries such as fuel cell systems and core components. Fully utilize industrial by-product hydrogen resources to establish major hydrogen supply bases in Jinshan and Baoshan; build industrial demonstration zones in Lingang, Jiading, and Qingpu to diversify application scenarios;Conduct integrated demonstration projects for megawatt-scale renewable energy-based water electrolysis (including wind and solar power) to produce hydrogen, and launch pilot programs for “ammonia-hydrogen” green energy applications. Achieve breakthroughs in key technologies such as high-efficiency hydrogen fuel cell systems, long-life stacks, membrane electrodes, and proton exchange membranes. Promote the application of multiple hydrogen storage and transportation technologies, including high-pressure hydrogen supply and refueling equipment and 70-MPa hydrogen storage cylinders.
(3) Expand Application Scenarios and Seize Opportunities in Emerging Markets
7. Green Materials. Promote the mass production of low-cost, large-tow carbon fiber; achieve industrial breakthroughs in high-strength, high-modulus carbon fiber (T800 grade and above); and tackle technical challenges in carbon fiber-specific resins. Explore the application of carbon fiber in new carbon-core energy-saving conductors, hydrogen storage containers, and other fields.Promote high-temperature superconducting cables and support the application of high-temperature superconducting technology in fields such as nuclear fusion. Conduct research and application of photocatalysis in areas such as pollution control. Develop low-carbon chemical industries and advance demonstration projects for the production of synthesis gas from natural gas and carbon dioxide, as well as light hydrocarbon cracking technologies.
8. Carbon Trading and Carbon Finance. Relying on the national carbon trading system, diversify market participants, introduce carbon trading credit guarantee insurance, establish a carbon benefit mechanism, and guide enterprises to continuously enhance their carbon asset management capabilities; establish and improve the standard and regulatory framework for carbon trading. Prioritize the development of financial products such as carbon funds, carbon bonds, carbon pledges, and carbon insurance. Encourage the development of financial leasing services for major energy-saving, low-carbon, and environmentally friendly equipment. Regulate the development of supply chain financial products and orderly advance innovation in carbon financial derivatives.
(IV) Strengthen Integrated Innovation to Achieve a Leapfrog Development
9. Carbon Capture and Utilization. Promote the application of next-generation phase-change carbon dioxide capture technologies, achieve breakthroughs in key indicators such as solvent loss and regenerative heat consumption, and reduce capture costs.Accelerate research on CO₂ conversion technologies in fields such as biotechnology, chemical engineering, materials science, and mineralization; advance pilot industrialization projects for high-value chemicals like carbon nanotubes produced from CO₂; and conduct a 10,000-ton-scale demonstration of CO₂ capture and methanol production. Expand the application of Carbon Capture, Utilization, and Storage (CCUS) to other industries such as chemicals and steel; and accelerate the integrated development of CCUS with energy storage and hydrogen energy technologies.
10. Smart Grids.Accelerate the deployment of new energy terminals and smart grid infrastructure. Leverage the demonstration role of projects such as new energy microgrids and smart carbon-reduction virtual power plants to promote smart grid applications including photovoltaic-storage-DC-flexible systems. Advance the development of smart grids and distributed energy equipment toward higher voltage levels and greater intelligence, and implement energy storage devices such as high-capacity, long-life safety batteries and solid-state batteries. Strengthen smart energy services and promote the application of photovoltaic-storage microgrid technology, battery artificial intelligence technology, lithium-ion battery energy storage systems, and DC microgrid systems.
III. Specialized Park Upgrade Initiative
(1) Accelerate the Construction of a Hydrogen Energy Demonstration Zone with a Focus on Clustered Development
Advance the construction of the Jiading Hydrogen Energy Hub to foster industrial clusters for key components, systems, and complete vehicles. Establish a national-level metrology and testing platform for hydrogen fuel cell vehicles, build a comprehensive hydrogen fuel cell vehicle industry chain, and create a well-equipped industrial ecosystem for fuel cell vehicles.Leveraging the Lingang International Hydrogen Valley, focus on the manufacturing of fuel cell vehicles, heavy-duty gas turbines, and aircraft engines; accelerate the construction of integrated hydrogen production, storage, and refueling stations; advance the industrialization and pilot testing of water electrolysis equipment; and conduct pilot demonstrations for the comprehensive utilization of hydrogen in transportation, energy, and construction sectors.
(2) Driven by high-end development, comprehensively build the “Lingang Power City”
Accelerate the development of all power sectors in the Lingang New Area to create a "Air-Space-Land-Sea-Energy" power cluster encompassing aviation, aerospace, automotive, marine, and energy sectors. Accelerate the deployment of key links in the industrial chain, developing high-value-added segments such as R&D, design, manufacturing, and maintenance services for high-end power components and complete sets of equipment. Accelerate the development of core equipment products, and advance the R&D and industrialization of high-performance aircraft engines, heavy-duty gas turbines, and other technologies.
(3) Guided by innovative development, accelerate the construction of the “Baowu (Shanghai) Carbon Neutrality Industrial Park”
Leveraging relevant enterprises, specialized institutions, and industry alliances, we will focus on technological breakthroughs such as hydrogen-rich carbon-cycling blast furnaces and hydrogen-based vertical furnaces. We will establish a pioneering demonstration zone for carbon-neutral specialty industries, attract R&D institutions and business units from Fortune 500 companies, build a platform for the research, development, and commercialization of low-carbon and carbon-reduction technologies, attract “specialized, refined, distinctive, and innovative” enterprises, and introduce diversified social capital.
