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As a major manufacturing country, my country’s second largest source of carbon emissions comes from the industrial sector, which accounts for 28% of the country’s total emissions and 44% of the global industrial sector emissions. Therefore, the smooth realization of the low-carbon transition of China’s industrial sector will not only contribute to the advancement of the country’s dual carbon goals, but will also make a significant contribution to achieving the climate goals of the Paris Agreement on a global scale.
Over the past two decades, China’s industrial sector has made positive progress in decarbonization through energy conservation and energy efficiency improvements. From 2005 to 2019, China’s industrial sector has achieved a 57.8% reduction in carbon intensity. According to the International Energy Agency, under the pledge target scenario, by 2050, China’s industrial sector carbon dioxide emissions are expected to be reduced by nearly 75% compared with 2020. However, at present, with the penetration rate of fast-acting energy conservation and energy efficiency improvement projects further increasing in the industrial sector, the process of industrial decarbonization has entered a deep water area. To break through this decarbonization bottleneck period and accelerate the realization of the 2050 emission reduction target, the industrial sector needs to actively explore new decarbonization paths.
The use of green electricity is one of the most direct and important ways to reduce carbon footprint and achieve carbon neutrality. Various enterprises in the industrial sector have gradually begun to deploy green electricity according to their own production and operation conditions. Some central state-owned enterprises in the industrial sector have conducted preliminary explorations on the use of green power, facing the challenges of large power consumption and high sensitivity to production costs hindering the use and promotion of green power in industrial enterprises. The sectoral decarbonization path has played a leading and exemplary role. The actions of central state-owned enterprises will further promote the improvement of the green power trading mechanism, create better conditions for the large-scale use of green power, and accelerate the decarbonization process of the industrial sector.
Based on the central state-owned enterprises in the heavy industry sector, this report takes green hydrogen, electrolytic aluminum, and steel industries as examples to explain the important application scenarios of green power in the process of decarbonization and emission reduction in the heavy industry sector, and summarizes the application of green power in the future heavy industry sector. Three major challenges and three trends, and put forward suggestions for the future green power procurement actions of central state-owned enterprises.
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