Where is the future environmentally friendly path for PVC products？

Currently, environmental policies are profoundly reshaping the development trajectory of the PVC industry, bringing fundamental changes, particularly in production processes, capacity structure, and market demand. To help you quickly grasp the core points, I've summarized the main impacts in the table below:

| Impact Dimension | Core Points |
| :--- | :--- |
| **Production Process Transformation** | - **Mercury-Free**: Policies prohibit new PVC capacity using mercury, driving R&D and application of **mercury-free catalysts**.<br>- **Energy Saving & Consumption Reduction**: The industry focuses on reducing consumption in the **calcium carbide method** (e.g., consumption per ton ≤1.35 tons of carbide) and adopting power-saving technologies like **oxygen-depolarized cathode electrolysis**. |
| **Capacity Structure Optimization** | - **Phasing Out Backward Capacity**: The calcium carbide method for PVC has been included in the *Catalogue of High-Pollution Processes for Elimination*, facing pressure for capacity replacement or exit.<br>- **Strict Control of New Capacity**: Strict restrictions are placed on new capacity in industries like calcium carbide; some provinces have halted approvals for new PVC projects.<br>- **Route Competition**: **Ethylene-based PVC** is gaining a larger share of new capacity due to cost and environmental advantages, squeezing the market share of the calcium carbide method. |
| **Shift in Market Demand** | - **High-End Shift**: The industry is expanding into new fields like **PV backsheets, hydrogen storage/transport, semiconductor materials, and healthcare**.<br>- **Green Substitution**: In traditional sectors like packaging, PVC faces substitution pressure from **polypropylene (PP)** and **bio-based plastics**. |

### 🔎 Deeper Impacts

Beyond the core points in the table, some more specific developments deserve your attention:

*   **Significant Environmental Pressure on the Calcium Carbide Process**
    In the calcium carbide-based PVC production process, mercury chloride catalysts are used, accounting for about 60% of China's total mercury consumption, making it a key area controlled under the *Minamata Convention on Mercury*. According to national policy, **new PVC/VCM production capacity using mercury is prohibited**. Furthermore, the calcium carbide process itself is **energy-intensive and highly polluting**; producing one ton of PVC can consume up to **8,500 kWh** of electricity overall. The National Development and Reform Commission has included it in the *Catalogue of High-Pollution Processes for Elimination*, requiring **50% of its capacity to be replaced by 2027**.

*   **Diverging Corporate Survival Situations**
    - **For companies unable to transition**: Under heavy environmental pressure, the capacity exit rate for some small and medium-sized enterprises has already exceeded 15%. By 2025, the proportion of loss-making firms in the calcium carbide PVC sector could expand to 45%.
    - **For proactively transitioning companies**: This presents an upgrade opportunity. For instance, **Shaanxi Investment Group Jintai Chlor-Alkali's 600k ton high-performance resin project** has become the world's first demonstration project for mercury-free PVC production using the calcium carbide route. The other side of the policy coin is driving innovation, spurring demand and development in areas like **mercury-free catalysts**, **chlorine resource recycling technologies** (e.g., hydrogen energy coupling), and **comprehensive utilization of waste salt resources**.

### 💎 Summary

Overall, environmental policies represent both a **stern test of survival** and a **powerful force** driving the PVC industry towards high-quality development. The industry is undergoing a profound reshuffle. The companies that will stand firm in the future are inevitably those pioneers that successfully achieve the transition towards **greening and high-end diversification**.

We hope this information is helpful. If you are interested in deeper analysis regarding PVC's new opportunities in specific fields (such as photovoltaics or healthcare) or the latest advancements in mercury-free technologies, we would be pleased to provide more detailed insights.