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SCIO briefing on performance of centrally administered SOEs in H1 2021

Economy
On July 16, the State Council Information Office (SCIO) held a press conference in Beijing to brief the media about the performance of China's centrally administered SOEs in the first half year of 2021.

China.org.cnUpdated:  July 27, 2021

Cover News:

China's national carbon market was officially launched on July 16, with the first batch of participants including 2,000 enterprises in the power sector. What work have centrally-administered state-owned enterprises (SOEs) done in building the carbon emission trading market? What are the next plans for SASAC in promoting the green transformation of central SOEs? Thank you.

Peng Huagang:

Thank you for your questions. Carbon peaking and carbon neutrality are very important issues. Central SOEs have been actively carrying out related work. The main task of central SOEs in the national carbon market is to steadily promote the establishment of systems and mechanisms for low-carbon development, improve the system for carbon asset management, actively participate in the construction of a national energy-use rights and carbon emissions trading market, release carbon emissions reports and disclose information in accordance with the law. In addition, we are supporting enterprises to improve their energy efficiency though market-based approaches, such as integrated energy services and contracted energy management. We are also helping enterprises to build investment and financing systems in accordance with the goals of carbon peak and neutrality, and develop green financial products and innovative business. At present, some central SOEs have set up carbon asset management institutions for statistical accounting of carbon emissions and inventory of greenhouse gas emissions, and are actively participating in the trading of carbon emissions. China's central SOEs in key industries such as energy and steel also invested in or hold shares of carbon trading institutions in Beijing, Shanghai, Hubei province and other places. China's central SOEs actively participated in the progress of China's carbon market from establishing rules and markets to trading. Some enterprises said that the first batch of carbon trading participants in pilot regions were mainly central SOEs. SASAC attaches great importance to carbon peak and neutrality goals. We are actively collecting ideas and formulating plans to encourage central SOEs to play a better role in achieving carbon peaking and carbon neutrality.

We will focus on the following tasks:

First, we will steadily promote the green and low-carbon transformation of the industrial structure. During the formulation of the 14th Five-Year Plan for central SOEs, SASAC strengthened the arrangements for green and low-carbon development, with the aims to vigorously develop green and low-carbon industries, promote the low-carbon transformation of traditional industries, and strictly curb haphazard launches of high-energy consumption and high-emission projects.

Second, we will steadily promote the optimization of the energy structure. We will guide central SOEs to control fossil fuel consumption and to develop non-fossil energy, exploit hydropower according to local conditions, accelerate the development of wind and solar power, and develop nuclear power in an active and orderly manner. We will push forward the construction of clean energy via China's mega hydropower stations such as those at Wudongde and Baihetan. We will develop a new electricity system that utilizes new energy as the main source of electricity supply. We will take holistic steps to promote the complete industrial chain of hydrogen resources, including production, transportation, storage and utilization. At present, more than one-third of central SOEs are formulating a complete industrial chain of hydrogen resources and have made achievements in technology research and development and demonstration application.

Third, we will steadily promote efficient use of energy and resources. We will encourage central SOEs to strictly control both the intensity and total consumption of energy. We will strengthen energy management and strictly evaluate the performance of energy conservation targets and pursue accountability accordingly. We will upgrade energy-saving and low-carbon technologies, strengthen energy efficiency benchmarking and target-hitting, and continue to promote green and efficient coal production and use. Central SOEs' energy consumption per unit of output is continuing to decline.

Fourth, we will steadily promote applications of green and low-carbon technologies. We will organize central SOEs to achieve major scientific and technological breakthroughs in low, zero and negative carbon technologies, leading to breakthroughs in green and low-carbon technologies. For some projects carried out by central SOEs, we have advanced the deployment of low-carbon technology in wind power, nuclear power, hydrogen energy and new energy vehicles. We will continue to strengthen efforts in technology research, development and application in smart grids, energy storage, hydrogen energy, carbon capture and other technologies.

Next, SASAC will resolutely implement the decisions of the CPC Central Committee and the State Council. We will organize central SOEs to make every effort to achieve the goals of carbon peak and neutrality. We will enhance efforts to shut down outdated production facilities and promote technology research, development and application in low, zero and negative carbon technologies. We will give full play to the important role of central SOEs and contribute to achieving the goal of carbon neutrality.

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