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In the context of nationwide efforts toward energy conservation and emission reduction, the petroleum and chemical industries have made some progress under government guidance and the support of industry associations. However, they still face significant challenges that hinder further development in this area.
These challenges can be summarized into three main areas. First, the rapid expansion of high-energy-consuming and highly-polluting production capacity remains a major obstacle. In recent years, investments in sectors such as nitrogen fertilizers, soda ash, caustic soda, calcium carbide, and yellow phosphorus have grown by around 30% annually, leading to severe overcapacity. Despite national policies aimed at curbing this trend, weak regulatory enforcement and local protectionism have made it difficult to implement these measures effectively.
Second, the foundational work for energy conservation and emissions reduction is lagging. Current methods for measuring energy use and emissions are outdated or incomplete. Some systems date back over a decade and no longer meet modern industry needs, while others lack any formal standards. Additionally, the teams responsible for managing energy and environmental data are often understaffed and underqualified. Many companies do not have dedicated personnel for energy management, and even basic statistics from the National Bureau of Statistics require assistance from industry associations to verify accuracy.
Third, the development and promotion of energy-saving and emission-reduction technologies remain insufficient. While many companies have developed promising technologies, investment in research and development for these innovations has been limited. Companies often hesitate to share their advancements due to competitive concerns. Furthermore, the government has not provided enough support to promote mature technologies across the industry. For example, key technologies like dry acetylene production, large-scale closed calcium carbide furnaces, and advanced dust removal systems for yellow phosphorus need stronger policy backing to be widely adopted.
To address these issues, industry experts have proposed several recommendations. First, the market access system should be tightened, and industrial policies should be more effectively guided. Second, the government should introduce an exit strategy for outdated production facilities and establish a mechanism to phase out inefficient capacity. Third, special support should be given to the promotion of key energy-saving and emission-reduction technologies, including dry acetylene, large-scale closed-type calcium carbide furnaces, and comprehensive utilization of waste gas and slag. Fourth, preferential policies—such as financial incentives and tax reductions—should be introduced to encourage the adoption of energy-saving equipment. Fifth, the government should encourage research into chromium-containing slag utilization in the metallurgical industry to reduce pollution and improve resource recycling. Finally, key state-owned enterprises in the petrochemical sector should be considered for exclusion from the WTO GPA list or treated with a phased approach to ensure fair competition and continued growth.
October 07, 2025