On May 23rd, Premier Li Qiang of The State Council presided over a regular State Council executive meeting, which reviewed and approved the "Action Plan for Green and Low-Carbon Development of the Manufacturing Industry (2025-2027)". It aims to promote the transformation of the manufacturing industry towards green and low-carbon, and strengthen the sustainable development foundation of the new industrialization.

The meeting pointed out that promoting green and low-carbon development in the manufacturing industry is an inevitable trend. We should accelerate green technological innovation and the application of advanced green technologies, and strengthen the green foundation of new industrialization. To promote the in-depth green transformation of traditional industries, in conjunction with the implementation of policies such as large-scale equipment renewal, advanced equipment and processes should be actively applied to accelerate the green transformation and upgrading of key industries. We should lead emerging industries to develop at a high starting point in a green way, increase the promotion of clean energy and green products, and enhance the level of resource recycling and utilization. We should intensify research and development in common technologies, improve standards in key areas, optimize relevant policies, and perfect the green manufacturing and service system to better support and assist enterprises in their transformation and upgrading. It aims to promote the transformation of the manufacturing industry towards green and low-carbon, and strengthen the sustainable development foundation of the new industrialization.

The main contents of the plan

Deep green transformation of traditional industries

In line with the policy of large-scale equipment renewal, accelerate the green transformation and upgrading of key industries (such as steel, electrolytic aluminum, building materials, etc.) and apply advanced equipment and processes.

Strictly control the energy consumption scale of high energy-consuming industries, and promote low-carbon process innovation and digital transformation.

2. High starting point green development of emerging industries

- Increase the large-scale application of clean energy (such as hydrogen energy) in industries like metallurgy and chemical engineering.

Promote green products (such as new energy vehicles and photovoltaic modules) and enhance the level of resource recycling and utilization.

3. Green technological innovation and technological breakthroughs

Strengthen the research and development of common technologies and improve standards in key areas (such as carbon footprint accounting standards).

Accelerate the cultivation of green data centers and build a supply system for green and low-carbon products.

4. Improve the green manufacturing and service system

Optimize policy support and encourage enterprises to participate in the construction of green factories and green supply chains.

Promote financial support, such as green credit and green bonds, to reduce the cost of enterprises' low-carbon transformation.

5. Horizontal ecological protection compensation mechanism

Establish a compensation mechanism of "whoever pollutes, whoever treats; whoever protects, whoever benefits", and promote cross-regional ecological protection cooperation.

Explore compensation methods for ecological elements such as forests, grasslands and the atmosphere, and attract social capital to participate.

Policy Background and Significance

The plan is an important measure to implement the "dual carbon" goals, aiming to promote high-quality development of the manufacturing industry through technological innovation, industrial upgrading and institutional optimization. Previously, local policies have been introduced in regions such as Fujian and Sichuan, including subsidies for energy-saving renovations and support from green finance. This national-level action plan will further coordinate the green transformation of the national manufacturing industry.

This marks that China's manufacturing industry will enter a stage of deep green and low-carbon development. In the next three years, systematic support will be formed in multiple aspects such as technology, industry and finance to facilitate high-quality economic development.

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