China's 2025 climate priorities unveiled in Government Work Report: China Climate Compass #5

2025 main target & core task; Beautiful China Initiative; installed renewable energy capacity; green and low-carbon economy; dual carbon goals

China Climate Compass is your go-to series for the latest decarbonization trends in China. I handpick insights from government policies, industry experts, and leading academics to bring you a clear picture of the country's green future. I curate this newsletter in my spare time with genuine passion, so feel free to subscribe before you dive in!

Chinese Premier Li Qiang has just delivered his annual Government Work Report, and below are my takeaways from and some analysis of the report on the country's green initiatives for the coming year.

For ease of reference:

• "GWR" refers to the Government Work Report;

• "CEWC" refers to the Central Economic Work Conference;

• "Third Plenum" refers to the Third Plenary Session of the 20th CPC Central Committee.

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I. Increased Emphasis on Green Initiatives

Overall, the green initiatives outlined in the 2025 GWR aligns with the tone set by the 2024 CEWC last December and is longer and more detailed than those in the 2024 GWR, subtly indicating that greater emphasis will be placed in the coming year.

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II. 2025 Main Target & Core Task

单位国内生产总值能耗降低3%左右，生态环境质量持续改善。

a drop of around 3 percent in energy consumption per unit of GDP; continued improvements in the environment

• Energy consumption per unit of GDP dropped by 3.8% in 2024, according to the Statistical Communiqué of the People's Republic of China on the 2024 National Economic and Social Development, higher than the "around 2.5%" target set in the 2024 GWR.

• Despite this, the 14th Five-Year Plan's goal of reducing energy consumption per unit of GDP by 13.5% from 2021 to 2025 appears nearly unattainable. This is because, from 2021 to 2023, nationwide energy consumption per unit of GDP decreased by 2.7%, 0.1%, and 0.5% respectively—meaning that over these three years, the overall reduction was only 3.28%.

• This is perhaps why the State Council, in its issued "2024-2025 Energy Conservation and Carbon Reduction Action Plan," urged to "make every effort to complete the binding energy conservation and carbon reduction targets for the 14th Five-Year Plan 尽最大努力完成“十四五”节能降碳约束性指标." The phrase "make every effort to complete" here is quite nuanced—demanding commitment while allowing for flexibility.

（九）协同推进降碳减污扩绿增长，加快经济社会发展全面绿色转型。

9. Making coordinated efforts to cut carbon emissions, reduce pollution, pursue green development, and boost economic growth and accelerating the green transition in all areas of economic and social development

• "降碳减污扩绿增长 cut carbon emissions, reduce pollution, pursue green development, and boost economic growth" has been uplifted to the first paragraph, marking it as the core task in 2025. This also signifies a shift in China's ecological conservation, moving from end-of-pipe management to a more systematic and comprehensive green transformation.

• Also featured in the opening paragraph is the focus on "accelerating the green transition in ALL areas of economic and social development." In contrast, the 2024 GWR concentrated green transformation on specific industries: industrial structure, energy mix, transportation sector, and urban-rural development.

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III. Installed renewable energy capacity

（2024年）可再生能源新增装机3.7亿千瓦。

installed renewable energy capacity grew by 370 million kilowatts (in 2024).

• Some figures have been overlooked by many: Since 2013, China has been responsible for over 40 percent of the annual additions to global renewable energy capacity. In 2023, the newly installed capacity in China accounted for more than half of the world's total, according to the White Paper China's Energy Transition.

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IV. Beautiful China Initiative

积极推进美丽中国先行区建设，不断满足人民群众对良好生态环境新期待。

We will continue to develop pilot zones under the Beautiful China Initiative and keep working to meet people's expectation for a healthy environment.

• The Beautiful China Initiative will remain a top priority in the coming year, though it has received relatively little attention. Pilot zones for this initiative have already been launched as required in the 2024 GWR, so in 2025, the focus will be on "continue to develop pilot zones under the Beautiful China Initiative."

