context: Recognising the growing importance of carbon in global trade, China's first life-cycle assessment database was announced by Tsinghua University in November 2023. The recently issued Implementation plan on carbon footprint management aims to establish a product carbon footprint factor database with broad, coverage, high-quality and international credibility by 2030. Yet challenges remain, including a lack of qualified personnel and a poor understanding of carbon and energy management.
China Environmental News interviewed Zhang Xulong 张继宏 Wuhan University Climate Change and Energy Economics Research Centre deputy-director on 3 July on next steps for domestic carbon footprint management.
Zhang summarised progress on carbon footprint management
- areas with a large share of foreign-trade oriented firms and multinationals (Shanghai, Jiangsu, Shandong, etc.) are leading the way in carbon footprint management
- Shandong’s product carbon footprint work plan aims to complete carbon accounting for products at 600 key firms by 2025
- even before CBAM (carbon border adjustment mechanism), many foreign trade oriented firms began carbon accounting at the behest of their EU partners
- CATL announced its goal of achieving carbon neutrality across all operations last year
- more SOEs have begun to compile carbon emissions verification reports and some companies are establishing green supply chains
- however, many firms are still unsure of how to build up carbon footprint management capabilities and worry that it will increase costs
- energy consumption accounts for a large proportion of corporate emissions and rapid development of renewables is changing the layout of the power market
- 70 percent of carbon emissions from most industrial goods come from electricity consumption, meaning the greatest potential is in transforming the power structure
- alternative heating methods such as geothermal and biomass energy can also reduce emissions
- mismatches in supply and demand have led grid companies to adopt negative electricity prices
- some production processes can be arranged to take place during periods of low electricity prices, reducing costs
- firms using renewable power can not only reduce carbon emissions but also energy costs
- data barriers still exist between and within central government departments, industries and regions
- breaking down barriers is crucial for getting a picture of life-cycle carbon emissions
Domestic firms need to
- change their awareness of energy consumption
- train personnel in carbon emissions and energy use management
- incorporate carbon footprint management into their development strategies
- establish a public data platform where traceable and authentic information from other industries can be obtained