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The “Henan Province Action Plan for Resolutely Curbing the Uncontrolled Development of ‘Two High’ Projects” Has Been Released.
2022-02-14
On November 12, the General Office of the Henan Provincial Government issued the “Action Plan of Henan Province to Resolutely Curb the Uncontrolled Development of ‘Two High’ Projects” (hereinafter referred to as the “Plan”).
The Plan states that by the end of 2021, all localities will have established lists of “two high” projects and, in accordance with laws and regulations, will address those projects that fail to meet the required standards, thereby bringing the unchecked expansion of such projects under preliminary control. During 2022–2023, the institutional framework, regulatory system, and supporting policies for curbing the uncontrolled development of “two high” projects will be substantially improved, and a long-term mechanism will be essentially put in place.
For the time being, “two high” projects will focus on those in the coal-fired power, petrochemical, chemical, coal‑chemical, steel, coking, building materials, and nonferrous metals sectors with an annual total energy consumption of 10,000 tonnes of standard coal or more. The scope of these projects will be adjusted as appropriate in accordance with national regulations and the actual conditions of our province.
The Plan mandates the strict application of punitive electricity pricing to energy‑intensive entities whose consumption exceeds the per‑unit‑product energy‑consumption threshold. For “two high” projects, it calls for the implementation of tiered electricity pricing or, for key industries categorized as phase‑out, restricted, or encouraged, the adoption of differentiated pricing policies. Furthermore, it seeks to accelerate the refinement of green‑pricing mechanisms for electrolytic aluminum, steel, and cement enterprises. Finally, it requires a comprehensive review and elimination of preferential electricity‑pricing measures for “two high” projects.
Deeply tap the energy‑saving and carbon‑reduction potential of existing “two high” projects. Publish a provincial list of key energy‑using entities, conduct energy‑conservation inspections, and strengthen energy‑use management. Encourage and guide commissioned existing “two high” projects to undertake energy‑efficiency diagnostics and clean‑production assessments and certifications, with at least one such assessment required within five years in principle. Organize and implement an action plan for energy‑saving and carbon‑reduction upgrades of key energy‑using entities, incorporating existing “two high” projects into the upgrade project roster to ensure that all eligible projects are included, all necessary upgrades are carried out, and maximum energy efficiency is achieved.
Banks and other financial institutions must strictly cap credit exposure to “two high” projects, refraining from extending financing or loans to such projects that are not on the official list or fail to meet regulatory requirements. Enterprises engaging in non-compliant “two high” projects shall be prohibited from raising capital through the securities market, thereby severing the funding channels for the construction and operation of these unauthorized projects.
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