Notice of the National Development and Reform Commission and Other Departments on Launching a Three-Year Campaign for Energy Conservation and Carbon Reduction Retrofits in Key Industries
Fagai Huanzi [2026] No. 698
To the Development and Reform Commissions, Departments of Industry and Information Technology, Departments of Ecology and Environment, State-owned Assets Supervision and Administration Commissions, and Energy Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, cities with independent planning status, and the Xinjiang Production and Construction Corps; and relevant central enterprises:
In order to fully implement the guiding principles of the 20th National Congress of the Communist Party of China (CPC) and the plenary sessions of the 20th CPC Central Committee, and to carry out the arrangements of the Central Economic Work Conference and the Government Work Report, the National Development and Reform Commission (NDRC) and other relevant departments have decided to launch a three-year campaign for energy conservation and carbon reduction retrofits in key industries, including steel, electrolytic aluminum, cement, flat glass, oil refining, ethylene, synthetic ammonia, methanol, and coal-fired power. The relevant matters are hereby notified as follows:
1.Deeply implementing energy conservation and carbon reduction retrofits is a vital task deployed by the CPC Central Committee and the State Council. It is conducive to accelerating the green and low-carbon transition, supporting the achievement of carbon peaking and carbon neutrality goals, expanding effective investment, and promoting industrial upgrading. Relevant departments, local governments, and enterprises must fully recognize the significance of this work, adopt effective measures, and solidly advance its implementation.
2.Key industries are characterized by large-scale and high-intensity energy consumption and carbon dioxide emissions, making them the top priority for improving energy efficiency, reducing coal consumption, and lowering carbon emissions. Starting in 2026, a comprehensive three-year campaign for energy conservation and carbon reduction retrofits will be implemented focusing on the aforementioned nine industries. This will drive enterprises to maximize improvements in energy and carbon efficiency, and significantly elevate the green and low-carbon development level of these industries. Starting in 2028, the scope of implementation will be further expanded to include other industries based on actual conditions, and localities may proactively and orderly initiate this work according to their needs.
3.Relevant departments and local governments must increase guidance and support, continuously improve policy measures, fully mobilize the enthusiasm and initiative of enterprises, strengthen supervision and management of retrofits, urge relevant enterprises to earnestly fulfill their principal responsibilities, actively implement upgrade retrofits, and accelerate the formation of tangible results in energy conservation, coal reduction, and carbon reduction.
Attachment: Three-Year Action Plan for Energy Conservation and Carbon Reduction Retrofits in Key Industries
Energy conservation and carbon reduction retrofits are crucial measures to improve the utilization efficiency of energy and resources and reduce carbon emissions, as well as strong support for expanding effective investment and promoting industrial upgrading. To deeply advance energy conservation and carbon reduction retrofits in key industries, intensify efforts, and strongly support the achievement of the "15th Five-Year Plan" energy conservation and carbon reduction targets and tasks, this Action Plan is hereby formulated.
Ⅰ.General Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement the guiding principles of the 20th CPC National Congress and the plenary sessions of the 20th CPC Central Committee, and carry out the arrangements of the Central Economic Work Conference. Adhering to the general tone of pursuing progress while ensuring stability, fully, accurately, and comprehensively applying the new development philosophy, and consistently adhering to the principle of prioritizing conservation, we will deeply advance energy conservation and carbon reduction retrofits in key industries, comprehensively improve the energy and carbon efficiency levels of these industries, and accelerate the pace of green and low-carbon transition. This will provide strong support for advancing and achieving carbon peaking, and create ample space and green momentum for high-quality economic and social development.
By the end of 2028, the proportion of production capacity meeting the current energy efficiency benchmark levels in key industrial sectors such as steel, electrolytic aluminum, cement, flat glass, oil refining, ethylene, synthetic ammonia, and methanol will increase by an average of 20 percentage points, with the coal-fired power industry striving for a 15 percentage point increase. Production capacity below the energy efficiency baseline level will be basically eliminated. The cumulative energy savings will exceed 100 million tons of standard coal, and carbon dioxide emissions will be reduced by more than 200 million tons.
