Carbon Peaking And Carbon Neutrality Monthly Report, June 2025

     In June 2025, China’s dual carbon (carbon peaking and carbon neutrality) work advanced in a coordinated manner around the core themes of "policy guidance, technological breakthroughs, and market response." Breakthroughs were achieved across multiple dimensions, including the expansion of the carbon market, emission reduction in key industries, the implementation of clean energy projects, and innovation in green finance.

1. Deepening of Policies and Carbon Market Development

        The Ministry of Ecology and Environment issued the Notice on Key Work of the National Carbon Market in 2025. This document not only clarified the detailed registration and management rules for incorporating the iron and steel, cement, and aluminum smelting industries into the national carbon market but also required key emitters to complete the submission, verification, and technical review (for the power generation industry) of 2024 greenhouse gas emission reports by June 30. These measures laid a solid data foundation for the full integration of the three high-energy-consumption industries into the carbon market.As of the end of June, among 193 iron and steel enterprises nationwide, 144 had completed full-process ultra-low emission transformation, covering 598 million tons of crude steel production capacity—accounting for 72% of the industry’s total capacity. During the Energy Conservation Publicity Week (June 23–29), the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) co-hosted the "Thematic Forum on Low-Carbon Transformation of the Iron and Steel Industry." Ten leading enterprises, including Angang Steel and HBIS Group, jointly released the Industry Emission Reduction Commitment, which specified that 50% of their production capacity would meet the national energy efficiency benchmark by the end of 2025. This initiative drives the industry’s shift from "passive emission reduction" to "proactive quality improvement."

2. Prominent Results in Industrial Emission Reduction

      The new energy vehicle (NEV) sector delivered outstanding performance. In June, NEV production and sales reached 1.268 million units and 1.329 million units respectively, with year-on-year growth rates of over 26%. Among these, exports hit 205,000 units, a year-on-year surge of 140%. The Yangtze River Delta and Pearl River Delta regions accounted for over 70% of total exports, and the sales share of new energy SUV models rose to 45%, indicating a more diversified market structure. From January to June, the industry’s cumulative production and sales exceeded 6.9 million units, a year-on-year increase of 41%, maintaining China’s position as the world’s top NEV market.The iron and steel industry increased investment in green development. For key enterprises tracked by the China Iron and Steel Association (CISA), investment in energy conservation and environmental protection accounted for 28.9% of total investment in the first half of the year, a year-on-year increase of 4.3 percentage points. Total energy consumption decreased by 1.5% year-on-year, and sulfur dioxide emissions per ton of steel dropped to less than 0.3 kilograms. Baowu Group completed ultra-low emission transformation for 80% of its production capacity; 8 out of its 12 production bases passed the acceptance for national energy efficiency benchmark demonstration plants, accounting for 53% of all publicly announced enterprises nationwide.

3. Accelerated Implementation of Energy Transition and Technological Innovation

      The Jiangsu Guoxin Dafeng 850,000-kilowatt Offshore Wind Power Project achieved grid connection for its first batch of units on June 26. As Jiangsu’s first large-scale offshore wind power project in the parity era (no government subsidies), it applied 8.5-megawatt typhoon-resistant wind turbine models in bulk for the first time—improving power generation efficiency by 18% compared with traditional models. The project took only 4 months from groundbreaking to grid connection, setting a record for the construction speed of similar domestic projects. After full-capacity operation, it will generate 2.2 billion kilowatt-hours of electricity annually, reducing carbon dioxide emissions by 1.6 million tons per year.Breakthroughs were also made in Carbon Capture, Utilization and Storage (CCUS) technology. The Jilin Oilfield CCUS Project has cumulatively sequestered over 3.8 million tons of carbon dioxide, maintaining its leading position in China. Its independently developed full-process technology for "carbon dioxide capture-transportation-oil displacement-storage" has realized 100% localization of key equipment such as compressors and injection pumps, reducing costs by 40% compared with imported equipment. Currently, this technology has been successfully exported to the Jabung Oilfield in Indonesia, supporting low-carbon development of overseas oilfields.

4. Synergistic Efforts in Local Practices and Green Finance

     The Jinan Zero-Carbon Smart Industrial Park completed acceptance and inspection on June 30. The park integrates 1,500 square meters of building-integrated photovoltaics (BIPV) glass and 2,000 square meters of monocrystalline silicon photovoltaic panels, with a supporting 500-kilowatt-hour energy storage system. It generates 950,000 kilowatt-hours of electricity annually, and when combined with purchased green electricity, it can reduce carbon dioxide emissions by 2,700 tons per year. Its "photovoltaics + energy storage + low-carbon operation" model won the "Global Human Settlement Environment Planning and Design Award."The Wujin Green Building District in Changzhou launched the "Carbon Sky Eye" digital monitoring system, covering 42 industrial enterprises and 28 public buildings in the district. It tracks 12 real-time indicators, including energy consumption and carbon emission intensity, and has customized carbon emission optimization plans for 15 enterprises, reducing their average energy consumption by 8%.In the green finance sector, as of the end of June, the balance of green loans in Jiangsu’s banking industry reached 5.37 trillion yuan, an increase of 19.7% from the beginning of the year. Among these, loans for new energy projects and energy-saving transformation projects accounted for over 60%. Bank of Nanjing issued the country’s first green financial bond worth 10 billion yuan in line with the Common Ground Taxonomy for Sustainable Finance, with funds specifically allocated to distributed photovoltaic projects and urban sewage treatment projects.Shandong Changle Rural Commercial Bank has issued a total of 267 million yuan in "Green Ecological Loans," with 85% invested in household photovoltaic installations and photovoltaic transformation of agricultural greenhouses. This has benefited over 1,200 rural households, increasing their annual income by more than 3,000 yuan per household on average, and promoting the dual empowerment of rural energy transition and people’s livelihood improvement.