The National Development and Reform Commission (NDRC) unveiled a new development plan to promote the circular economy in the next five years. The plan’s goal is to make the utilization of resources more efficient and foster high-quality development during the 14th Five Year Plan period (2021-25). The plan will promote resource conservation and recycling in China, help ensure resource security and aid China in honoring its pledge to peak carbon dioxide emissions by 2030 and become carbon neutral by 2060. The circular economy refers to recycling, reusing and refurbishing materials and resources. The new plan will make the circular economy a national priority during the period 2021-25. By 2025, a resource recycling industry will be established and a resource recycling system covering the entire society will be completed to improve the efficiency of resource utilization.
The productivity of major resources is expected to increase by about 20% compared with 2020. The energy and water consumption per unit GDP will be reduced by 13.5% and 16%, respectively. According to the plan, the use of waste paper and scrap steel will reach 60 million metric tons and 320 million tons, respectively, and the output of recycled non-ferrous metals will hit 20 million tons by 2025. By then, the resources recycling industry will be worth CNY5 trillion. This will include building a recycling system for waste materials, strengthening the recycling of agricultural and forestry waste, and implementing a circular agricultural development model. Yin Zhongshu, Analyst at Everbright Securities, said the development of the circular economy will help China reduce carbon emissions and strengthen the new dual-circulation development paradigm that takes the domestic market as the mainstay while the domestic and foreign markets complement each other.
China will also accelerate efforts to recycle new energy vehicle batteries. The country is expected to reach a peak in battery replacement by 2025. China will step up building a traceability system for new energy vehicle (NEV) batteries. NEV manufacturers will set up recycling service networks by themselves or through cooperation with upstream and downstream industry players, the plan said. Wang Binggang, Honorary Consultant of the China Society of Automotive Engineering said: “China’s electric vehicle industry has entered a new stage of rapid growth with the battery industry initially taking shape. It is strategically important for the country to have stable battery resources and a sound battery recycling system. The China Association of Automobile Manufacturers (CAAM) estimated that NEV sales will likely surpass 2 million units this year. The China Automotive Technology and Research Center (CATRC) said that 2025 will be a peak period for battery replacement with 780,000 tons of power batteries expected to go offline by that time, the China Daily reports.
