China to standardise carbon accounting and decarbonisation methods

The Chinese government is set to standardise carbon accounting and decarbonisation methods – including carbon capture, utilisation and storage (CCUS) by the end of this year.

By December 2024, China plans to publish 70 national standards covering carbon accounting, footprint, reduction and CCUS for key economic sectors, in a programme developed by the country’s National Development and Reform Commission, the State Administration for Market Regulation and the Ministry of Emergency Management.

Industries covered in the scheme will include “new energy” vehicles such as EVs, photovoltaic products and lithium batteries, as well as electronics, plastics and construction materials – all identified as drivers of future export growth.

In a bid to accelerate decarbonisation and reach an emissions peak by 2030, the country will also create a standardised carbon assessment tool for businesses, projects and products – to be made available in 2025.

Finally, the plan involves enhancing China’s cap and trade system for carbon emissions and improving the mechanisms for green and low-carbon development.

China integrates ISSB standards for emissions reporting

China recently announced its intention to make ISSB-aligned sustainability reporting mandatory, with a draft of its Corporate Sustainability Disclosure Standards published in late May.

The draft (in Chinese) included six chapters and 33 articles covering general provisions, disclosure objectives and principles, information quality requirements, disclosure elements, other disclosure requirements, and supplementary provisions. The government ran a public consultation until June 24, and is due to publish a final standard soon.

China is the latest of more than 20 countries and jurisdictions to turn the standards developed by the IFRS Foundation into mandatory climate disclosures.

The country aims to achieve carbon neutrality by 2060 and is aggressively developing its renewable energy capacity – helping the world meet its wind power targets.