Energy Sector Energy Conservation and Carbon Reduction Action Plan (2026–2028)
To thoroughly implement the relevant requirements for advancing energy conservation and carbon reduction at a higher level and with higher quality, and to fully leverage the role of the energy sector in these efforts, 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 thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the plenary sessions of the 20th Central Committee, earnestly carry out the deployments of the Fourth Plenary Session, and practice the new energy security strategy to high standards. Driven by the goals of carbon peaking and carbon neutrality, and focusing on optimizing the energy structure, improving energy efficiency, strengthening technological innovation, and refining policy support, we will integrate energy conservation and carbon reduction throughout all links of energy production, supply, storage, sales, and consumption. We will deepen energy conservation and carbon reduction in the fossil fuel industry, expand the scale of non-fossil energy substituting fossil energy, promote the peaking of coal and oil consumption, and provide strong support for the comprehensive green and low-carbon transformation of economic and social development.
By 2028, the share of non-fossil energy in total consumption will increase by approximately 1 percentage point annually. The power supply coal consumption of coal-fired units will be reasonably controlled, and the proportion of coal-fired capacity reaching the current benchmark level of energy efficiency will strive to increase by 15 percentage points. A number of zero-carbon and low-carbon coal mining areas and oilfields will be built. Support will be provided to build a number of zero-carbon industrial parks, achieving significant progress in energy conservation and carbon reduction in key industries, and continuously elevating the level of green energy utilization.
II. Deepening Energy Conservation and Carbon Reduction in the Power System
(1) Vigorously promote energy conservation and carbon reduction in thermal power. Steadily and orderly shut down a batch of eligible coal-fired units of 300 MW and below, and encourage the construction of replacement units according to the requirements of next-generation coal power. Promote the implementation of a batch of ultra-supercritical and super-supercritical cross-generation upgrade retrofits for 600 MW-class coal-fired units. Support eligible units in implementing co-firing of zero-carbon and low-carbon fuels and the retrofitting and construction of Carbon Capture, Utilization, and Storage (CCUS) facilities; post-retrofit carbon emissions per kilowatt-hour should be reduced by approximately 10%. Implement a batch of integration projects for coal power, gas power, and new energy, supporting the coupling of coal power and new energy through heat storage and energy storage for peak shaving and peak support, as well as integrated collection and transmission, to achieve integrated carbon reduction effects.
(2) Leverage the role of power transmission channels in optimizing green resource allocation. Scientifically optimize the national power flow layout, and orderly promote the planning and construction of clean energy bases (such as the "Shagemo" desert and wind-solar-hydro integrated bases) and inter-provincial and cross-regional power transmission channels. Tap into the outbound potential of transmission channels, continuously optimize operation modes, explore the application of advanced transmission technologies, steadily enhance the carrying capacity and transmission proportion of clean energy in transmission channels, and demonstrate and pilot 100% new energy outbound transmission projects.
(3) Expand the space for new energy consumption. Vigorously develop new energy storage and explore long-duration energy storage applications. Increase the scale of inter-provincial mutual assistance transactions for new energy, and continuously raise the proportion of new energy power generation. Strengthen the construction, renovation, and smart upgrading of distribution networks to enhance their comprehensive carrying capacity for new entities such as distributed new energy. Actively develop new business models for the local consumption of new energy, such as direct green power connections, smart microgrids, source-grid-load-storage integration, and new energy access to incremental distribution networks, thereby expanding the application space for green power.
III. Strengthening Energy Conservation and Carbon Reduction in Coal Production and Supply
(4) Promote clean and efficient coal development and production. Strengthen energy conservation and carbon reduction requirements for coal mine project construction, and promote the application of intelligent equipment and advanced mining technologies. Fully utilize sites such as coal mining subsidence areas and industrial plazas, as well as surrounding areas, for the local development and utilization of photovoltaic and wind power. Encourage eligible mining areas to develop and utilize geothermal energy and distributed solar heating. Accelerate energy conservation and carbon reduction retrofits of coal mine equipment and facilities, promoting energy-saving technologies such as intelligent variable-frequency speed regulation and energy consumption monitoring in high-load electromechanical equipment. Promote the replacement of new energy for mining area transport equipment; scale up the application of electric and hydrogen-powered mining trucks in eligible open-pit mines, and gradually introduce electric mine trackless rubber-tired vehicles in underground mines based on transport methods.
(5) Promote quality and efficiency improvements in coal washing and selection. Newly built, expanded, or renovated coal mine projects must be equipped with corresponding coal preparation facilities. Newly built coal preparation plants should, in principle, be constructed according to intelligent standards and reach the benchmark level of key areas for clean and efficient coal utilization. Promote the upgrade and renovation of existing backward coal preparation facilities to reach the baseline level of key areas for clean and efficient coal utilization within a specified time limit. Optimize washing and selection technical processes and flow parameters, and develop dry coal preparation processes tailored to local conditions. Implement technical indicators such as energy consumption for coal washing and selection, and advance standardized and normalized construction in this sector.
