Translation: State Council's 2025 Report on China's Climate Actions and "Dual Carbon" Efforts
Chinese government on its main progress and achievements in responding to climate change and achieving "dual carbon" goals, as well as the challenges and next steps.
Welcome to a special issue of NPC Observer Monthly, a (mostly) monthly newsletter about China’s national legislature: the National People’s Congress (NPC) and its Standing Committee (NPCSC).
Yesterday (September 10), Minister of Ecology and Environment Huang Runqiu reported on behalf of the State Council to the NPCSC on China’s efforts to address climate change and achieve carbon peaking and carbon neutrality (aka “Dual Carbon“ goals). Full text of the report is available here [perma].
As I’ve highlighted here, this report is part of the NPCSC’s 2025 oversight agenda. Though most oversight reports touch on issues far beyond my area of expertise, I plan to continue posting lighted edited machine translations here if they may be of wider interest. If you wish to quote from the translation, I strongly recommend verifying it against the original text.
国务院关于应对气候变化和碳达峰碳中和工作情况的报告
Report of the State Council on Addressing Climate Change and Advancing Carbon Peaking and Carbon Neutrality
Standing Committee of the National People’s Congress:
I have been entrusted by the State Council to report to the NPC Standing Committee on China’s response to climate change and the progress of work toward carbon peaking and carbon neutrality. Please deliberate.
General Secretary Xi Jinping has repeatedly emphasized that responding to climate change and achieving carbon peaking and carbon neutrality are not things others are asking us to do, but tasks we ourselves must accomplish. Since the Party’s 18th National Congress, the Party Central Committee has placed climate change at a more prominent position in national governance, implemented a national strategy of actively responding to climate change, made the major strategic decision to achieve carbon peaking and carbon neutrality, and incorporated “dual carbon” work into the overall framework of ecological civilization and the broader agenda of economic and social development. The Party’s 20th National Congress called for coordinated progress on industrial restructuring, pollution control, ecological conservation, and climate action, advancing carbon reduction, pollution reduction, ecosystem expansion, and growth in tandem. The Third Plenum of the 20th Central Committee stressed the need to actively respond to climate change and to improve mechanisms for green and low-carbon development. The various localities and departments have earnestly implemented the important instructions and comments of General Secretary Xi Jinping and the decisions and plans of the Party Central Committee and the State Council, taken proactive measures, and achieved notable results. China has built the world’s largest and fastest-growing renewable energy system and the largest and most complete new energy industrial chain, and has contributed one-quarter of the world’s new greened area. The decline in carbon intensity and the increase in the share of non-fossil energy consumption are broadly on track with the progress expected under our 2030 Nationally Determined Contribution (NDC) targets. The total installed capacity of wind and solar power and the national forest stock volume have already exceeded the 2030 NDC targets ahead of schedule.
The NPC Standing Committee has attached great importance to and long supported efforts to respond to climate change and to achieve carbon peaking and carbon neutrality, consistently strengthening the legal framework and oversight, and providing strong guarantees for such efforts.
I. Major Progress and Achievements
Under the leadership of the Party Central Committee, the State Council and relevant departments have advanced efforts to respond to climate change and to achieve carbon peaking and carbon neutrality in an all-out effort, established a “1+N” policy framework for “dual carbon,” accelerated the shift from dual controls on energy consumption to dual controls on carbon emissions, and promoted systemic transformation across the economy and society.
(1) Remarkable progress in energy and industrial transformation. As of the end of June 2025, installed capacity of non-fossil energy reached 2.22 billion kilowatts, accounting for 60.9% of total capacity. Fossil energy has been used more cleanly and efficiently, with coal-fired power undergoing “three reform linkages” [三改联动] and outdated capacity phased out, while natural gas production and use steadily increased. Construction of “desert, Gobi, and barren land” renewable energy bases and major hydropower projects has accelerated, and China’s operating and under-construction nuclear power capacity is now the largest in the world. A new-type power system is being built, forming the world’s largest clean power generation system and transmission network, and a multi-tiered unified electricity market is taking shape. New productive forces represented by the “new three” [photovoltaic products, lithium batteries, and new energy vehicles] have grown rapidly: since the start of the 14th Five-Year Plan period, photovoltaic module output has risen 3.7 times and lithium battery output 6.4 times, while new energy vehicles have led the world in production and sales for ten consecutive years. Industrial upgrading continues, with 590 million tons of crude steel capacity retrofitted for ultra-low emissions. Energy-saving and carbon-reduction renovations, large-scale equipment renewal, and consumer product replacement have been widely advanced. More than 6,000 national-level green factories have been established, with their output accounting for about 20% of manufacturing output. Circular economy development has accelerated, with waste recycling systems being built.
