欧盟企业在中国建议书（2024-2025）石化、化工和炼油工作组（英文）

Europeanchamber中国欧盟商会

Petrochemicals,ChemicalsandRefiningWorkingGroup

KeyRecommendations

1.LegislationandLawEnforcement

1.1StrengthenLegislativeProcessesthroughBetterCommunicationand

byInvolvingaBroaderGroupofStakeholders

•Involvechemicalcompaniesatallstagesofthedevelopmentofrelevantregulationsandstandards.

•Provideareasonabletransitionperiodandclearguidanceatthelocallevelwhenreleasingupdatestolawsandpolicies.

SectionThree:Goods

•Strengthencurrentcommunicationchannelstobettercollectfeedbackfromforeignenterprisesandassociationsonregulationdraftingandimplementationtoavoid‘one-size-fits-all’measures.

-Provideacentralplatformonwhichrelevantpartiescanraisequestionsandpublishstandardanswerstofrequently-asked-questions.

•Clarifythedistinctioninstandardsbetweenmandatoryrequirementsandgoodpractices.

•Clarifythedefinitionof‘two-high’projectsandprovidecorrespondingindustrydevelopmentguidelinesonlocalprojectapprovals.

1.2EstablishaStandardisedRegulatoryEnvironment

•Conductregulatorytrainingforauthoritiesatalllevels(municipal,provincialandnational)andcompaniestoaligninterpretationsandenforcement.

•Involveandconsultindustry-specificexpertsonlawenforcementregardingspecialtychemicalstorespecttheuniquenessandbestpracticesofthiscomplexindustry.

•Strengthenthepermitapprovalprocessforprojectsandfacilitiestobetteraligncompliancerequirementsbetweentheauthoritiesandcompanies,basedontheregulationsrelatedtochemicalplants.

2.SustainabilityandGreenChemistry

2.1PromotetheChemicalIndustry’sParticipationinandContributionto

Sustainability,InnovationandtheGreenEconomy

•Strengthencooperationbetweenthegovernmentandinternationalbusinesses.

-Encouragethecentralauthoritiestoinvolvecompaniesandinternationalindustrialassociationsaskeystakeholders,particularlyregardingtheemissionstradingscheme(ETS),carbonneutrality,environment,socialandgovernance(ESG);‘responsiblecare’andhealth,safetyandenvironment(HSE)management.

•Increasepromotionofthe‘OpentothePublic’programmetoimprovesocietalawarenessofboththesustainabilityandoverallimageofthechemicalindustry.

•Establishguidanceandsupportforpowerpurchaseagreements(PPAs),tradeinrenewableelectricitybetweenneighbouringentities,energystorageandotheremergingenergytransitiontoolstoacceleratedecarbonisationofthechemicalindustry.

•Strengthenunifiedplanningfortheconstructionandmanagementofindustrialgas,public

266Petrochemicals,ChemicalsandRefiningWorkingGroup

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EuropeanBusinessinChinaPositionPaper欧盟企业在中国建议书

pipelines,heating,HCswastedisposalfacilitiesandotherpublicutilitiesatchemicalparks.

•Acceleratethedeploymentofmeasuresgearedtowardsimprovingenergyconsumptionintensityandefficiencybybuilding,optimising,orsharingcommonutilitiessuchassteam,wastewatertreatment,andhazardouswastefacilities.

•Encouragerenewableenergyinvestmentbyestablishingmechanismssuchasafast-trackapprovalprocedureforon-sitephotovoltaicsanddistributedwindpowerprojectinstallationsinchemicalparks.

•Provideincentivesandaccelerateorsimplifythepermitapprovalprocessfordemonstrationprojects.

•Developanationalproductcarbon-footprintstandardcompatiblewithEuropeanstandardstopromotereductionofscope-threecarbonemissions.

•DevelopnationalESGregulationsdedicatedtothechemicalindustrybyleveragingEuropeanbestpractices,suchasESGdisclosure.

SectionThree:Goods

•DeepenengagementwithEuropeanpetrochemicals,chemicalsandrefiningcompaniesontheimplementationofESGActionPlansatthelocallevel.

