China Announces New Policies and Measures to Advance High-Level, High-Quality Energy Conservation and Carbon Reduction Efforts

China has released a new guideline to advance energy conservation and carbon reduction across key sectors of the economy, emphasizing coordinated efforts to drive industrial upgrading while promoting energy-saving, low-carbon and clean production technologies. The document, jointly issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council, outlines arrangements to peak coal and oil consumption, vigorously develop non-fossil energy and new forms of energy storage, and accelerate the building of a new power system.

The guideline stresses the need to promote the application of digital, smart and green technologies to upgrade traditional industries, while advancing energy conservation and carbon reduction in sectors including industry, construction, transportation, digital infrastructure and public institutions. It also calls for strengthening oversight and management of such efforts to ensure effective implementation.

According to the guideline, China will work to peak coal and oil consumption as part of its broader strategy to achieve carbon neutrality and reach peak carbon emissions. The plan includes vigorous development of non-fossil energy sources and new forms of energy storage, alongside efforts to optimize the integration of renewable energy into the power grid.

The document aligns with China’s 2024–2025 Energy Conservation and Carbon Reduction Action Plan, which sets specific targets for reducing energy consumption per unit of GDP by 2.5%, carbon emissions per unit of GDP by 3.9%, and industrial energy intensity by 3.5%. It also aims to increase the share of non-fossil energy consumption to 18.9% by 2024, with a goal of reaching 20% by 2025.

Under the action plan, China prioritizes reducing fossil-fuel dependence through cleaner coal use, phasing out outdated coal facilities, optimizing oil and gas consumption, and promoting alternative fuels. The plan accelerates renewable energy development, including large-scale wind and solar projects, improved grid integration, energy storage expansion, and wider use of green electricity certificates.

The guideline reflects the government’s determination to support sustainable economic growth within the framework of environmental stewardship, aiming for a green transformation of the nation’s industrial and social fabric. It underscores the importance of advancing energy conservation and carbon reduction not only as environmental imperatives but as drivers of high-quality economic development.

By strengthening oversight and management of energy conservation and carbon reduction efforts, the guideline seeks to ensure that policies are effectively implemented across sectors. This includes monitoring progress toward targets and enforcing compliance with energy efficiency and emissions reduction standards.

The release of the guideline comes as China continues to implement its dual carbon goals of peaking carbon emissions before 2030 and achieving carbon neutrality before 2060. It represents a key policy tool in the country’s broader strategy to transition toward a low-carbon economy while maintaining economic stability, and growth.