China Unveils Three-Year Plan to Drive Heavy Industry Decarbonization

China has launched a three-year action plan to enforce energy conservation and carbon reduction upgrades across nine high-emission industries starting in 2026, threatening laggards with higher power costs.

The policy, announced on Monday by five state agencies including the National Development and Reform Commission (NDRC), targets major energy consumers such as the steel, electrolytic aluminum, cement, and coal power sectors. By the end of 2028, these industries are required to clear out all production capacity that falls below baseline energy efficiency standards.