Climate Policy Engagement Analysis
Climate Policy Engagement Overview: China Petroleum and Chemical Industry Federation (CPCIF) have limited engagement with climate policy, with a mix of positive and negative positions. It stated top-line support for the Paris Agreement and limiting global warming to below 1.5°C, as well as China’s carbon peak and neutrality targets. The organization also supported several climate policies in China including emissions trading, energy efficiency and emissions reduction. However, its engagement with the energy transition—supporting both green hydrogen and fossil fuel—seems only partially aligned with IPCC guidelines for limiting global warming to 1.5°C.
Top-line Messaging on Climate Policy: CPCIF has stated top-line support for climate policy. In a July 2024 press release, it supported China's 2030 carbon peak and 2060 carbon neutrality targets. In a February 2024 press release, CPCIF supported GHG emissions reductions in line with 1.5°C target. In a February 2024 press release, the organization supported the Paris Agreement.
Engagement with Climate-Related Policies: CPCIF communicated positively on several climate-related policy streams. In a March 2024 press release, CPCIF supported policy to support the recycling of retired power batteries in China. In a January 2024 press release, CPCIF advocated for development of carbon emission statistical accounting methods to support carbon emissions dual control policy. In another January 2024 press release, CPCIF supported emissions trading to facilitate decarbonization.
Positioning on Energy Transition: CPCIF takes a mix of positive and negative positions regarding the transition away from fossil fuels. In a July 2024 press release, it supported a series of carbon reduction policies for the shipping industry introduced by the European Union and the International Maritime Organization. In another July 2024 press release, the organization supported hydrogen produced from renewable energy for use in heavy industry, while also supporting additional renewable energy capacity. In an April 2024 press release, CPCIF supported energy transition away from fossil fuels in Southeast Asia, especially Indonesia.
However, in an August 2023 press release, the chairman of CPCIF, Li Shousheng, advocated for the continued use of coal as chemical feedstock. In a May 2024 press release, the chairman advocated for the continued role for coal without clearly stating the need for CCS in the energy mix, and stated that fossil fuel is desirable in the long-term energy mix. In a January 2024 press release, CPCIF advocated for the development of production, supply, storage, and sales systems for fossil fuel.