On August 11, 2024, the State Council published the “Opinion on Accelerating the Comprehensive Green Transition in Social and Economic Development”. This is the first time for the Chinese government to provide a systematic roadmap for the green transition, aiming to accelerate China’s shift towards a green economy.
Key aspects outlined in the policy include:
- Industrial structure: The policy sets out goals for upgrading traditional industries with energy-saving, low-carbon and cleaner production technologies and equipment, raising the environmental standards for new construction programs, and integrating industrial digitalisation with the green transition. It aims for the energy-saving and environmental protection industry to reach a value of approximately 15 trillion yuan (1.9 trillion EUR).
- Energy sector: The policy aims to control fossil fuel consumption in key regions and reduce its use in rural areas and small–scale industries. Special emphasis lays on the consumption of bulk coal. The policy also promotes the development of the hydrogen value-chain from production, storage, transportation to utilisation along with electricity system upgrades, including microgrids and virtual power plants. By 2030, non-fossil fuel sources shall account for 25% of total energy consumption, and installed pumped-hydro storage is planned to exceed 120 GW.
- Transport sector: To encourage multimodal passenger and freight transportation, the policy aims to expand railway and waterway infrastructure. The policy also aims for a further expansion of charging and swapping stations, and it promotes research and application of low-carbon transport options, such as sustainable aviation fuels and sustainable marine fuels. In addition, the policy aims to invest in urban slow-moving systems such as pedestrian walkways and bicycle lanes. The carbon emission intensity of the transport sector shall decrease by about 9.5% from 2020 levels by 2030, with new energy vehicles becoming the dominant type of vehicle sold by 2035.
- Urban and rural development: The policy aims to control urban sprawl, to boost climate resilience in urban and rural areas, and to improve energy efficiency in buildings through a rating system. Agricultural pollution shall be reduced through better waste management, efficient farming techniques, and clean heating solutions in rural areas.
In addition, the policy addresses cross-sectoral initiatives, including strengthening regional collaboration on green development, promoting resource-saving strategies, fostering sustainable consumption patterns, and leveraging scientific and technological innovation. International cooperation in green development is also highlighted.
Future steps for improving the green transition policy framework are outlined as follows:
- Developing a fiscal and taxation system conducive for green and low-carbon development and the efficient use of resources;
- Enhancing financial instruments to support the green transition;
- Encouraging investment in green industries;
- Reforming pricing system for electricity, water, and waste;
- Expanding market mechanisms for the green transition, including green electricity and carbon trading as well as ecological compensation systems;
- Establishing a standard system for green development.
The policy is a signal of commitment by the Chinese government to accelerating the green transition raising the level of ambition of a number of targets.1
Chinese source: 中共中央 国务院关于加快经济社会发展全面绿色转型的意见_中央有关文件_中国政府网 (www.gov.cn)
