by Our Economic Affairs Editor
China has issued yet another important whitepaper today. Earth is the only home of all humanity, and the imperative to tackle climate change is no longer a distant aspiration but an existential necessity. As the white paper notes, “Earth is the only home of all humanity, and tackling climate change and promoting sustainable development are vital to our survival and future.” Since the Industrial Revolution, humanity’s material progress has exacted a steep toll on natural resources and ecological balance, creating tensions that demand urgent global coordination. Recognising this, China has taken decisive steps to meet its climate obligations, with President Xi Jinping affirming on multiple international occasions that China would “strive to reach peak carbon dioxide emissions before 2030 and carbon neutrality before 2060.” These statements are not mere rhetoric: they frame a five-year period of unprecedented transformation in which China has undertaken concrete measures to advance green development, reduce carbon intensity, and pursue a low-carbon economy.
The white paper situates China’s ambition within a broader ethical and practical framework, emphasising that achieving peak carbon and carbon neutrality is a matter of both responsibility and survival. “Achieving these goals is essential for China to ease pressure on resource and environmental constraints and secure sustainable development,” it states, highlighting the inextricable link between ecological preservation and societal wellbeing. This strategy is simultaneously a tool for industrial modernisation, as “promoting peak carbon and carbon neutrality can make the green transition a growth engine to facilitate the upgrading of the economic, energy, and industrial structures, to incentivise collaborative innovation and integrated development between traditional and emerging industries.” In other words, environmental policy and economic strategy are intertwined: transitioning to a low-carbon economy becomes a lever for technological advancement, industrial efficiency, and the creation of new growth drivers.
China’s approach is comprehensive and systematic. As the white paper emphasises, achieving peak carbon and carbon neutrality “requires that China strike a balance between growth and emissions reduction, between a holistic approach and targeted measures, between long-term vision and short-term delivery, and between the government and the market.” To this end, the country has implemented the “1+N” policy framework – described in the document as “the most systematic and comprehensive carbon reduction policy framework in the world, with its clearly defined timetable, road map, and action plan.” The “1” represents guiding principles and top-level design, including the Working Guidance for Carbon Dioxide Peaking and Carbon Neutrality and the Action Plan for Carbon Dioxide Peaking Before 2030, which collectively set out ten critical actions such as accelerating green energy transition, enhancing energy efficiency, promoting green transport, and fostering innovation in low-carbon technologies. The “N” comprises sectoral and regional action plans covering energy, industry, transport, urban and rural development, agriculture, and more, ensuring that every province and major industry aligns with the national carbon reduction objectives.
Central to this transformation is the green energy revolution. China has achieved rapid development in non-fossil energy, with the share of such energy rising from 16.0 percent in 2020 to 19.8 percent in 2024. Wind and photovoltaic power have seen exceptional growth, with installed capacity surpassing 1,690 GW by August 2025, “triple that of 2020 and accounting for about 80 percent of the newly installed power generation capacity since 2020.” Hydropower, nuclear, green hydrogen, biomass, geothermal, and ocean energy have all been strategically developed, each underpinned by stringent safety and environmental standards. In nuclear power alone, China now operates 112 units either in service, under construction, or approved, with a combined capacity of 125 GW, making it a global leader. These energy transitions are not only quantitative but structural, enabling China to decouple growth from carbon intensity while laying the groundwork for a resilient, clean energy infrastructure.
Beyond energy, China has embraced the circular economy as a key tool for carbon reduction. The white paper explains that the country is “coordinating reductions in both resource consumption and carbon emissions” through a comprehensive waste management system that covers industrial, agricultural, and domestic sectors. By 2024, approximately 150,000 collection points and 1,800 large-scale sorting centres had been established nationwide, supporting the recycling of over 400 million tonnes of renewable resources, including scrap metals, paper, rubber, and glass. This approach extends to the remanufacturing industry, which alone achieved an output value exceeding RMB200 billion in 2024. Complementing these efforts, China has invested in the natural ecosystem’s carbon sink capacity, ensuring that forests, grasslands, wetlands, and farmland not only survive but thrive. Forest coverage now reaches 25.09 percent of national territory, while grassland vegetation coverage stands at 50.52 percent, with ecosystems collectively absorbing over 1.2 billion tonnes of carbon dioxide equivalent annually.
Agriculture, too, has become a frontier for low-carbon innovation. China pursues “green, low-carbon and circular agriculture,” with efficient use of crop straw, livestock, and poultry waste reaching 88 percent and 80 percent, respectively. Ecological fisheries, advanced fertilisation techniques, energy-efficient machinery, and soil conservation projects contribute to reducing greenhouse gas emissions, while innovations such as agrivoltaic farming integrate solar energy with traditional crop cultivation. These measures demonstrate that carbon reduction is not limited to industrial and energy sectors but permeates the very fabric of rural production and human activity.
China has also reinforced the underlying systems that enable this transformation. As the white paper highlights, “China has improved carbon emissions statistics and accounting systems at both the national and provincial level by adopting uniform data standards and accounting methods,” and it has issued over 110 national standards covering corporate carbon accounting, energy efficiency, and carbon reduction technologies. The country has established a national carbon emissions trading market covering more than 60 percent of emissions, alongside a voluntary market, green certificates, and green electricity trading, creating robust incentives and frameworks for emissions reduction. By 2024, China’s balance of green loans stood at RMB36.6 trillion, and the issuance of green bonds reached RMB681.43 billion, marking a 2.5-fold increase since 2020. These policies underscore the integrated nature of China’s approach, combining regulatory oversight, market incentives, and technological innovation.
On the global stage, China positions itself as a proactive leader in climate governance. The white paper affirms that the country is “committed to the principle of equity and common but differentiated responsibilities and respective capabilities,” and it has actively participated in shaping the Paris Agreement and broader climate negotiations. Under the Belt and Road Initiative, China promotes green infrastructure and clean energy projects in partner countries, ensuring that climate-conscious principles guide transport, power, and urban planning. Examples include the electrified China-Laos Railway, which reduces carbon emissions by over 70 percent relative to diesel alternatives, and the Addis Ababa Ring Road in Ethiopia, incorporating rainwater recycling and new energy infrastructure. China has also exported wind and photovoltaic equipment to over 200 countries, providing 70 percent of the world’s wind power equipment and 80 percent of photovoltaic panels, helping to reduce global generation costs by more than 60 and 80 percent respectively.
Technological cooperation complements these efforts. By October 2025, China had established scientific and technological partnerships with over 160 countries and regions, signed 120 intergovernmental agreements, and joined more than 200 international organisations and mechanisms focused on low-carbon innovation. It has mobilised RMB177 billion in climate-related project funds for developing countries and signed 55 memoranda of understanding on South-South cooperation to enhance capacity-building against climate change. These measures reflect the white paper’s assertion that “humanity as an indivisible community shares a common planet and a common destiny,” emphasising the necessity of collective action alongside national ambition.