2.2ImprovePoliciesforthePromotionoftheCircularEconomywithinthe

ChemicalIndustry

•Fostervaluechaincooperation,andprovideregulatory,financialandtaxsupport,topromotetheimplementationofcirculareconomyprinciples.

•Encourageenergyandresourcesharingandcollaborationwithinchemicalparksbysimplifyingthepermitallocationprocessandprovidingmoreregulatoryflexibilityforinnovativepilots.

•Simplifythecertificationandapprovalrequirementtoencouragewasterecyclingandutilisationprojects,whileofferingthepossibilityofcase-by-caseexemptions.

•Pilotcross-provincialcollaborationonwasterecyclingandutilisation.

•Granttaxincentivesthatpromoteplasticrecyclingprocesses,furtherimproveurbanwasteinfrastructureandacceleratetheconstructionofastandardisedsystemforrecycledplastics.

•Standardiseregulatoryrequirementsforthechemicalrecyclingofplasticwaste,particularlyregardinganynecessaryonsitepre-treatmentandtransportationtoindustrialparksforchemicalrecyclingfacilities.

3.InvestmentandManufacturingCosts

3.1GuaranteeFairandReasonableTreatmentbyLocalAuthoritieswith

RespecttoRelocationsandTemporaryClosuresofEnterprisesandChemicalParks

•Ensurethatanycriteriaprovidedandactionsundertakentocompelbusinessestorelocateortemporarilyclosearebasedonlawsandregulationsthataretransparentandpublishedwellinadvance.

•Adopta‘case-by-case’approachtoaddresssuggestionsforplantrelocations,providingsignificantlead-timeandlenienttimelineswhenrelocationsaredeemednecessarytoavoiddisruptingchemicalsupplychains.

•Reachmutualagreementwithcompaniesonbothrelocationtimelinesandfaircompensationtodecreasetheirassociatedcosts.

Petrochemicals,ChemicalsandRefiningWorkingGroup267

Europeanchamber中国欧盟商会

•Factorinsecondaryrisksinoverallshutdownpolicestoavoiddisruptionstochemicalplantoperationsandthesubsequentpossibilityofexplosions,particularlywhenmeasuresaregivenatshortnotice.

3.2SimplifytheRegulatoryProcesstoSupportNewInvestments,andMarketand

TechnologyInnovationinFineandDangerousChemicalsManufacturing

•Simplifythepermitallocationprocessforminorrecipechangeswithinthesameproductcategorytopromotequickmarketresponsesandencourageinnovation.

•Simplifythepermitallocationprocessforplantdebottleneckingprojectsthataimtoincreaseproductioncapacityandoptimisetheworkflowwithoutchangingthemainproductionprocessorincreasingemissions.

•Establishastandardisedpermitapprovalprocessandprovidemeasurestocorrectpermitapplicationsduringtheapprovalprocedure.

•OptimisetheapplicationandapprovalprocessesfortheSafetyProductionLicencepermit.

-Provideanonlineapplicationandapprovalservice.

SectionThree:Goods

-Grantfast-trackandsimplifiedproceduresforcompaniesthatperformwellwithinthevalidityperiod.

•Regulatesafetyconsultingagenciesandexperts.

•Openthechannelforemployeesofforeigncompaniestojointhe‘expertpool’forsafetyinspections.

•ExtendthevalidityperiodofSPLsinatimelymannerwhencompaniesundertakenew,modificationorrenovationprojects.

4.OptimisetheLegislativeFrameworkfortheRegulationofChemicalsto

EnsureaSustainable,Market-orientatedandInternationalisedBusinessEnvironment

•Improvethetraceabilitycodesystem.

-Extendthegraceperiodforimplementation.

-Conductagradualexpansionoftheapplicationscopestartingwith35criticallyrestrictedhazardouschemicals(HCs).

-ExemptHCswithpackagingspecificationsoflessthanonelitre(oronekilogram)fromaffixingtraceabilitycodestointernalandexternalpackaging.

•Continuetooptimisetheonlineregistrationsystemfornewchemicals.

-Createafunctiontoautomaticallyidentifyrepeatedlyregisteredsubstancesandspecialformats.

