Circular of the National Energy Administration on Issuing the Action Plan for Energy Conservation and Carbon Reduction in the Energy Sector (2026–2028)
Document No.: NEA Planning〔2026〕45
Energy administrations of all provinces, autonomous regions, and municipalities directly under the Central Government; development and reform commissions of relevant provinces, autonomous regions, municipalities directly under the Central Government, and the Xinjiang Production and Construction Corps; Urban Management Commission of Beijing;
China National Nuclear Corporation, China National Petroleum Corporation, China Petroleum & Chemical Corporation, China National Offshore Oil Corporation, China Oil and Gas Pipeline Network Group Co., Ltd., State Grid Corporation of China, China Southern Power Grid Co., Ltd., China Huaneng Group, China Datang Corporation, China Huadian Corporation, State Power Investment Corporation, China Three Gorges Corporation, China Energy Investment Corporation, SDIC, China National Coal Group, PowerChina, China Energy Engineering Corporation, China General Nuclear Power Group:
To support high-standard and high-quality energy conservation and carbon reduction work, we have formulated the *Action Plan for Energy Conservation and Carbon Reduction in the Energy Sector (2026–2028)*. The Plan is hereby issued to you. All parties shall earnestly implement it in light of local realities to deliver tangible outcomes for all tasks.
National Energy Administration
June 26, 2026
This Action Plan is formulated to thoroughly implement the requirements for high-standard and high-quality energy conservation and carbon reduction, and give full play to the pivotal role of the energy sector in energy conservation and carbon reduction.
I. General Requirements
We will be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implement the spirits of the 20th National Congress of the Communist Party of China and all plenary sessions of the 20th Central Committee, earnestly deliver the arrangements of the Fourth Plenary Session, fully act on the New Energy Security Strategy, take carbon peaking and carbon neutrality as the overarching guide, and prioritize optimizing the energy mix, lifting energy efficiency, strengthening scientific and technological innovation, and improving policy support. We will integrate energy conservation and carbon reduction into all links of energy production, supply, storage, transmission and consumption, deepen energy conservation and carbon reduction in the fossil energy industry, scale up the substitution of fossil energy by non-fossil energy, push coal and oil consumption to reach their peaks, and provide robust underpinning for the comprehensive green transition of economic and social development.
By 2028, the share of non-fossil energy consumption shall rise by about 1 percentage point annually; the proportion of coal-fired power generating units meeting current benchmark energy efficiency standards shall increase by 15 percentage points; a number of zero-carbon and low-carbon coal mining areas and oilfields shall be built; a batch of zero-carbon industrial parks shall be supported and completed; notable progress shall be achieved in energy conservation and carbon reduction in key industries, and the level of green energy consumption shall be steadily elevated.
II. Deepen Energy Conservation and Carbon Reduction in the Power System
(I) Vigorously advance energy conservation and carbon reduction in thermal power
We will prudently and in an orderly manner phase out eligible coal-fired generating units of 300,000 kW and below, and encourage the construction of replacement units complying with new-generation coal-fired power standards. A batch of cross-generation ultra-supercritical upgrading retrofits will be carried out on 600,000 kW coal-fired units. Eligible units will be supported to conduct retrofits for co-firing zero-carbon and low-carbon fuels and Carbon Capture, Utilization and Storage (CCUS), cutting per-kilowatt-hour carbon emissions by roughly 10% after retrofitting. We will launch a number of integrated projects combining coal-fired power, gas-fired power and new energy, and support coal-fired power units to integrate with new energy via heat and energy storage coupling for peak regulation and peak power supply, as well as integrated collection and delivery to achieve synergistic carbon reduction.
(II) Leverage transmission corridors to optimize the allocation of green resources
We will scientifically optimize the national power flow layout, push forward the planning and construction of clean energy bases such as desert, Gobi and arid zone bases, integrated wind-solar-hydro bases, and inter-provincial and cross-regional power transmission corridors in a phased manner. We will tap the full delivery potential of transmission corridors, continuously optimize operation modes, explore the application of advanced power transmission technologies, steadily raise the carrying capacity and delivery ratio of clean energy via transmission corridors, and conduct demonstration trials of power transmission projects delivering 100% new energy.
