China Securities Co., Ltd.: Carbon emission dual control assessment implemented, energy saving and carbon reduction coordinated with industrial transformation for accelerated progress.

China Securities Co., Ltd. released a research report stating that the recently issued Carbon Peak and Carbon Neutrality Comprehensive Evaluation and Assessment Measures and Energy Conservation and Emission Reduction Opinions were released together, constructing a closed-loop dual-carbon policy from three dimensions: assessment mechanism, key areas, and support and guarantee. The assessment measures clearly state that starting in 2026, provincial party committees and governments will be assessed for dual control of carbon emissions, with the results linked to personnel appointments, to strengthen local responsibilities; The energy conservation and emission reduction opinions cover key areas such as industry, construction, transportation, digital infrastructure, etc., proposing innovative measures such as zero-carbon parks, green production, carbon emission offsetting, etc. The advancement of the dual-carbon policy has significantly increased, benefiting carbon sinks and carbon trading services, industrial energy conservation and technological transformation, zero-carbon park operation, new power systems, green hydrogen, and building energy-saving industries. The main points of China Securities Co., Ltd. are as follows: Event On April 22-23, 2026, the General Office of the CPC Central Committee and the General Office of the State Council successively issued the Opinions on Doing a Good Job in Energy Conservation and Emission Reduction at a Higher Level and Higher Quality (hereinafter referred to as the Work Opinions) and the Comprehensive Evaluation and Assessment Measures of Carbon Peak and Carbon Neutrality (hereinafter referred to as the Assessment Measures), providing systemic deployment of energy conservation and emission reduction work and the assessment of carbon peak and carbon neutrality, further improving the dual-carbon policy system. Implementation of the dual-carbon assessment measures, further improvement of the policy system The assessment measures specify that starting from 2026, provincial (autonomous regions, municipalities directly under the Central Government) party committees and governments will conduct comprehensive evaluations of carbon peak and carbon neutrality to promote the achievement of dual control goals for carbon emissions total and intensity. The assessment includes two categories of control indicators and support indicators. Control indicators include core indicators such as total carbon emissions, reduction in carbon emission intensity, total coal consumption, total oil consumption, proportion of non-fossil energy consumption, etc.; support indicators cover areas such as energy conservation, industry, urban and rural construction, transportation, public institutions, and carbon emission rights trading. Only when both categories of indicators meet the standards can a rating of "excellent" be achieved, failure to meet one or more control indicators or three or more support indicators results in a rating of "unsatisfactory", with all other cases being "qualified". The assessment results serve as important references for comprehensive assessment, selection and appointment of provincial leadership teams and relevant leading cadres. Carbon emission rights trading included in assessment support indicators, accelerating the expansion of the carbon market Carbon emission rights trading has been explicitly included in the assessment support indicator system. This means that the progress of carbon market construction by provincial governments and the compliance of key emission units will directly affect local assessment results, shifting the carbon market from voluntary participation to administrative-driven, with expectations of significantly accelerated expansion. Currently, China's carbon emission trading market covers four key industries including electricity generation, steel, cement, and aluminum smelting. According to previously released guidelines, the plan is to achieve full coverage of major emitting industries in the industrial sector by 2027. The implementation of the assessment measures will provide strong administrative impetus for the expansion of the carbon market. Clear paths for energy conservation and emission reduction in key areas, carbon emission offsetting and differentiated electricity prices to drive transformation and upgrading of high-carbon industries The Work Opinions systematically deploy energy conservation and emission reduction paths in five key areas including industry, construction, transportation, digital infrastructure, and public institutions. In the industry sector, the focus is on industries such as steel, non-ferrous metals, petrochemicals, chemical engineering, building materials, requiring comprehensive improvement in energy efficiency, in-depth implementation of energy conservation and emission reduction diagnostics, promoting the construction of industrial park infrastructure shared cross-industry efficiency improvements; In the construction sector, it promotes the scale development of ultra-low energy buildings, building "good houses," and orderly promoting the integration of photovoltaics in buildings; In the transportation sector, it actively develops