-Allowdeletionofincorrectlyregistereditemsorprovideaone-clickmodificationfunction,incaseoferrors.

-Establishadynamicadjustmentmechanismtofixissueswiththesystemitselfinatimelymanner.

-Restorethefunctionofcreatingsub-accounts.

-Exemptlaboratory-scaleresearchorproductsusedasreferencestandardsfromthecataloguesofprohibitedgoodsforimportandexporttoencourageresearchandinnovation.

•Strengthenindustry-to-governmentexchangesonHCinspections.

268Petrochemicals,ChemicalsandRefiningWorkingGroup

RecentDevelopments

In2023,China’sproductioncapacityof24majorchemicalproducts—includingethylene,propylene,polytheneandpolypropylene—increasedbynearly50milliontonnes,a15percentyear-on-yearincrease,1takingits“globalshareofpetrochemicalscapacity”upto25percent.2Bycontrast,domesticconsumptioninChinaremainedsluggish,reflectedintheutilisationrateof75percentin2023,down0.5percentagepointsyear-on-year.Oneofthemaincontributorstotheemergenceofovercapacity,whichwasreportedby51percentofrespondentsfromthepetrochemicalsindustrytotheChamber’sBusinessConfidenceSurvey2024,3hasbeenthepoorperformanceofChina’sconstructionindustry.4

OtherrecentdevelopmentsthathaveimpactedmembersofthePetrochemicals,ChemicalsandRefiningWorkingGroupincludethefollowing.

LegislationandLawEnforcement

Therehasbeensomeprogressinoverallindustryregulation,specifically:

•improvementstothelegislativeprocesses,withmorepublicconsultationduringthedraftingofregulations;

•thereleaseofdetailedinstructionsonoperationalrequirements;5&6&7and

•reinforcedlegislationandlawenforcement.

SustainabilityandGreenChemistry

Thechemicalindustryisundergoingasignificant

1China'schemicalproductexportgrowthfurtheraccelerated,SinopecNews,22ndMay2024,viewed7thJuly2024,<

/xnews/

content/2024-05/22/content_7095915.html

>

22024Chemicalindustryoutlook,Deloitte,viewed5thMay2024,<

https://www2.

/us/en/insights/industry/oil-and-gas/chemical-industry-outlook.html

>

3EuropeanBusinessinChinaBusinessConfidenceSurvey2024,EuropeanUnionChamberofCommerceinChina,p.11,10thMay2024,viewed9thJuly2024,<

/en/publications-archive/1177/Business_

Confidence_Survey_2024

>

4Pflug,K,TougherTimesforChina’sChemicalIndustry,CHEManager,24thJanuary2024,viewed9thJuly2024,<

/en/news/

tougher-times-chinas-chemical-industry

>

5TechnicalGuidelinesonKeyIndustrialPerformanceGradingandEmissionMitigationMeasuresUnderHeavy-pollutingWeather—PetroleumRefiningandPetroleumChemistryIndustry,(DraftforComments),MinistryofEcologyandEnvironment(MEE),7thNovember2023,viewed5thMay2024,<

https://www.mee.

/xxgk2018/xxgk/xxgk06/202311/W020231107365152601573.pdf

>

6InterimGuidelinesfortheSafeDisposalofAbnormalConditionsintheProductionProcessofChemicalEnterprises(DraftforComments),MEM,22ndDecember2023,viewed5thMay2024,<

/gk/zfxxgkpt/

fdzdgknr/202312/t20231222_472846.shtml

>

7ActionPlanfortheIntegratedDevelopmentofOilandGasExplorationandNewEnergy(2023–2025),NationalEnergyAdministration,27thFebruary2023,viewed5thMay2024,<

/2023-02/27/c_1310704758.htm

>

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EuropeanBusinessinChinaPositionPaper欧盟企业在中国建议书

transformationduetoaseriesoffactorsincludingintensifiedglobalcompetition,fluctuationsinenergymarkets,increasingde-industrialisation,andthestrengtheningofdecarbonisationpoliciesacrosstheworld.Consequently,companiesarere-assessingandadjustingtheircorporatestrategies.

