context: The State Council issued Opinions on ramping up green transition on 11 August. This is the first national-level policy dedicated to the green transition. More detailed action plans have already been released and more are likely to follow.
The new Opinions on green transformation is a key strategic document aimed at speeding up the green transformation of China’s economy and society and to lead the coordination efforts, working with other relevant departments to establish a new system that shifts the focus from controlling energy consumption to controlling carbon emissions, notes 21st Century Business Herald.
The Opinions will develop a evaluation system to assess progress towards carbon peak and carbon neutrality, ensuring that these assessments are scientific and their results are effectively applied.
Although the document was approved back in February, its release was preceded by other key documents
- 'Working plan on accelerating building of mechanisms for controlling total amount and intensity of carbon emissions' in early August
- 'Energy conservation and carbon reduction action plan 2024–25' in May
China’s green transformation faces significant challenges, argues Zheng Shanjie 郑栅洁 NDRC (National Development and Reform Commission) director
- the energy structure remains heavily reliant on coal, its industrial base still dominated by heavy industries, and environmental pressures are high
- the share of fossil fuels and traditional industries remains substantial, making the foundation for improving ecological quality fragile
- globally, the green transformation is encountering setbacks, with environmental and climate issues becoming increasingly politicised and green trade barriers on the rise
The green transformation of energy structure is an inevitable requirement for the economic transformation and upgrading and high-quality development, echoing the importance of the 'Coal power decarbonisation action plan (2024-27)' which outlines steps to reduce coal consumption.
Supported by funding, policies and improved grid management, a low-carbon transformation demonstration project for coal power will be promoted as planned, argues Zhang Lin 张琳 China Electricity Council Planning and Development Department director.
The document also underscores the importance of upgrading traditional industries. The 'Energy conservation and carbon reduction action plan 2024-25', issued by State Council in May, provided a roadmap for this transformation.
As the PRC's economy and society accelerate into the stage of high-quality development of green and low-carbon development, a large number of inefficient and backward equipment products have become a prominent shortcoming that restricts the transformation and upgrading of development, contends Sun Ying 孙颖 Chinese Academy of Macroeconomics Energy Research Institute deputy director.
At the same time, the green transformation is giving rise to new industries with significant potential. The new energy industry has the potential to be a major driver of future economic growth and will lower both the energy and environmental costs of economic growth, argues Wei Qijia 魏琪嘉 National Information Centre Economic Forecast Department Industry Office director.
The document systematically deploys the concept of ‘green consumption’ for the first time, involving all aspects of food, clothing, housing and transportation. The incentive mechanism to drive green consumption will be improved, with the government's green procurement policy will be expanded and incorporate carbon footprint requirements.
Meanwhile enterprises will be encouraged to implement green procurement guidelines. Specific regions will encourage enterprises to adopt 'old for new' and other methods through the issuance of consumer coupons and green points, and guide consumers to buy green products.
The green transformation in the consumption sector still requires coordination across all stages, from production to consumption, stresses Liu Qiong 刘琼 NDRC National Energy Conservation Centre. To truly boost green consumption, further institutional reforms and innovations are necessary to unlock its full potential, Liu says.
Finally, the Opinions suggest enhancing the waste recycling system by improving waste classification, disposal, and recycling capabilities, and by increasing the scale, standardisation and precision of recycling efforts.
By 2030, the goal is to utilise about 4.5 bn tonnes of bulk solid waste annually and to increase the output rate of major resources by approximately 45 percent compared to 2020 levels.
According to Yuan Qingdan 原庆丹 China Circular Economy Association vice president, China’s resource recycling industry currently generates an output value of over C¥3.5 tn and supports more than 30 million jobs. By 2025, this output value is expected to reach C¥5 tn.