Chinese chemical manufacturing companies face several significant challenges in meeting domestic emission standards:

1. High Dependency on Coal
China’s chemical industry is highly dependent on coal, which has a much higher carbon intensity compared to other fuels and feedstocks. This makes it difficult to achieve the required emission reductions without a significant shift in energy sources.

2. Complex Energy Structure Transition
Transitioning from a coal-based energy structure to cleaner energy sources such as wind and solar is not straightforward. There are still obstacles to the universal, efficient, and stable application of these clean energies. Additionally, changing long-standing energy consumption habits and cognitive levels among industry players takes time.

3. High Carbon Intensity of Key Chemicals
Key chemicals such as ammonia, methanol, and ethylene are major sources of carbon emissions within the industry. These chemicals also have numerous downstream products and high added value, making it challenging to balance emission reduction goals with economic considerations.

4. Existing Production Assets
Many existing production assets in China’s chemical industry are relatively new. The rapid transformation required to meet emission standards may lead to a higher risk of stranded assets, where investments in current technologies and equipment become obsolete before their expected lifespan.

5. Technological and Financial Barriers
Implementing advanced green technologies and equipment requires significant capital investments and high-end talent. Many enterprises, especially smaller ones, may struggle to afford these costs, making it difficult to adopt and implement the necessary technologies for emission reduction.

6. Product Structure and Backward Capacity
China’s chemical product structure currently shows a pattern of “low-end surplus and high-end shortage”. Digesting and eliminating backward production capacity while upgrading to more efficient and environmentally friendly processes is a complex and time-consuming task.

7. Institutional and Policy Pressures
Chinese chemical manufacturing companies face increasing institutional pressures to adopt green practices and meet environmental sustainability requirements. This includes not only regulatory compliance but also the need to maintain organizational legitimacy in the eyes of consumers and regulators, which can be challenging to balance with operational demands.

8. Carbon Management and Policy Alignment
There are still deficiencies in carbon oversight, pricing mechanisms, and policy enforcement alignment. Improving carbon emission management and ensuring consistent policy implementation across different regions and sectors are critical challenges that need to be addressed to meet emission standards effectively.

Overall, while China’s chemical industry has significant potential for emission reductions, these challenges highlight the complexity of achieving the necessary transformations within the required timeframe.