(III) Expand the consumption space for new energy
We will vigorously develop new types of energy storage, explore the application of long-duration energy storage, expand the scale of inter-provincial mutual aid trading of new energy, and steadily raise the share of power generated by new energy. We will accelerate the renovation and smart upgrading of distribution networks to boost their comprehensive capacity to accommodate distributed new energy and other new market entities. We will actively foster new forms of nearby consumption of new energy including direct green power connection, smart microgrids, integrated source-grid-load-storage systems, and new energy access to incremental power distribution networks, expanding the application scope of green power.
III. Strengthen Energy Conservation and Carbon Reduction in Coal Production and Supply
(IV) Promote clean, efficient development and production of coal
We will impose strict energy conservation and carbon reduction requirements on coal mine project development, and popularize intelligent equipment and advanced mining technologies. PV and wind power will be developed locally on subsidence areas from coal mining, industrial squares and surrounding land; mining areas with favorable conditions are encouraged to develop geothermal energy and distributed solar energy for heating. We will accelerate energy-saving and carbon-reduction retrofits of coal mine equipment and facilities, and deploy intelligent variable frequency speed regulation, energy consumption monitoring and other energy-saving technologies on heavy-load electromechanical equipment. We will advance the new-energy substitution of transportation equipment in mining areas: large-scale deployment of electric and hydrogen-powered mining trucks in open-pit coal mines where conditions permit, and gradual rollout of electric trackless rubber-tired vehicles for underground coal mines based on transport modes.
(V) Boost quality improvement and efficiency in coal washing and preparation
Newly built, renovated and expanded coal mine projects shall be equipped with coal washing facilities of matching scale. New coal washing plants shall in principle be constructed to intelligent standards and meet benchmark levels for key sectors of clean and efficient coal utilization. Outdated existing coal washing facilities will be upgraded within a time limit to meet baseline levels for key sectors of clean and efficient coal utilization. We will optimize washing processes and parameters, and deploy dry coal washing technologies tailored to local conditions. Technical indicators such as energy consumption for coal washing shall be enforced, and standardized and regulated coal washing practices will be promoted.
(VI) Raise the level of comprehensive circular utilization of coal resources
We will actively advance resource-based and ecological utilization of gangue, coal slime and other byproducts, prioritizing their use in power generation and chemical production. We will deepen technological innovation for coal mine gas utilization, boost full-concentration utilization of coal mine gas, and advance the construction of resource utilization projects such as gas power generation and regenerative oxidation. We will promote fractional and hierarchical utilization of oil-rich coal in line with local conditions. Mining areas are encouraged to adopt energy-saving and carbon-reduction measures including on-site gas utilization, low-grade heat utilization, waste heat recovery, water and material conservation.
IV. Deepen Energy Conservation and Carbon Reduction in Oil and Gas Production and Processing
(VII) Advance low-carbon energy use in oil and gas production and supply
Wind, PV, geothermal, marine energy and other renewable energy will be developed relying on oil and gas mining areas and surrounding regions to lift the electrification rate of oil and gas exploration and development, and explore the construction of low-carbon and zero-carbon oilfields. Energy-efficient fracturing rigs, drilling rigs, pumping units and other equipment will be widely deployed. We will push forward the conversion of drive equipment for oil and gas transmission pipelines from oil/gas power to electric power. Drawing on the full-industry-chain advantages of the oil and gas sector in CCUS, we will deploy CO₂ flooding and storage projects in the Ordos, Bohai Bay, Junggar and Pearl River Mouth Basins.
(VIII) Optimize the industrial structure of oil refining and coal-to-oil/gas
The oil refining sector will adhere to capacity reduction and replacement; all newly built refineries shall meet benchmark energy efficiency levels. We will scale up capacity and technological reserves for coal-to-oil and coal-to-gas production, improve conversion efficiency, and push unit product energy consumption and carbon emissions to reach or surpass advanced industrial benchmarks.
