China’s ongoing trajectory toward sustainable development and carbon neutrality has garnered global attention, particularly following the 2024 Government Work Report emphasizing low-carbon growth. This article delves into China’s evolving sustainability strategies, highlighting the progress made and the challenges faced in its journey toward sustainable development. Furthermore, it offers insights into potential avenues for improvement and the broader implications of China’s green development initiatives.
The establishment of China’s carbon market and enhanced monitoring mechanisms across various sectors, such as energy, industry, transportation, and agriculture, demonstrate significant strides toward mitigating climate change. However, data accuracy, regulatory enforcement and other challenges persist, indicating potential for improvement in the carbon accounting and verification regime.
First, investing in advanced monitoring technologies could improve the accuracy and granularity of emissions data collection. TanSat, also known as CarbonSat, is a Chinese Earth observation satellite dedicated to monitoring carbon dioxide in the Earth’s atmosphere. It is generally classified as a mini satellite and is the first dedicated carbon mission of the Chinese space program. These satellites can capture real-time data from key emission sources such as power plants, industrial facilities, and transport networks, providing a more comprehensive and accurate assessment of China’s carbon footprint. Similarly, the use of sensor-equipped internet-of-things devices in industrial settings allows continuous monitoring of emissions levels and can promptly alert authorities to any deviations from regulatory limits.
Second, strengthening regulatory frameworks and enforcement mechanisms to ensure compliance with reporting requirements and standards is crucial. China’s stock exchanges issued comprehensive environmental, social and governance (ESG) disclosure rules for large, listed companies in response to growing investor demand for ESG-related information. These new rules require companies to disclose a wide range of information, including Scope 1 and 2 greenhouse gas emissions, potentially increasing the transparency and accountability of China’s carbon emissions. In addition, on May 27, the Ministry of Finance launched a public consultation on the exposure draft of the Chinese sustainability disclosure standards for businesses, aiming to establish a mandatory, International Sustainability Standards Board-aligned reporting system by 2030, with key standards introduced by 2027. These efforts seek to standardize ESG reporting, enhance transparency, and support sustainable development goals nationwide, including carbon emissions reduction.
Third, enhancing international cooperation and participation in initiatives can facilitate knowledge sharing and capacity building in carbon accounting practices. China has participated in platforms and initiatives facilitated by international organizations such as the International Energy Agency and the World Bank. This involvement enables China to contribute its expertise while learning from global peers, fostering a collaborative approach to addressing climate change on a broader scale.
China’s emphasis on fostering new quality productive forces to support green development underscores a holistic approach toward sustainability.
Central to China’s green development strategy is the advancement of technology. The country has invested heavily in research and development of clean-energy technologies such as solar, wind, and hydroelectric power. China’s burgeoning electric vehicle (EV) market exemplifies this commitment. The nation currently leads the world in EV production and sales, with companies like BYD and NIO spearheading innovations in battery technology and autonomous driving. Furthermore, China is exploring cutting-edge technologies such as hydrogen fuel cells and energy storage solutions to enhance the efficiency and reliability of renewable energy sources.
In China, green development is not solely concerned with environmental protection; it also seeks to enhance the quality of life and generate new economic opportunities. The incorporation of green technologies into a variety of sectors has the potential to stimulate economic development by generating new job opportunities and markets. For example, the renewable-energy sector’s expansion has resulted in the creation of millions of jobs in manufacturing, installation, and maintenance. Additionally, the implementation of green urban planning initiatives is contributing to the improvement of public health and the reduction of pollution, thereby elevating living standards.
As the largest consumer of energy globally, China’s energy consumption baseline is extremely high. The commitment to reducing energy intensity by 2.5 percent in 2024 reflects the urgency of transitioning toward a low-carbon economy for China. This strategic goal aligns with China’s economic, environmental and social objectives. It enhances economic efficiency and competitiveness, contributes to environmental sustainability, and helps meet climate change commitments. Additionally, it supports public health, drives technological innovation, and ensures energy security, positioning China as a leader in the global transition to a sustainable and low-carbon future.
Achieving this goal demands a multifaceted approach encompassing policy frameworks, technological innovation, and international collaboration. By prioritizing energy efficiency measures and renewable energy deployment, China can mitigate climate risks while fostering economic growth.
However, China must navigate complex socioeconomic dynamics, balancing environmental priorities with economic development goals and addressing regional disparities. Effective policy implementation and enforcement require robust governance structures and transparent accountability mechanisms to ensure compliance and mitigate potential risks.
The drive to reduce energy intensity by 2.5 percent is a defining moment in China’s journey toward sustainability and climate resilience. Through innovation, collaboration and decisive action, China can meet its ambitious targets and emerge as a global leader in the transition to a low-carbon future.
While China has made notable strides in improving air quality, recent data indicates a concerning reversal in progress. Despite stringent control measures, factors such as climate variability, extreme events, and economic recovery from the pandemic pose challenges to sustaining air quality gains.
The Government Work Report does not include any quantitative targets for improving air quality, though it specifies targets for the policies and measures discussed within it. However, in December, China’s State Council published an action plan to improve air quality amid the country’s effort to promote high-quality economic development. This action plan established goals for the reduction of PM2.5 concentration, total pollutant emissions, and the number of contaminated days by 2025.
China’s green development journey reflects a delicate balance between economic prosperity and environmental stewardship. While commendable progress has been made, persistent challenges underscore the need for continued innovation, collaboration, and policy reform. By leveraging technological advancements, international partnerships, and proactive governance, China can not only achieve its environmental goals but also inspire global action toward a sustainable future.
The author is a researcher at the ESG Research Center of the Hong Kong Financial Research Institute of the Bank of China.
The views do not necessarily reflect those of China Daily.
