The National Development and Reform Commission and the National Energy Administration jointly issued the "Action Plan for Low-Carbon Transformation of Coal and Electricity (2024-2027)"

On July 15, 2024, the National Development and Reform Commission and the National Energy Administration jointly released the "Action Plan for Low-Carbon Transformation and Construction of Coal and Electricity (2024-2027)"(hereinafter referred to as the "Plan"). The "Plan" aims to increase energy conservation and carbon reduction efforts, coordinate and promote the low-carbon transformation of existing coal-fired power units and the low-carbon construction of new coal-fired power units, accelerate the construction of a clean, low-carbon, safe and efficient new energy system, and help achieve carbon peak carbon neutrality goals.

The "Plan" clearly states that by 2025, the first batch of coal-fired low-carbon transformation and construction projects will all start, and a batch of coal-fired low-carbon power generation technologies will be transformed and applied. The carbon emissions of related projects will be reduced by about 20% compared with the average carbon emission level of similar coal-fired power units in 2023, which is significantly lower than the carbon emission level of advanced coal-fired power units in service, exploring useful experiences for the clean and low-carbon transformation of coal-fired power. By 2027, the technical route of coal-fired power generation will be further broadened, and construction and operating costs will be significantly reduced. The carbon emissions of related projects will be reduced by about 50% compared with the average carbon emission level of similar coal-fired power units in 2023, close to that of natural gas power generation units. The carbon emission level of power generation units will play a strong leading role in the clean and low-carbon transformation of coal-fired power.

In terms of transformation and construction methods, the "Plan" proposes three major paths: biomass co-burning, green ammonia co-burning, and carbon capture, utilization and storage. The application of these technologies will help reduce carbon emissions in the coal-fired power production process and promote the development of the coal-fired power industry in a low-carbon and environmentally friendly direction.

In order to ensure the smooth implementation of the Plan, the National Development and Reform Commission and the National Energy Administration will provide strong support from multiple aspects. The first is to increase financial support, use ultra-long-term special treasury bonds and other financial channels to support qualified coal-fired low-carbon transformation and construction projects, and select them into green and low-carbon advanced technology demonstration projects. At the same time, all regions are encouraged to formulate support policies according to local conditions and increase investment subsidies for low-carbon coal-fired transformation and construction projects. The second is to strengthen policy support and guarantee, explore the establishment of a sharing mechanism shared by the government, enterprises, and users, provide phased support policies, and encourage qualified projects to issue real estate investment trusts (REITs), green bonds or Apply for financing through channels such as green credit. The third is to optimize the operation and dispatch of the power grid, study and formulate carbon emission reduction calculation methods for coal-fired low-carbon transformation and construction projects, and promote the separate measurement of part of the electricity generated by blending biomass/green ammonia and installing carbon capture, utilization and storage facilities, and Give priority to supporting projects with outstanding carbon emission reduction effects to connect to the power grid. The fourth is to strengthen the application of technological innovation, coordinate innovative resources such as scientific research institutes, industry associations, and key enterprises, and accelerate the research and development of key technologies for low-carbon coal-fired power generation.

The National Development and Reform Commission and the National Energy Administration emphasized that they will strengthen the evaluation and inspection of the implementation of the project. For units that fail to meet carbon reduction targets, engage in fraud, defraud policy support, and cause production safety accidents, relevant personnel will be held accountable in accordance with laws and regulations, and will be deducted and recovered according to the seriousness of the case.