Chinasetoutthe30/60goalsin20218andhasbeenbuildingthenationalcarbonemissionstradingscheme(ETS).9&10&11However,thedevelopmentofChina’sETSmarkethasbeenslowduetothepoordatamanagementofcarbonemissions,andtodate,itstillhasnotincludedcement,petrochemicalsandmanyotherheavy-emittingsectors,impedingthecountry’sdecarbonisationprogress.12In2024,theMinistryofEcologyandEnvironment(MEE)releasedtwodraftsonguidingtheaccountingandreportingproceduresforthealuminiumsmeltingindustrywhichareexpectedtoenhancethedatamanagementofthecarbonmarket,thusacceleratingitsexpansion.13Theworkinggrouphopesthattheofficialregulationswillbeinplaceandthatpetrochemical-relatedsectorswillbeincludedinthenationalETSassoonaspossible.Atthesametime,theguidelineforthechemicalindustryhasnotyetbeenissuedorpublished.AsexplainedintheEuropeanChamber’sCarbonNeutrality:TheRoleofEuropeanCompaniesinChina’sRaceto2060,theETS’simpactremainslimitedduetoitsrestrictedscope,thelowcarbonpricingandthelackofanabsolutecaponemissions.14

8The30/60goalsrefertotwoheadlineclimategoalssetoutbyChinain2021:topeakcarbondioxide(CO2)emissionsbefore2030andachievecarbonneutralitybefore2060.Thetwogoalsareoftenreferredtoasthe‘30/60’goals.FurthertoitsobligationsundertheParisAgreement,Chinaannounceditscommitmenttopeakitsnationalcarbonemissionsby2030andtoachievecarbonneutralityby2060:

Chinaheadedtowardscarbonneutralityby2060;PresidentXiJinpingvowstohaltnewcoalplantsabroad,UnitedNations,21stSeptember2021,viewed5thMay2024,<

/en/story/2021/09/1100642

>

9MeasuresfortheAdministrationofCarbonEmissionTrading(Trial),MEE,5thJanuary2021,viewed5thMay2024,<

/xxgk2018/xxgk/

xxgk02/202101/t20210105_816131.html

>

10MinistryofEcologyandEnvironmentReleasesReportontheFirstComplianceCycleoftheNationalCarbonEmissionsTradingMarket,MEE,1stJanuary2023,viewed5thMay2024,<

/ywgz/ydqhbh/wsqtkz/202301/

t20230101_1009228.shtml

>

11InterimRegulationontheAdministrationofCarbonEmissionTrading,StateCouncil,25thJanuary2024,viewed5thMay2024,<

/zhengce/

zhengceku/202402/content_6930138.htm

>

12NationalCarbonMarketExpansionMayBeDelayedto2023,ChinaDialogue,19thMay2022,viewed5thMay2024,<

/en/digest/national-

carbon-market-expansion-may-be-delayed-to-2023/

>

13GuidelinesforEnterpriseGreenhouseGasEmissionAccountingandReporting—AluminiumSmeltingIndustry,andTechnicalGuidelinesforEnterpriseGreenhouseGasEmissionVerification—AluminiumSmeltingIndustry,MEE,15thMarch2024,viewed5thMay2024,<

/xxgk2018/xxgk/xxgk06/202403/

t20240315_1068508.html

>

14CarbonNeutrality:TheRoleofEuropeanCompaniesinChina’sRaceto2060,EuropeanUnionChamberofCommerceinChina,25thMay2022,viewed5thMay2024,<

/en/publications-carbon-neutrality-

report

>

Petrochemicals,ChemicalsandRefiningWorkingGroup269

SectionThree:Goods

SectionThree:Goods

Europeanchamber中国欧盟商会

InvestmentandManufacturingCosts

TheYangtzeRiverProtectionLawprohibitsconstructingorexpandingchemicalparksandprojectswithinonekilometreoftheriver,15withnorecognitionforprojectsintendedtoupgradeplants’safetyandecologicalprotection.Severalworkinggroupmembershavesincereportedthatlocalauthoritiesorderedthemtoshutdownwithinunreasonablyshorttimeframes.Inaddition,manycompaniesreceivedconflictinginformationfromdifferentgovernmentdepartmentsandencountereddifficultiesestablishingdirectnegotiationchannelswiththerelevantauthorities.Thegovernmentshouldavoida‘one-size-

fits-all’approachtoclosures,andprovidetransparentandfaircriteria,andadequatetimeframes,forplantshutdownstominimisebusinessdisruptions.

