Policy Update | Opinions from the National Development and Reform Commission and other relevant departments on accelerating the establishment of a Product Carbon Footprint Management System

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I. General Requirements

(1) Guiding Ideology:

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implementing the spirit of the 19th National Congress of the Communist Party of China, thoroughly implementing Xi Jinping's economic and ecological civilization thoughts, comprehensively implementing the new development concept in an integral, accurate, and comprehensive manner, accelerating the establishment of a new development pattern, and vigorously promoting high-quality development. According to the major strategic decisions on peaking carbon emissions and achieving carbon neutrality by the Central Committee of the Communist Party of China and the State Council, promote the establishment of a product carbon footprint management system that is in line with the national reality, improve the accounting methods, rules, and standards for key product carbon footprints, establish a product carbon footprint background database, advance the construction of a product carbon labeling certification system, expand and enrich application scenarios, leverage the role of the product carbon footprint management system in promoting the green and low-carbon transformation of production and lifestyle, and provide support for achieving the goals of peaking carbon emissions and carbon neutrality.

(2) Working Principles:

- Systematic Advancement with Urgent Priorities: Prioritize products with urgent market demand, significant emission reduction contributions, and clear roles in driving the supply chain. Follow the principles of maturing a batch, promoting a batch, and continuous improvement. Actively promote the construction of the product carbon footprint management system in an orderly manner, steadily and gradually expanding the coverage of products.

- Innovation-Driven with Technological Integration: Regard innovation as the key to improving the level of carbon footprint management. Strengthen original, integrated, and absorptive innovation in the technical methods of carbon footprint accounting and database construction. Guide the integration of carbon footprint management with technologies such as big data, blockchain, and the Internet of Things.

- Government Guidance with Market Leadership: Establish and improve relevant regulations and management mechanisms for product carbon footprint management. Strengthen the construction of basic capabilities, create a fair and orderly market environment, actively guide enterprises to advance product carbon footprint management on a voluntary basis, and support industries in accelerating green and low-carbon transformation.

- Self-reliance with Open Cooperation: Face the goals of peaking carbon emissions and achieving carbon neutrality, base regulations, policies, and standards on the national situation and development stage, and actively participate in the revision of international carbon footprint standards. Absorb and learn from beneficial international experiences, enhance international exchanges and cooperation on product carbon footprints, and promote international mutual recognition.

(3) Main Objectives:

By 2025, at the national level, approximately 50 key product carbon footprint accounting rules and standards will be introduced. A preliminary set of background databases for key industries will be established, and the national product carbon labeling certification system will be basically established. The application scenarios of carbon footprint accounting and labeling in the fields of production, consumption, trade, and finance will significantly expand. Some key product carbon footprint accounting rules, standards, and labels will achieve international mutual recognition.

By 2030, around 200 key product carbon footprint accounting rules and standards will be introduced at the national level. A set of key industry carbon footprint background databases with broad coverage, high data quality, and strong international influence will be basically established. The national product carbon labeling certification system will be fully established. Carbon labeling will be widely recognized by enterprises and consumers. The main product carbon footprint accounting rules, standards, and labels will gain widespread international acceptance. The product carbon footprint management system will provide strong support for the comprehensive green transformation of economic and social development.

II. Key Tasks

(4) Formulation of Product Carbon Footprint Accounting Rules and Standards:

The State Administration for Market Regulation, in conjunction with relevant departments such as the National Development and Reform Commission, will expedite the development of basic national standards for product carbon footprint accounting. It will specify the boundaries, accounting methods, data quality requirements, and traceability requirements for product carbon footprint accounting. The National Development and Reform Commission, in collaboration with relevant departments, will identify key products for priority formulation of accounting rules and standards. Industry regulatory authorities such as the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, the Ministry of Transport, and the Ministry of Agriculture and Rural Affairs will organize industry associations, leading enterprises, and research institutes to formulate accounting rules and standards for key products. The principles of group standards being trialed first, gradually transforming into industry or national standards will be followed. Rules and standards adoption lists will be issued jointly by industry regulatory authorities and development, reform, and market supervision departments to provide unified and standardized rules and standards for enterprises and institutions.