• I have analyzes the significance of and key efforts outlined in the relevant documents concerning this initiative, including a decision on the "Implementation of Launching Pilot Zones for the Beautiful China Initiative," along with two detailed implementation plans for Beautiful City Development and Beautiful Countryside Development. You can access here.

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V. Renewable Energy Base Development

加快建设 “沙戈荒”新能源基地，发展海上风电，统筹就地消纳和外送通道建设。

We will accelerate the construction of new energy bases in desert areas, the Gobi, and other arid areas, develop offshore wind farms, and promote both the integration of renewable energy into local grids and the construction of transmission routes.

• Distributed energy made its debut in the 2024 GWR. In China, distributed renewable power generation is mainly driven by distributed photovoltaics and decentralized wind power. And in 2025, the GWR shifts its focus to new energy bases in desert regions and offshore wind farms. According to the National Energy Administration's monthly coordination meeting on renewable energy power development in February, distributed new energy emerged as a rising force in 2024—with distributed photovoltaics accounting for over 40% of total photovoltaic power generation.

• For clarity, "desert areas, the Gobi, and other arid regions" typically refer to places like Inner Mongolia and Qinghai, while “offshore wind farms” primarily target nearshore zones in provinces such as Fujian and Guangdong.

• In the 2025 GWR, equal emphasis is placed on integrating renewable energy into local grids and constructing transmission routes—marking a significant shift from 2024, when the focus was solely on building transmission routes.

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VI. Green and Low-carbon Economy

加快发展绿色低碳经济。完善支持绿色低碳发展的政策和标准体系，营造绿色低碳产业健康发展生态。深入实施绿色低碳先进技术示范工程，培育绿色建筑等新增长点。

We will accelerate development of the green and low-carbon economy.

We will refine the policies and standards supporting green and low-carbon development and foster a sound environment for the development of green and low-carbon industries. We will carry out demonstration programs for the latest green and low-carbon technologies and foster new growth drivers such as green buildings.

• The efforts regarding green and low-carbon economy is shifted to "accelerate development 加快发展" in 2025, from the 2024 "boost 大力发展," a more proactive signal. To support this shifting, more detailed measures have been unveiled, including "refine the policies and standards supporting green and low-carbon development and foster a sound environment for the development of green and low-carbon industries."

• New growth drivers such as green buildings are proposed once again since it was first put forward in 2024 CEWC.

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VII. Dual Carbon Goals

积极稳妥推进碳达峰碳中和。扎实开展国家碳达峰第二批试点，建立一批零碳园区、零碳工厂。加快构建碳排放双控制度体系，扩大全国碳排放权交易市场行业覆盖范围。开展碳排放统计核算，建立产品碳足迹管理体系、碳标识认证制度，积极应对绿色贸易壁垒。

We will actively and prudently work toward peaking carbon emissions and achieving carbon neutrality.

We will steadily advance the second batch of trials for peaking carbon emissions and establish a group of zero-carbon industrial parks and factories. We will speed up the establishment of a framework for controlling the total amount and intensity of carbon emissions and expand the coverage of the China Carbon Emission Trade Exchange to more sectors. We will launch carbon emissions statistics and accounting initiatives, develop systems for carbon footprint management and carbon labeling and certification and take active steps to respond to green trade barriers.

开展煤电低碳化改造试点示范。规划应对气候变化一揽子重大工程，积极参与和引领全球环境与气候治理。

Low-carbon upgrade trials will be launched in coal-fired power plants. We will develop a package of major projects for climate change response and actively engage in and steer global environmental and climate governance.

• General Requirement unchanged: China continues its commitment from 2024 GWR to "actively and prudently 积极稳妥" pursue peak carbon emissions and carbon neutrality in the coming year.

• However, the specific priorities have shifted notably. The 2025 GWR follows the language from the 2024 CEWC, calling for the establishment of zero-carbon industrial parks and factories, while also accelerating the establishment of a framework for controlling the total amount and intensity of carbon emissions.

• Furthermore, the 2025 GWR goes beyond last year's emphasis on "improving carbon accounting and verification capacities" to now advocate for concrete actions in "launching carbon emissions statistics and accounting initiatives," so as to "respond to green trade barriers."