In recent months, the General Office of the State Council released a comprehensive work program on energy saving and emission reduction, highlighting a critical issue: in the first quarter of this year, certain industries—particularly those that are energy-intensive and polluting—grew at an alarming rate. These sectors accounted for nearly 70% of the country's industrial energy consumption and sulfur dioxide emissions. Specifically, the electricity, steel, non-ferrous metals, building materials, petroleum refining, and chemical industries saw growth rates that were 6.6 percentage points higher than the same period last year, with the electricity sector growing by 20.6%. This has created a very serious situation regarding energy conservation and emission reduction. The author argues that merely reversing this trend is not enough; the fundamental solution lies in accelerating economic restructuring and shifting toward a more sustainable growth model that prioritizes energy efficiency and environmental protection.
Since last year, the State Council has issued decisions to intensify energy conservation and emission reduction efforts, along with various policies aimed at promoting these goals. However, the targets set at the beginning of the year were not met. According to the author, aside from issues like unclear responsibilities, mismatched measures, insufficient investment, and poor coordination in some regions, government departments have failed to play a leading role in controlling new developments, adjusting structures, and optimizing resource use. In Zhejiang Province, energy-saving and emission-reduction initiatives have shown improvement. To overcome challenges such as limited land resources, environmental capacity constraints, and rising input costs, the province has actively transformed its economic growth model, accelerated technological upgrades, and promoted efficient energy use and improved resource recycling. In the first quarter of this year, Zhejiang’s power consumption per unit of GDP fell from a 2.3% increase to a 1.7% decrease, while the power consumption of industrial added value dropped from a 1.9% increase to a 1.1% decrease.
To address environmental degradation, Zhejiang has implemented a "one-vote veto" system for environmental performance and is working to establish a corporate environmental credit database. It also uses administrative, financial, and social tools to manage environmental issues. For instance, Dongyang City introduced an environmental policy in 2006 requiring banks not to lend to enterprises violating environmental laws and mandating key polluters to disclose their environmental commitments. Companies like Zhejiang Dongyang Yuhua Chemical Co., Ltd., which generates 250 million yuan annually, had a significant portion of its funding coming from bank loans. These policies have pushed companies to take environmental governance more seriously.
Overall, the chemical industry remains a major contributor to pollution and energy use in China. With increasing demands for lake and river cleanup, energy conservation and emission reduction have become even more urgent. At the corporate level, energy-saving and emission reduction can be summarized into two aspects: first, implementing cleaner production and developing a circular economy to achieve energy savings, pollution reduction, and efficiency; second, adjusting product and industrial structures to accelerate the shift in economic growth mode. By focusing on industrial restructuring and relying on technological innovation, it is possible to meet energy-saving and emission reduction targets.
Juhua, an established chemical company, has grown primarily based on coal and salt chemical industries. However, it faces high energy and resource consumption, a single energy structure, and high intensity. To address these challenges, the company has strengthened its responsibility, increased investments, and actively pursued energy conservation and emission reduction. In 2006, Juhua achieved significant reductions in energy consumption, industrial added value energy consumption, and electricity consumption per ten thousand yuan of output, with decreases of 9.98%, 12.1%, and 8.3% respectively. Meanwhile, the company experienced double-digit profit growth. This success can be attributed not only to its commitment to building a resource-efficient and environmentally friendly society but also to improvements in its industrial structure and product mix, which helped drive economic growth through a more sustainable development model.
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