China Iron and Steel Association: Multiple measures to help steel companies balance emission reduction costs and competitiveness.


Release time:

2025-11-02

"The China Iron and Steel Association (CISA) has been paying close attention to the environmental protection investment pressures raised by steel companies, as well as the huge investments required for carbon quotas and related engineering upgrades. We have also listened to the relevant demands of various companies in a timely manner," said Huang Dao, Deputy Chief Engineer of CISA, at the CISA's Q3 2025 information release conference on October 31, in response to a question from a reporter from *China Metallurgical News* regarding "how to help steel companies balance emission reduction costs and competitiveness." He stated that CISA will promote the coordinated development of low-carbon transformation and economic benefits for steel companies through differentiated management policies, optimization of the carbon market mechanism, and extreme energy efficiency projects.

"The China Iron and Steel Association (CISA) has been paying close attention to the environmental protection investment pressures raised by steel companies, as well as the huge investments required for carbon quotas and related engineering upgrades. We have also listened to the relevant demands of various companies in a timely manner," said Huang Dao, Deputy Chief Engineer of CISA, at the CISA's Q3 2025 information release conference on October 31, in response to a question from a reporter from *China Metallurgical News* regarding "how to help steel companies balance emission reduction costs and competitiveness." He stated that CISA will promote the coordinated development of low-carbon transformation and economic benefits for steel companies through differentiated management policies, optimization of the carbon market mechanism, and extreme energy efficiency projects.

Huang Dao explained that, on the one hand, differentiated management policies based on environmental performance ratings will help companies with excellent environmental performance reduce pressure. For example, companies that have invested heavily in ultra-low emission upgrades and achieved good operational results will have their normal production rights prioritized during the autumn and winter air pollution prevention and control period and heavy pollution weather emergency response, while production capacity that has not achieved ultra-low emissions will face stricter controls. On the other hand, in response to the potential cost pressures on steel companies after the carbon market takes effect, the China Iron and Steel Association (CISA) is actively reflecting the industry's demands to government authorities, promoting a more scientific, reasonable, and optimized quota allocation mechanism. This includes preferential quota allocation for companies applying cutting-edge, exploratory low-carbon technologies and exploring the establishment of a linkage mechanism between carbon prices and steel product prices.

Huang Dao stated that CISA regards the extreme energy efficiency project as a breakthrough point for low-carbon transformation, aiming to achieve the dual goals of cost reduction and carbon reduction through energy conservation and consumption reduction. Since December 2022, the steel industry has launched an energy efficiency benchmark cultivation project involving 143 companies and 750 million tons of steel production capacity. The project focuses on promoting energy-saving technologies such as oxygen-enriched pulverized coal injection in blast furnaces and waste heat recovery in converters. Participating companies have seen a 3.32% and 13.64% reduction in energy intensity for blast furnace and converter processes, respectively, resulting in significant energy cost reductions that partially offset the investment costs of low-carbon transformation.

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China Iron and Steel Association: Multiple measures to help steel companies balance emission reduction costs and competitiveness.

"The China Iron and Steel Association (CISA) has been paying close attention to the environmental protection investment pressures raised by steel companies, as well as the huge investments required for carbon quotas and related engineering upgrades. We have also listened to the relevant demands of various companies in a timely manner," said Huang Dao, Deputy Chief Engineer of CISA, at the CISA's Q3 2025 information release conference on October 31, in response to a question from a reporter from *China Metallurgical News* regarding "how to help steel companies balance emission reduction costs and competitiveness." He stated that CISA will promote the coordinated development of low-carbon transformation and economic benefits for steel companies through differentiated management policies, optimization of the carbon market mechanism, and extreme energy efficiency projects.

2025-11-02

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