context: The latest initiative to develop zero-carbon factories aims to create pathways for decarbonisation across the industrial sector, starting with key export-oriented industries. Distinguished from 'green' and 'near-zero' by their focus on reducing carbon emissions and the ability to use cross-regional carbon offsets, Beijing also hopes it will help boost the competitiveness of firms in a world with rising green trade requirements.
Zero-carbon factories will provide firms with a standardised path to low-carbon transformation, industry experts told 21st Century Business Herald. Authorities are expected to draw on the green factories model to introduce general guidelines and industry-specific standards. Leading firms and high-electrification industries are expected to take the lead.
Concepts such as green factories and near-zero carbon factories already exist. The key difference between zero-carbon and near-zero is whether carbon offsets or carbon capture are used to reduce emissions, according to Meng Bingzhan 孟兵站 Beijing Sinocarbon Innovation and Investment chief carbon officer. The Guiding Opinions allow zero-carbon factories to use cross-regional offsets, whereas near-zero factories refer to reducing emissions to a low level through internal measures. Green factories focus on more comprehensive greening of all production and operations, including energy efficiency, resource recycling, production processes and management. Carbon emissions are not, per se, core indicators for green factories, they added.
Rollout will initially focus on highly electrified industries such as automobiles, lithium batteries and solar PV, which allow for rapid emission reductions through renewable power substitution. Many of these industries are export-oriented and the creation of zero-carbon factories can enhance global competitiveness.
In terms of regional deployment
- areas with strong industrial foundations and energy advantages are expected to make early breakthroughs
- coastal provinces such as Jiangsu, Fujian, Guangdong and Zhejiang have strong export-oriented manufacturing and market sensitivity
- western regions such as Inner Mongolia, Xinjiang and Qinghai can leverage large-scale renewable power bases to develop green power direct supply models
The key quantitative indicator for zero-carbon factories is achieving near-zero CO2 emissions, noted Shi Weiwei 史伟伟 China Datang Green Low-Carbon Development Co technical director. The document specifies that accounting boundaries include both direct and indirect emissions. It also encourages accounting for emissions from key industrial products. Scientific carbon accounting is the foundation of all efforts, Shi added.
The initiative is not only about fulfilling environmental responsibilities, but responding to increasingly stringent global carbon regulations, building long-term competitiveness and creating significant economic benefits, one expert said. Many firms have already taken action. LONGi for instance reported that its Jiaxing base has optimised its energy structure through rooftop solar, green power trading and energy storage.
Traditional industries are also exploring decarbonisation pathways. The textile industry faces challenges due to its resource-intensive production model. Esquel Group is focusing on process innovation such as green washing technologies, natural dyes and waterless dyeing.