weekly

This report examines the low-carbon transition pathways for thermal/heating systems in China's steel industry, reviewing the policy drivers behind decarbonization and analyzing the technological trajectory across near-, medium-, and long-term horizons (2025–2060). It surveys and compares the applicability, economics, and emissions-reduction potential of key technologies—including waste heat recovery, system efficiency improvements, and hydrogen-based metallurgy—through in-depth case studies (HBIS Group's hydrogen metallurgy, Shougang Jingtang's process interface optimization, and Sinosteel/CISP's hydrogen-based smelting reduction, among others). It further identifies the practical barriers to scaling these technologies (high green hydrogen costs, renewable energy intermittency, stranded-asset risk, and weak cross-sector coordination mechanisms), and proposes policy recommendations to accelerate the sector's shift toward integration with renewable energy systems.

In March 2026, China’s 15th Five Year Plan set a target to build “around 100 national level zero-carbon industrial parks” – zones for industrial production with net-zero or close to zero carbon emissions. It marked an upgrade to what had previously been a series of pilot projects around the country and catapulted such zones to a national priority.

On July 23, the National Development and Reform Commission and the National Energy Administration released the “15th Five-Year Plan for Renewable Energy Development” (hereinafter referred to as the “Plan”), which sets out a systematic roadmap for the development of renewable energy over the next five years.