Ⅱ.Key Tasks
(1) Steel Industry. Promote energy conservation and carbon reduction retrofits for key processes and equipment such as blast furnaces and converters. Apply advanced technologies such as high-proportion pellet smelting in blast furnaces, top gas pressure recovery, and oxygen-enriched hot blast stoves. Promote inter-process interface connection technologies such as "hot metal transfer in a single ladle." Orderly advance the application of hydrogen metallurgy and other technologies. Accelerate the renewal and upgrading of energy-consuming equipment such as motors, fans, water pumps, heat pumps, boilers, oxygen generators, air compressors, and transformers. Implement retrofits for waste heat recovery and waste energy power generation, and strengthen the recycling of by-product gases, waste heat, and residual pressure. Coke ovens with a carbonization chamber height of less than 6 meters (top-charged) or less than 5.5 meters (stamped), pelletizing equipment under 1.2 million tons/year, blast furnaces under 1,200 cubic meters, converters under 100 tons, electric arc furnaces under 100 tons (50 tons for alloy steel), and old, inefficient self-owned coal-fired units must accelerate their upgrade retrofits. Coke ovens should be equipped with high-efficiency dry quenching coke devices.
(2) Electrolytic Aluminum Industry. Promote energy conservation and carbon reduction retrofits for production equipment such as aluminum electrolytic cells. Apply advanced technologies and equipment such as new stable-flow and heat-insulated aluminum electrolytic cells, graphitized cathodes, high-quality anodes, and sealed gas collection systems on the upper part of cells. Promote large-scale electrolytic cells of 500kA and above. Accelerate the renewal and upgrading of energy-consuming equipment such as motors, fans, water pumps, heat pumps, air compressors, and transformers. Optimize the highly efficient recovery and cascade utilization system for flue gas waste heat, and promote the application of low-temperature waste heat power generation technologies. Pre-baked anode aluminum electrolytic cells below 300kA, independent aluminum carbon projects under 150,000 tons/year, and old, inefficient self-owned coal-fired units must accelerate their upgrade retrofits.
(3) Cement Industry. Promote energy conservation and carbon reduction retrofits for key processes such as cement clinker production. Apply high-efficiency equipment such as six-stage preheaters and fourth-generation mid-mounted roller crushers with high-efficiency grate coolers. Carry out retrofits for kiln oxygen-enriched (oxygen-fired) combustion systems and high-efficiency burners. Support the application of vertical mill final grinding systems and separate grinding processes. Implement green and low-carbon substitution of raw materials and fuels. Accelerate the renewal and upgrading of energy-consuming equipment such as motors, fans, water pumps, heat pumps, air compressors, and transformers. Cement grinding stations under 600,000 tons/year must accelerate their upgrade retrofits.
(4) Flat Glass Industry. Promote energy conservation and carbon reduction retrofits for key equipment such as glass melting furnaces. Promote technologies such as oxygen-fired (oxygen-enriched) combustion for glass melting furnaces, structural optimization of melting furnaces, and high-efficiency insulation. Strengthen the application of high-efficiency low-NOx burners, gradient composite insulation, and high-radiation energy-saving coatings. Implement clean fuel substitution. Improve the application level of green electricity in processes such as batching, melting, stirring, forming, and transportation. Accelerate the renewal and upgrading of energy-consuming equipment such as motors, fans, water pumps, heat pumps, and transformers. Projects using inefficient glass melting furnaces, traditional air-assisted combustion, and coal combustion processes must accelerate their upgrade retrofits.
(5) Oil Refining and Ethylene Industry. Promote energy conservation and carbon reduction retrofits for core oil refining processes such as atmospheric and vacuum distillation, catalytic cracking, reforming, coking, and hydrogen production/hydrogenation, as well as equipment such as aromatics, olefins, and ethylene glycol. Promote process technologies such as high-efficiency catalytic cracking flue gas turbines and low-carbon deep processing of heavy and inferior residual oil. Accelerate the renewal and upgrading of systems such as high-efficiency steam, refrigeration and heating, motors, air compression, and power transmission and distribution. Synergistically optimize heat exchange networks, low-grade heat utilization, and steam power systems. Implement green and low-carbon substitution of raw materials and fuels, and electrification retrofits for energy-using systems. Equipment and processes such as atmospheric and vacuum distillation under 10 million tons/year, catalytic cracking under 1.5 million tons/year, continuous reforming under 1 million tons/year, hydrocracking under 1.5 million tons/year, naphtha cracking for ethylene under 800,000 tons/year, and open delayed coking must accelerate their upgrade retrofits.
