Li Yujing, Director of Industrial Development Division of China Petroleum and Chemical Industry Federation (CPCIF), delivers his report of The impact of "Carbon peaking and Carbon Neutrality Goals" on petrochemical industry development

 The report was divided into four parts.

In the first part, Mr. Li introduced the status-quo of China petrochemical industry. With the boom in 2021, China’s status as a large country in petrochemical industry had enhanced with gross revenue and profits hitting new high. Though the economy was hit by downturn risk in the first half of 2022, the development of petrochemical industry kept slow and stable.

Secondly, petrochemical industry was challenged by new issues. With the uncertainty of global economic recovery, the raw material price kept hiking, while demand was in lack of advancing momentum in China and abroad. Those issues combined with rapid capacity growth, as well as low operating rate and high inventory, resulted in sharp decline in the profits.

Thirdly, petrochemical industry encountered with bottleneck for high-quality development. The industry was under strains from carbon emission reduction and reaching carbon neutrality. There were also problems of unreasonable product structure as well as restrictions on development.

Lastly, with the “Carbon peaking and Carbon Neutrality Goals”, petrochemical industry should turn to new of development, promote industrial upgrading while reining in new capacity growth, accelerate technological innovation and digitalization, and thus to optimize industry layout and enhance the intensification.