Mysteel: China has unveiled a new policy framework to promote the construction of zero-carbon factories, as part of its broader push to accelerate industrial decarbonization and support the country’s long-term carbon peak and carbon neutrality goals, according to a joint announcement on January 19 from China’s Ministry of Industry and Information Technology and four supporting government-backed organizations.
The policy defines zero-carbon factories as industrial facilities that achieve sustained reductions in carbon dioxide emissions through technological innovation, structural adjustments and optimized management, ultimately moving toward near-zero emissions.
A phased rollout beginning this year will see China select a group of pilot zero-carbon factories to serve as benchmarks. By 2027, zero-carbon factories will be developed across sectors with relatively lower decarbonization barriers, including the automotive, lithium battery, photovoltaics, electronics, machinery and computing infrastructure sectors. By 2030, the initiative will expand to traditionally high-emission industries such as steel, non-ferrous metals, petrochemicals, construction materials and textiles.
To hit the goal, a crucial step is to establish a standardized carbon accounting system to quantify carbon dioxide emissions and removals, thus ensuring transparent, traceable data for zero-carbon factory development, the announcement stressed. The system will cover both direct emissions from production processes and fuel use, as well as indirect emissions from purchased electricity and heat.
Energy transition is identified as a core pillar, with factories encouraged to increase renewable energy use, develop industrial microgrids, adopt green hydrogen and electrify production processes.
On the production side, companies are also expected to improve energy efficiency, upgrade equipment and adopt low-carbon technologies such as carbon capture, recycling and waste reduction. The statement gave no indication whether central government support funding would be made available for participating firms.
Supply-chain coordination is another priority. Enterprises are encouraged to work with upstream and downstream partners to measure product carbon footprints, promote the procurement of green goods and facilitate low-carbon logistics.
By integrating policy support, technological innovation, financial mechanisms and international standards, China aims to build a sizable zero-carbon factory ecosystem, according to the release. With ESG requirements tightening worldwide such as Europe’s new Carbon Border Adjustment Mechanism, the scheme will help Chinese manufacturers adapt to international trade rules and enhance their position in global green value chains, market sources noted.
Note: This article has been written in accordance with an article exchange agreement between BigMint and Mysteel Global.
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