(6) Methanol and Synthetic Ammonia Industry. Promote energy conservation and carbon reduction retrofits for equipment such as coal gasifiers, steam reforming furnaces, and high-pressure synthesis towers. Promote advanced technologies such as water-cooled wall water-coal slurry gasification and low-energy-consumption synthesis. Strengthen the highly efficient utilization of waste heat, residual pressure, and gasifier slag. Accelerate the renewal and upgrading of energy-consuming equipment such as motors, fans, water pumps, heat pumps, boilers, compressors, and transformers. Implement green and low-carbon substitution of raw materials and fuels, and electrification retrofits for energy-using systems. Equipment and processes such as natural gas-to-methanol under 300,000 tons/year, coal-to-methanol under 1 million tons/year, fixed-bed intermittent gasification, and copper wash ammonia synthesis feed gas purification must accelerate their upgrade retrofits.
(7) Coal-Fired Power Industry. Promote energy conservation and carbon reduction retrofits for existing coal-fired power units with a capacity of over 300 MW. Promote technologies such as flow path optimization, high-efficiency combustion, cold-end optimization, waste heat utilization, and intelligent control. Accelerate the renewal and upgrading of energy-consuming equipment such as fans, heat pumps, boilers, steam turbines, and transformers, ensuring that the coal consumption for power supply of retrofitted units is reduced by more than 5 grams of standard coal/kWh. Implement the requirements of the new-generation coal power upgrade special action, promote retrofits for fast regulation, deep regulation, and wide-load high-efficiency regulation capabilities to the greatest extent possible, and encourage the integrated development of coal power and new energy. Promote the因地制宜 (adapted to local conditions) implementation of heat-power decoupling retrofits for cogeneration units in regions with centralized winter heating, striving to achieve a peak-shaving depth of below 40% after retrofits. Promote low-carbon retrofits for eligible existing coal-fired power units over 300 MW through coupling with new energy, co-firing biomass, and adding energy/heat storage facilities, aiming to reduce carbon emissions per kWh by 10%-20%, and striving for a reduction of over 20%.
III. Safeguard Measures
(1) Strengthen financial support. The NDRC, together with relevant departments, will increase support from central investments. Eligible energy conservation and carbon reduction retrofit projects will receive financial subsidies equivalent to 20% of the verified total investment, with priority given to projects that achieve benchmark energy efficiency levels after retrofits. Localities are encouraged to coordinate existing funding channels to increase support for the implementation of retrofit projects in key industries. Tax incentive policies for energy-saving specialized equipment, technological transformation, and comprehensive resource utilization will be well implemented. Financial institutions are encouraged to provide diversified financial products and services tailored to the needs of energy conservation and carbon reduction retrofits.
(2) Improve price guidance and regulation. All regions must fully leverage the role of price leverage. Considering factors such as the implementation of capacity and output regulation policies, energy consumption and carbon emission levels, and environmental protection performance, regions may integrate existing differentiated electricity prices, tiered electricity prices, and punitive electricity prices into a unified differentiated electricity price policy. The surcharge shall not exceed 0.1 yuan/kWh based on the market transaction electricity price, and the surcharge revenue will be used to offset system operating costs.
(3) Strengthen policy coordination and incentives. The carbon dioxide emission reductions achieved by existing industrial enterprises through energy conservation and carbon reduction retrofits, once verified by provincial energy-saving competent departments in conjunction with relevant departments, can be used as a carbon emission replacement source for new, rebuilt, or expanded "two-high" industrial projects in the respective regions. For key industries included in the national carbon emissions trading market, a combination of free and paid carbon emission quota allocation will be implemented. Quotas will be distributed based on the principle of "rewarding the advanced and spurring the backward," supporting enterprises with carbon emission intensity better than the baseline value to obtain reasonable quota revenues. Strengthen positive publicity and commendation incentives, cultivate a group of "pacesetters" in energy and carbon efficiency in key industries, and encourage financial institutions to provide differentiated support to "pacesetter" enterprises in financing management.
(4) Strictly enforce standard guidance and constraints. Fully leverage the guiding and forcing role of energy conservation and carbon reduction standards. Projects whose energy efficiency fails to meet the mandatory energy consumption quota standards and baseline levels must complete retrofits by the end of 2028, striving to reach benchmark levels. Projects that fail to complete retrofits on schedule or still fail to meet requirements after retrofits should be eliminated and shut down in accordance with regulations. Projects with energy efficiency better than the baseline level should be promoted to maximize energy efficiency improvements as required. Combining technological progress and industrial development, continuously improve standards for energy consumption and carbon emission quotas in key industries, as well as energy efficiency of key energy-consuming products and equipment. Timely update the benchmark and baseline energy efficiency levels for key industries.
