I. Preface The Comprehensive Work Program on Energy Conservation and Emission Reduction formulated by the China Development and Reform Commission (CDRC) sets out China's energy conservation and emission reduction targets and general requirements for 2010. China's Eleventh Five-Year Plan proposes that by 2010, energy consumption per unit of 10,000 yuan of GDP will be reduced from 1.22 tons of standard coal in 2005 to less than 1 ton of standard coal, a reduction of about 20%; water consumption per unit of industrial use will be reduced by 30%; and the total amount of major pollutants discharged will be reduced by 10%, with sulphur dioxide (SO2) emissions reduced from 25.49 million tons in 2005 to 22.95 million tons, and chemical oxygen demand (COD) emissions reduced by 20%, and chemical oxygen demand (COD) emissions will be reduced by 20%. (COD) from 14.14 million tons to 12.73 million tons; the sewage treatment rate of cities above the municipal level nationwide will be no less than 70%, and the comprehensive utilization rate of industrial solid waste will reach more than 60%. This policy is expected to have a significant impact on China's chemical industry. Second, China's petroleum and chemical industry is facing a serious challenge of energy conservation Currently, the petroleum and chemical industry is facing a serious challenge of energy conservation. The main reasons: First, the energy supply is getting tighter and tighter, while the market competition is getting more and more fierce, the requirements for environmental protection are getting higher and higher. Secondly, the energy consumption is large, the energy consumption of products is high, and the energy cost accounts for a large proportion of the product cost. In China, the petroleum and chemical industry is not only energy, raw materials industry, but also high energy consumption, high pollution industry, is a large consumer of energy. 2005 China's petroleum and chemical industry energy consumption of 360.72 million tons of standard coal, accounting for China's total energy consumption of 16.2%, accounting for the total energy consumption of 22.8% of the industrial energy consumption. Energy costs account for a large proportion of the cost of chemical products, with the energy costs of high-energy-consuming products accounting for 60%-70% and those of general products accounting for 20%-30%, of which the energy consumption of major energy-consuming industries such as nitrogen fertilizers, soda ash, caustic soda, calcium carbide and yellow phosphorus accounts for about 60% of the total energy consumption of the chemical industry. In addition, the petroleum and chemical industry's wastewater emissions, exhaust gas emissions and solid waste generation are all ranked within the top five of China's industrial sectors. Energy saving and reduction of energy consumption in the petroleum and chemical industry can be said to be a long way to go. Therefore, China's chemical industry will be severely impacted by the implementation of the central energy saving and emission reduction policy, and energy saving and industrial restructuring is a necessary direction. Energy saving and emission reduction policies will have a big impact on dyestuffs and PVC sub-industries. (1) Impact of energy saving and emission reduction on dyestuffs industry China's restriction on wastewater discharge has forced small factories to limit or stop production, leading to a reduction in the supply of dyestuffs and other chemicals, and the supply of dyestuffs continues to be tense. Since the beginning of the year, the output of dyestuffs has been on a downward trend, with the output of disperse dyestuffs, which emit more wastewater, declining by about 30%, while reactive dyestuffs, which emit less wastewater, have grown faster, and the product structure has been showing some adjustments. (ii) energy saving and emission reduction on the PVC industry 1. PVC production is divided into ethylene and calcium carbide method. Ethylene method is widely used, with the advantages of large-scale production units, easy to control pollution, low energy consumption, but because of the linkage with the price of oil, so the production cost is often higher. Recently, the price of crude oil continues to rise, making the raw materials used in the ethylene process, VCM and EDC, expensive, which undoubtedly adds to the woes of China's domestic ethylene manufacturers who rely on imports for most of their production. In contrast, the calcium carbide method of PVC production is easier to reduce costs. China is rich in coal and raw salt resources, so calcium carbide PVC as a raw material, production capacity has been rapidly expanded in recent years. However, due to China's environmental protection and electricity price increases and other impacts, the price of calcium carbide this year, a substantial increase, adding to the calcium carbide method of PVC cost pressures. Nevertheless, the future of calcium carbide method will still occupy a fairly important position in China's PVC production, the current 70% of China's domestic PVC production capacity are manufactured by calcium carbide method. 2. China's energy conservation and emission reduction limits calcium carbide production capacity and suppresses the start-up rate. The objectives of restructuring China's calcium carbide industry include: ■ Closing and eliminating calcium carbide furnaces under 10,000 tons/year and open-type calcium carbide furnaces and calcium carbide furnaces with substandard emissions. ■Strictly controlling new calcium carbide projects so that their production capacity will be in line with market demand within three years. ■ Strengthen emission control and pollution management, calcium carbide production enterprises of various pollutant emissions to meet environmental requirements. ■ Strengthen the approved management, the development of large-scale, modernized calcium carbide production units, adjust the structure of the industry, improve the overall technical level of the industry and industrial concentration. 