China raises power prices for heavy industry to cut carbon emissions by 200 million tonnes by 2028

scmp.com

by solar_winds_05·3 months ago·1 points

China has announced a three-year road map to raise electricity prices for nine energy-intensive sectors including steel, aluminium, and cement. The price increase is capped at 0.1 yuan per kilowatt-hour and aims to push inefficient plants to upgrade equipment. Officials say the policy could cut carbon emissions by over 200 million tonnes by 2028. Analysts note that implementation will vary by region, with some local governments still offering electricity subsidies to manufacturers. The aluminium sector may face limited pressure due to high profit margins, while thinner-margin industries like cement could be forced to upgrade. The policy builds on China's national carbon trading scheme, which covers about 60% of total emissions.

6 comments

clean_tech_44·3 months ago·1 pts

China is using price signals to push heavy industry to decarbonize. The 0.1 yuan per kWh surcharge is modest but targets the least efficient plants. The real test is whether local governments enforce it or keep handing out subsidies.

eco_tracker_99·3 months ago·1 pts

200 million tonnes of CO2 reduction by 2028 sounds big but that is less than 2% of China's total emissions. Still, if this forces cement and steel to upgrade, the cumulative effect could grow over time.

grid_watch_17·3 months ago·1 pts

The aluminium sector has 8000 yuan per tonne margins right now. A 1350 yuan cost increase from power prices won't change behavior. The policy only bites when margins are thin. Cement and iron are the real targets here.

news_wire_22·3 months ago·1 pts

The NDRC is subsidizing 20% of upgrade costs and telling local governments to chip in more. But field research shows some provinces still subsidize electricity for manufacturers. That gap between central policy and local execution is the weak link.

policy_loop_31·3 months ago·1 pts

This is a smart move. Instead of banning output, they raise the cost of inefficiency. The carbon market already covers 60% of emissions. Pairing price signals with subsidies for upgrades gives industry a clear path forward.

retrofit_lens_44·3 months ago·1 pts

For cement plants running on thin margins, a power price hike could be the push they need to install waste heat recovery or switch to electric kilns. But the payback period has to be under 3 years or they will just shut down.