context: The latest 'Measures for evaluating and assessing carbon peaking and neutrality' mark a shift toward more strict control of carbon emissions. Provinces are required to formulate their own 15th 5-year plans and annual targets in line with national 'dual carbon' goals. Performance against key indicators will serve as a reference for the evaluation of officials.
The latest measures break conventional practice in institutional design. In the past, environmental and climate policies were led by administrative departments. This document was reviewed by the Politburo Standing Committee and coordinated under the guidance of CPC Central Committee, reports Jiemian.
This arrangement is extremely rare in the climate field, notes Wu Hongjie China Carbon Neutrality 50 Forum. It reflects the strategic importance of the 'dual carbon' goals and signals nationwide coordination. At the same time, it aims to guide local governments to take responsibility for carbon peaking and neutrality.
Incorporating 'dual carbon' targets in the cadre evaluation and appointment system places joint responsibility on Party and government officials, argues Dong Xiucheng University of International Business and Economics professor. It marks a shift from soft policy guidance to hard constraints. In the short term, it may increase compliance costs for enterprises in carbon management and accounting. In the long run, it will help align with international green rules such as the EUs CBAM, drive low-carbon upgrading, unify accounting standards etc.
Dong identified the main reason for adopting an evaluation framework with five control indicators and nine supporting indicators, noting
- control indicators target key issues, while supporting indicators extend across all sectors
- combine strict requirements with cross-departmental collaboration across energy, industry, construction and transport
- transition from energy consumption control to carbon control, with quantified indicators and accountability
The measures adopt a combined top-down and bottom-up approach to target setting, Wu added. Local governments are required to formulate targets based on national requirements while adapting to local conditions. Each province should define its own carbon pathway and develop industries aligned with its own green resource endowment.
Risk of overly rigid implementation remains, cautions Dong. Some regions may resort to crude measures like production cuts or sudden emission reductions, increasing the cost of the transition. Coordinating traditional industry upgrading alongside emerging green industries is required.
The document also outlines measures to boost renewable energy and carbon market development, specifying that
- newly added clean electricity generation should gradually cover all incremental electricity demand, with the share of clean energy in new power consumption a supporting indicator
- emission control targets for sectors covered by the national carbon market are explicitly included in supporting indicators