In recent months, the General Office of the State Council released a comprehensive work program on energy saving and emission reduction, highlighting that in the first quarter of this year, certain industries—especially those with high energy consumption and pollution levels—experienced rapid growth. These sectors accounted for nearly 70% of the country's industrial energy use and sulfur dioxide emissions. Specifically, the electricity, steel, non-ferrous metals, building materials, petroleum refining, and chemical industries saw growth rates increasing by 20.6%, which was 6.6 percentage points higher than the same period last year. This has created a very serious situation regarding energy conservation and emissions control. The author argues that merely reversing this trend is not sufficient; the core solution lies in accelerating economic restructuring and shifting toward a more sustainable growth model, ensuring that economic development is based on energy efficiency and environmental protection.
Since last year, the State Council issued a decision to intensify energy conservation and emission reduction efforts, introducing various policies aimed at promoting sustainability. However, the targets set at the beginning of the year were not met. According to the author, aside from issues such as unclear responsibilities, mismatched measures, insufficient investment, and poor coordination in some regions and departments, the relevant government agencies have not effectively played their roles in controlling incremental growth, adjusting structures, and optimizing the economy. Zhejiang Province has shown improvement in energy-saving and emission-reduction initiatives. To overcome challenges like limited land resources, environmental capacity, and rising costs, the province has actively transformed its growth model, accelerated technological upgrades, and promoted efficient energy use and resource recycling. In the first quarter of this year, Zhejiang’s power consumption per unit of GDP dropped from a 2.3% increase to a 1.7% decrease, while industrial added value power consumption fell from a 1.9% rise to a 1.1% decline. To address environmental degradation, Zhejiang has implemented an “environmental protection veto†system and is working on establishing a corporate environmental credit database. It also uses administrative, financial, and social tools to manage environmental issues. For instance, Dongyang City introduced new environmental regulations in 2006, requiring banks not to issue loans to polluting enterprises and mandating key polluters to publicly disclose their environmental commitments. Companies like Zhejiang Dongyang Yuhua Chemical Co., Ltd., with an annual output of RMB 250 million and bank loans making up one-fifth of its total GDP, have been forced to focus on environmental governance due to these policies.
Overall, the chemical industry remains a major contributor to pollution and energy use in China. Efforts to clean up lakes and rivers have imposed stricter requirements on the sector, making energy saving and emission reduction even more urgent. At the corporate level, energy conservation and emission reduction can be summarized into two main aspects: first, implementing cleaner production and developing a circular economy to achieve energy savings, pollution reduction, and improved efficiency; second, adjusting product and industrial structures and accelerating the transformation of the economic growth model. By focusing on structural adjustments and technological innovation, companies can meet energy-saving and emission reduction targets. Juhua, an established chemical company rooted in coal and salt chemical industries, faces high energy and resource consumption, a single energy structure, and significant environmental pressures. To address these issues, the company has strengthened its corporate responsibility, increased investments, and actively worked on energy conservation and emission reduction. In 2006, Juhua achieved a 9.98% reduction in overall energy consumption, a 12.1% drop in energy use per unit of industrial added value, and an 8.3% decline in electricity consumption per RMB 10,000 of output. Meanwhile, the company’s profits grew by double digits. These results are attributed not only to Juhua’s commitment to building a resource-efficient and environmentally friendly society but also to the positive impact of recent industrial and product structure improvements, which have driven economic growth through a more sustainable model.
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