The carbon inclusive emission reduction market is coming to the entire Zhejiang province! Effective from March 1.

Original Policy Text

To the People's Governments of all cities, counties (cities, districts), and all units directly under the provincial government:

The "Several Measures to Promote Dual Control of Carbon Emissions in Zhejiang Province" has been approved by the provincial government and is now issued to you. Please conscientiously implement it according to actual conditions.

General Office of the Zhejiang Provincial People's Government

January 21, 2025

Several Measures to Promote Dual Control of Carbon Emissions in Zhejiang Province

To accelerate the establishment of a new mechanism for the comprehensive transformation from dual control of energy consumption to dual control of carbon emissions in our province, and to actively and steadily promote carbon peaking and carbon neutrality, the following measures are formulated based on relevant documents from the General Office of the State Council and the actual situation of our province.

I. Overall Requirements

During the 14th Five-Year Plan period, significant progress was made in piloting the dual control of carbon emissions, positive results were achieved in the preparation of carbon emission budget management, carbon emission statistical accounting capacity continued to improve, and green and low-carbon development in key areas such as energy and industry was deeply promoted, striving to reduce carbon emission intensity.

During the 15th Five-Year Plan period, implement a dual control system for carbon emissions focusing on intensity control with total volume control as a supplement, establish and improve supporting systems such as local carbon assessment, regional carbon budgeting, industry carbon control, enterprise carbon management, project carbon evaluation, and product carbon footprint, to ensure the timely achievement of the carbon peak target.

After reaching the carbon peak, implement a dual control system for carbon emissions focusing on total volume control with intensity control as a supplement, promoting a stable and declining total carbon emission.

II. Solidly Promote Key Carbon Reduction Work

(1) Vigorously develop non-fossil energy. Promote the "Photovoltaic+" action, orderly advance the construction of nuclear power and offshore wind power projects, and vigorously develop new energies such as biomass energy, geothermal energy, and marine energy. By the end of 2025, add 6 million kilowatts of wind and photovoltaic installed capacity, 1 million kilowatts of nuclear power installed capacity, with the proportion of non-fossil energy consumption (excluding raw material energy use and separately accounted energy consumption projects) around 24%; by the end of 2030, the province's wind and photovoltaic and nuclear power installed capacity will reach 80 million kilowatts and 18 million kilowatts respectively. Scientifically plan and build pumped storage projects, with cumulative installed capacity of pumped storage in the province not less than 9.88 million kilowatts and 24 million kilowatts by the end of 2025 and 2030 respectively. (Responsible units: Provincial Energy Bureau, governments of cities and counties [cities, districts]. The first listed is the leading unit, the same below. All require implementation by city and county [city, district] governments and will not be listed again.) Formulate a high-quality development implementation plan for the hydrogen energy industry, promoting the full chain development of hydrogen energy "production, storage, transportation, and use." (Responsible units: Provincial Development and Reform Commission, Provincial Energy Bureau)

(2) Solidly promote coal control and reduction. Reasonably control coal use for power generation and heating, continuously promote the "three reforms linkage" of coal power, and complete energy-saving and carbon reduction transformation of more than 15 million kilowatts of existing coal power units by the end of 2025. Promote the replacement of coal heating with industrial waste heat and clean energy, and explore heating with small nuclear reactors. Promote coal reduction in key industries such as building materials, steel, and chemical industries, and complete the elimination of all 35-ton/hour coal-fired boilers by the end of 2025. (Responsible unit: Provincial Energy Bureau)

(3) Promote transformation and upgrading of key industries. Accelerate energy-saving and carbon reduction technology transformation in key industries. Deeply implement energy efficiency standard leading actions in key industrial fields. For existing projects with energy efficiency below the benchmark level, upgrade to above the benchmark within the prescribed time limit; those that cannot be upgraded on time will be eliminated. By the end of 2025, complete technological transformation or elimination in 25 fields including refining, ethylene, and caustic soda; by the end of 2026, complete technological transformation or elimination in 11 fields including ethylene glycol and radial tires. (Responsible units: Provincial Development and Reform Commission, Provincial Economic and Information Technology Department, Provincial Ecology and Environment Department, Provincial Energy Bureau)

(4) Vigorously develop green and low-carbon industries. Implement the "Green and Low-Carbon Transformation Industry Guidance Catalogue (2024 Edition)", create a favorable development environment. Vigorously develop green and low-carbon industries such as environmental protection, energy saving and carbon reduction, and resource recycling, accelerate the cultivation of strategic emerging industries such as intelligent connected vehicles and new materials, and achieve a total output value of energy-saving and environmental protection industries of 1.5 trillion yuan by the end of 2025. (Responsible units: Provincial Development and Reform Commission, Provincial Economic and Information Technology Department, Provincial Ecology and Environment Department)

(5) Continuously promote the orderly exit of backward production capacity. Deeply promote "replacing the old with the new," strictly implement capacity replacement requirements, and eliminate backward production capacity according to law and regulations. (Responsible units: Provincial Economic and Information Technology Department, Provincial Development and Reform Commission, Provincial Ecology and Environment Department, Provincial Energy Bureau) Revise the "Zhejiang Province Energy Conservation Review Measures," formulate a management catalogue for "two high" projects, and resolutely curb the blind launch of high energy-consuming, high-emission, and low-level projects. (Responsible units: Provincial Energy Bureau, Provincial Development and Reform Commission, Provincial Economic and Information Technology Department, Provincial Ecology and Environment Department)

III. Establish and Improve the Dual Control System for Carbon Emissions

(6) Improve carbon emission-related planning systems. Incorporate carbon emission intensity reduction targets into the provincial and municipal "15th Five-Year Plan" for national economic and social development and related special plans, and improve implementation plans for carbon peaking in key areas and industries. (Responsible unit: Provincial Development and Reform Commission)

