We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: China Petroleum and Chemical Industry Federation (CPCIF) has communicated positively in their top-line messaging on climate policy and appears supportive of some climate regulations. However, the organization appears to oppose the energy transition.
Top-line Messaging on Climate Policy: CPCIF has communicated a positive top-line position on climate policy. In a June 2021 press release, CPCIF appeared fully supportive of the science of climate change. As reported by Sina News in May 2021, CPCIF supported the Paris Agreement as well as global efforts to limit global warming to less than 1.5oC.
Engagement with Climate-Related Regulations: CPCIF appears to have limited but positive engagement with climate regulations. As of August 2022, it has not disclosed its positions on specific climate regulations in its organisation reporting. In a November 2021 press release, the organization supported government policy to ensure China meets its climate targets, however, the support appears to focus on policy support on setting up market-based solutions.
In a May 2021 report by Sina News, CPCIF backed China’s 2030 carbon peak target. In a May 2022 press release, the organization supported replacing the current energy consumption intensity target with a carbon intensity target, and replacing the current energy consumption cap with a carbon emission cap, to better serve China’s carbon peak and carbon neutrality targets. In a July 2022 press release, CPCIF stated carbon trading is an effective means to incentivize low-carbon transition.
Positioning on Energy Transition: CPCIF does not appear to support the energy transition. In a March 2021 press release, CPCIF appeared to suggest a slower pace for energy transition than demanded by the IPCC science. In a March 2022 press release, the Chairman of CPCIF Li Shousheng advocated for further exploration of natural gas. In an April 2021 press release, CPCIF supported the construction of the East Africa Pipeline, arguing that the project will bring economic benefits for Uganda and Tanzania. In a July 2022 press release, it supported labelling natural gas as ‘green’ under the EU Taxonomy as a practical solution to reducing its reliance on coal . In a March 2022 press release, the organization called for subsidies and other financial aid for projects on clean and efficient utilization of coal. However, in an April 2022 press release, CPCIF disclosed that it has proposed to policymakers during the Two Sessions to provide subsidies for green hydrogen facilities.