ESG Post

Decarbonisation Regulators

China to launch carbon footprint management system by 2027

China is all set to introduce a better measurement system for the carbon content in its products in a bid to reach its climate goals and meet overseas carbon standards.

According to a policy document, the Ministry of Ecology and Environment’s new “carbon footprint management system” will go into effect in 2027. This system will set standards for measuring carbon emissions for almost 100 key products in the Chinese economy.

The new calculation standards will initially apply to high-emitting products such as coal, and natural gas and export products like steel, lithium batteries, aluminum, and electric vehicles. The ministry hopes to expand the guidance to 200 products by 2030.

Analysts highlighted that these calculations could play a crucial role in China’s initiatives to lower emissions linked to product manufacturing. This strategy aims to circumvent trade tensions and steep import tariffs imposed by the European Union’s recent carbon border tax.

Director at the Institute of Public and Environmental Affairs in Beijing, Ma Jun said, “The move shows China is working to catch up with EU legislation that already has set clear rules on the measuring and disclosure of product carbon footprints. China is a late-comer on that, so there are still some gaps to fill. The calculations could also help China create incentives for companies and individuals to reduce emissions.”