Shanghai Releases Carbon Peaking Implementation Plan

On July 28, the Shanghai Municipal Government issued the “Implementation Plan for Carbon Peaking in Shanghai” and a corresponding regulatory opinion notice, clarifying the top-level design and overall implementation of carbon peaking and neutralization goals in the city.

According to the document, by 2030, the proportion of non-fossil energy in total energy consumption is planned to reach 25%, and the carbon dioxide emissions per unit of GDP will decrease by 70% compared with that of 2005, so as to ensure that the carbon peaking will be achieved before 2030.

Shanghai believes that promoting carbon peaking of the steel industry is an important way to achieve the goal of industrial energy consumption control. At present, the goal of carbon peaking in the entire domestic steel industry has been determined: By 2025, the steel industry will achieve the peak of carbon emissions; By 2030, the carbon emissions of the steel industry will be reduced by 30% compared with the peak value, and it is estimated that the carbon emission reduction will be 420 million tons.

In promoting carbon peaking in the steel industry, the first thing mentioned in the plan is to “carry out the pilot demonstration action of carbon peaking and carbon neutralization in Shanghai Base of Baowu Steel Group.” China Baowu Steel Group is the largest steel enterprise in China, and its main steel production base in Shanghai is located in Baoshan District.

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Many insiders of the steel industry pointed out to reporters that this is a medium-and long-term adjustment measure for iron and steel enterprises to reduce carbon dioxide emissions by changing the process structure and production parameters (such as increasing pellet consumption and coal injection consumption, etc.), while the short-term response measure is to further strictly limit the iron and steel production capacity and output.

The plan also pointed out that by optimizing the scale and layout of production capacity, the overall transformation of key areas, such as Gaoqiao and Wuting, will be accelerated. Regulators will promote energy-saving upgrades to key enterprises and cascade utilization of energy and material recycling in chemical industry parks, and strengthen the efficient utilization of by-product gases. In Shanghai Chemical Industry Park, the government will promote the construction of key carbon-neutral new material industries, such as carbon dioxide resource utilization.