IV. Organization and Implementation
(1) Strengthen organizational leadership. The NDRC, together with the Ministry of Industry and Information Technology, the Ministry of Ecology and Environment, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC), and the National Energy Administration (NEA), will strengthen coordination and cooperation, form a joint force, actively coordinate to resolve major issues, and strengthen guidance for localities. The SASAC will organize central enterprises to play a demonstration and leading role, and strengthen energy conservation and carbon reduction retrofit requirements in the business performance assessment and green development evaluation of central enterprise leaders. All regions must incorporate energy conservation and carbon reduction retrofits in key industries into annual key work arrangements, strengthen overall planning and deployment, grasp the pace and intensity of work, and effectively implement this Action Plan. Provincial energy-saving competent departments must formulate overall plans for energy conservation and carbon reduction retrofits in key industries in their respective regions in conjunction with relevant departments, implement retrofit targets and tasks down to specific enterprises, form a list of retrofit plans, and ensure that steel, electrolytic aluminum, cement, flat glass, oil refining, ethylene, synthetic ammonia, methanol, and coal-fired power enterprises in their regions undergo retrofits to the greatest extent possible. By the end of July 2026, provincial energy-saving competent departments, together with relevant departments, will submit the overall plans and retrofit plan lists to the NDRC and other departments, and promptly report the progress of energy conservation and carbon reduction retrofits in key industries in their regions by the end of December each year.
(2) Strengthen principal responsibilities. Enterprises in key industries are the principal entities responsible for implementing energy conservation and carbon reduction retrofits. They must deeply organize and implement energy conservation and carbon reduction diagnostics, focus on main processes, key equipment, and critical links, comprehensively sort out prominent problems in energy utilization and the application potential of highly efficient energy-saving technologies and equipment, formulate specific plans based on actual conditions as required, and detail retrofit content, implementation paths, and schedule arrangements. They should reasonably arrange the retrofit schedule in combination with shutdown maintenance and other opportunities, fully utilize market-based models such as contract energy management, and accelerate retrofit upgrades focusing on the application of energy conservation and carbon reduction technologies, renewal and upgrading of energy-consuming equipment, coupling of energy-saving equipment systems, digital and intelligent empowerment for efficiency improvement, and overall optimization of enterprise and park energy systems. Relevant central enterprises must actively guide their affiliated enterprises to cooperate with localities in implementing energy conservation and carbon reduction retrofit targets and tasks, and strive to complete them ahead of schedule.
(3) Strictly supervise and manage. The NDRC, together with relevant departments, will track and evaluate the energy conservation and carbon reduction retrofit situation in key industries for the previous year annually, in accordance with the overall plans of various regions. Provincial energy-saving competent departments must, together with relevant departments, strengthen daily scheduling, supervision, and management of energy conservation and carbon reduction retrofits in key industries in their regions, investigate and deal with illegal and irregular acts such as fraud in accordance with the law, and ensure that relevant work arrangements are implemented. Provincial energy-saving and industry and information technology competent departments should organize special supervision in accordance with annual energy conservation supervision plans, take the implementation of energy conservation and carbon reduction retrofits in key industries as the focus of supervision, verify the energy and electricity consumption per unit product of enterprises and the energy efficiency of key energy-consuming equipment, and form supervision results by the end of December of the current year, as an important basis for implementing investment, price, and other support policies.
(4) Unite the efforts of all parties. Relevant industry associations must fully play their role as bridges and links, actively promote standard upgrading, benchmark selection, and technology promotion in their respective industries, increase publicity and promotion of advanced experiences and typical cases in energy conservation and carbon reduction retrofits, and continuously stimulate the endogenous driving force of enterprises. The energy conservation and carbon reduction center system must actively cooperate with relevant departments, actively carry out policy interpretation and business training on energy conservation and carbon reduction, and strengthen effective support for work such as investigation and diagnosis, project reserves, and supervision and management. Various energy-saving service institutions must actively innovate service models, improve service levels, and provide enterprises with high-quality comprehensive contract energy management services such as diagnosis, design, integration, and retrofits.