Ind Goods & Services - Dual Energy Consumption Controls a key policy tool

■ The National Development and Reform Commission (NDRC) released the “Perfecting Dual Energy Consumption Control System Plan” (the Plan) earlier this month. ■ In our view, the Plan is a key policy tool for achieving the environmental protection targets by increasing renewable energy and upgrading the existing production process. ■ The renewable energy supply chain will benefit in the medium to long term from the trading of energy intensity quota between provinces. ■ We also believe that the leading players in the energy intensive industries and solutions providers will benefit. ■ Potential beneficiaries include the leading companies in the energy intensive industries, such as CNBM [3323.HK], CR Cement [1313.HK] and Xinyi Glass [0868.HK], and engineering companies, such as Sinopec Engineering [2386.HK], Wison Engineering [2236.HK], China National Chemical Engineering [601117.CH] and Sinoma International [600970.CH].