AccordingtotheChineseregulation,16companiesengagedinmining,construction,andtheproductionofhazardouschemicals(HCs)mustobtaintheSafetyProductionLicence(SPL)beforecommencingproduction.However,theSPLapplicationprocedureiscomplicatedandtime-consuming,placingaheavyadministrativeburdenoncompaniesandhinderingefficientproduction.Moreover,inresponsetotheongoingrevisionsbeingmadetoSPL-relatedlawsandregulations,enterprisesarerequiredtopromptlyadapttonewregulatoryrequirementsbyconstantlyupdatingtheirsafetymanagementsystemsaccordingly,whichgeneratesheavycostsandfurtherexacerbatestheiradministrativeburden.

ManagementofHCsandPollutants

ImplementingtheNationalPlanforCentralisedManagementofHazardousChemicalSafetyRiskshasbeenachallengeforcompanies.17Specifically,itrequirescompaniestomakequickchangesunderstringenttimelines,posinghugecompliancechallengesforEuropeanmultinationalcompanies(MNCs)giventheirinternalreportingprocedurestoheadquartersandthe

15TheYangtzeRiverProtectionLaw,TheNationalPeople’sCongress,26thDecember2020,viewed8thMay2024,<

/npc/c2/c30834/202012/

t20201226_309444.html

>

16RegulationsonSafetyProductionLicence(2014Revision),StateCouncil,29thJuly2014,viewed8thMay2024,<

/detail2.html?ZmY4MDgwODE2

ZjNjYmIzYzAxNmY0MGVlOWVlNTBjMGY

>

17ThispolicyproposesenhancingthedigitalandintelligentcontrolofHCrisksthroughoutaproduct’sentirelifecycle:NationalPlanforCentralisedManagementofHazardousChemicalSafetyRisks,MEM,5thJanuary2022,viewed8thMay2024,<

/gk/zfxxgkpt/fdzdgknr/202201/t20220105_406261.

shtml

>

270Petrochemicals,ChemicalsandRefiningWorkingGroup

involvementofmultiplestakeholders.18

WhiletheworkinggroupappreciatesChina’sefforttooptimisethenationalframeworkforpollutantmanagement,19&20&21andtostrengthenlocalimplementation,thereisstillalackofdetailedguidanceonthemanagementofnewpollutants.Theworkinggroupwillcontinuetocloselymonitortheprogressoftherelevantregulationsandrecommendsthetimelyreleaseofsupportingguidelines.

TheMEE’sActionPlanforNewPollutantsTreatment,22issuedinMay2022,callsforeffectiveregulationstomonitorandcontroltheenvironmentalriskstriggeredbytoxicandHCs.However,twoyearsaftertheMEEstatementthatthedraftmeasureswerereadyforlegalreview,23asofJune2024,relevantregulationsormeasuresarestilltobereleased.

KeyRecommendations

1.LegislationandLawEnforcement

1.1StrengthenLegislativeProcessesthrough

BetterCommunicationandbyInvolvingaBroaderGroupofStakeholders

Concern

Unreasonableand/orambiguousregulations,combinedwithalackofeffectivecommunicationbetweencompaniesandgovernment,haveledtobothdifficultiesincorporateimplementationandinconsistenciesinlocallawenforcement.

