From Separate Efficiency Measures to Full-Chain Management

The new plan brings six resource categories under a coordinated policy approach: energy, water, food, land, minerals and materials. It calls for resource conservation throughout the economic process, from allocation and production to consumption, reuse and recycling. This reflects the government’s concern that resource constraints remain a structural challenge despite improvements during the 14th Five-Year Plan period.

The approach also changes the role of resource efficiency in industrial policy. Conservation is no longer framed only as a measure to reduce operating costs or environmental impact. It is increasingly linked to national resource security, industrial upgrading and the transition towards more efficient production and consumption models.

For businesses, this means resource use should be considered across the value chain. Companies may need to assess not only direct energy and water consumption, but also material inputs, land use, production losses and opportunities for recycling.

2030 Targets Create a Clearer Performance Framework

The plan establishes specific targets for 2030, measured against 2025. Energy consumption per unit of GDP and water use per unit of GDP are both targeted to decline by approximately 10%. Construction land use per unit of GDP is targeted to fall by 15%. The plan also aims to increase annual recycling of major renewable resources to 510 million tons.

These are national-level targets rather than direct company-specific quotas. However, they provide a framework for subsequent sectoral, regional and local implementation. Businesses should expect local authorities and relevant regulators to translate the objectives into more specific requirements, programs and performance assessments.

The implications will differ by sector. Energy- and water-intensive industries, land-intensive projects and businesses with substantial raw-material requirements are likely to face greater pressure to improve resource productivity. Companies that can demonstrate measurable efficiency gains may also be better positioned when applying for investment approvals or participating in government-supported programs.

Investment Approval and Regulatory Oversight Become More Important

One of the plan’s significant institutional measures is the emphasis on stricter implementation of existing project assessment procedures. These include energy-conservation reviews and carbon-emissions evaluations for fixed-asset investment projects. The plan also calls for water-resource assessments in relevant planning and development processes, as well as improvements to land-use planning mechanisms.

This reinforces the importance of resource availability and efficiency at the investment-planning stage. Companies developing new facilities or expanding existing operations should consider energy, carbon and water requirements early in project design. Delays or additional costs may arise if resource assessments are not adequately addressed.

The plan also proposes revisions to the Energy Conservation Law, the Circular Economy Promotion Law and regulations on energy conservation in public institutions. These proposals indicate a potential tightening of the legal framework. They should not, however, be treated as amendments already enacted. Businesses will need to monitor subsequent legislative and regulatory developments.