China sets efficiency benchmarks for power-hungry industries to meet net-zero goal, hitting shares of steel and aluminium producers
- State economic planner NDRC sets energy efficiency benchmarks for five power intensive industries to comply from January 2022
- Chalco, Baoshan Iron & Steel among Chinese stocks taking a beating on the news
The minimum efficiency standards appear to take an aim at steel and cement producers and aluminium smelters, among the top energy consumers and polluters. Shares of key players like aluminium smelter Chalco and Baoshan Iron & Steel tumbled, against a broadly upbeat market on Tuesday.
The National Development and Reform Commission (NDRC), China’s central economic planner, unveiled the baseline energy consumption levels for five high energy-consuming industries in a joint statement with five other central government departments on Monday.
They will take effect from January 1 for companies involved in fossil-fuel processing, chemical product manufacturing and non-metallic mineral products. The smelting and rolling processing of ferrous and non-ferrous metals are also included.
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