Petrochemical industry is an important pillar industry of national economy, and also one of the main sources of energy consumption and environmental pollution. How to realize resource conservation and environmental protection while ensuring energy security and promoting industrial development is a major challenge facing the petrochemical industry. As a new economic model, circular economy aims at efficient utilization of resources, waste reduction and low pollution emission, guided by theories such as system thinking, life cycle analysis and industrial ecology, and constructs a closed cycle system from production to consumption and then to waste treatment by means of technological innovation, institutional innovation and management innovation.

It is of great significance to implement circular economy in petrochemical industry. First, it can improve the efficiency of resource utilization and reduce the cost. The petrochemical industry involves many fields and production processes at many levels. There are a lot of energy, raw materials, water and other resources consumption and waste discharge. By optimizing the production process, improving equipment technology, developing cleaning products and other measures, resources can be reused or recycled within or between enterprises, reducing the dependence on external resources and the burden on the environment.

According to statistics, during the 13th Five-Year Plan period (2016-2020), the member units of China Petroleum and Chemical Industry Federation have saved about 150 million tons of standard coal (accounting for nearly 20% of the total energy saving in China), saved about 10 billion cubic meters of water resources (accounting for nearly 10% of the total water saving in China), and reduced carbon dioxide emissions by about 400 million tons.

Secondly, it can promote industrial transformation and upgrading and enhance competitiveness. The petrochemical industry is faced with multiple pressures such as the change of domestic and foreign market demand, the adjustment of product structure and the target of carbon peak carbon neutrality. During the 14th Five-Year Plan period (2021-2025), the petrochemical industry should accelerate the pace of industrial upgrading, transformation and product innovation, and promote the development of industrial layout towards the high-end of the industrial chain and strategic emerging industries. Circular economy can promote the transformation of petrochemical industry from traditional linear production mode to circular ecological mode, from single resource consumption type to multiple resource comprehensive utilization type, and from low value-added product production to high value-added service provision. Through circular economy, more new products, new technologies, new business forms and new models that meet market demand and environmental standards can be developed, and the position and influence of the petrochemical industry in the global value chain can be enhanced.

Finally, it can enhance social responsibility and public trust. As an important support for national economic and social development, the petrochemical industry undertakes important missions such as ensuring energy supply and meeting the needs of the people for a better life. At the same time, we must shoulder important responsibilities such as protecting the ecological environment and promoting sustainable development. Circular economy can help the petrochemical industry achieve a win-win situation of economic and social benefits, enhance the corporate image and brand value, and enhance the public’s recognition and trust in the petrochemical industry.