(6) Enhance the comprehensive recycling and utilization level of coal resources. Actively promote the resourceful and ecological utilization of coal gangue, slime, etc., prioritizing their use in power generation and chemical production. Deepen technological innovation in coalbed methane (CBM) utilization, strengthen the full-concentration utilization of CBM, and promote the construction of resource utilization projects such as CBM power generation and regenerative oxidation. Advance the graded and classified utilization of oil-rich coal based on local conditions. Encourage mining areas to implement energy conservation and carbon reduction measures such as on-site CBM utilization, low-grade heat energy utilization, waste heat utilization, and water and material conservation.
IV. Deepening Energy Conservation and Carbon Reduction in Oil and Gas Production and Processing
(7) Promote low-carbon energy use in oil and gas production and supply. Relying on mining areas and surrounding regions, promote the development and utilization of new energy such as wind power, photovoltaics, geothermal, and marine energy. Increase the electrification rate of oil and gas exploration and development, and explore the construction of low-carbon and zero-carbon oilfields. Promote the use of energy-saving equipment such as fracturing machines, drilling rigs, and pumping units. Advance the "oil-to-electricity" and "gas-to-electricity" transition for drive equipment in oil and gas transmission pipelines. Leverage the full industry chain advantages of CCUS in the oil and gas sector, and deploy CO2-enhanced oil recovery and storage projects in the Ordos, Bohai Bay, Junggar, and Pearl River Mouth basins.
(8) Optimize the industrial structure of oil refining and coal-to-oil/gas. The oil refining industry must adhere to capacity reduction and replacement, with the energy efficiency of newly built refineries reaching benchmark levels. Strengthen capacity and technological reserves for coal-to-oil/gas, improve conversion efficiency, and ensure that energy consumption and carbon emissions per unit of product reach or exceed advanced industry values.
(9) Accelerate the upgrading and transformation of the oil refining and coal-to-oil/gas industries. Orderly promote the replacement of steam turbine drives with electric drive systems. Promote the deep integration of coal-to-oil/gas, oil refining industries, and new energy. Encourage relevant projects to carry out large-scale substitution with green power and green hydrogen, gradually reducing the use of fossil fuel-based hydrogen. Promote the large-scale application of CCUS.
V. Vigorously Promote the Substitution of Fossil Energy with Non-Fossil Energy on the Consumption Side
(10) Accelerate the transformation of industrial energy supply models. Strengthen the development and utilization of renewable energy in and around industrial parks. Support large-scale chemical parks in exploring the use of nuclear energy for heating and steam supply, and support the construction of zero-carbon parks and factories. Encourage eligible factories to build industrial green microgrids, integrating systems such as photovoltaics, wind power, high-efficiency heat pumps, new energy storage, hydrogen energy, waste heat/pressure/gas recovery, and smart energy management and control. Encourage the use of public electricity, centralized heating and steam supply from large-scale cogeneration, and clean energy to reduce coal consumption by self-owned coal-fired units. Actively develop integrated projects for green hydrogen, ammonia, and methanol, and promote the application of industrial by-product hydrogen and green hydrogen. Explore coupled development and utilization models of hydrogen and electricity, and promote the substitution of fossil energy with hydrogen and biomass.
(11) Promote the greening of transportation energy use. Support the integrated planning and development of transportation and energy facilities, making full use of spaces such as railways, highways, hub stations, and their surrounding areas to develop and utilize renewable energy like wind and solar power. Strengthen planning and layout, vigorously promote the large-scale application of new energy heavy-duty trucks, and advance the large-scale substitution of liquefied natural gas (LNG), green hydrogen/ammonia/methanol, and biodiesel for near-shore and inland waterway vessel fuels. Promote the retrofitting and use of shore power for ports and ships, as well as the retrofitting and use of auxiliary power unit (APU) replacement facilities at airports. Build an urban public charging network dominated by fast charging, supplemented by slow charging, and beneficially complemented by high-power charging. Strengthen the construction of high-power charging facilities along highways and charging/battery-swapping facilities for electric heavy-duty trucks, taking the lead in implementing high-power retrofits for charging facilities with utilization rates exceeding 40% during major holidays. Further extend the construction of charging networks in rural areas.
(12) Enhance energy conservation and carbon reduction levels in buildings and rural areas. Pilot the integrated design and construction of building-integrated photovoltaics (BIPV), and support energy conservation and carbon reduction retrofits for existing buildings. Deepen the rural energy revolution, guide rural areas to reduce the burning of loose coal, promote the local clean and efficient development and utilization of renewable energy, and promote the application of electrified equipment in agricultural production activities such as planting, irrigation, breeding, and processing based on local conditions. Implement the substitution of electric cooking appliances, steadily promote electric heating in eligible areas, and promote the elimination of loose coal in the plain areas of key air pollution prevention and control regions while ensuring that the people can warm themselves through the winter.
