Development and Reform Commission: All preferential policies for energy-intensive industries have been abolished

In response to the blind expansion of high-energy-consuming enterprises, the National Development and Reform Commission has issued an urgent notice in recent days demanding that all localities must adopt comprehensive economic and legal measures to supplement necessary administrative measures and resolutely curb the blind expansion of high-energy-consuming industries.
The emergency notice stated that since 2007, the domestic energy supply, especially the contradiction between electricity supply and demand has generally eased, and high-energy-consuming industries have begun to expand blindly in some areas. Some local governments also violated industrial policy regulations and introduced some industries that encourage high energy consumption. The development of preferential policies, the high energy-consuming industries as the focus of investment, resulting in most of the high-energy-consuming products in the first quarter of this year, the output growth rate of more than 20%, of which crude steel production increased by 22.3%, ferroalloy growth of 44.4%, electrolysis Aluminum increased by 36.6%, coke increased by 23.7%, and calcium carbide increased by 34.1%. Investment growth in some high energy-consuming industries remained high, making it difficult to complete the task of energy-saving and emission reduction.
To this end, the NDRC requires that all localities strictly follow the “Decision of the State Council on the Reform of the Investment System” to regulate the investment behavior of high energy-consuming projects. It is necessary to strengthen project investment management in accordance with relevant regulations, strictly control the construction of new high-energy-consuming projects, and prohibit non-compliance approval (approval) and filing. Strictly control steel, electrolytic aluminum, copper smelting, ferroalloy, calcium carbide, coke, cement, coal, electricity and other industries with excess capacity, especially new high energy-consuming projects. All regions must organize a comprehensive self-examination and self-correction for high-energy-consuming projects that violated regulations, and strictly investigate and deal with high-energy-consuming projects that violate the provisions of industrial policies, approval and construction of non-compliance.
The National Development and Reform Commission also urges all localities to resolutely crack down on various preferential policies to encourage the development of high-energy-consuming industries. All regions must not formulate preferential policies to encourage the development of high-energy-consuming industries. Those that have already been introduced must be resolutely repealed. It is forbidden to attract investment by various preferential policies such as tax reduction and taxation, and blindly go on projects. In all types of investment promotion activities, all preferential policies and measures formulated by the government that do not comply with relevant laws and regulations and national industrial policies must be abolished.
In addition, the National Development and Reform Commission emphasized that all localities should improve industry entry barriers, eliminate outdated production capacity with high energy consumption and serious pollution, and explore the establishment of an outdated capacity withdrawal mechanism in areas where conditions permit. For companies that do not comply with the blind expansion and do not eliminate the high-energy-consuming equipment and products out of schedule, power supply companies have the right to stop the supply of electricity in accordance with law. For projects that do not meet the national industrial policy, market access conditions, and various types of high-energy-consuming industries that have been explicitly ordered to be phased out, credit support is not provided, and the land, planning, construction, environmental protection, and safety production supervision departments do not handle related procedures.

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