Assessment

AlthoughtheChineseGovernmenthasambitiousplansforgreeningtheeconomyandpromotinginnovation,

18Companiesarerequiredtomeettherequirementsbytheendof2024:NoticeonPromotingtheInformatisationManagementofHCinandoutofStorageandDangerousGoodsLoadingandUnloadingBasedonthe‘OneEnterprise,OneProduct,OneCode’System,ShanghaiEmergencyManagementBureauandShanghaiMunicipalTransportationCommission,9thFebruary2024,viewed8thMay2024,<

/xxgk/zfxxgk/zcwj/aqscgl/20240218/9c7db26fd6b

b45d4a278fd5c2b285444.html

>

19ActionPlanforNewPollutantsTreatment,MEE,24thMay2022,viewed8thMay2024,<

/zcwj/gwywj/202205/t20220524_983032.shtml?key

words=%E6%96%B0%E6%B1%A1%E6%9F%93%E7%89%A9

>

20ListofNewPollutantsforPriorityManagement(2023),MEE,30thDecember2022,viewed8thMay2024,<

/xxgk2018/xxgk/xxgk02/202212/

t20221230_1009167.html?keywords=

>

21MeasuresfortheAdministrationofPollutantDischargePermitting,MEE,1stApril2024,viewed8thMay2024,<

/gzk/gz/202404/

t20240408_1070147.shtml

>

22ActionPlanforNewPollutantsTreatment,MEE,24thMay2022,viewed8thMay2024,<

/zcwj/gwywj/202205/t20220524_983032.shtml?key

words=%E6%96%B0%E6%B1%A1%E6%9F%93%E7%89%A9

>

23ReplytoRecommendationNo.3358oftheFifthSessionofthe13thNationalPeople'sCongress,MEE,12thSeptember2022,viewed8thMay2024,<

https://

/xxgk2018/xxgk/xxgk13/202301/t20230117_1013354.html

>

thereisalackofmechanismsforfacilitatingcooperationbetweencompaniesandinstitutions.Thisisreflectedbythefactthatcertainrequirementsandregulationsarenotreasonable,makingitdifficultforcompaniestoimplementandcomplywiththem.Thestandardforvolatileorganiccompounds(VOCs),forexample,requiresmanufacturerstoremove90percentofVOCsevenifemissionsarealreadylimited.Thiscomesatahighcostintermsofbothinvestmentandenergyefficiency.Meanwhile,inthe

GuidingOpinionsonPromotingtheDevelopmentofthePetrochemicalandChemicalIndustryinthe14thFive-yearPlanPeriod,24requirementsincludesignificantlyreducingenergyconsumptionandcarbonemissionsperunitofbulkproductsandreducingtotalVOCemissionsbymorethan10percentcomparedtothe13thFive-yearPlanperiod.

Inaddition,someregulationslackclarity,resultingin

inconsistentenforcementamongdifferentprovincesandcities.Forexample,ifthereisambiguityinanewlyreleasedregulation,alocalgovernmentdepartmentmightstopissuingpermitsuntilreceivingfurtherguidelinesfromhigherauthorities.Thishasoccurredfrequentlyinthepastfewyearsinrelationtoenvironmentandsafetymanagementandiscurrentlyaconcernforclassifyingprojectsunderthe‘two-high’requirement.25&26Theworkinggroupthereforerecommendsthatregulationsbeclarifiedtoenablealignmentamonglocalandcentralauthoritiesbeforetheygointoforce.

Evenwhenclarificationisprovided,regulationsmaystillnotbeadequatelyenforced,asisthecasewiththePollutantDischargePermit.TheMEEhasclarifiedthatitwillbetheonlymanagementtoolforsite-specificsupervisioninmultiplepolicydocuments,27yetthisisstillnotadequatelyenforced,despitebeinginplacesince2018.28

24GuidingOpinionsonPromotingtheDevelopmentofthePetrochemicalandChemicalIndustryinthe14thFive-yearPlanPeriod,MIITandfiveotherministries,28thMarch2022,viewed9thMay2024,<

/zhengce/

zhengceku/2022-04/08/content_5683972.htm

>

25Inthetransitiontoalow-carboneconomy,Chinahascurbed‘two-high’projects(highenergyconsumption,highpollutionincludingcarbonemissions),whichfocusoncarbon-intensiveindustriessuchassteelmanufacturing,nonferrousmetalsandpetrochemicals.

