China tightens regulations and supervision for high pollution, high water consumption and high energy consumption projects 
On August 16, 2021, the National Development and Reform Commission of China released the “Circular on promoting industrial projects to move into industrial park and tightening regulations and supervision of high pollution, high water consumption and high energy consumption projects in key areas along Yellow River in the ‘14th five-year plan’ period” (hereafter referred as “Circular”) jointly with Ministry of Industry and Information Technology, Ministry of Ecology and Environment, Ministry of Water Resources. The Circular stipulates the management requirements for industrial parks, proposed industrial projects, industrial projects under construction and completed industrial projects located in key areas* along Yellow River respectively, and it also indicates to tighten the regulations and supervision for high pollution, high water consumption and high energy consumption projects. The outlines are as follows.
*Key areas along Yellow River: Refer to big cities such as Lanzhou, Luoyang, Zhengzhou and etc., as well as counties along the mainstream.
Standardization of industrial park management
Industrial parks that violate regulations such as environmental protection, land and water intake have to make correction in the given time. No new industrial projects will be permitted in the industrial park until corrections are completed.
Management of proposed industrial projects
For the proposed industrial projects that have filed but not yet started, the relevant administrative institutions should encourage them to relocate to industrial parks that meet regulations. While for the proposed industrial projects, which do not meet requirements such as industrial policies, ecological environment management plans and environmental impact assessments, will not be permitted.
Strengthen management for high population, high water consumption, high energy consumption projects
For the proposed high population, high water consumption and high energy consumption projects that have filed but not yet started have to conduct a reevaluation. Construction will be stopped only if there is a necessary and relevant industry standards have been met.
Strengthen daily management and supervision for projects under construction
For the projects under construction, ledger records are requested to strengthen daily management and supervision. For projects under construction that fail to meet requirements of related industrial policies, ecological environment management plans and etc., the construction will be stopped and have to make corrections within a given time. The construction will be prohibited until the requirements have been met.
Strengthen management for completed industrial projects
Strengthen the management for completed high pollution, high water consumption, high energy consumption projects. According to the situation, corrections such as upgrades or deep treatment are requested. And the company could be ordered to close or shut down if it failed to make corrections before the deadline.
Promote the relocation of industrial projects outside industrial park to industrial park
Conduct evaluation of key industrial projects outside industrial parks, for the industrial projects that need to be relocated to industrial park based on the evaluation results, make individual relocation plans to promote the relocation.
For the original text of the above Circular, please refer to the following URL (in simplified Chinese).
https://www.ndrc.gov.cn/xxgk/zcfb/tz/202108/t20210819_1294021.html?code=&state=123
