The Ministry of Ecology and Environment (MEE) has released the 2025 Progress Report on the Construction of the Product Carbon Footprint Management System. This report provides an overview of the progress made since 2024 in building a national framework for product carbon footprint (PCF) management.
PCF management as national strategy
The Chinese government has incorporated PCF into major national policies, including the “Decision on Further Deepening Reform and Advancing Chinese Modernisation”, the “Opinions on Accelerating Green Transformation”, and the “Work Plan for Building a Dual Carbon Emission Control System”. According to the report, China frames PCF management as a tool to support its carbon peaking and neutrality goals, address emerging international carbon barriers and promote supply chain decarbonisation.
Building a PCF management system
In 2024, the MEE, together with 14 other ministries, issued the “Implementation Plan for Establishing the Product Carbon Footprint Management System”. The plan defines a framework based on two pillars (namely a standard system and an emission factor database) and three mechanisms (PCF labeling and certification, tiered management, and information disclosure). This framework spans the entire product lifecycle and involves stakeholders from government, industry, finance, and civil society.
Rules and standards
Following the plan, in August 2024, China released the national standard “GB/T 24067-2024: Quantification Requirements and Guidelines for Product Carbon Footprints”, providing the methodological framework. In December 2024, the “Guidelines for Developing PCF Accounting Standards” were issued to ensure consistency across national, industry, and group standards. By the end of 2024, China had published 6 national standards, with an additional 67 under development, and over 100 group standards had been issued, covering key sectors such as steel, cement, petrochemicals, batteries, photovoltaics, and electronics.
Emission factors and data infrastructure
The report outlines efforts in addressing one of the most persistent bottlenecks in global PCF management — data quality and availability. In January 2025, MEE released the national electricity carbon footprint for 2023, reflecting an average carbon intensity of 0.6205 kg CO₂e/kWh of electricity generated nationwide. According to the report, this factor is essential for accurately calculating the carbon footprint of products that consume electricity during manufacturing and distribution. In addition, the National GHG Emission Factor Database has been launched, including a dedicated module for product carbon footprints. Industry-specific databases for batteries, photovoltaics, and electronics are under development.
Institutional mechanisms
A PCF labeling and certification pilot program has been launched in 25 provinces, covering products such as batteries, photovoltaics, steel, and electronics. In March 2025, the “General Rules for PCF Certification (Trial)” were published, aiming to provide clear procedures and management requirements. The report states that the GHG information disclosure mechanism continues to develop as well, with over 1,000 listed companies disclosing GHG emissions and more than 150 companies reporting Scope 3 emissions.
Stakeholder collaboration
The report describes that China’s PCF strategy involves multi-stakeholder collaboration, applying policy instruments, market mechanisms, and technology. The government has now included PCF requirements in a range of policies covering trade, finance, industrial development, and supply chain management. According to the report, this alignment helps ensure that carbon footprint considerations are not siloed but integrated into the broader economic governance architecture.
The report also mentions that China’s financial sector is increasingly aligning with the PCF framework. For instance, China Construction Bank’s “Carbon Data Loan” offers SMEs financing based on their carbon management performance. Minsheng Bank and Industrial Bank have introduced loans where interest rates are directly linked to the carbon footprint of products, with the aim to incentivise low-carbon choices. Provinces such as Qinghai, Sichuan, and Hunan have developed enterprise carbon accounts, which, according to the report, enable companies to access green financing.
Other market actors are increasingly applying PFC requirements as well: Government procurement is adopting PCF requirements, and consumer platforms, including Alibaba’s 88 Carbon Account and JD.com’s Green Plan, promote low-carbon consumption by displaying PCF labels. Industrial sectors are leveraging PCF data for product design optimisation, process improvement, and emissions reduction.
According to the report, the Guangdong-Hong Kong-Macao Greater Bay Area is advancing mutual recognition of PCF certifications and Zhejiang Province has established a textile industry PCF database with over 400 localised emission factors. Other provinces, including Jiangsu, Sichuan, and Shandong, are conducting PCF pilots tailored to their key industries.
Global cooperation and mutual recognition
As carbon increasingly becomes a trade determinant, the report mentions that China is actively participating in the global PCF landscape through international forums — including WTO, G20, APEC, and UNFCCC — where it has voiced concerns regarding the transparency and inclusiveness of mechanisms like the EU CBAM and the EU Battery Regulation. The report states that the country collaborates with international organisations such as the EU Joint Research Centre and the UNEP Life Cycle Initiative, to harmonise standards, and leads or contributes to 27 international standard proposals in sectors like photovoltaics, battery storage, marine carbon removal, and automotive lifecycle assessments.
Long-term capacity
According to the report, China has introduced PCF-related education and training, offering online courses, educational resource libraries, e-learning modules, and almost 800 university-industry partnerships, supporting the development of carbon management professionals.
It also states that Measurement and Verification Systems have been improved through the “2024 Carbon Emission Measurement Capability Development Directory” which ensures industries can measure key parameters such as fuel consumption, energy content, and material carbon content accurately. Also, advanced methodologies for uncertainty evaluation in sectors like power, steel, and non-ferrous metals are now operational.
China has also rolled out data quality standards, including the “General Requirements for Product Carbon Footprint Data Quality Control”. The report states that with the launch of the “Trusted Data Space Action Plan (2024–2028)”, China aims to underpin a secure, reliable national carbon data ecosystem that balances data openness with security and quality.
Outlook: PCF standards, data security, and international cooperation
According to the report, China plans to advance its PCF system by further improving the standard framework, enhancing the emission factor database, and institutionalising labelling and certification mechanisms. By strengthening international cooperation, China seeks to promote mutual recognition of standards, data, and certifications. At the same time, its efforts will focus on safeguarding data security and ensuring the integrity and quality of carbon footprint information. The report concludes by stating that China, through its PCF system, aims to support domestic industrial transformation and align with international climate governance and sustainable development efforts.
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