(2) Continuous progress in green development in key sectors. High-quality green buildings are expanding rapidly: efforts to actively promote green construction brought 1.69 billion square meters of new urban green building area in 2024, accounting for 97.9% of new urban building area that year. Clean and low-carbon transport has advanced, with about 70% of bulk freight in key sectors transported cleanly in 2024, and civil aviation making notable strides in green transformation. Efforts to build national ecological security barriers have accelerated, including the “Three-North” shelterbelt project and large-scale land greening, making China the fastest-growing country in terms of forest resources. Pilot projects for coordinated pollution and carbon reduction innovation are under way. Control of non-CO₂ greenhouse gases has strengthened: the Regulations on Ozone-Depleting Substances [消耗臭氧层物质管理条例] have been revised to include hydrofluorocarbons under quota management, and a methane emissions control plan has been issued.
(3) Steady improvement of the national carbon market. An opinion on strengthening the national carbon market have been issued, the Interim Regulations on Carbon Emissions Trading [碳排放权交易管理暂行条例] promulgated, and a series of departmental rules, normative documents, and technical specifications formulated, completing the basic legal and policy framework. A routine monthly data verification mechanism has been put in place to improve data quality. The first expansion of the national carbon market has brought in the steel, cement, and aluminum sectors, covering more than 60% of national emissions. As of the end of June 2025, cumulative transactions of carbon emission allowances reached 670 million tons, with a value of 45.93 billion yuan. A national voluntary greenhouse gas emissions trading market has been launched, with the first batch of certified voluntary emission reductions registered and traded, supporting the realization of ecological product value.
(4) Deepened progress in efforts to adapt to climate change. The National Climate Change Adaptation Strategy 2035 has been issued and implemented. Pilot projects for climate-resilient cities, urban assessments, and sponge cities have been carried out. Climate system monitoring now covers multiple spheres, and meteorological disaster warning capacity has improved. Major disaster prevention and response have been strengthened, and the national emergency command system is now essentially in place. Infrastructure resilience is being enhanced, and a national climate change and health adaptation plan has been released. Climate adaptation requirements have been integrated into territorial space plans at all levels, with a focus on the Qinghai–Tibet Plateau, the Yellow River Basin, and the Yangtze River Basin. An early warning–based adaptation action plan has been issued, and climate adaptation partnerships are being built.
(5) Steady strengthening of basic capacity. A carbon emissions statistics and accounting system has been established, with a national database of greenhouse gas emission factors launched, and regular compilation of national greenhouse gas inventories carried out. An implementation plan for a carbon footprint management system has been issued, with work carried out on developing standards for product carbon footprint and the certification of labeling. A plan for building a national climate change standards system has been issued, with ongoing efforts to build carbon measurement capacity. Several environmental monitoring satellites are in orbit, enhancing remote sensing capacity. New occupations such as carbon emissions manager and carbon sink assessor have been added to the National Occupational Classification Catalogue. Twenty undergraduate and vocational majors related to climate change have been added, accelerating professional talent training. Various outreach activities and public participation mechanisms, including carbon-inclusive schemes, are raising public awareness of green, low-carbon living.
(6) Strengthened sci-tech innovation and policy incentives. The system and mechanisms for carbon peaking and neutrality and sci-tech innovation have been improved, with a carbon neutrality technology roadmap prepared. National key laboratories related to carbon peaking and carbon neutrality have been established, strengthening basic research on low- and zero-carbon technologies, advancing frontier technology development, and enhancing studies on climate change mechanisms and the research of key response technologies. A market-oriented green technology innovation system has been strengthened, with broader adoption of green and low-carbon technologies. The central government has continuously increased fiscal investment, with a focus on supporting the development of new energy and green, low-carbon sci-tech innovation. Green tax reform has been promoted, including implementing vehicle purchase tax exemptions for new energy vehicles. Support for green finance has been strengthened through the establishment of a reserve of ecological and environmental finance projects, the creation of a National Green Development Fund, and enhanced information disclosure. By the end of 2024, incentive loans through carbon reduction support tools exceeded 1.3 trillion yuan, and the balance of green loans reached 36.6 trillion yuan.
