On August 2, the State Council released a “Work Plan for Accelerating the Establishment of a Dual-Control System for Carbon Emissions.” Historically, China has focused on managing both the total energy consumption and energy intensity since the 1980s—a strategy known as “dual control of energy.” However, with the growing need to combat climate change and utilize the comparative advantage of clean energy, the Chinese government announced in 2021 that it would gradually transform from a system of “dual control of energy” to a system of “dual control of carbon emission”. In July 2023, the Central Committee for Comprehensively Deepening Reform officially endorsed the shift from energy dual control to carbon emission dual control.
This Work Plan intends to further implement the transformation and outlines a “3-step roadmap” to build the dual control system for carbon emissions:
- From now to the end of 2025, China will focus on capacity building of carbon emission measuring, accounting and monitoring
- During the 15th Five-Year Plan period, China will primarily focus on controlling carbon intensity, with overall carbon quantity control playing a supplementary role. A comprehensive system for evaluating carbon peaking and carbon neutrality will also be established.
- After reaching the carbon peak, the focus will shift towards stricter control of total carbon emissions, while still considering carbon intensity, to make sure total carbon emissions declining steadily.
The Plan states that carbon emission indicator should be involved into national economic and social development planning and performance assessments of subnational governments. It is also highlighted that dual-control targets for carbon emissions should be further refined and decomposed for clarifying local enterprises’ responsibility of carbon reduction.
Moreover, the Plan introduces the concept of a “carbon budget” into official policy for the first time. By the end of 2025, subnational governments will be guided to begin trial preparation of carbon emission budgets. During the 15th Five-Year Plan period, provinces will create and dynamically adjust their carbon emission budgets based on intensity reduction goals. From the 16th Five-Year Plan period onwards, stricter total carbon emission control measures will be implemented.
Additionally, the Work Plan emphasizes various other approaches and mechanisms, including building early warning and control mechanisms for carbon emissions, upgrading enterprise energy saving and carbon reduction management system, carrying out carbon emission evaluation of fixed asset investment projects and constructing carbon footprints management system, to support the establishment of dual control system for carbon emissions.
This plan is a significant transitional step of the carbon emission management policy framework in China.
Link: (Chinese) https://www.gov.cn/zhengce/content/202408/content_6966079.htm