(7) Establish a carbon emission budget management system. Promote the establishment of carbon emission budget management systems at the provincial, municipal levels and in some counties (cities, districts) with relatively high total carbon emissions, build carbon emission calculation and analysis models, and strengthen dynamic monitoring of carbon emission budget execution. By the end of 2025, the provincial level and Hangzhou and Huzhou cities will take the lead in completing the trial preparation of carbon emission budget management, and other prefecture-level cities will accelerate the start. During the 15th Five-Year Plan period, scientifically determine the total carbon emission budget and annual budget, and fully implement provincial and municipal dual-level carbon emission budget management. (Responsible unit: Provincial Development and Reform Commission)

(8) Establish a local carbon emission target evaluation system. During the 15th Five-Year Plan period, comprehensively consider factors such as economic and social development levels, regional and functional positioning, industrial and energy structures, reasonably allocate carbon emission dual control targets, and firmly assign emission control and reduction responsibilities to localities and key enterprises. (Responsible unit: Provincial Development and Reform Commission)

(9) Strengthen carbon emission management in industries and enterprises. Leverage the role of industry authorities to carry out carbon emission accounting in key industries such as power and petrochemicals, and key fields such as construction and transportation; establish data sharing and joint supervision mechanisms. (Responsible units: Provincial Development and Reform Commission, Provincial Economic and Information Technology Department, Provincial Construction Department, Provincial Transportation Department, Provincial Statistics Bureau, Provincial Energy Bureau) Improve the carbon emission situation analysis mechanism, issue early warnings for industries and fields with rapid carbon emission growth, and take measures such as stricter approval of new projects, stricter management of key energy users and carbon emission units as appropriate. Support qualified regions to explore total carbon emission control in key industries. (Responsible unit: Provincial Development and Reform Commission) Implement fossil energy consumption budget management for key energy-using units, and promote the inclusion of carbon emission control requirements into management systems. Explore the implementation of carbon emission budget management for key carbon emission units. (Responsible units: Provincial Development and Reform Commission, Provincial Ecology and Environment Department, Provincial Energy Bureau) Formulate provincial carbon inclusive emission reduction trading management measures, and establish and operate a provincial carbon inclusive emission reduction market by the end of 2025. (Responsible unit: Provincial Ecology and Environment Department)

(10) Establish a carbon emission evaluation system for fixed asset investment projects. Develop and implement technical guidelines for carbon emission evaluation of fixed asset investment projects, fully promote based on the pilot exploration of "one city, one industry"; during the 15th Five-Year Plan period, explore carbon emission equivalent and reduction substitution for new projects in key industries. (Responsible units: Provincial Development and Reform Commission, Provincial Energy Bureau) Deepen environmental impact assessment of greenhouse gas emissions in key industries. (Responsible unit: Provincial Ecology and Environment Department)

(11) Build a product carbon footprint management system. Improve the carbon footprint accounting standard system of "general rules + industry + product", and formulate about 20 standards by the end of 2025 and about 100 by the end of 2030. Promote the construction of the provincial product carbon footprint service platform, improve the carbon footprint background database, and complete the collection of product data and carbon footprint accounting for more than 300 products by the end of 2025. Strengthen the application of green power certificates in the key product carbon footprint accounting system. (Responsible units: Provincial Ecology and Environment Department, Provincial Development and Reform Commission, Provincial Market Supervision Bureau) Deepen the national comprehensive reform of "dual carbon" certification, promote product carbon footprint label certification work, and complete 10 and 50 product carbon label certification applications by the end of 2025 and 2030 respectively. Promote mutual recognition and sharing of databases and carbon labels with regions such as the Yangtze River Delta and Guangdong-Hong Kong-Macao Greater Bay Area. (Responsible units: Provincial Market Supervision Bureau, Provincial Development and Reform Commission, Provincial Ecology and Environment Department)

(12) Improve carbon emission statistical accounting methods. Accelerate the construction of a unified and standardized carbon emission statistical accounting method. Conduct carbon emission statistical accounting for provincial energy activities and industrial production processes, promote the preparation of energy balance sheets or simplified energy balance sheets for prefecture-level cities, establish carbon emission statistical accounting methods for prefecture-level cities, and support localities in monitoring carbon emission progress. (Responsible units: Provincial Statistics Bureau, Provincial Development and Reform Commission)

(13) Strengthen the construction of the carbon measurement and monitoring system. Accelerate the layout and construction of a number of carbon measurement centers. (Responsible units: Provincial Market Supervision Bureau, Provincial Development and Reform Commission, Provincial Ecology and Environment Department) Conduct carbon emission measurement review in key industries. (Responsible unit: Provincial Market Supervision Bureau) Deepen carbon monitoring and evaluation work, build a comprehensive and reasonably distributed three-dimensional carbon emission monitoring network covering the whole province, and orderly promote full coverage of energy consumption measurement for key energy-using units and key carbon emission units throughout the province. (Responsible units: Provincial Ecology and Environment Department, Provincial Energy Bureau)

4. Organization and Implementation

The Provincial Development and Reform Commission and the Provincial Ecology and Environment Department shall strengthen overall coordination, improve work mechanisms, and enhance supervision and implementation. Localities and departments shall refine and implement measures based on actual conditions, fully leverage the guiding role of standards, increase innovation in advanced green and low-carbon technologies, coordinate fiscal and financial policies, strengthen publicity, interpretation, and education and training, and continuously promote the implementation of key tasks in building the carbon emission dual control system.

This document shall come into effect on March 1, 2025.