Climate Cooperation China
On behalf of the International Climate Initiative (IKI)

China sets new framework for energy conservation and carbon reduction

On 22 and 23 April 2026, the General Office of the Communist Party of China (CPC) Central Committee and the General Office of the State Council jointly issued two policies to strengthen energy conservation, carbon reduction, and the assessment of climate-related targets.  

The first document, the “Opinions on Advancing Energy Conservation and Carbon Reduction at a Higher Level and with Higher Quality”, sets out a broad policy framework for improving energy efficiency, reducing carbon emissions, controlling fossil fuel consumption, and accelerating green industrial transformation. 

The second document, the “Measures on Comprehensive Evaluation and Assessment for Carbon Peaking and Carbon Neutrality”, establishes a formal assessment system for evaluating how provincial-level Party committees and governments implement China’s carbon peaking and carbon neutrality objectives. 

 Together, the two documents show how China is translating its long-term targets – peaking carbon emissions before 2030 and achieving carbon neutrality before 2060 – into sectoral measures, indicators, monitoring systems, and accountability mechanisms. 

This article focuses on the first document: the energy conservation and carbon reduction policy. 

 

Energy conservation as a cross-sectoral priority

The policy presents energy efficiency and carbon reduction as tools for reducing emissions, managing energy demand, and supporting industrial restructuring. It calls for stronger control over the growth of total energy consumption and continued improvements in energy and resource efficiency. 

The policy links carbon reduction with industrial upgrading. It calls for stricter control of high-energy-consuming and high-emission projects, the phase-out of outdated and inefficient production capacity, and support for low-carbon industries, advanced manufacturing, high-tech industries, and modern services. 

It also encourages the development of zero-carbon industrial parks and greater use of renewable electricity in industrial production. 

 

Fossil fuel control and power system development

The policy calls for stricter control of fossil fuel consumption, including measures to reduce coal consumption and control oil demand. It also calls for cleaner alternatives to existing coal-fired boilers and industrial furnaces, gradual peaking of coal and oil consumption, and tighter management of coal power capacity and generation. 

At the same time, the policy supports non-fossil energy, energy storage, pumped storage, direct supply of renewable electricity, smart microgrids, and the development of a power system better able to integrate renewable energy.  

One stated objective is that growth in electricity demand should gradually be covered by newly added clean electricity generation. 

 

Sectoral priorities for energy conservation and carbon reduction

The policy identifies several priority areas for energy conservation and carbon reduction: 

  • IndustryMeasures include improving energy efficiency in sectors such as steel, non-ferrous metals, petrochemicals, chemicals, and building materials. The policy also supports energy-saving and carbon-reduction assessments, industrial energy efficiency projects, shared heating and cooling infrastructure in industrial parks, energy exchange between enterprises, energy cascade use, and circular use of resources. 
  • BuildingsThe policy calls for stronger energy efficiency management for new buildings, wider use of ultra-low-energy buildings, renovation of existing buildings, building energy performance ratings, building-integrated photovoltaics, low-carbon heating alternatives, heating metering reform, and upgrades to ageing heating networks. 
  • TransportMeasures include expanding rail and waterway transport, improving road transport efficiency, supporting multimodal logistics, and developing greener transport infrastructure. The policy also refers to zero-carbon transport corridors, electric and hydrogen heavy-duty trucks, ships using lower-carbon fuels, shore power infrastructure, and clean fuel substitution. 
  • Digital infrastructureThe policy addresses energy demand from computing infrastructure, communications base stations, and data centres. It calls for energy-saving upgrades, more efficient equipment and cooling systems, energy performance requirements for new computing projects, increased renewable electricity use, and waste-heat recovery. 
  • Public institutionsPublic institutions are expected to upgrade buildings, heating, cooling, lighting, and other equipment to reduce energy use and emissions. The policy also promotes contract energy management, energy consumption quotas, and improved energy information systems. 

 

Supervision, review, and enforcement

The policy calls for stricter review of energy use, coal consumption, carbon emissions, and technology standards in project approval and evaluation. 

For new, renovated, or expanded high-energy-consuming and high-emission industrial projects, the policy requires plans to offset any additional carbon emissions through equivalent or greater emission reductions elsewhere, when such projects are included in national planning and go through approval, verification, or filing procedures. 

The policy also strengthens management of major energy-consuming and carbon-emitting entities. Requirements include energy-use reporting, carbon emission inventories, energy audits, metering systems, disclosure mechanisms, and information systems. 

The document also refers to regular monitoring of coal, oil, electricity, and other energy consumption indicators. Where progress is lagging or indicators grow unreasonably, early warnings and targeted control measures may be introduced. 

 

Policy support, research, and standards 

The policy sets out a broad package of supporting instruments. These include differentiated electricity pricing, time-of-use pricing, tiered residential electricity pricing, export controls for high-energy-consuming products, green procurement, tax incentives, green finance products, and the possible creation of a national low-carbon transition fund. 

The document also calls for revisions to energy conservation and renewable energy legislation, stronger energy and carbon standards, improved energy efficiency labelling, and the creation of a product carbon labelling and certification system. 

Research, technology development, and capacity building are also highlighted. Priority areas include high-efficiency energy-saving equipment, smart energy use, energy conservation and carbon reduction in key industries, high-efficiency boilers, permanent magnet motors, efficient cooling, green lighting, and high-temperature heat pumps. 

The policy also calls for stronger professional training, improved energy and carbon statistics, and better annual and rapid reporting systems for energy use and carbon emissions. 

 

Implementation and international cooperation

Implementation is to be coordinated at central level, with local authorities responsible for implementation in their jurisdictions. The National Development and Reform Commission is assigned a coordinating role for carbon peaking, carbon neutrality, and energy conservation work. 

The policy encourages state-owned enterprises to play a leading role. The policy also expects public agencies, companies, public institutions, industry associations, and other organisations to implement energy-saving and carbon-reduction measures in their own operations and sectors. It also promotes public awareness and participation through national campaigns, low-carbon lifestyle messaging, and exposure of illegal energy use or waste. 

The policy includes an international cooperation dimension. It refers to international dialogue and practical cooperation on energy conservation and carbon reduction, technology cooperation, trade in energy-saving and low-carbon products, participation in international standard-setting, and mutual recognition of relevant standards and labels. 

 

 

Original policy:  

中共中央办公厅 国务院办公厅关于更高水平更高质量做好节能降碳工作的意见_最新政策_中国政府网 

 

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