(13) Promote the green and low-carbon transformation of heating systems. Develop technologies such as wind/solar heating, geothermal energy, biomass heating, nuclear heating, and waste heat resource utilization based on local conditions, and promote the highly efficient complementary utilization of multiple heat sources. Promote the scientific and rational construction of heat (cold) storage systems for eligible large-scale heat sources and main heating networks. Encourage and support the construction of supporting heat (cold) storage systems for new energy heating projects and areas with concentrated heating/cooling loads, such as industrial parks. Explore long-duration heat (cold) storage in eligible areas. Promote the establishment of a smart dispatch system for heating networks.
(14) Promote the coordinated development of green power and emerging industries. Promote the coordinated planning and construction of new energy bases and computing power facilities. Support computing power facilities in increasing their share of green power consumption, deeply tap into the time-space adjustable potential of computing loads, and promote the coordinated operation of computing and power. Promote the use of energy-saving technical equipment such as high-efficiency cooling, high-performance power supply, and advanced waste heat recovery and utilization to enhance the energy efficiency of computing facilities. Plan and build a number of new energy bases for self-consumption and integrated wind-solar-hydro bases in river basins, promoting the coordinated layout of power and advanced manufacturing industries.
VI. Strengthening Technological Innovation in Energy Conservation and Carbon Reduction
(15) Strengthen the R&D and promotion of energy conservation and carbon reduction technology and equipment. Enhance R&D of energy-saving energy equipment and improve the energy efficiency levels of energy equipment throughout the entire process of energy extraction, conversion, storage, and transmission. Relying on national major and key special science and technology programs in the energy sector, support the R&D and breakthroughs of key common technologies and equipment for energy conservation and carbon reduction. Relying on relevant policies for the first-set major technical equipment in the energy sector, support the application and promotion of technologies and equipment with significant energy conservation and carbon reduction benefits.
(16) Strengthen digital and intelligent empowerment. Deepen the digital and intelligent transformation of all links in energy production, supply, storage, sales, and consumption. Support enterprises in building digital carbon management platforms, promote precise metering, real-time collection, and intelligent analysis of energy consumption, and achieve online monitoring, accounting, and flexible regulation of energy consumption and carbon emissions. Encourage innovation in AI models in the energy sector, explore digital and intelligent energy conservation and carbon reduction solutions, and tap into high-value scenarios for AI in the energy conservation and carbon reduction process.
(17) Carry out R&D on frontier low-carbon, zero-carbon, and negative-carbon technologies. Focus on key areas such as the clean and efficient utilization of fossil energy and the large-scale utilization of renewable energy. Increase forward-looking and strategic breakthroughs in major frontier technologies, accelerate breakthroughs in key technologies such as supercritical CO2 power generation and CCUS, tackle key technologies for flexible and efficient hydrogen production from wind/solar and large-scale safe hydrogen storage, and break through core technologies such as green hydrogen synthesis catalysis, low-carbon synthesis processes, and long-distance storage and transportation.
VII. Improving Policy Mechanisms for Energy Conservation and Carbon Reduction
(18) Strengthen the management of carbon emission statistics and accounting. Organize carbon emission statistics and accounting in areas and links such as coal mining and washing, oil and gas exploration, development, transportation and storage, electricity production, transmission, distribution and storage, hydrogen production, storage and transportation, oil refining, and coal-to-fuels. Gradually improve and establish a regular statistical accounting mechanism, and accelerate the formulation of carbon footprint standards and factor development for basic energy products. Routinely track and monitor carbon emissions in industries such as electricity, coal, oil and gas, and oil refining, and carry out carbon emission situation analysis and forecasting.
(19) Improve the promotion mechanism for green energy consumption. Establish a minimum proportion target system for renewable energy consumption, improve the renewable energy power consumption responsibility weight system, and consolidate the renewable energy consumption responsibilities of key energy-consuming industries and the responsibilities of all parties. Continuously expand the green electricity certificate (GEC) market, publish GEC price indices, and guide GEC prices to operate within a reasonable range. Promote the inclusion of nuclear power in the green power and GEC system. Establish a GEC and green power consumption standard system, formulate and introduce standards for GEC accounting, certification, and labeling, and accelerate the alignment of GEC standards with international standards. Promote the inclusion of GECs in the carbon emission accounting system.
(20) Improve market mechanisms to promote energy conservation and carbon reduction. Improve the national unified electricity market system, make full use of differences in power supply and demand timing and regulation capabilities among provinces and regions, and promote the consumption of clean energy on a larger scale. Improve the GEC and green power trading mechanism, encourage the implementation of inter-provincial new energy priority power generation scale plans through green power trading, and promote power generation and consumption parties to carry out green power trading through multi-year transaction contracts and aggregated trading. Study specific project types for incorporating CCUS and non-electric utilization of renewable energy (low-carbon, zero-carbon, and negative-carbon projects) into the methodology for voluntary greenhouse gas emission reduction projects.
VIII. Ensuring Implementation
Coordinate the use of various investments to support the construction of eligible energy sector energy conservation and carbon reduction projects, and promote the renewal and upgrading of relevant energy supply and consumption equipment. The National Energy Administration (NEA) will work with relevant departments to establish a key project database for energy conservation and carbon reduction in the energy sector, continuously track project construction, strengthen the supervision of policy implementation, and promote deeper green and low-carbon transformation in more fields.