(7) Important contributions to global climate governance. China has supported head-of-state climate diplomacy and played a key role in global climate governance, contributing significantly to the implementation of the Paris Agreement. China has initiated and hosted multilateral mechanisms such as the BASIC countries and the Ministerial on Climate Action, building political consensus. It has fulfilled international obligations by submitting climate reports to the UN. As the world’s largest exporter and investor in clean technology, China has helped drive down the cost of wind and solar. It has advanced international cooperation on climate change, deepened South-South cooperation, promoted a green Belt and Road, and advanced the Global Development Initiative. China has actively participated in climate consultations across sectors, responded to unilateral measures such as the EU’s Carbon Border Adjustment Mechanism (CBAM), and promoted international alignment and mutual recognition of rules and standards.
II. Difficulties and Challenges
While we have made notable progress, we are soberly aware that as the largest developing country, China still faces a series of problems and challenges. Balancing development and emissions reduction, coordinating national and local priorities, and reconciling short- and long-term objectives have all become more difficult. The tasks of responding to climate change and achieving carbon peaking and neutrality remain arduous.
(1) Difficulty in controlling carbon intensity. Since the start of the 14th Five-Year Plan period, the various localities and departments have pushed hard to reduce carbon intensity, and progress has been made. Yet challenges remain due to the effects of COVID-19, extreme weather, and changes in the international economic and trade environment. Reducing carbon intensity is proving difficult. China aims to move from carbon peaking to carbon neutrality in the shortest time span in world history, and to achieve the steepest reduction in carbon intensity globally—a daunting task.
(2) Challenges in sustaining the green and low-carbon transition. Energy demand continues to grow rapidly. With the accelerated application of digital and intelligent technologies and the effects of global warming, future electricity demand may be even higher. As the share of renewable energy rises, coal power’s role in grid balancing and ensuring supply has become more critical, placing higher demands on the power system’s flexibility and regulation capacity. Industrial transformation is also increasingly difficult: in some areas, “two high” projects [high energy consumption and high emissions] have been launched blindly, while new industries face challenges such as bottlenecks in key technologies and homogeneous competition.
(3) The legal and policy framework remains incomplete. The legal system and standards for climate action are not yet sound, and stronger policy coordination is urgently needed. Energy system reforms must go further. Policies on carbon accounting, carbon footprinting, green certificates, and the carbon market need stronger alignment. The system for climate adaptation remains relatively weak, with large funding and technology gaps.
(4) Need to further strengthen basic capacity. Carbon accounting methods remain insufficient, with room to improve accuracy, timeliness, and localization of emission factors. Basic research and sci-tech innovation fall short, and key low-carbon, zero-carbon, and negative-carbon technologies have not yet been scaled up. Some localities and enterprises still lack full awareness of climate action and “dual carbon” goals, continue to rely on traditional high-energy, high-emission development models, and face gaps between their capacities and the demands of the work.
(5) A complex and severe international climate governance landscape. The climate crisis is intensifying: in 2024, the global average temperature exceeded pre-industrial levels by more than 1.5 °C for the first time, underscoring the urgency of action. Global climate governance faces uncertainty. The Trump administration has again announced U.S. withdrawal from the Paris Agreement, while unilateral measures such as the EU’s CBAM are expanding.
III. Considerations for Next Steps
This year marks the fifth anniversary of China’s proposal of carbon peaking and carbon neutrality targets. Guided by the Xi Jinping Thought on Ecological Civilization, we will uphold a systems approach, continue to implement the national strategy of actively responding to climate change, advance carbon peaking and neutrality in an active and prudent manner, formulate and implement China’s 2035 NDC targets, and foster a new pattern of green, low-carbon, high-quality development.
(1) Improve laws and policies to advance climate goals in a coordinated manner. We will work with the legislature to formulate dedicated laws on climate response and “dual carbon,” accelerate the adoption of the Ecological and Environmental Code [生态环境法典], and advance revisions to laws and regulations such as the Energy Conservation Law [节约能源法]. We will strengthen regulatory enforcement on carbon emissions, improve the linkage between administrative enforcement and criminal justice, and crack down in accordance with the law on data falsification in the carbon market. We will enhance interdepartmental coordination, policy coherence, and data sharing, continue conducting situation analyses and issuing operational reminders, and spare no effort to achieve the 14th Five-Year Plan’s carbon intensity reduction target. We will plan ahead for the 15th Five-Year Plan period, accelerate the establishment of a dual control system for carbon emissions, and develop a comprehensive evaluation and assessment framework for carbon peaking and neutrality.
