MEE: China makes strides in carbon footprint management

Product carbon footprint refers to the total carbon emissions generated throughout a product's entire life cycle, including raw material extraction, manufacturing, transportation and distribution, consumer use, and final disposal, Mysteel Global noted.

With more global trade policies and market access now incorporating carbon footprint requirements, China's effort to build a comprehensive management system will enhance domestic enterprises' compliance with evolving international standards and drive green transformation across industrial chains, the report said.

Standards and data factors: cornerstones of the system

By the end of 2024, over 70 national standards for product carbon footprint accounting had been issued or under development, along with more than 100 industry-specific standards covering multiple energy-intensive sectors including ferrous and non-ferrous metal processing, as reported.

Table 1: Industry-specific standards for ferrous and non-ferrous products

Meanwhile, relevant authorities are accelerating the development of product carbon footprint factors and databases, according to the report.

In January this year, China's MEE, National Bureau of Statistics, and National Energy Administration jointly released the 2023 electricity carbon footprint factor data. The factors serve as calculation parameters that attribute carbon emissions to power generation, transmission, and end-use consumption, Mysteel Global noted.

Table 2: 2023 Carbon footprint factors for major electricity generation

Also in January, the national greenhouse gas emission factor database was officially launched. On this foundation, ongoing research continues to develop generalized carbon foodprint factors for basic energy sources such as coal, oil, and gas.

How carbon footprint accounting works?

China is developing a product carbon footprint labeling and certification system, which requires manufacturers to disclose the carbon emissions associated with their products through standardized labels, according to the report.

Since August 2024, pilot programs for this system have been rolled out by the State Administration for Market Regulation and other ministries. These pilots focus on key industries such as lithium batteries, photovoltaics, steel, and home appliances. The initiative aims to mobilize participation across government bodies, industries, and enterprises to advance carbon transparency and sustainable supply chains, the report noted.

Table 3: Pilot programs for carbon footprint labeling and certification – ferrous and non-ferrous products

Meanwhile, the MEE is encouraging corporates to disclose greenhouse gas emissions data for product carbon footprint accounting, fostering a policy environment conducive to reducing carbon intensity, as reported. By the end of 2024, over 1,000 listed companies had disclosed their greenhouse gas emissions data, it mentioned.

To drive adoption of carbon footprint systems across broader industries, the Chinese government is pioneering innovative applications in finance and rolling out carbon labeling for consumer goods, according to the report.

Aligning with global standards

China is also advancing international collaboration on carbon footprint alignment by thoroughly studying global regulations like the EU Carbon Border Adjustment Mechanism (CBAM) and developing corresponding carbon accounting models for key industrial products.

Chinese enterprises and experts are encouraged to participate in international carbon footprint standardization efforts, while promoting China's low-carbon concepts and practical solutions. Through these measures, China aims to export multilateral pathways for sustainable development, the report stressed.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com