26PlanforImprovingtheDualControlSystemofEnergyConsumptionIntensityandTotalAmount,StateCouncil,11thSeptember2021,viewed9thMay2024,<

http://

/zhengce/zhengceku/2021-09/17/content_5637960.htm

>

27MEEAnsweredtheReporter'sQuestionsontheTechnicalSpecificationsfortheApplicationandIssuanceofPollutantDischargePermitandIndustrialSolidWaste,

MEE,15thNovember2021,viewed9thMay2024,<

/ywdt/

zbft/202111/t20211115_960421.shtml

>

28SuggestionsonComprehensivelyPromotingPost-PollutionPermitManagement,GuangmingwangNews,24thApril2020,viewed16thMay2024,<

https://aiqicha.

/qifuknowledge/detail?id=10004447468

>

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EuropeanBusinessinChinaPositionPaper欧盟企业在中国建议书

Recommendations

•Involvechemicalcompaniesatallstagesofthedevelopmentofrelevantregulationsandstandards.

•Provideareasonabletransitionperiodandclearguidanceatthelocallevelwhenreleasingupdatestolawsandpolicies.

•Strengthencurrentcommunicationchannelstobettercollectfeedbackfromforeignenterprisesandassociationsonregulationdraftingandimplementation

toavoid‘one-size-fits-all’measures.

-Provideacentralplatformonwhichrelevantpartiescanraisequestionsandpublishstandardanswerstofrequently-asked-questions.

•Clarifythedistinctioninstandardsbetweenmandatoryrequirementsandgoodpractices.

•Clarifythedefinitionof‘two-high’projectsandprovidecorrespondingindustrydevelopmentguidelinesonlocalprojectapprovals.

1.2EstablishaStandardisedRegulatory

Environment

Concern

Inconsistentregulatoryenforcementnegativelyimpactscompanies’operations.

Assessment

Thechemicalindustryiscomplex,andwhilecurrentregulationsandstandardscancovermostcommodityproductsandprocesses,somerequirementswillnotbesuitableforspecialitychemicalcompanies.Therefore,itisimportanttorespectbestpracticesinsub-industriesandinvolveindustry-specificexpertsintheimplementationprocessesforrisk-basedmanagement.

Inaddition,inspectionandlawenforcementofficialsdonotnecessarilyhaveexpertiseinchemicals.Therefore,whenimplementingregulationsrelatedtochemicalmanufacturingsites,targetedtrainingforofficialsisessentialtoachievealignmentbetweencompaniesandtheauthorities.

Anotherissuecommonlyencounteredbychemicalscompaniesisinconsistencyacrosscertainstandardsandguidelines,whichmakesitdifficultforthemtodeterminethecorrectcriteriaorrequirementsregardingenvironment,healthandsafety(EHS)management,findingsandevenpenaltiesforcertainitems.

Petrochemicals,ChemicalsandRefiningWorkingGroup271

SectionThree:Goods

SectionThree:Goods

Europeanchamber中国欧盟商会

Recommendations

•Conductregulatorytrainingforauthoritiesatalllevels(municipal,provincialandnational)andcompaniestoaligninterpretationsandenforcement.

•Involveandconsultindustry-specificexpertsonlawenforcementregardingspecialitychemicalstorespecttheuniquenessandbestpracticesofthiscomplexindustry.

•Strengthenthepermitapprovalprocessforprojectsandfacilitiestobetteraligncompliancerequirementsbetweentheauthoritiesandcompanies,basedonregulationsrelatedtochemicalplants.

2.SustainabilityandGreenChemistry

2.1PromotetheChemicalIndustry’sParticipation

inandContributiontoSustainability,InnovationandtheGreenEconomy

Concern

Governmentpolicieshavereinforcednegativeviews

ofthechemicalindustryinChina,overlookingitscontributionstoaresponsible,greenandinnovativeeconomy.

Assessment

Manyaccidentsinthechemicalsindustrystemfromalackofriskawarenessandknowledgeaboutbestpractices.EuropeanMNCsintheindustryarewelladvancedinimplementingEHSandenvironmental,socialandgovernance(ESG)practices.However,theirexpertisehasstillnotbeenfullyrecognisedbytheChineseauthoritieswhichcontinuetoapplya‘one-size-fits-all’approachtotheindustry,suchasimposingEHS-relatedbarrierstoallchemicalcompaniesregardlessoftheircomplianc