Recently, seven departments—the Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Ecology and Environment, the Ministry of Emergency Management, the People’s Bank of China, the State-owned Assets Supervision and Administration Commission of the State Council, and the State Administration for Market Regulation—jointly issued the “Action Plan for Intensifying the Renovation and Upgrading of Aging Facilities in the Petrochemical and Chemical Industries (2026–2029)” (hereinafter referred to as the “Action Plan”).

China has become the world’s largest producer and consumer of petrochemical products. However, some of the early‑built facilities suffer from low design and construction standards, outdated processes, and inadequate levels of automated control, giving rise to significant safety and environmental risks, suboptimal site layouts, and low operational efficiency. Over time, the number of aging facilities will continue to grow, further amplifying these risks and undermining the industry’s stable operation and high‑quality development.

An official from the Ministry of Industry and Information Technology stated that the Action Plan was introduced to establish a long-term working mechanism featuring annual rolling baseline assessments and continuous upgrading, to improve the standards system supporting the scientific evaluation and benchmark‑based retrofitting of aging equipment, and to strengthen policy and financial support. These measures aim to address key challenges such as difficulties in project implementation and financing, thereby better stimulating enterprises’ intrinsic motivation, comprehensively advancing the renovation and upgrading of outdated facilities in the petrochemical industry, and promoting high‑quality development of the sector.

The Action Plan sets forth that by 2029, all retrofitting and upgrading tasks for aging petrochemical facilities identified in 2025 will be fully completed; newly designated retrofitting and upgrading projects initiated after 2026 will proceed according to schedule. As a result, safety and environmental risks associated with aging equipment will be substantially reduced, synergistic progress in pollution reduction and carbon mitigation will yield tangible results, the share of production capacity meeting or exceeding benchmark standards will increase significantly, and levels of digitalization and green development will see substantial improvement. Meanwhile, a robust long-term working mechanism featuring annual rolling baseline assessments and continuous upgrading will continue to mature, while the guiding role of standards and the coordinated impact of policies will be further strengthened.

The Action Plan, centered on full‑process management of the renovation and upgrading process, outlines six key tasks.

First, conduct baseline surveys and assessments. Local authorities shall systematically register and catalog production units that have been in operation for more than 20 years, compiling a list of aging facilities; assess these units against relevant industrial policies, standards, and regulations, categorize them, and formulate disposal recommendations, thereby establishing an inventory of renewal and upgrading projects. For aging units determined through assessment to require no renewal or upgrading, a reassessment shall be carried out every three years; for units undergoing renewal and upgrading, the first reassessment may be deferred until the sixth year following completion of the upgrade.

Second, update and renovation plans shall be formulated. Local authorities are to urge and guide relevant enterprises in developing tailored implementation plans for each enterprise, specifying renovation measures, work objectives, and timelines; the completion of such renovation projects shall, in principle, not exceed five years.

Third, we will promote quality improvement and upgrading. Enterprises undergoing renovation and modernization are encouraged to benchmark against industry-leading standards, implementing safety‑oriented, green, and intelligent upgrades, while accelerating the adoption and application of advanced technologies and the replacement of industrial software and control systems. Newly built projects must, as required, meet either the advanced threshold for energy consumption limits or the benchmark level for energy efficiency, as well as the A‑level environmental performance standard. For projects involving high energy consumption and high carbon emissions, equivalent or reduced‑emission substitution of energy and carbon footprints must be carried out in accordance with applicable requirements. Furthermore, routine operational management of aging equipment should be strengthened, and safety and environmental protection measures during the renovation and upgrade process must be strictly enforced.

Fourth, optimize project management. When planning the deployment of major petrochemical projects, give priority to supporting the upgrading and retrofitting of aging facilities. Encourage local authorities to establish and refine streamlined approval channels, strengthen the provision of essential resources, and streamline procedures for project filing (approval), environmental impact assessment, land use, water withdrawal, energy‑conservation review, carbon‑emission assessment, and safety licensing, thereby enhancing the efficiency of review and approval processes and accelerating project implementation.

Fifth, ensure effective acceptance management. Local authorities shall supervise and guide enterprises in completing the construction of renovation and upgrading projects in accordance with “one enterprise, one plan” schemes. Enterprises are required to organize completion acceptance in compliance with relevant laws and regulations, while the competent departments responsible for ecological environment, emergency management, and other areas shall conduct oversight and inspection of the acceptance process in accordance with applicable laws and regulations.

Sixth, strengthen standard‑driven support. Launch a special initiative to upgrade standards for aging petrochemical and chemical facilities, focusing on safety enhancement, green transformation, digital and intelligent upgrading, and performance improvement. Establish a comprehensive standards framework that covers all requirements and stages of the renewal and retrofitting of such facilities, thereby providing robust support and guidance for this critical work.

To ensure the smooth completion of key objectives and tasks, the Action Plan proposes leveraging existing funding channels to support the upgrading and retrofitting of eligible aging equipment. It calls for harnessing the role of relevant government investment funds to provide enterprises with investment support. Financial institutions are encouraged to implement a credit policy that balances support with prudent oversight, in line with industrial planning and capacity‑control guidelines, and to facilitate bank–enterprise matchmaking through platforms such as the Credit Market Service Platform and the National Industry–Finance Cooperation Platform, thereby enhancing the quality and effectiveness of financial services. Local governments are also urged to utilize existing funding mechanisms to support the renewal and modernization of aging facilities. In their annual performance assessments, central enterprises should appropriately take into account the impact of such upgrades on their operating results.

(Source: China Chemical News, April 3, 2026)