(IX) Accelerate the upgrading and transformation of oil refining and coal-to-oil/gas sectors
We will phase out steam turbine drive systems in favor of electric drive systems. Deep integration between coal-to-oil/gas, oil refining industries and new energy will be promoted; relevant projects are encouraged to deploy large-scale green power and green hydrogen substitution to gradually cut the volume of hydrogen produced from fossil fuels. Large-scale CCUS application will be carried out.
V. Vigorously Promote Substitution of Fossil Energy by Non-Fossil Energy on the Consumption Side
(X) Accelerate the transformation of industrial energy supply modes
Renewable energy will be developed around industrial parks; large chemical parks will be supported to explore nuclear heating and steam supply, and build zero-carbon parks and factories. Eligible factories are encouraged to construct integrated industrial green microgrids integrating PV, wind power, high-efficiency heat pumps, new energy storage, hydrogen energy, waste heat, pressure and gas recovery, and smart energy management and control systems. Self-owned coal-fired captive power units will see reduced coal consumption via public power supply, large-scale cogeneration central heating and steam supply, and clean energy. We will advance integrated projects of green hydrogen, ammonia and alcohol, and promote the application of industrial by-product hydrogen and green hydrogen. We will explore hydrogen-electric coupling development and utilization models, and push hydrogen energy, biomass and other alternatives to fossil energy.
(XI) Advance clean energy consumption in transport
We will support integrated planning and development of transport and energy infrastructure, and develop wind and PV power on land along railways, highways, transport hubs and surrounding spaces. We will step up planning and layout to scale up the deployment of new-energy heavy-duty trucks, and promote the large-scale substitution of liquefied natural gas (LNG), green hydrogen-ammonia-alcohol fuels and biodiesel for offshore and inland waterway shipping fuels. We will renovate and popularize shore power at ports and for ships, and upgrade alternative facilities for auxiliary power units of aircraft at airports. We will build a public urban charging network dominated by fast charging, supplemented by slow charging and supported by high-power charging; accelerate the construction of high-power charging facilities along expressways and charging/swapping facilities for new-energy heavy trucks, and prioritize high-power retrofits for charging facilities with utilization rates exceeding 40% during major holidays. We will further expand charging networks in rural areas.
(XII) Upgrade energy conservation and carbon reduction in buildings and rural areas
We will pilot integrated photovoltaic building design and construction, and support energy-saving and carbon-reduction retrofits of existing buildings. We will deepen the Rural Energy Revolution, guide rural residents to cut scattered coal combustion, and promote local clean and efficient development and utilization of renewable energy. Electrified equipment will be deployed for farming, irrigation, breeding, processing and other production activities as appropriate; electric cooking appliances will replace coal-fired cookers, and electric heating will be rolled out steadily in eligible regions. On the premise of guaranteeing residents’ warm winters, we will phase out scattered coal use in plain areas of key air pollution prevention and control regions.
(XIII) Push forward the green and low-carbon transformation of heating systems
We will develop wind-solar heating, geothermal heating, biomass heating, nuclear heating and waste heat recovery and utilization technologies tailored to local conditions, and advance the efficient complementary utilization of multiple heat sources. Large heat sources and main heat pipelines with favorable conditions will be equipped with scientific and rational heat (cold) storage systems; new-energy heating projects, industrial parks and other zones with concentrated cooling and heating loads will be encouraged to build supporting heat (cold) storage systems, and long-duration heat (cold) storage will be piloted in eligible regions. We will establish a smart dispatching system for heating pipelines.
(XIV) Boost coordinated development of green power and emerging industries
New energy bases and computing facilities will be planned and constructed in tandem. Computing facilities will be supported to raise their green power consumption ratio; we will fully tap the time-space flexible potential of computing loads to advance coordinated operation between computing and power supply. Energy-saving technologies and equipment including high-efficiency cooling, high-performance power supply and advanced waste heat recovery will be deployed to lift the energy efficiency of computing facilities. We will build a number of self-consumed new energy bases and integrated wind-solar-hydro river basin bases, and promote coordinated layout of power, advanced manufacturing and other industries.
