“Dual Control of Energy Consumption” Policy

What Does China’s Dual Control of Energy Consumption Policy Mean to Industrial Enterprises?

Recently, many industrial enterprises have suffered a lot from the implementation of the Dual Control of Energy Consumption Policy in China. What does this mean, especially to industrial enterprise

The dual 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. Of course, the shortage of coal in the domestic market and surging energy prices this year, have also pushed local governments into rationing electricity usage to ensure stable energy supplies in the coming winter.

China is a big energy consumer, and there is still room for improvement in energy efficiency. The coal-based energy structure needs to be transformed. Surely, this power rationing will, or has already exerted great impact on manufacturing industry. Production plans or capacities in many factories in several provinces like GuangDong, Jiangsu, Tianjin, Zhejiang, Shandong have to be partially canceled or reduced.

From the perspective of specific industries, the industries that are greatly affected by the “dual restriction” policy include but not limited to the four major industries of steel, electrolytic aluminum, cement, chemical fiber, yellow phosphorus, aluminium, industrial silicon and building materials, etc.

The main characteristics of these industries are high power consumption + high carbon emissions. Measures include reduction of production capacity, staggered production, time-based power restriction, and reduction of electricity concessions.

Affect by the policy, our law materials of Desmodur RE, HTPB, Oleyl diamine, Cyclopentyl chloride, OCBN etc.. the supply are in serious short. make our production plan cannot proceed, push the market price going up.

However, as the Dual Control of Energy Consumption continues to upgrade, and the price of shipping, and prices of raw materials are soaring, the cost of sealing a deal would be increasingly expensive.

For up factors, the market comming changeful, product in short supply, some factory even was stopped, pushing the chemicals price keep going up, it is suggested that you bring your plan forward, so that you can receive your order earlier and in a more cost-saving way.