POLICY NEWS

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

On 13 March 2026, China’s 15th Five-Year Plan (2026–2030) was adopted by the National People’s Congress (NPC). An overview article covering the main targets related to climate change and the green transition can be found here. This article focuses on the parts of the Plan that are relevant to low-carbon and resilient territorial and spatial planning as well as urban-rural development.  China’s 15th Five-Year Plan (2026–2030) positions territorial and spatial planning

In the mobility sector, the Plan pushes for system-level transformation in a sector responsible for roughly 10% of national CO₂ emissions. This includes the development of an integrated national transport network, such as the expansion of zero-emission transport corridors (over 10,000 km planned), and a modal shift toward rail and waterways, while promoting intermodal freight systems.

China is advancing its electricity market reform as renewable energy deployment accelerates. The National Development and Reform Commission and the National Energy Administration issued new “Basic Rules for the Medium- and Long-Term Electricity Market”, strengthening the role of long-term contracting and introducing more flexible trading arrangements, cross-provincial transactions, and clearer participation rules for new market actors. At the same time, China is expanding market-based electricity pricing by removing fixed time-of-use tariffs in several provinces and refining capacity payment mechanisms for dispatchable power and storage.

With the adoption of China’s first comprehensive “Ecological and Environmental Code” on 12 March 2026, the country takes a significant step toward strengthening its legal framework for environmental governance. Entering into force on 15 August 2026, the Code integrates existing legislation while introducing new legal provisions for emerging areas such as green and low-carbon development.

Issued on 8 April 2026 by four Chinese authorities, the “Action Plan for Promoting the Mutual Empowerment of AI and Energy” shifts from one-way AI deployment in energy to two-way coordinated growth. It aims to ensure that AI computing infrastructure is supplied with clean power, while using AI to make the energy system smarter and more efficient. The plan lays out measures for green data centre power supply and expanded use of AI across grids, renewables, storage and fossil energy sectors. With pilot scenarios launched in June 2026 and milestones for 2027/2030, it seeks to establish a complete AI-energy industrial ecosystem.

On 19 December 2025, the Ministry of Finance of China, in coordination with nine relevant authorities, released the Corporate Sustainability Disclosure Standards No.1 — Climate (Trial) (hereinafter referred to as the “Climate Standard”). The Climate Standard is intended to support China’s goals of carbon peaking and neutrality through top-level design, guiding enterprises from observation to more substantive action. It serves as a policy instrument linking corporate climate governance to capital market behaviour.

On 23 October 2025, the Communist Party of China (CPC) adopted its recommendations for the 15th Five-Year Plan for National Economic and Social Development (2026–2030). The recommendations intend to scale up renewable energy supply, ensure the substitution of fossil fuels, and improve the flexibility and resilience of the national power system. Climate priorities include strengthening carbon governance, enhancing carbon market mechanisms, and building resilience against climate risks. The State Council is now developing the draft outline of the 15th Five-Year Plan, based on the CPC recommendations. During the two sessions in March 2026, the draft outline of the 15th FYP will be reviewed, voted on and potentially adopted before being officially released.