China to finance projects to reduce emissions in industry

Projects will receive funding of up to 100 million yuan

China will offer funding for projects worth up to 100 million yuan ($13.8 million) to accelerate progress in new emissions reduction technologies targeting various sectors. bloomberg reports This is in reference to the relevant document of the National Development and Reform Commission (NDRC).

The program is to support the transformation of key industries and sectors such as power, steel industry, non-ferrous metals, building materials, chemicals, coke, mechanical engineering, data centers and others into energy conservation and carbon emission reduction.

The NDRC said in an announcement that the program aims to support the construction of projects with leading technical level and excellent emissions reduction impact.

Eligible projects will include large-scale carbon capture, energy efficiency, or carbon intensity reduction projects in various industries. The criteria also include achievements in the fields of biomass and geothermal energy.

Specifically, the program will include initiatives aimed at recycling or reusing materials including industrial waste, scrap and used renewable energy equipment such as solar panels or wind turbines. Funds will also be available for the production of biodegradable plastics etc.

Green manufacturing in China will boost domestic demand for green steel. The country is setting new targets for carbon emission reduction and energy savings in the construction industry. In particular, China's 2021-2025 Green Building Action Plan encourages the use of high-quality, low-carbon rebar. According to the document, government-funded projects should mostly use eco-friendly steel. However, the ambitious target of increasing the number of such steel products may take a long time to achieve.

As GMK Center previously reported, seven Chinese government departments have put forward a proposal aimed at increasing the share of electric arc furnaces in steel production to more than 20% by 2030.