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Shandong will implement new energy consumption equal elimination system

Recently, it was reported by the Energy Conservation Office of Shandong Province that the province is set to implement a stricter source control system for high-energy-consuming and high-emission industries. This means that for any new energy-consuming projects, the government will enforce an "energy consumption equal elimination" policy. In other words, for every new project approved, an equivalent amount of outdated and inefficient production capacity must be phased out. If this requirement is not met, the relevant investment authorities will not approve the project. To ensure compliance, Shandong will strengthen enforcement of national and provincial energy conservation regulations. The process will involve strict management of energy assessments, environmental impact assessments, and safety evaluations, with a coordinated mechanism among auditing departments. Projects in sectors such as iron and steel, aluminum smelting, calcium carbide, and coke—industries known for their high energy consumption—will not be approved, reviewed, or registered unless local governments have already eliminated the equivalent amount of outdated production capacity. Financial institutions are also required to refrain from issuing loans, while land management, urban planning, and environmental protection departments must not process any related procedures until the necessary eliminations are completed. A clear accountability system has been established for project approvals, and any illegal construction projects will be investigated and dealt with according to regulations. This move reflects Shandong's commitment to promoting sustainable development and achieving its energy-saving and emission-reduction goals.

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