Since 1 May 2023, Chinese governmental entities and enterprises are required to conduct a carbon impact analysis for every new investment project located in China. This new guideline was published by the National Development and Reform Commission (NDRC) on 3 March. The analysis needs to be included in the feasibility study report, which is a prerequisite for obtaining government approval and bank loans, and thereby the implementation of a project. Relevant aspects of the carbon impact analysis include:
- The estimated total annual carbon emissions of the project;
- The carbon emission intensity of major products;
- A proposal for a carbon emission control plan;
- A clarification of carbon reduction measures;
- An impact assessment of the project regarding the dual-carbon goals.
The NDRC explained that the new requirements will improve feasibility studies by making them more scientific, standardised, and better aligned with the goal of high-quality development. This latest outline is not the first document that requires a carbon impact analysis of projects. Already in 2021, the Ministry of Ecology and Environment (MEE) started a pilot to assess carbon emissions of construction projects in key industries in selected provinces. In comparison, the new outline by the NDRC is more comprehensive and not limited to specific projects.