(2) Focus on key sectors and accelerate the green and low-carbon transition in development. We will speed up the construction of a new energy system, adhere to the principle of “establishing before breaking,” advance the building of large-scale wind and solar bases and integrated water-wind-solar projects, and promote distributed energy based on local conditions. We will advance nuclear power actively, safely, and in an orderly manner. We will implement renewable energy substitution projects, and rationally deploy pumped storage, new storage technologies, and solar thermal power. We will continue to use fossil fuels, especially coal, more cleanly and efficiently. We will deepen power system reform and support new business models such as direct supply of green electricity. Industrial decarbonization will be accelerated, with strong and effective control over “two high” projects, faster phase-out of outdated and inefficient capacity, deepened energy-saving and carbon-reduction renovations, major technological upgrades, and large-scale equipment renewal. We will build zero-carbon parks and factories and further promote low-carbon cities. We will promote digital and green transformation in tandem, advance AI applications in key sectors, support green building development, and strengthen green design and construction. We will optimize transport structures and continue promoting new energy vehicles. We will consolidate and enhance the carbon sink capacity of ecosystems.
(3) Improve market mechanisms and build a more effective, dynamic, and internationally influential carbon market. We will accelerate national carbon market development, establish a transparent emissions allowance management system with well-defined expectations, steadily adopt a mix of free and paid allowance allocation, and gradually increase the share of paid allocation. We will broaden trading instruments, participants, and methods, and expand sectoral coverage in an orderly way. We will continue improving the voluntary greenhouse gas reduction market and study the establishment of a cross-border carbon trading management system. We will advance the cautious development of green financial products and services by financial institutions. We will strengthen policy coordination among markets for green electricity, green certificates, and carbon trading.
(4) Improve working systems and comprehensively enhance climate adaptation capacity. We will improve mechanisms for climate change adaption, intensify adaptation actions in key sectors such as urban and rural development, agriculture, and infrastructure, and in key regions such as the Qinghai–Tibet Plateau. We will strengthen early warning platforms through multiple channels and enhance our ability to respond to extreme weather and climate events. We will study and develop adaptation indicator systems, formulate evaluation methods, and conduct regular assessments. Pilot projects for climate-resilient cities will continue to be deepened.
(5) Strengthen support systems and comprehensively enhance basic capacity. We will improve the carbon emissions statistics and accounting system, establish a carbon emissions quick-reporting system, and enhance data accuracy and timeliness. We will improve the national greenhouse gas emission factor database, and build a national network of greenhouse gas–monitoring stations and three-dimensional monitoring system. We will establish a product carbon footprint management system and labeling-certification system. We will improve standardization and metrology, refine the climate change standards system, and accelerate the upgrading of energy consumption and efficiency standards. We will strengthen the green and low-carbon sci-tech innovation system and plan major climate response projects. We will strengthen basic research and intensify research and development in controlled nuclear fusion, carbon capture, utilization and storage, energy storage, and other frontier and disruptive technologies, while advancing research on carbon sinks and non-CO₂ greenhouse gas mitigation technologies. We will build platforms for joint innovation among universities, enterprises, and localities, improve the efficiency of technology commercialization, and better integrate sci-tech and industrial innovation, giving enterprises a stronger role as innovation leaders. Talent development will be enhanced. We will refine green taxation, continue preferential tax policies related to energy conservation and emissions reduction, and improve green finance policies, expanding the scope of support for carbon reduction support tools. We will promote climate investment and financing, and align fiscal funds with financial instruments. We will advocate green consumption and promote green, low-carbon production and lifestyles.
(6) Uphold multilateralism and enhance China’s influence, leadership, and agenda-setting power in global climate governance. We will strengthen bilateral and multilateral exchanges, advance international cooperation across fields and levels, deepen South-South cooperation on climate change, oppose unilateralism and protectionism, and promote a fair, equitable, cooperative, and win–win global climate governance system. We will track developments in international climate law, strengthen cooperation on green trade and investment, and promote international alignment and mutual recognition of rules and standards on carbon accounting, carbon footprinting, and more. We will prepare transparency and compliance reports on our climate actions. We will enhance international communication of the Xi Jinping Thought on Ecological Civilization, contributing Chinese wisdom and Chinese solutions to global climate governance.
China’s development of ecological civilization has entered a critical stage where carbon reduction is the strategic priority. We will resolutely implement the decisions and plans of the Party Central Committee, and with the oversight and support of the NPC and its Standing Committee, advance our work with greater resolve, broader vision, stronger efforts, and more concrete measures. We will accelerate the comprehensive green transformation of economic and social development, build a Beautiful China more quickly, and help create a clean and beautiful world, providing stronger support and guarantees for advancing Chinese-style modernization.