“Double Control Policy” a Watershed for China’s Agchem Industry

On Aug. 17, 2021, China’s National Development and Reform Commission issued the “Barometer of 2021 Half-Year Regional Energy Consumption Intensity & Total Amount” – also known as “double control.” The double control policy provides a clear alert level of energy consumption intensity reduction and amount reduction. In accordance with China’s Paris Agreement pledge, the policy presents a key step for China moving toward the carbon neutrality target.

There is strict control of electricity supply under the double control policy. Intensity of energy consumption is the most important target, followed by total energy consumption. The double control policy is mainly aimed at improving the structure of industries and renewable energy utilization.

Management of the policy is regional, with local governments shouldering the responsibility to execute the policy. The central government sets the credit of total energy consumption to the regions, and they will consider the regional efficiency of energy consumption and development of energy utilization.

For example, energy-intensive sectors, such as yellow phosphorous mining, are under serious control since the mining industry has deep electricity needs. Usage intensity was especially high in Yunnan. One Mt of yellow phosphorous consumes around 15,000 Kw/h hydroelectric power.

China’s central government sent environment protection audits to eight provinces in April: Shan Xi, Liao Ning, An Hui, Jiang Xi, He Nan, Hu Nan, Guang Xi, and Yun Nan. The future impact will be “Double Control” together with “Environment Protection.”

The double control policy shows that there will be no excuse to delay the goal of 30/60. From such policy, China decided to change to sustainable development by industry upgrades. In the future, 50,000 tonnes of standard coal equivalent will be the maximum energy consumption for future new projects, and projects with high energy consumption and high waste emission will be strictly controlled.

To achieve a systemic goal, China evaluates one simple parameter, carbon consumption. The market and enterprises will be supporting the future industry revolution accordingly. We can call it “beginning from the end.”

Source: AgriBusiness Global, 23 Sept 2021