(5) Strengthening the Construction of Carbon Footprint Background Databases:

On the basis of ensuring methodological uniformity and accurate and reliable data, industry regulatory authorities and regions with conditions can establish relevant industry carbon footprint background databases as needed to provide public services for enterprises engaged in product carbon footprint accounting. Encourage industry associations, enterprises, and research units to collect and organize relevant data resources in their industries, indicating the data source. Release industry-specific product carbon footprint background databases. Industry regulatory authorities should strengthen guidance to industry associations, enterprises, and research units, standardize various database constructions, and organize peer reviews, cross-validation, and data traceability verification in a timely manner to continuously improve data quality. Encourage international carbon footprint database suppliers to cooperate with Chinese carbon footprint databases based on market principles and update relevant background data truthfully.

(6) Establishment of Product Carbon Labeling Certification System:

On the basis of formulating product carbon footprint accounting rules and standards and establishing relevant background databases, a unified and standardized national product carbon labeling certification system will be established at the national level. This system will guide enterprises in energy conservation and carbon reduction by clearly marking quantifiable information on product carbon footprints. The National Development and Reform Commission, in conjunction with the State Administration for Market Regulation, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport, will study and formulate management measures for product carbon labeling certification, specifying the scope, style, certification process, and management requirements. This will systematically standardize and guide the exploration of product carbon footprint management in various regions and at different levels. Enterprises are encouraged to voluntarily carry out product carbon labeling certification according to market principles and guide them to use carbon labeling in product or packaging, advertising, and other locations.

(7) Enrichment of Product Carbon Footprint Application Scenarios:

Fully leverage the role of carbon footprint management in promoting the green and low-carbon transformation of enterprises. Use the level of product carbon footprints as an important indicator to drive enterprises to benchmark international and domestic advanced levels. Identify weak links in production and circulation, support enterprises in carrying out process transformations, strengthen energy conservation and carbon reduction management, and tap into the potential for energy conservation and carbon reduction. Encourage leading enterprises to establish product carbon footprint management systems based on industry development levels and their own realities, drive upstream and downstream enterprises to strengthen carbon footprint management, and promote the overall green and low-carbon transformation of the supply chain. Timely incorporate relevant requirements for carbon footprint management into government procurement demand standards, and increase the procurement of products with lower carbon footprints. Focus on large consumer goods such as electronic products, household appliances, and automobiles, gradually promote the widespread application of carbon labeling in the consumer goods sector, guide businesses, malls, and e-commerce platforms to actively display carbon labels on products, and encourage consumers to purchase and use products with lower carbon footprints. Support banks and other financial institutions in using the results of carbon footprint accounting as important criteria for green financial products.

(8) Promoting International Alignment and Mutual Recognition of Carbon Footprints:

Strengthen research on international carbon footprint methodologies, track relevant management systems, certification rules, and implementation effects of international organizations and major economies, and gradually transform relevant international standards into national and industry standards in accordance with China's actual situation. Adhere to a principle of self-reliance while fully leveraging bilateral and multilateral dialogue mechanisms, enhance communication and coordination with international stakeholders, actively participate in the revision of international carbon footprint-related standards and rules, and promote alignment and mutual recognition of carbon footprint accounting rules and certification results with major trading partners. Encourage industry associations, research units, enterprises, and institutions to actively participate in international activities and academic exchanges related to carbon footprints, and strengthen cooperation with foreign counterparts in research methodologies, technical specifications, and professional talent development.

III. Safeguard Measures

(9) Improvement of Policy Support:

The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, the Ministry of Finance, and the State Administration for Market Regulation will strengthen research on carbon footprint accounting rules and standard formulation, background database construction, etc. Encourage social capital to invest in the construction of commercial carbon footprint background databases, and guide financial institutions to gradually establish an enterprise green and low-carbon performance evaluation system based on product carbon footprints.

