Carbon budget management system to be set up at provincial, prefecture levels

China will take a series of actions to promote green transition while continuing efforts to improve the environment, according to the Government Work Report delivered at the opening meeting of the second session of the 14th National People's Congress on Tuesday.

The country will boost the green and low-carbon economy, and push forward with the green transformation of the industrial structure, the energy mix, and the transportation sector as well as urban and rural development, it noted.

"We will implement a comprehensive conservation strategy and accelerate efforts to upgrade water and energy conservation facilities in key sectors," it said. "We will improve fiscal, tax, financial, investment, and pricing policies in support of green development as well as relevant market-based mechanisms."

It said efforts will be made to support the development of industries for recycling waste and used materials, encourage the R&D and application of advanced energy-saving and carbon-reducing technologies, and accelerate the development of green and low-carbon supply chains.

As the country actively and prudently works toward peaking carbon dioxide emissions and achieving carbon neutrality, it will carry out 10 major initiatives for peaking carbon emissions and improve carbon accounting and verification capacities, the report continued.

China aims to peak carbon dioxide emissions before 2030 and realize carbon neutrality before 2060.

According to the report delivered by the National Development and Reform Commission to the NPC, China will establish a carbon budget management system at provincial and prefecture levels this year.

The country will strive to build up its statistical, accounting and checking capacity related to carbon emissions, it said. The annual reporting will be institutionalized for both nationwide emissions and those of individual regions.

The report said a set of standards and measurements for climate targets will be defined, with precedence given to the adoption of standards that are urgently needed.

The country will strive to expand its national carbon trading program, which currently involves only the power generation industry, to more sectors, the report said. Efforts will be devoted to promoting research and development in key technologies for carbon capture, utilization and storage, and some demonstration projects will be constructed, it said.

The report pledged unwavering dedication to building a market-based innovation system for green technologies, saying the country will launch demonstration programs for the latest technologies in this regard and make progress in building green industry demonstration bases.

China will continue to enhance clean and efficient use of coal while proactively promoting renewable energy development, it said.

While upgrading coal-fired power units, the country will move faster to build large-scale wind and photovoltaic power bases, and integrate the development of wind power, photovoltaic energy and hydropower in major river basins, it said.

According to the report, China made remarkable progress in promoting green transition in 2023. The installed capacity for renewable power generation accounted for more than half of the country's overall installed capacity for the first time in the year, and the annual renewable electricity output reached nearly 3 trillion kilowatt-hours.