The Ministry of Ecology and Environment releases the "2023 Annual Report on China's Climate Change Policies and Actions".

Release Date:

Recently, the Ministry of Ecology and Environment has compiled and released the "2023 Annual Report on China's Policies and Actions to Address Climate Change" (hereinafter referred to as the "Annual Report").

The "Annual Report" presents the latest developments in China's efforts to address climate change since 2022. It summarizes new strategies and requirements for addressing climate change in China, reflecting progress in key areas such as controlling greenhouse gas emissions, adapting to climate change, establishing carbon markets, policy development and support, and active participation in global climate change governance. The report also outlines China's fundamental principles and positions for the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change.

The following is part of the "Annual Report":

China's New Climate Change Response and Requirements

  • Enhancing Overall Coordination

The new National Leading Group for Climate Change Response and Energy Conservation has commenced its operations. It is responsible for coordinating and overseeing various climate change initiatives, ensuring a holistic approach throughout the entire process of achieving the "dual carbon" goals. This involves effectively managing the balance between development and emissions reduction, the interplay between overarching and localized efforts, the alignment of long-term and short-term objectives, and the collaboration between governmental and market forces.

This leadership group is committed to placing equal emphasis on both mitigating climate change and adapting to its impacts. In line with these goals, the Ministry of Ecology and Environment has issued the "Key Tasks for Climate Change Response (2023-2025)."

  • Accelerating Green and Low-Carbon Transformation of Development

Persevering in the pursuit of green and low-carbon development as the fundamental solution to ecological and environmental challenges, we are expediting the optimization of industrial, energy, and transportation structures. We are executing a comprehensive conservation strategy, advancing the efficient utilization of various resources, and accelerating the establishment of a system for recycling waste. Additionally, we are enhancing the fiscal, financial, investment, pricing policies, and standards system that supports green development. We are fostering green and low-carbon industries, refining the market-based allocation system for resource and environmental factors, accelerating the research and widespread application of advanced energy-saving and carbon reduction technologies, advocating for green consumption, and promoting the adoption of green and low-carbon production and lifestyles.

  • Promoting Carbon Peaking and Carbon Neutrality in a Positive and Steady Manner

Following the principles of nationwide coordination, prioritizing conservation, dual-wheel drive, seamless integration at home and abroad, and risk prevention, we are committed to implementing the "1+N" policy framework for carbon peak and carbon neutrality. We are gradually shifting our focus towards dual control of carbon emissions in terms of both total quantity and intensity. Our goal is to establish a clean, low-carbon, secure, and efficient energy system while accelerating the development of a new electricity system and enhancing national energy security in the oil and gas sector.

We will also enhance the carbon emissions accounting system, and refine the carbon emissions trading market. Simultaneously, we will consolidate and enhance the carbon sequestration capacity of our ecosystems.

  • Active Engagement in Global Climate Change Governance

Adhering to the concept of a community of shared future for humanity and embracing a global governance perspective based on mutual consultation, co-construction, and shared benefits, we are committed to upholding true multilateralism. We firmly believe in the principles of common but differentiated responsibilities and respective capabilities. It is essential to strike the right balance between our commitments to peak carbon emissions and achieve carbon neutrality, and our autonomous actions. In doing so, we actively engage in global climate change governance.

Actively Mitigating Climate Change

Restructuring Industrial Landscape

  • Actively Promoting the Optimization and Upgrading of Industrial Structure

To vigorously develop strategic emerging industries, in 2022, the proportion of value added in high-tech manufacturing and equipment manufacturing industries in the national scale-above industrial value added reached 15.5% and 31.8%, respectively. This represents an increase of 6.1 and 3.6 percentage points compared to 2012. In the first half of 2023, the value added in high-tech manufacturing at or above the scale increased by 1.7% year-on-year.

Over the past decade, China has achieved a cumulative reduction in energy intensity of 26.4% through measures such as improving energy efficiency, reducing energy consumption, and upgrading products and equipment. This 26.4% reduction translates to an annual average energy consumption growth rate of 3%, which has supported a 6.2% economic growth. This is equivalent to saving 1.4 billion tons of standard coal and reducing carbon dioxide emissions by nearly 3 billion tons.

  • Stringent Control of "Two Highs and One Low" Projects: Preventing Hasty Implementation of High-Energy, High-Emission, Low-Level Initiatives

The revised Fixed Asset Investment Project Energy Conservation Review Measures have been enacted, with a strict focus on ensuring the energy efficiency of fixed asset investment projects and strengthening environmental impact assessments for these projects, including the stringent "two highs and one low" environmental access standards. Resolutely curbing the blind development of "two highs and one low" projects and the elimination of outdated production capacity has been identified as a key priority in the Central Ecological and Environmental Protection Inspection. Through routine inspections and the production of warning films on the ecological environment of the Yangtze River Economic Belt and the Yellow River Basin, significant issues have been identified, and typical cases have been publicly exposed to maximize their deterrent effect.

Optimizing Energy Infrastructure

  • Vigorously Promoting Non-Fossil Energy Development

In 2022, China's share of non-fossil energy consumption reached 17.5%. Throughout the year, an additional 152 million kilowatts of renewable energy capacity were installed, bringing the total renewable energy capacity to 1.213 billion kilowatts.