electric (hydrogen) heavy trucks and green fuel ships, constructing zero-carbon transportation corridors; In the digital infrastructure sector, it promotes energy conservation and emission reduction retrofits of computing power and communication base stations; In the public institutions sector, it promotes the contract energy management model. In terms of project approval, the Work Opinions explicitly require new (revised, expanded) high-energy-consuming and high-emission industrial projects to formulate carbon emission offset or reduction plans when included in national planning layout and undergoing approval procedures, making low-carbon transformation a mandatory option for project construction. In addition, the Work Opinions propose to study and improve differentiated electricity pricing policies for key industries in the industrial sector based on comprehensive consideration of energy consumption and environmental performance levels, which will also drive the transformation and upgrading of high-carbon industries. Actively promote the green transformation of energy, the assessment measures focus on energy-related indicators The Work Opinions clearly state that strict control over fossil energy consumption will be implemented, deepening efforts to reduce coal and control oil consumption, strengthening the management of new coal and oil demand, actively advancing the clean substitution of coal-fired boilers and industrial kilns, orderly promoting substitution of scattered coal, and gradually peaking coal consumption and oil consumption. The Work Opinions place a significant emphasis on energy-related indicators in the assessment measures, including direct inclusion of three control indicators: total coal consumption, total oil consumption, and the proportion of non-fossil energy consumption, indicating that efforts towards energy green transformation will continue to increase. The Work Opinions also mention the promotion of zero-carbon park construction; in December 2025, the first list of 52 zero-carbon parks will be released, covering industries such as new energy equipment manufacturing, advanced equipment manufacturing, computing centers, etc. Zero-carbon parks will develop green electricity supply models tailored to local conditions, with an expected proportion of direct green electricity supply not less than 50% of the park's electricity consumption, achieving nearly zero carbon emissions. Accelerating the construction of zero-carbon parks will have a positive impact on green electricity consumption, storage and matching, and low-energy consumption renovation. Establishment of the National Low-Carbon Transformation Fund is expected, strengthening support for green finance The Work Opinions propose to "study the establishment of a National Low-Carbon Transformation Fund to support the green transformation of traditional industries and resource-rich regions", and explicitly emphasize the full play of market mechanisms for energy conservation and emission reduction, proper implementation of tax incentives conducive to energy conservation and emission reduction, and guiding financial institutions to provide diversified financial products and services around the characteristics of energy conservation and emissions reduction in key areas. Following the National Green Development Fund, this is another national-level green financial policy tool, indicating that the central government's financial support for the energy conservation and emission reduction sector will continue to increase. With the publication of the dual-carbon assessment measures, further improvement of the policy system, it is recommended to pay attention to the benefiting sectors: 1) The promotion of energy green transformation and zero-carbon park construction will have a positive impact on green electricity consumption, with the assessment measures focusing on energy-related indicators. It is recommended to pay attention to green electricity enterprises and energy construction companies such as China Energy Engineering Corporation, China Nuclear Engineering Corporation; The wind and energy storage upstream and downstream supporting industries will also benefit, it is recommended to pay attention to energy storage, green electricity, power grid equipment, nuclear power and controlled nuclear fusion related enterprises; 2) Carbon emission dual control included in the government assessment system, the acceleration of the expansion of the carbon emission rights trading market, it is recommended to pay attention to carbon sinks related businesses such as Yueyang Forest & Paper (covering light industry group); 3) Clear paths for energy conservation and emission reduction in key areas with low-carbon transformation becoming a mandatory option, it is recommended to pay attention to low-carbon emissions leading companies in industries such as cement, steel, aluminum smelting, and to companies with technological innovation and carbon capture capabilities such as Sinoma International Engineering, China National Chemical Engineering, Metallurgical Corporation of China; 4) Actively developing electric (hydrogen) heavy trucks and green fuel ships in the transportation sector, constructing zero-carbon transportation corridor, it is recommended to pay attention to green hydrogen and alcohol companies such as China Energy Engineering Corporation.