POLICY NEWS

On 18 July 2025, the General Offices of the Communist Party of China (CPC) Central Committee and the State Council released the “Provisional Regulations on the Ecological and Environmental Protection Accountability System for Local Party and Government Leaders”. The move aims to integrate green, low-carbon transition and environmental protection into all aspects of governance and strengthen enforcement of “ecological civilisation”1 policies.

Starting 1 September 2025, China will include carbon emission evaluations in energy conservation reviews for new fixed-asset investment projects. Announced by the National Development and Reform Commission (NDRC), the policy shifts focus from energy use to carbon emissions, including total emissions and carbon intensity. High-energy industries will face stricter review standards. Evaluations will now consider energy efficiency, carbon impact, alignment with climate goals, and use of low-carbon technologies. Projects that fail reviews cannot begin construction or operation. The NDRC says the new rules aim to curb coal use, improve carbon management, and support China’s carbon peaking and neutrality targets.

China has released a new national plan outlining its strategy to phase down ozone-depleting substances and potent greenhouse gases between 2025 and 2030. Jointly issued by several key government bodies, the plan describes China’s approach to fulfil its obligations under the Montreal Protocol and the Kigali Amendment. It includes targeted reduction schedules for controlled substances such as HCFCs and HFCs, establishes a quota-based management system, and outlines efforts to protect the ozone layer, mitigate climate change, and promote green, low-carbon development across industries, particularly the fluorochemical sector.

China has released its “2025 Progress Report on Product Carbon Footprint (PCF) Management”, outlining the role of PCF for its national decarbonisation strategy. The report details a growing framework spanning standards, databases, certification, and disclosure. It states that over 100 PCF standards have been issued, pilots are underway in 25 provinces, and a national GHG emission factor database is live. Financial institutions, industry, and digital platforms are increasingly aligning with PCF tools to green supply chains and improve climate transparency. As global carbon rules tighten, China is positioning PCF not just for domestic reform but also as a lever for international climate competitiveness.

The Ministry of Ecology and Environment of China has released the “2024 China Progress Report on Climate Change Adaptation”, providing an overview of the measures taken to strengthen resilience in the face of growing climate risks. According to the report, China has taken steps in enhancing climate monitoring and early warning, improving natural ecosystems, building socio-economic resilience, and deepening international cooperation. It states the country’s intention to integrate climate adaptation into its national governance and to contribute to global climate solutions.

China’s recent policy updates lay the foundation for ancillary services and spot markets developments. This marks another step in the ongoing power market reform. The new rules aim to address challenges arising from higher shares of variable renewables by introducing more standardised, market-based mechanisms to enhance system flexibility and efficiency.

On 30 April 2025, following the issuance of the Corporate Sustainability Disclosure Standards – Basic Standards (Trial) in December 2024 (see earlier briefing), the Ministry of Finance (MOF) of China, together with the Ministry of Ecology and Environment (MEE), released the draft version of the Corporate Sustainability Disclosure Standard No.1 – Climate (Trial) (hereinafter referred to as the “Climate Standard”) for public consultation by 31 May 2025.

To reach its goals of carbon peaking and carbon neutrality, China has issued the National Climate Change Standards System Development Plan (hereinafter referred to as the Plan). First announced in 2023, the Plan has now been formally adopted by the Ministry of Ecology and Environment, together with 14 other ministries and commissions. According to the Plan, the government aims to establish a national standards system by 2030, aimed at guiding actions on mitigation, adaptation, and carbon market operations.