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

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China takes steps towards unified national sustainability disclosure regime

At the beginning of November, following the requirement for certain listed companies to publish their sustainability reports announced earlier, the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the Beijing Stock Exchange in China opened public consultation on a handbook for practitioners from listed companies. In December, China’s Ministry of Finance announced the publication of the “Corporate Sustainability Disclosure Standards (CSDS) – Basic Standards (Trial)”, which represents a significant step in establishing a nationwide ESG disclosure regime aligned with the International Sustainability Standards Board (ISSB) framework.

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China releases its first Energy Law

China’s National People’s Congress, the country’s top legislature, approved the country’s first-ever Energy Law on 8 November 2024 at the 12th session of the Standing Committee Meeting. The Energy Law has taken effect on 1 January 2025. The release of this law, 18 years after the legislative process began, strengthens the legal framework governing China’s energy sector, supports energy security, and facilitates the country’s energy transition. As the foundation for the regulation of the energy sector, the Energy Law will also provide guidance and coordination for other sectoral legislation and policies.

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China plans to strengthen South-South cooperation on early warning for climate change adaptation

With its “Action Plan on Early Warning for Climate Change Adaptation (2025-2027)”, China aims to build a joint technical platform for monitoring and forecasting climate and weather conditions, especially extreme weather events, as well as to strengthen regional cooperation mechanisms for early warning. In accordance with the UN’s “Early Warning for All” Initiative, the plan aims to enhance sharing of knowledge and tools for climate-related risk assessment in developing countries. It proposes the installation of three geostationary satellites to monitor climate events in Africa, Asia and Oceania, training of staff to operate the monitoring stations, and sharing of best practices and policies.

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China strengthens its carbon emissions statistical accounting system

Two new policies regarding carbon emissions accounting have been released. The “Work Plan to Strengthen the Carbon Emissions Statistical Accounting System”, issued by the National Development and Reform Commission, outlines a two-phase approach to enhance the robustness and accuracy of carbon emissions data and to strengthen regulatory oversight and management of emissions across sectors and regions. The “Guidelines for the Formulation of Carbon Footprint Accounting Rules and Standards for Key Industrial Products”, issued by the Ministry of Industry and Information Technology , aim to develop 200 carbon footprint accounting standards across key industries with high international trade volumes and significant emission reduction potential, such as steel, petrochemicals, new energy vehicles, and electronics.

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Ministry of Natural Resources publishes implementing measures on the protection and sustainable utilisation of natural resources

The Ministry of Natural Resources (MNR) of China has released the “Implementation Opinions on Solidly Promoting the Construction of a Beautiful China through the Protection and Sustainable Utilisation of Natural Resources” on 5 August 2024, proposing 28 measures for the improvement of the national spatial development pattern and the conservation of natural resources. The policy emphasises that protecting natural resources is an inherent requirement for “building a Beautiful China” (strategic concept of the Chinese government emphasising effective ecological protection, sustainable resource use, and harmonious coexistence with nature). Main points mentioned are the improvement of the national spatial planning system, the establishment of a system of natural protected area with national parks, and the strengthening of energy and resource management.

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NEA releases action plan for high-quality distribution grid development (2024-2027)

The Action Plan for High-Quality Distribution Grid Development (2024–2027) issued by China’s National Energy Administration (NEA) complements the broader strategy outlined in the Action Plan for Accelerating the New Type Power System (2024–2027). This plan specifically focuses on upgrading China’s distribution grid to meet the challenges posed by the energy transition and the nation’s carbon neutrality goals. It aims to ensure the grid’s capacity to handle the increasing demand from emerging market participants such as distributed renewable energy sources and electric vehicles (EVs).

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