Core Viewpoint - The core pathway for achieving low-carbon transformation in the heating sector in China is the large-scale application of low-carbon heating technologies [1][3]. Group 1: Current State of Low-Carbon Heating - Carbon emissions from residential heating in urban and rural areas account for nearly 60% of total building operation emissions [3]. - The scale of low-carbon heating in China has been growing, with technologies such as solar, biomass, geothermal, heat pumps, and industrial waste heat being widely applied in northern regions [5]. - By the end of 2023, the total heating area in northern China reached 24.5 billion square meters, with clean heating covering 18.6 billion square meters, reflecting a growth of over 43% in clean heating area from 2017 to 2023, and an increase in clean heating rate from approximately 60% to 76% [5]. Group 2: Pricing Mechanism Challenges - The average unit cost of low-carbon heating is significantly higher than traditional heating methods, which exacerbates the profitability pressure on heating companies and hinders their willingness to upgrade technologies and scale applications [3][6]. - The current pricing mechanism for urban heating is government-regulated, following a "permitted cost + reasonable return" principle, which can lead to operational losses for heating companies if prices do not adequately cover costs [6][8]. - The report highlights that the cost of different heating technologies varies widely, with nuclear heating being the lowest at 27.6 yuan/GJ, while hydrogen heating is the highest at 430.94 yuan/GJ, indicating significant disparities in resource utilization and operational costs [6]. Group 3: Commercialization and Operational Challenges - The existing pricing structure includes cross-subsidization from industrial to residential heating, which, while beneficial for low-income households, places operational pressure on heating companies [8][9]. - The current pricing mechanism does not adequately reflect the initial investment costs and environmental benefits of low-carbon heating technologies, leading to challenges in commercial viability and sustainable profit models [8][9]. Group 4: Recommendations for Improvement - The report suggests developing long-term low-carbon heating plans (10-20 years) that align with national energy strategies and urban development, focusing on renewable energy utilization and energy efficiency [10][11]. - It recommends targeted subsidy policies for different low-carbon heating technologies based on their price sensitivity to fuel and electricity costs, as well as initial investment impacts [11][12]. - Establishing a real-time cost monitoring system for low-carbon heating and adjusting pricing based on cost fluctuations is also advised to ensure that heating prices accurately reflect operational costs [12].