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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 support from industry associations. However, they still face significant challenges that hinder further development in this area.
These challenges can be summarized in three main areas. First, the rapid expansion of high-energy-consuming and highly-polluting production capacity remains a major issue. Over the past few years, investments in sectors like nitrogen fertilizers, soda ash, caustic soda, calcium carbide, and yellow phosphorus have surged by approximately 30%, leading to severe overcapacity. Despite national policies aimed at curbing this growth, weak regulatory enforcement and local protectionism have made it difficult to implement these measures effectively. As a result, the trend of expanding high-pollution industries continues unchecked.
Second, the foundational work for energy conservation and emission reduction is lagging behind. Current methods for measuring energy use and emissions are outdated or incomplete. Some systems were established over a decade ago and no longer meet today’s industrial needs, while others lack any formal standards altogether. This lack of reliable data makes it hard to track progress and enforce regulations. Moreover, the teams responsible for managing energy and environmental data are often understaffed and underqualified. Many companies do not even have dedicated personnel for these tasks, and even official statistics from the National Bureau of Statistics require assistance from industry associations for verification.
Third, the development and promotion of energy-saving and emission-reduction technologies remain insufficient. While technical innovation is crucial for achieving sustainability goals, many companies have focused more on expanding their operations than on investing in research and development. Even when effective technologies are developed, there is often reluctance to share them across the industry due to competitive concerns. Additionally, the government has not provided enough support to promote mature technologies, such as dry acetylene production, large-scale closed calcium carbide furnaces, and advanced waste gas utilization systems. This gap limits the widespread adoption of these solutions.
To address these issues, industry experts have proposed several recommendations. First, the market access system should be tightened, and industrial policies must be better enforced to guide sustainable development. Second, an exit policy for outdated production capacities should be introduced, along with a structured mechanism for phasing out inefficient facilities. Third, special funding and support should be allocated to promote key energy-saving and emission-reduction technologies, including dry acetylene technology, large-scale closed calcium carbide furnaces, and zero-discharge wastewater treatment systems in the nitrogen fertilizer sector.
Fourth, preferential policies—such as financial incentives and tax reductions—should be offered to encourage the adoption of energy-saving equipment and technologies. Fifth, the government should introduce supportive policies to promote research into the utilization of chromium-containing slag in the metallurgical industry, helping to reduce environmental pollution and improve resource efficiency. Finally, it is recommended that key state-owned enterprises in the petrochemical industry be excluded from the WTO "GPA" entity list or adopt a phased approach to compliance, allowing them to maintain strategic flexibility in procurement practices.
By addressing these challenges through targeted policies and stronger implementation, the petroleum and chemical industry can move closer to achieving long-term sustainability and environmental responsibility.
October 07, 2025