when and how will Beijing measure carbon footprints?
2030 is Beijing’s target to start total carbon emissions cuts. Tracking carbon footprints is central.
We published this piece on policycn.com in December. Since then, more action has emerged. Guidelines for accounting standards, noted as the second ‘key pillar’ of the system, were jointly issued by MEE and NDRC on 6 January to coordinate standards at different levels and boost international influence. MEE and National Bureau of Statistics (NBS) then launched the first national-level greenhouse gas emission factor database.
Carbon is becoming ever more important in global trade. The PRC, the world's largest producer and exporter of carbon, unsurprisingly seeks a greater role in accounting for it.
Systematically managing its carbon footprint is work long in progress. Product carbon footprints (PCFs), which can alert industries to emissions hotspots and certify reduction efforts, are integral to the PRC 1+N carbon framework, and deemed crucial for safeguarding industry from emerging ‘green trade barriers’.
A product’s ‘carbon footprint’ sums up ghg (greenhouse gas) emissions across its lifecycle. Measured in carbon dioxide equivalents, it includes everything emitted during raw material acquisition, production, transportation, usage, and disposal.
setting up a national system
Putting carbon footprint labels on products promotes transparency, displays corporate social responsibility, and gives green-conscious consumers and governments some choice. This entails credible cross-industry data, methodologies and standards. Best practices are being developed globally.
A rollout plan for unifying PRC carbon footprint management was issued in June 2024. This is the first national-level plan on carbon accounting.
A preliminary management system is to be established by 2027, and hundreds of product carbon accounting rules and criteria are to be in place by 2030, with a subset of core items given priority.
The plan prioritises industrial intermediates such as steel, cement and lithium batteries, as well as other key products crucial for supply chains, according to Zhang Bin 张彬 MEE (Ministry of Ecology and Environment). Given their emission levels, their inclusion and other supply chain prerequisites are essential.
Industry associations, SOEs, Ministries and research institutes are tasked with setting key product standards in line with guidelines issued by MEE and MIIT (Ministry of Industry and Information Technology); see below.
why now?
Ever more nations, proclaims NDRC, are adopting carbon footprint accounting, evaluation and certification of key products.
Corporate footprints are now integral to assessing global supply chains, says He Kebin 贺克斌 Tsinghua University professor; suppliers are under growing pressure to disclose emissions data.
As it advances, managing carbon footprints stimulates policy and tech innovation, says Shi Minjun 石敏俊 Zhejiang University Centre for Research on Urban Development and Low-Carbon Strategies. To stay globally competitive PRC firms must adapt and improve.
The timing of the carbon footprint push comes as Beijing aims to speed up transforming to green and low-carbon production and lifestyles, encouraging greater cooperation and trust in international carbon footprint work, notes Xinhua.
This will in turn, spur development of green finance, consulting/rating agencies and green equipment, notes Wu Qi 吴琦 Pangoal Institution.
Referred to for the first time in August 2024, ’green consumption’ involves all aspects of food, clothing, housing and transport. Incentive mechanisms, using carbon footprint labels to drive green consumption, will be improved. PRC green procurement rules will be expanded to embrace carbon footprint criteria.
getting on the front foot
There is no shortage of external pressure: precise demands on key PRC industries are in play, adds Wu Qi. Indirect electricity emissions, above all, rack up a product’s carbon footprint, notes Wen Shangang 温枢刚 China Huaneng Group chair. Lithium batteries and electric vehicles are prime cases in point. This industry’s footprint, traceable to overreliance on thermal power, sits some 20–40 percent higher than Japanese or South Korean counterparts, argues Qiu Lin 邱林 Envision Intelligent Zero Carbon chief scientist at the China Automotive Power Battery Industry Innovation Alliance.
Requiring PCFs is a strategic step for Beijing as it aims to bolster both global competitiveness and climate leadership while promoting ‘high-quality’ green consumption at home.
keeping an eye on footprints
He Kebin 贺克斌 | Tsinghua University School of Environment professor
Accounting for product carbon footprints is still in its infancy in the PRC, according to He. Incomplete accounting rules and standards, a lack of internationally recognised and influential background databases, failure to set up a labelling and certification system and insufficient professional capacity all hamper progress. Behind these issues is a fundamental lack of understanding of product carbon footprints and their international rules, making it impossible to standardise requirements domestically and achieve mutual recognition internationally.
Beijing should first seek to establish top-level PCF management that aligns with international rules. This will allow the country to participate in international discussions on managing carbon footprints and breaking down green trade barriers.
Another urgent task is to set up a background database that reflects the PRC's actual situation. Due to the lack of an internationally recognised local database, PRC firms mainly use background databases developed in Europe and the United States, which fail to accurately reflect the level of tech advancement and regional differences across provinces.
He Kebin is a School of Environment professor and director of the Institute for Carbon Neutrality (ICON) at Tsinghua University. Additionally, he is an academician of the Chinese Academy of Engineering (CAE). His research focuses on atmospheric pollution, particularly PM2.5, including identifying atmospheric particulate matter and the synergistic control of multiple pollutants and greenhouse gases. He has developed new technology systems for dynamic regional air quality monitoring via an online multi-scale emissions inventory platform. He sits on various technical committees advising officials on air pollution, emissions control and environmental protection.
Tian Chunxiu 田春秀 | Policy Research Centre for Environment and Economy (PRCEE) deputy director
Tian is a strong proponent of a carbon footprint management framework that combines PRC norms with global influence. She believes such a system could bring together domestic and international standards, having a positive impact on Beijing’s carbon management capabilities and positioning the PRC to effectively navigate emerging international carbon trade policies.
She stresses the need for robust carbon footprint management, and underscores that understanding the ‘carbon baseline’ of production is key to achieving emissions reductions across the entire supply chain. Showing carbon footprints on consumer items builds brand value and cultivates low-carbon consumption habits, she argues.
Tian began her career at the Chinese Academy of Environmental Sciences before joining the Policy Research Centre for Environment and Economy (PRCEE) in the early 1990s. Over the decades, she has served as a core advisor on climate change and international environmental negotiations, helping shape the PRC’s sustainability strategies and global climate policy engagement.
MEE Policy Research Centre on Environment and Economy (PRCEE) | 生态环境部环境与经济政策研究中心
Set up under the Ministry of Ecology and Environment (MEE), the PRCEE provides research-based support for integrating environmental protection with development.
The centre assists the ministry in devising long-term sustainable development strategies, considering pollution reduction, climate change mitigation, and green growth. It incorporates carbon peaking and neutrality into the broader framework of ecological civilisation and socio-economic development. The centre has been instrumental in designing major national programs, including the national emissions trading system, pollution reduction targets, and green finance initiatives.
It also develops action plans for provinces, cities, key industries, industrial parks, and firms to hit carbon neutrality and strengthen pollution-carbon synergy.
Within PRCEE, the Department of Pollution and Carbon Reduction Synergy Research (减污降碳协同研究部) specialises in integrating strategies for pollution reduction and carbon emission mitigation.