(10) Strengthening Capacity Building:

The National Development and Reform Commission, in collaboration with relevant departments, will establish an expert working group for product carbon footprint management to provide technical support for key tasks such as identifying annual key product lists, researching carbon footprint management mechanisms, and formulating carbon labeling certification management methods. Industry regulatory authorities and regions will organize training for carbon footprint management, publicize and interpret policy highlights and management requirements, guide industry associations, leading enterprises, universities, and social training institutions to play an active role, regulate and orderly conduct carbon footprint-related professional training, and enhance the professional competence of practitioners. Support service institutions such as carbon footprint accounting, certification, management, and consulting to strengthen their own capacity building and provide scientific, rigorous, and systematically standardized professional services to industry enterprises.

(11) Enhancement of Data Quality:

The State Administration for Market Regulation will guide relevant departments and units to strengthen the construction of a carbon footprint data quality assurance system and strengthen research and application of carbon measurement technology. Industry regulatory authorities and enterprises, in carbon footprint accounting and background database construction, should prioritize data with traceability, and conduct uncertainty analysis of accounting results and data. Encourage the use of technologies such as 5G, big data, and blockchain in carbon footprint background database construction, leverage the role of the industrial internet identification resolution system, and enhance the reliability and immediacy of data monitoring, collection, storage, accounting, and verification. Support industry associations, research units, enterprises, etc., to carry out multi-level, multi-dimensional data analysis and measurement comparisons and improve the data quality control system. Explore the establishment of a peer review system for carbon labeling certification, strengthen mutual supervision among certification bodies, strengthen industry management, introduce credit penalties and exit mechanisms, and explore the establishment of a "blacklist" system for certification bodies to crack down on various falsifications and false labeling.

(12) Strengthening Intellectual Property Protection:

The National Intellectual Property Administration is responsible for exploring and researching the intellectual property protection system in the fields of carbon footprint accounting methods, carbon footprint background databases, etc. Cultivate and develop organizations, arbitration institutions, and notary institutions for the mediation of intellectual property disputes. Encourage industry associations and chambers of commerce to establish self-discipline and information communication mechanisms for intellectual property protection. Improve the examination system for the external transfer of intellectual property rights, and manage technology transfers related to carbon footprints that involve national security in accordance with the law.

IV. Organization and Implementation

(13) Strengthen Overall Coordination:

The product carbon footprint management system has a wide coverage, involves multiple industries, and has a significant social impact. All regions and relevant departments should attach great importance to it. The National Development and Reform Commission will strengthen overall coordination, conduct in-depth research on major issues, determine annual work plans, strengthen daily work scheduling, solidly advance key tasks, and, in conjunction with relevant departments, establish and improve China's product carbon footprint management system.

(14) Clearly Define Responsibilities:

The Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, the State Administration for Market Regulation, and other departments are responsible for the formulation and promotion of key product carbon footprint accounting rules and standards in related industries. The National Development and Reform Commission, in conjunction with the State Administration for Market Regulation, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport, is responsible for product carbon labeling certification-related work. The National Development and Reform Commission, the Ministry of Industry and Information Technology, the State Administration for Market Regulation, the Ministry of Transport, and the Ministry of Commerce are responsible for tracking international dynamics related to carbon footprints and coordinating with international organizations and major economies according to their responsibilities.

(15) Encourage Pilot Initiatives:

The Development and Reform Commission in each region, in conjunction with relevant authorities, should promote local initiatives related to carbon footprint management. The Guangdong-Hong Kong-Macao Greater Bay Area should actively promote the pilot construction of product carbon footprint certification, accelerate the formation of beneficial experiences and institutional achievements. Encourage regions with conditions to conduct research and standard formulation on carbon footprint accounting rules for products outside the national accounting rules and standards. When conditions are ripe, they can be timely incorporated into the national product carbon footprint management system. For products related to carbon footprint accounting rules and standards that have already been issued by the state, regions should no longer issue or promptly abolish relevant local rules and standards.

Source: National Development and Reform Commission