3. As resource prices and calcium carbide prices rise, which in turn drives up costs, support PVC prices move up. Calcium carbide prices for two reasons: high energy consumption industry differential tariffs to improve the cost of electricity; close the small capacity of calcium carbide makes calcium carbide production decline, supply tightening. As expected coal, coke, electricity prices will still rise, the cost will still rise; and China will continue to rectify the calcium carbide production capacity, calcium carbide supply is still likely to be tight; calcium carbide prices are expected to continue to rise, driving up the price of PVC. Fourth, the chemical industry in the face of energy saving and emission reduction policies should be taken by the measures China's "Eleventh Five-Year Plan" requirements, to the "Eleventh Five-Year" period end of 10,000 yuan of GDP energy consumption than the "Tenth Five-Year" end of the reduction of 20% or so, the first time on energy saving put forward a restrictive target. Energy conservation must be multi-pronged, multi-party efforts, starting from the petroleum and chemical industry, through the following steps to take effective measures: (a) strengthen technological innovation: to do a good job of energy conservation and emission reduction must rely on technological innovation, technological progress is the main support for energy conservation and emission reduction and important measures. Chemical industry rely on technological progress to achieve energy saving and emission reduction of many successful examples, for example: phosphate fertilizer production process discharged phosphogypsum was a waste, manufacturers can only be a long-term, a large number of piles, both occupying the land, but also pollute the environment, especially on the groundwater pollution is serious. China Lubei Chemical Group and other units, through technological advances, this waste will be turned into a treasure, as raw materials for the production of sulfuric acid and cement. Since then the enterprise production of phosphate fertilizer, environmental pollution has been reduced, fully realized the comprehensive utilization, this is the result of technological progress. (B) improve the performance of chemical environmental protection equipment: with the implementation of China's total emission control, tighten the pollutant emission standards and the implementation of cleaner production, chemical environmental protection equipment performance and technology also need to evolve, and by the progress of science and technology, cleaner production and environmental protection to provide technical support. Defects in quality, material properties and quality of non-adaptation, as well as a small number of poor product suitability, etc., is an important factor affecting the stability of the quality of chemical and environmental protection equipment, must be improved. At the same time, mention the proportion of high-tech products and the level of major technical equipment, pioneering key technologies to develop the field of lack of technical equipment and efficient and low-cost environmental protection machinery products, is the current and future to improve the product to meet the degree of an important issue. V. Impact of energy-saving and emission reduction policies on the development of Taiwanese businesses According to the latest study by the Ministry of Economic Affairs, China will surpass the U.S. to become the world's largest greenhouse gas emitter, China has felt the international pressure to reduce emissions, which will make the Taiwanese businessmen, who are subjected to the pressure of macro-controls and production costs, to suffer from the impact again. The Chinese government implements energy-saving and emission reduction policies, and severely bans and rectifies high energy-consuming and high-polluting industries. As long as they are found to be non-compliant with environmental protection requirements, they will be forced to shut down or relocate their factories. In the face of this wave of environmental protection storm in mainland China, traditional Taiwanese industries are afraid of being rectified fate, Chinese Taiwanese businessmen will suffer three major impacts: one for the increase in the cost of building factories or plant construction plans are blocked, the second for high energy consumption and other two high a capital products export tax rebate rate canceled, the third for the rising cost of environmental protection. As the mainland to avoid industrial pollution of the environment, is focusing on locking chemical, hardware, electroplating, textile dyeing and finishing industry, the implementation of stringent environmental protection laws or inspections, but also makes these highly polluting Taiwan-funded enterprises, including Jiangsu, Zhejiang, Guangdong and other enterprises will be forced to centralize the setup of factories, not only to face the impact of the new wave of relocation, but also due to the possibility of relocation caused by the stoppage of work losses. By Xiao Jinhui Petrochemical Polymers (This article was taken from ITIS Industry Information Service 2007/11/16)

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