Since the beginning of this year, significant progress has been made in promoting large-scale equipment upgrades and encouraging the replacement of old consumer goods. A set of measures released in July aimed at enhancing support for equipment upgrades has broadened the focus to include energy-saving and carbon-reduction renovations in key industries. This initiative is expected to significantly advance our energy-saving and carbon reduction efforts.
The potential for energy-saving and carbon-reduction transformations in key industries is enormous. China, as a leading manufacturing nation—holding the title for 14 consecutive years—accounts for about 30% of the global manufacturing value added, with many types of machinery and equipment having the highest ownership globally. Current estimates suggest that the net asset value of equipment across society is approximately 40 trillion yuan. As industrialization and urbanization deepen, the demand for advanced equipment continues to rise. Upgrading high-energy-consuming and high-emission equipment in critical sectors such as industry, construction, transportation, and energy—like boilers, motors, turbines, transformers, heat exchangers, pumps, compressors, and lighting—will benefit both businesses and consumers, unlocking substantial market potential.
Driving energy-saving and carbon-reduction transformations in key industries will help cultivate new-quality productive forces. This new-quality productivity is fundamentally linked to green productivity. By improving standards for technology, energy consumption, and emissions, we can encourage industrial upgrades and the development of this new-quality productivity. Preliminary calculations indicate that this year, over 500 energy utilization projects supported by an extended special national bond have a total investment of more than 50 billion yuan. Once implemented, these projects are expected to save around 3 million tons of standard coal annually and reduce carbon dioxide emissions by approximately 8 million tons. This will effectively promote the upgrade and renewal of energy-utilizing equipment and accelerate the dissemination of advanced energy-saving and carbon-reduction technologies, steering industries towards greener practices and sustainable development.
Traditional industries remain the backbone of China’s manufacturing sector, comprising numerous energy-consuming enterprises and presenting vast potential for energy efficiency improvements. The key to promoting large-scale equipment upgrades in traditional industries lies in meeting the inherent requirements of green and low-carbon practices. This involves updating, renovating, and recycling high-energy-consuming and high-emission equipment, guiding traditional sectors towards faster energy-saving, carbon-reduction, and transformation processes.
On one hand, we need to promote the application of energy-saving, environmentally friendly equipment in key energy-utilization industries and processes. For instance, in the steel industry, efforts are underway to retrofit existing blast furnaces, converter furnaces, and electric furnaces for ultra-low emissions. The building materials sector is focused on upgrading equipment and technologies for raw material preparation, kiln control, and grinding processes. The non-ferrous metal sector is moving quickly to adopt high-efficiency equipment for processes like aluminum electrolysis, green copper smelting, and recycled metal processing. Additionally, consumer goods industries, such as home appliances, are encouraged to accelerate the phase-out of less efficient equipment.
On the other hand, society as a whole must prioritize the upgrade of key energy-utilizing equipment. Enhancing energy efficiency is crucial, especially in industries like manufacturing, where boilers, motors, transformers, refrigeration, and heating equipment need modernization. It’s important to promote the use of equipment with energy efficiency ratings of level two or higher. Notably, the National Development and Reform Commission has made energy-saving outcomes a key criterion for project selection, supporting initiatives that achieve an annual electricity saving of over 500,000 kilowatt-hours or an annual energy saving exceeding 150 tons of standard coal, thereby benefitting more small and medium-sized enterprises.
In supporting the upgrade and transformation of high-energy-consuming and high-emission equipment, it’s vital to balance incentivizing and regulating measures. We must rigorously implement laws and regulations to accelerate the phasing out of outdated equipment while also refining fiscal and financial policies to reduce the investment burdens on enterprises. This dual approach will not only promote energy-saving and carbon-reduction initiatives but also enhance the green and low-carbon levels across supply chains, fostering continuous development and elevation of productivity.
