Carbon neutrality refers to the total amount of carbon dioxide or greenhouse gas emissions generated directly or indirectly by a country, enterprise, product, activity or individual within a certain period of time, through afforestation, energy saving and emission reduction, etc., to offset the carbon dioxide or greenhouse gas generated by itself Emissions, to achieve positive and negative offsets, to achieve relatively "zero emissions."

On September 22, 2020, the Chinese government proposed at the 75th UN General Assembly: “China will increase its nationally determined contributions, adopt more powerful policies and measures, and strive to reach the peak of carbon dioxide emissions by 2030, and strive for 2060. Achieving carbon neutrality years ago.” This is a solemn commitment of our country as a responsible major country to the world.

United Nations General Assembly

On March 5, 2021, Premier Li Keqiang pointed out in the 2021 government work report of the State Council that we should do a good job in carbon peaking and carbon neutrality, formulate an action plan for carbon emissions peaking by 2030, and optimize industrial structure and energy. structure. Carbon neutrality and carbon peak were included in the government work report for the first time.

my country’s commitment to the world’s carbon neutrality has received countless praises from various heavyweights around the world, including the President of the European Commission Ursula von der Lein, and Frans Timmer, a member of the European Parliament who has been concerned about climate issues for a long time. MAN, John Morton, Special Envoy for the UK Climate Summit, Todd Stern, Former U.S. Climate Envoy, Manuel Purgabydal, Director of Global Climate and Energy Projects, World Wide Fund for Nature (WWF), Climate Change, Ministry of Ecology and Environment of China Xie Zhenhua, Special Advisor for Affairs and Dean of the Institute of Climate Change and Sustainable Development of Tsinghua University.

European Commission President Ursula von der Lein praised my country’s “carbon neutral” commitment

Carbon neutrality is not difficult to understand. For a group or individual, it is simply to reduce carbon dioxide and other greenhouse gas emissions while increasing the capacity to consume carbon dioxide.

Looking at the changes in the proportion of natural gas in the primary energy consumption structure in my country in the past five years, it has increased from 6.2% in 2016 to 8.1% in 2019. According to the document "Opinions on Accelerating the Utilization of Natural Gas", it is expected to reach 10% in 2020. Behind the continuous growth of natural gas in the country’s primary energy consumption, it is actually a rational energy transition option under the goal of carbon neutrality, whether it is to exchange “natural gas” for “carbon-free environmentally friendly energy” such as wind, light, and nuclear. Growth space is still a long-term choice. The consumption growth of natural gas is tangible and tangible. At present, it has irrefutable and irreplaceable objective effects.

Changes in the proportion of natural gas in my country's total primary energy consumption from 2016 to 2019 (%)

The "Opinions on Accelerating the Utilization of Natural Gas" also proposed that by 2030, strive to increase the proportion of natural gas in primary energy consumption to about 15%. And 2030 is the time node for the "carbon peak" in my country's carbon neutral commitments. Judging from the "Opinions on Accelerating the Utilization of Natural Gas", natural gas is planned and developed as a powerful energy support for the realization of "carbon peak".

The policy source of "coal-to-gas" policy is the shift in the primary energy consumption structure, and the continuous increase in the proportion of natural gas in the primary energy consumption is an objective choice for fulfilling the carbon neutrality promise. What is its practical effect? With reference to the “2019 Annual Report on China’s Policies and Actions to Address Climate Change” issued by the Ministry of Ecology and Environment on November 27, 2020, preliminary calculations indicate that China’s carbon dioxide emissions per unit of GDP fell by 4.0% in 2018, a cumulative increase over 2005. A drop of 45.8% is equivalent to a reduction of 5.26 billion tons of carbon dioxide.

Of course, the achievement is not only the credit of the "coal to gas", but its positive and positive role in this process is beyond doubt. It can be said that the wall-hung boiler business can be regarded as a part of the "carbon neutral" business to a certain extent.

The basis for the continuous increase in the proportion of natural gas in the process of fulfilling the promise must be the continuous expansion and deepening of use scenarios. In the process of gradual development, gas wall-hung boilers and commercial boilers are currently the main heat source equipment systems that use natural gas in my country, and it is self-evident that they have the responsibility to obtain greater market development opportunities.

The mixed turn of the wall-hung boiler market

According to the research of Qing Geer Information, in the first quarter of 2021, the number of "coal-to-gas" wall-hung boilers project bidding decreased by 91.2% year-on-year, which is a record low since 2016. The slowdown in market demand directly reflected by the “coal-to-gas” market data in the first quarter is indeed expected. However, it should be emphasized that the slowdown in the market demand for “coal-to-gas” or the large-scale completion of the “coal-to-gas” project does not mean the interruption of clean heating. In the process of increasing the proportion of energy consumption, the transformation of clean heating will inevitably not be interrupted suddenly, but the form is more diverse and more flexible.

This can be seen in the first quarter of 2021 from the clean heating related policies, especially the "Opinions of the Central Committee of the Communist Party of China and the State Council on Comprehensively Promoting Rural Revitalization and Accelerating Agricultural and Rural Modernization" (the "Central No. 1 Document"), which clearly stated for the first time "promotion The gas goes to the countryside to support the construction of safe and reliable rural gas storage tank stations and micro-pipe network gas supply systems". If the early "coal-to-gas" policy is the leading "trooper", then the introduction of these refined policies is a guarantee for the further consolidation of the sustainable development of the "coal-to-gas" project. The construction of gas infrastructure such as “gas storage” will inevitably have a positive impact on the formulation of related “post-coal-to-gas” policies such as gas subsidies, so as to ensure the enthusiasm of users and further compress the rural non-gas market For example, the development space of the coal market ensures that the "post-coal-to-gas" secondary replacement market has an expected conversion rate to ensure the continuity of the "coal-to-gas" project, which is also a guarantee for the fulfillment of the carbon neutrality commitment.

In addition to the vertical expansion, from the relevant policy reports in the first quarter, we can also see the southward development trend of the horizontal expansion of the national clean heating scale. According to reports, many residential districts in Chengdu, Sichuan have presented central heating solicitation posters. Residents can apply to heating companies based on their own conditions. As long as the entire district or a single building has a packaging rate of more than 30%, central heating can be built. As soon as this winter, some Chengdu citizens will be able to enjoy a warm winter living at 18 degrees Celsius throughout the day.

According to current observations, although there is no further specific information disclosure on the mode of central heating in Chengdu, it is known that natural gas will play a key and important role in the implementation of the project. And the perfection of natural gas pipeline network and other infrastructures, will there be huge room for the development of the local and even the entire southern household heating equipment market?

In a word, judging from the latest policies and market developments, the original “clean heating” (coal reform) market and channel market in the wall-hung boiler industry will become less and less able to be completely stripped away, and it will appear more and more. Combining the trend of development, forming a new hybrid market form of "you in you and you in me".

So, under the big concept of "carbon neutrality" promise, what should the wall-hung boiler channel market, which is increasingly important, be done? As a wall-hung boiler company, it is time to abandon the simple alternative thinking of whether to transform from coal to gas or as a channel. It is time to learn to find a position for the realization of corporate self-worth in a "clean heating" market where the connotation of a mixed market channel based on "carbon neutrality" will become more and more abundant.