VI. Strengthen Technological Innovation for Energy Conservation and Carbon Reduction
(XV) Accelerate R&D and popularization of energy-saving and carbon-reduction technologies and equipment
We will boost R&D of energy-saving energy equipment to lift the energy efficiency of equipment across all links of energy exploitation, conversion, storage and transmission. R&D and tackling of key generic technologies and equipment for energy conservation and carbon reduction will be supported under national major science and technology special projects for the energy sector. Policies for the first set of major technical equipment in the energy sector will be leveraged to support the demonstration and promotion of technologies and equipment delivering marked energy-saving and carbon-reduction benefits.
(XVI) Empower energy conservation and carbon reduction via digitalization and smartization
We will push forward digital and smart transformation across all links of energy production, supply, storage, transmission and consumption. Enterprises will be supported to build digital carbon management platforms, enabling precise metering, real-time collection and intelligent analysis of energy consumption, as well as online monitoring, accounting and flexible regulation of energy use and carbon emissions. We will encourage innovation of artificial intelligence models in the energy sector, explore digital and intelligent solutions for energy conservation and carbon reduction, and unlock high-value application scenarios for AI in cutting energy use and emissions.
(XVII) Conduct R&D on cutting-edge low-carbon, zero-carbon and negative-carbon technologies
Focusing on clean and efficient fossil energy utilization and large-scale renewable energy deployment, we will step up forward-looking and strategic research on major frontier technologies. We will accelerate breakthroughs in supercritical CO₂ power generation, CCUS and other core technologies; tackle key technologies for flexible and efficient wind-solar hydrogen production and large-scale safe hydrogen storage; and make breakthroughs in core technologies including green hydrogen synthesis catalysis, low-carbon synthesis processes and long-distance hydrogen transportation and storage.
VII. Improve Policy Mechanisms for Energy Conservation and Carbon Reduction
(XVIII) Strengthen statistical accounting and management of carbon emissions
We will organize carbon emission statistical accounting covering coal mining and washing, oil and gas exploration, transportation and storage, power generation, transmission and storage, hydrogen production, transportation and storage, oil refining, coal-to-fuels and other sectors and links. A regular statistical accounting mechanism will be gradually established, and standards and emission factors for carbon footprints of primary energy products will be formulated at an accelerated pace. We will conduct regular tracking and monitoring of carbon emissions in the power, coal, oil & gas and oil refining sectors, and carry out analysis and forecasting of carbon emission trends.
(XIX) Improve mechanisms to boost green energy consumption
A minimum renewable energy consumption share target system will be established, and the renewable energy power consumption responsibility weight system will be refined to consolidate renewable energy consumption obligations for key energy-consuming industries and all relevant parties. The green power certificate market will be continuously expanded; a green power certificate price index will be released to guide prices within a reasonable range. Nuclear power will be incorporated into the green power and green power certificate system. We will build a standard system for green power and green power certificate consumption, formulate standards for green power certificate accounting, certification and labeling, and accelerate alignment of domestic green power certificate standards with international norms. Green power certificates will be integrated into the carbon emission accounting system.
(XX) Improve market mechanisms to drive energy conservation and carbon reduction
The unified national power market system will be refined to leverage gaps in power supply-demand periods and regulation capacity across provinces and autonomous regions for broader consumption of clean energy. We will improve trading mechanisms for green power and green power certificates, encourage the fulfillment of inter-provincial priority generation plans for new energy via green power trading, and support multi-year trading contracts and aggregated trading between power generators and consumers. We will study specific types of low-carbon, zero-carbon and negative-carbon projects including CCUS and non-electric utilization of renewable energy to be incorporated into the methodologies for greenhouse gas voluntary emission reduction projects.
VIII. Implementation Safeguards
We will coordinate all types of investment to support eligible energy conservation and carbon reduction projects in the energy sector, and advance the upgrading of relevant energy supply and consumption equipment. The National Energy Administration will establish a key project pool for energy conservation and carbon reduction in the energy sector together with relevant authorities, track project construction progress continuously, strengthen supervision over policy implementation, and drive deeper green and low-carbon transformation in more sectors.