Annual Report: Cumulative Installed Capacity of Wind, Hydro, Solar, and Nuclear Power from 2012 to 2022.

Annual Report: The Proportion of Renewable Energy Generation Capacity in China in 2022

  • Enhancing the Clean Utilization of Fossil Fuels

  • Accelerating the Advancement of Next-Generation Energy Storag

Promoting Energy Efficiency and Productivity

  • Promoting Energy Efficiency

To expedite the transformation towards sustainable industrial development and foster the creation of green manufacturing benchmarks, as of March 2023, a total of 3,616 national-level green factories, 267 green industrial parks, and 403 green supply chain enterprises have been nurtured. This initiative has facilitated the promotion of nearly 30,000 varieties of eco-friendly products.

  • Promoting Energy Efficiency and Carbon Reduction Transformation in Traditional Industries

In various industries such as steel, non-ferrous metals, construction materials, petrochemicals, chemicals, and textiles, 86 leading enterprises have been established to focus on energy efficiency. Advanced green data centers in these industries have achieved a Power Usage Effectiveness (PUE) value of approximately 1.1, driving nearly 70,000 manufacturing companies across the country to implement smart manufacturing. As a result, over 9,000 digital workshops and intelligent factories have been constructed, with more than 2,500 of them completing their digital transformations, and 209 actively exploring intelligent upgrades. From 2012 to 2022, the cumulative reduction in energy consumption of large-scale industrial units has exceeded 36%, and the comprehensive utilization of solid industrial waste resources has increased by nearly 10 percentage points.

Advancing Synergistic Pollution Reduction and Carbon Emission Mitigation for Enhanced Efficiency

  • Introducing and Implementing Policies for Synergistic Pollution Reduction and Carbon Reduction, Enhancing Efficiency

  • Promoting Multi-level Synergistic Innovation Pilots for Pollution and Carbon Reduction

  • Strengthening Coordinated Management of Environmental Quality Improvement and Carbon Emissions

Accelerate the Development of the National Carbon Emissions Trading Market

Initial Establishment of an Institutional Framework System

  • Enhancing the Legal and Regulatory Framework

In 2023, the "Implementation Plan for the Total Carbon Emission Allowance Allocation and Distribution in the National Carbon Emission Trading Scheme for the Years 2021 and 2022 (Power Generation Industry)" was issued. This plan outlines the management processes for quota allocation, adjustment, verification, and compliance settlement. It initiates the allocation and compliance settlement process for the power generation industry for the years 2021 and 2022.

  • Advancing the National Voluntary Emissions Trading Market Mechanism for Greenhouse Gas Reduction

We have formulated the "Management Measures for Voluntary Greenhouse Gas Emission Reduction Trading (Trial)" and its accompanying regulatory framework. We are now seeking public input from all sectors of society. Additionally, we are soliciting methodological suggestions for voluntary emission reduction projects from the broader community.

  • Improving the Quality Management of Carbon Emission Data

  • Establishing Daily Supervisory Work Mechanisms

  • Enhancing Enforcement

Continuously Enhancing the Policy Framework and Supportive Safeguard

Advancing Legislation, Policy, and Standards Development

Promote coordinated legislative efforts in addressing climate change. Actively advance the legislation of climate change laws, energy laws, and interim regulations on carbon emissions trading management, and incorporate climate change-related provisions into laws such as the "Qinghai-Tibet Plateau Ecological Protection Law."

  • Enhancing and Implementing the '1+N' Policy Framework for Carbon Peak and Carbon Neutrality

Develop and implement carbon peaking action plans for key sectors including energy, industry, urban and rural development, transportation, and pollution reduction and carbon reduction. Establish carbon peaking action plans for key industries such as non-ferrous metals and construction materials. Additionally, create support and safeguarding schemes encompassing financial support, statistical accounting, technology, education, and standards. This will help build a comprehensive policy framework for carbon peaking and carbon neutrality, known as the "1+N" policy system.

  • Cultivating Comprehensive Climate Change Standards and Technical Specifications

Enhancing Economic Policies

  • Promoting Market-Oriented Reform of Carbon Emission Rights and Other Factors

  • Enhancing Fiscal and Tax Support Policies

  • Vigorously Developing Green Finance

  • Strengthening Government Green Procurement Policies

  • Deepening Electricity Price and Power Trading Reform

Accelerating the Construction of the Greenhouse Gas Emission Accounting and Monitoring System

  • Conducting Carbon Emission Accounting and Assessment

Establishing a carbon emissions accounting system for the energy sector, exploring industrial accounting methods. Preliminary completion of the national greenhouse gas inventory for the years 2015 to 2020 and initiation of the revision of the "Provincial Greenhouse Gas Inventory Compilation Guide." Promoting the construction of a national greenhouse gas emission factor database. Publishing the China Greenhouse Gas Bulletin and developing a carbon source-sink monitoring and verification support system.

  • Advancing Carbon Monitoring and Evaluation Pilots

To achieve comprehensive coverage in the three pilot areas of key industries, cities, and regions, a total of 93 online monitoring devices were successfully deployed across the five pilot industries. Additionally, 63 high-precision and 95 medium-precision urban monitoring stations were established. More than 10 carbon monitoring technical guidelines and protocols have been issued.

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