Business

China launches push for zero-carbon industrial parks

On 8 July, China published a notice launching a nationwide programme to further develop zero-carbon industrial parks. 

The notice, published by the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the National Energy Administration, opens a first round of applications to industrial development zones aiming to reduce their carbon footprint through opening such parks. It encompasses both construction of new parks and transforming those that have been recently built to low- and eventually zero-carbon industrial parks.

The document sets out eight core goals surrounding the development of these parks. Among them include transitioning energy sources, promoting energy conservation, upgrading infrastructure and creating digital carbon management systems. Accompanying documents published alongside the notice provide detailed technical guidance, carbon accounting methods and evaluation criteria.

According to a Tsinghua University report, 80% of China’s industrial companies are concentrated in industrial parks, which account for 31% of the country’s total carbon emissions.

The concept of developing zero-carbon industrial parks nationally was first mentioned on directives from the Central Economic Work Conference in December 2024. This year’s Government Work Report, released in March, also listed the programme as a key task within China’s “dual carbon” goals to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.

According to the notice, industrial-park-construction and transformation projects can receive support including access to existing public and local government funding channels. The government will also support parks in introducing qualified staff, technologies in emission-accounting management and carbon-footprint certification for products manufactured in their facilities, the notice states.

In April 2022, the initial phase of the world’s first zero-carbon industrial park, Envision Ordos, opened in Inner Mongolia. Running entirely on renewable energy, the park sources 80% of its power from local wind and solar installations and the remainder via grid-purchased green electricity.

Problems persist in construction of such parks, industry insiders told Yicai. They require significant energy and infrastructural investment, yet the value of their green electricity after completion is not fully rewarded in today’s market, leading to low interest from companies. Immature technology and a lack of a unified standard also limit progress in development of such parks. 

However, China’s first national standard on zero-carbon industrial parks is expected to be finalised later this year, providing a technical basis for future replication and scaling. 

Read Dialogue Earth’s previous analysis on China meeting its Paris Agreement goals.

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