China's Shandong to limit carbon emission at new industrial projects

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Empty houses are seen outside a steel firm in Linyi, Shandong province, China, February 22, 2016. Picture taken February 22, 2016. REUTERS/Brenda Goh/Files

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BEIJING, June 22 (Reuters) - China's industrial hub Shandong province pledged to tighten new approval of industries such as oil refining and aluminium smelting which have high energy use and high emissions as Beijing strives to meet climate change targets.

The steps come as China vowed to start cutting carbon emissions before 2030 and become carbon neutral by 2060.

China's state planner has already urged regions to tighten energy controls and the environment ministry plans to tighten environmental approval for high emissions industries. read more

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A notice issued by the Shandong provincial government, seen by Reuters, said companies can only add new capacity in "polluting sectors" - like steel, aluminium, coal-fired power, oil refining and coking - if they shut down an old plant, with bigger coal consumption and carbon emission than the new project.

The eastern province is China's top producer for non-ferrous industry such as alumina and aluminium products and home to nearly 30% of the country's total oil refining capacity.

New projects in cement, oil refining, aluminium and coal power sectors will now have to cut coal use by at least 20% from current levels, while energy consumption and carbon emission will have to be cut by at least 50%, according to the Shandong statement which was sent to local departments and companies.

The Shandong energy administration has goals to control its total energy consumption within 454 million tonnes of standard coal equivalent by 2025 and limit its coal consumption at around 350 million tonnes by 2025. (

Financial institutions are forbidden to issue loans to any projects whose products, processes, technologies or equipment are considered outdated, said the statement.

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Reporting by Muyu Xu, Min Zhang and Shivani Singh; Editing by Simon Cameron-Moore

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