Zhinews of Shenzhen Satellite TV:

We know that energy is a crucial support for economic and social development, and it is also essential for the development of enterprises. Therefore, I would like to ask, does the package of incremental policies have any specific arrangements for strengthening energy security with major projects? Thank you.

Zheng Shanjie:

Energy is a critical basis for economic development, and you have raised a very important question. I would like to invite Mr. Zhao to answer this question.

Zhao Chenxin:

Thank you for the question. Mr. Zheng just emphasized the importance of strengthening focus on factor allocation security. Indeed, energy supply is a crucial part of factor allocation security. It is vital for high-quality development and can be considered a key to supporting high-quality development. In order to implement the decisions made at the meeting of the Political Bureau of CPC Central Committee held on September 26, and to secure factor allocation to support the development of the real economy, the NDRC has further clarified measures for controlling the total amount and intensity of energy consumption.

First, we will effectively expand the space for energy use. Since the 14th five-year plan, the NDRC, by improving policies on total energy consumption and intensity regulations, has adjusted our energy consumption regulations to exclude raw material energy use and non-fossil energy consumption. As you all know, with the rapid development of renewable energies, the scale of space for energy usage under this policy is gradually increasing. Based on what we have learned so far, further efforts are still required in order to make good use of this policy. Therefore, this incremental policy further specifies that, during the assessment and review for energy saving responsibilities for fixing asset investment projects, raw material energy consumption and non-fossil energy consumption should be strictly deducted. This is aimed at guiding localities to prioritize controlling consumption of fossil fuels and increase the use of renewable energy through the purchasing of green electricity and green certificates, thereby freeing up more energy usage space for economic and social development. At the same time, we will strengthen our efforts to curb the blind and disorderly launch of projects that consume high amounts of energy and emit high amounts of emissions. This will effectively curb unreasonable new energy demands, promote industrial optimization and upgrading, and foster healthy development.

Second, we will thoroughly explore energy-saving potentials in existing energy consumption. Currently, China's total energy consumption is approximately 10 times that of the projected incremental energy consumption during the 14th Five-Year Plan period. Exploring energy-saving potentials can significantly free up energy usage space for economic and social development. We will coordinate the use of funds from the central budget, ultra-long-term treasury bonds and other financial channels, combined with the implementation of initiatives such as large-scale equipment upgrades and consumer good trade-ins, to support energy-saving and carbon-reducing transformations within key areas as well as upgrades of energy equipment. By actively tapping into energy-saving potentials, we aim to protect the transformation and upgrading of traditional industries and the development of new industries to meet the reasonable demand for energy.

Third, we will intensify the implementation of separate energy consumption quotas for major national projects. A group of major projects that align with the national major productivity layout, enhance the resilience and security of industrial chains and supply chains as well as support the development of new quality productive forces will be included in separate energy consumption quotas during the 14th Five-Year Plan period. The energy consumption of these projects will no longer be included in provincial governments' energy-saving target responsibility assessments, thus strengthening the energy supply guarantee for these major national projects.

Next, the NDRC will continue to ensure that relevant policies are effectively implemented, focusing on enhancing energy efficiency at a higher level and better quality. By strengthening energy supply guarantees for high-quality development, we aim to provide robust energy support for sustained and healthy economic development.

That's all for my answer. Thank you.