(4) Focusing on low-carbon hydrogen sources and new materials, accelerate the construction of the “Shanghai Chemical Industry Park Green and Low-Carbon Demonstration Park”
Establish a diversified hydrogen supply model in the Shanghai Chemical Industry Park, increase the utilization of by-product hydrogen, develop biogas-to-hydrogen production, and explore electrolytic hydrogen from renewable energy sources such as wind power. Centered on building the Shanghai International Chemical New Materials Innovation Center, accelerate the incubation and application of lightweight high-strength materials, new energy materials, hydrogen storage and transportation materials, fuel cell materials, and carbon dioxide resource utilization technologies.Promote the use of natural gas and light hydrocarbons to replace coal and petroleum as chemical feedstocks, and encourage enterprises to increase the proportion of bio-based and waste-based raw materials.
(5) Adopt a phased approach to cultivate and develop several high-potential parks
Identify and establish a number of promising industrial parks, intensify efforts to nurture and upgrade them, and promote their development into specialized parks or high-quality micro-parks. The Carbon Capture and Utilization Demonstration Park will conduct research and development on next-generation carbon dioxide capture technologies and promote demonstrations of carbon dioxide-derived carbon nanotubes and composite materials. The Qingpu Hydrogen Energy Economic Ecological Park will build a hydrogen-powered vehicle industrial chain. The Lingang Remanufacturing Industrial Park will develop the remanufacturing of automotive parts, construction machinery, medical devices, gas turbines, and other equipment.The Changxing Low-Carbon Innovation Industrial Park will advance R&D in tidal energy power generation and the manufacturing of LNG ships, while developing green marine equipment and green transportation industries. We will promote the construction of carbon-neutral innovation technology platforms, leverage the role of various municipal science and technology innovation platforms, strengthen industry-academia-research-application collaboration, and advance research on generic technologies and the commercialization of research outcomes.
IV. Action Plan for Improving the Industrial Ecosystem
(1) Building a Hub for Scientific and Technological Innovation
Leverage the role of universities and research institutes in original innovation. Focusing on generic, cutting-edge, and disruptive technologies, intensify research and development efforts to establish platforms such as the Carbon Capture, Utilization, and Storage (CCUS) Technology Research Center and the Low-Carbon Metallurgy Technology Innovation Center. Empower enterprises as the primary drivers of innovation, strengthen industry-academia-research-application collaboration, and improve the rate of technology commercialization. Promote the deep integration of scientific and technological innovation with the real economy, and leverage functional platforms such as the Manufacturing Innovation Center.
(2) Promoting Coordinated Development of Industrial Chains
Leverage the leading role of flagship enterprises to enhance the specialized collaboration and supporting capabilities of small and medium-sized enterprises (SMEs). Support enterprises in deeply cultivating the national carbon neutrality market and increasing market share through advanced technologies and professional services. Develop a number of green supply chains and encourage core enterprises to drive the high-end and green development of enterprises along the chain. Establish a number of inspection, testing, evaluation, and certification service platforms to promote the healthy and standardized development of the industry.
(3) Advancing the Development of a Standards System
Advance the formulation of standards that meet domestically leading and internationally advanced levels to establish a Shanghai green and low-carbon standards system. Encourage leading enterprises to collaborate with upstream and downstream supporting SMEs in standardization efforts and explore the formation of industrial chain standardization alliances.
V. Support Measures
(1) Strengthening Coordination and Collaboration
Relevant municipal departments shall strengthen coordination and cooperation to form a synergistic effort. All districts and industrial parks shall implement various industrial development policies and measures to ensure the supply of resources necessary for project implementation. Enterprises, industry organizations, and research institutions are encouraged to strengthen cooperation in areas such as technological breakthroughs, product R&D, standard formulation, and application demonstrations.
(2) Expand Policy Support
Establish a policy framework to support the development of the city’s green and low-carbon industries, focusing on addressing bottlenecks in technology commercialization, scenario applications, and project implementation, and conducting pilot initiatives. Implement national green and low-carbon development policies, comprehensively utilizing fiscal, financial, investment, and land policies, and fully leveraging national and municipal special funds for energy conservation and emissions reduction, promoting high-quality industrial development, and strategic emerging industries to support breakthroughs in green and low-carbon technologies, industrial development, and the construction of specialized industrial parks.
(3) Accelerate Talent Development
We will intensify efforts to attract and cultivate talent for the green and low-carbon industries, forming a tiered, multi-channel talent development system. We will recruit multidisciplinary professionals with international innovation capabilities and leadership skills. Through the selection of high-level industry elites, we will identify a group of leading talents and young elites. We will leverage the role and strengths of universities and research institutes in cultivating outstanding innovative talent to expand the industry workforce.
(4) Deepening Domestic and International Cooperation
Leveraging the high-quality integrated development of the Yangtze River Delta, we will deepen cooperation with relevant domestic regions in the area of green and low-carbon development. We will fully utilize Shanghai’s advantages as a window and bridge for opening up to the outside world, better leverage the functional strengths of the Pilot Free Trade Zone, the Lingang New Area, and the Hongqiao International Open Hub, and strengthen international cooperation in green technology innovation, green finance, and climate change response.
(5) Strengthening Guidance on Green and Low-Carbon Development
Seize opportunities presented by events such as National Energy Conservation Awareness Week, Low-Carbon Day, and the Carbon Expo to disseminate the concept of green and low-carbon development. Create a favorable environment for the green and low-carbon industry through multi-level, diverse promotional activities, including thematic forums, technology exhibitions, and exchange meetings. Promote the application of green and low-carbon technologies and products, and foster green and low-carbon consumption.
