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China’s Pivot from Energy
Consumption to Carbon
Emissions Controls:
Impact on Companies
By Arendse Huld, Posted by China Briefing
China is pivoting on one of its key decarbonization
mechanisms by shifting focus from reducing total
energy consumption to reducing total carbon emissions.
Policymakers hope that this change will more closely
align China’s carbon reduction strategy with its
“dual carbon” goals of reaching peak emissions by
2030 and carbon neutrality by 2060. The pivot also
has profound implications for companies operating
in China, presenting both challenges and new
opportunities for green industries.
In July 2023, the Central Committee for What is the dual control
Comprehensively Deepening Reform (CCCDR) of energy consumption
reviewed and passed the Opinions on Promoting mechanism?
Dual Control of Energy Consumption and
Gradually Shifting to Dual Control of Carbon The “dual control” of total energy consumption
Emissions. These opinions, which have not been and energy intensity mechanism was developed
made public, outline how China will gradually over the course of several years. The mechanism
shift from its policy approach from the “dual has been implemented in some form since being
energy consumption control” mechanism introduced in the 13th Five-Year Plan (FYP) in
for decarbonization to the new “dual carbon 2016. The strategy has been developed over the
emissions control” mechanism. course of several policy documents in the years
since, such as the Plan for Improving the Dual
The “dual energy consumption control” Control System of Energy Consumption Intensity
mechanism refers to the policy of controlling total and Total Energy Consumption, released in
energy consumption and controlling the energy September 2021.
intensity of regions, industries, and companies,
while the “dual control of carbon emissions” The dual control mechanism became a central
mechanism instead focuses on controlling total strategy for China’s “dual carbon” goals—
carbon emissions and carbon emissions intensity. reaching peak carbon emissions by 2030 and
carbon neutrality by 2060—which were officially
This change, which will be implemented gradually, set by President Xi Jinping at the United Nations
has significant implications for China’s overall General Assembly in September 2020.
decarbonization strategy, as well as for individual
companies and entities operating in the country. The 14th FYP, released in March 2021, calls
The new mechanism will at once help to remove for “improving the dual control of total energy
caps on energy consumption for energy-intensive consumption and intensty, focusing on
industries, thus giving critical raw material controlling fossil fuel consumption”.
industries space to grow, while promoting the shift
to renewables. The FYP also calls for “implementing a system
that focuses on carbon intensity control and is
Below we look at how the new mechanism will supplemented by total carbon emission control”,
work, and discuss the benefits, opportunities, and and promotes “clean, low-carbon, safe and
challenges for companies operating in China.
3 AMCHAM SOUTH CHINA
China’s Pivot from Energy
Consumption to Carbon
Emissions Controls:
Impact on Companies
By Arendse Huld, Posted by China Briefing
China is pivoting on one of its key decarbonization
mechanisms by shifting focus from reducing total
energy consumption to reducing total carbon emissions.
Policymakers hope that this change will more closely
align China’s carbon reduction strategy with its
“dual carbon” goals of reaching peak emissions by
2030 and carbon neutrality by 2060. The pivot also
has profound implications for companies operating
in China, presenting both challenges and new
opportunities for green industries.
In July 2023, the Central Committee for What is the dual control
Comprehensively Deepening Reform (CCCDR) of energy consumption
reviewed and passed the Opinions on Promoting mechanism?
Dual Control of Energy Consumption and
Gradually Shifting to Dual Control of Carbon The “dual control” of total energy consumption
Emissions. These opinions, which have not been and energy intensity mechanism was developed
made public, outline how China will gradually over the course of several years. The mechanism
shift from its policy approach from the “dual has been implemented in some form since being
energy consumption control” mechanism introduced in the 13th Five-Year Plan (FYP) in
for decarbonization to the new “dual carbon 2016. The strategy has been developed over the
emissions control” mechanism. course of several policy documents in the years
since, such as the Plan for Improving the Dual
The “dual energy consumption control” Control System of Energy Consumption Intensity
mechanism refers to the policy of controlling total and Total Energy Consumption, released in
energy consumption and controlling the energy September 2021.
intensity of regions, industries, and companies,
while the “dual control of carbon emissions” The dual control mechanism became a central
mechanism instead focuses on controlling total strategy for China’s “dual carbon” goals—
carbon emissions and carbon emissions intensity. reaching peak carbon emissions by 2030 and
carbon neutrality by 2060—which were officially
This change, which will be implemented gradually, set by President Xi Jinping at the United Nations
has significant implications for China’s overall General Assembly in September 2020.
decarbonization strategy, as well as for individual
companies and entities operating in the country. The 14th FYP, released in March 2021, calls
The new mechanism will at once help to remove for “improving the dual control of total energy
caps on energy consumption for energy-intensive consumption and intensty, focusing on
industries, thus giving critical raw material controlling fossil fuel consumption”.
industries space to grow, while promoting the shift
to renewables. The FYP also calls for “implementing a system
that focuses on carbon intensity control and is
Below we look at how the new mechanism will supplemented by total carbon emission control”,
work, and discuss the benefits, opportunities, and and promotes “clean, low-carbon, safe and
challenges for companies operating in China.
3 AMCHAM SOUTH CHINA
