SHANGHAI, Dec 14 (SMM) - The Central Economic Work Conference was held in Beijing from 8 to 10 December. The meeting called for a proper understanding and interpretation of carbon peaking and carbon neutrality. The gradual withdrawal of traditional energy sources will require a safe and reliable alternative new energy source. It is important to increase the capacity of new energy consumption, and promote the optimal combination of coal and new energy. Scientific assessment should be fairly conducted, and newly added renewable energy and the energy consumed by relative raw materials should not be included in the total energy consumption control. While in order to ensure energy supply, large enterprises, especially state-owned enterprises, should take the lead in ensuring supply and price stability.

The Central Economic Work Conference was reportedly held in Beijing from 8 to 10 December. The meeting called for a proper understanding and grasp of carbon peaking and carbon neutrality. The gradual withdrawal of traditional energy sources should be built on the basis of a safe and reliable alternative to new energy sources. To be based on the basic national conditions of coal-based, grasp the clean and efficient use of coal, increase the capacity of new energy consumption, and promote the optimal combination of coal and new energy. We should pay close attention to green and low-carbon technology research and development. Scientific assessment should be conducted, new renewable energy and raw material energy use should not be included in the total energy consumption control, conditions should be created to realize the "double control" of energy consumption to the "double control" of total carbon emission and intensity as soon as possible, and the formation of incentive and constraint mechanisms to reduce pollution and carbon should be accelerated to prevent simple layers of The Government should also accelerate the formation of an incentive and restraint mechanism for reducing carbon emissions, and prevent simple cascading. To ensure energy supply, large enterprises, especially state-owned enterprises, should take the lead in ensuring supply and price stability.

SMM believes that, at present, China's power structure is still dominated by coal power, hence the reform and adjustment of the power structure is imminent. Meanwhile, the generation of new energy power as well as the consumption of more renewable energy shall be encouraged with the purpose to achieve the marketization of power supply.

In addition, the development of new smelting technologies provides a technological pathway for carbon neutrality. There is not only the intensive use of renewable energy sources, such as green hydrogen instead of traditional petrochemical resources, but also the development and application of inert anode technology, to name but a few. In addition, carbon capture, utilisation and storage (CCUS) technology is a complementary pathway to carbon neutrality. This technology is currently used to a certain extent in developed countries such as Europe and the US, but is yet to be developed in China.

In response to the requirements put forward at this central economic work conference, Wang Yanchen, General Manger of SMM London Office, said that the use of renewable energy shall be greatly encouraged, which is more beneficial to the industry's energy saving and emission reduction. Meanwhile, the reform policy of the electricity market should be further improved to ensure that renewable energy power contracts can be smoothly implemented, and hydropower should also be included as renewable energy. In short, with the further deepening of the reform of the electricity market when carbon trading is more common, the demand for renewable energy is bound to increase, which will ensure that renewable energy power generation enterprises could obtain certain profits in the case of decreasing state subsidies. The ongoing process will benefit the power industry in terms of energy saving and emission reduction, while laying a solid foundation for other industries in China, including the non-ferrous industry.