Carbon Peaking And Carbon Neutrality Monthly Report, July 2025

In July 2025, China’s dual carbon (carbon peaking and carbon neutrality) work achieved multi-faceted breakthroughs in improving policy mechanisms, advancing industrial low-carbon transformation, and optimizing energy structure, showing a momentum of systematic advancement.The National Carbon Market marked the 4th anniversary of its operation, with accumulated transaction volume reaching 46.784 billion yuan. The covered industries have expanded from the power sector to iron and steel, cement, and other fields, and the carbon price remained stable in the range of 72-75 yuan/ton. Guangdong Carbon Market performed prominently: driven by the compliance window period, its transaction volume reached 1.2333 million tons, taking a leading position in local carbon markets. It also pioneered the judicial guarantee mechanism for carbon emission allowance pledge financing.

Outstanding Results in Industrial Emission Reduction

Over 80% of the production capacity in the iron and steel industry has completed ultra-low emission transformation. The building materials industry promoted the implementation of CCUS (Carbon Capture, Utilization and Storage) technology through international forums.New energy vehicle (NEV) production and sales hit new highs again: in July, NEV production and sales reached 1.243 million units and 1.262 million units respectively, with year-on-year growth of over 26%, and exports surged by 2.2 times year-on-year (note: a "1.2-fold surge" means the export volume is 2.2 times that of the same period last year). CSSC (China State Shipbuilding Corporation) developed the world’s first shipborne carbon capture system, which completed shipboard testing with a capture rate exceeding 80%, and its retrofit cost is only half of that of traditional solutions.

Accelerated Green Transformation of Energy Structure

Photovoltaic bases in "desert, gobi, and barren land" areas (abbreviated as "Shagehuang" in Chinese) in Xinjiang, Inner Mongolia, and other regions advanced intensively. The first batch of units of CTG (China Three Gorges Corporation) Jiangsu Dafeng 800MW Offshore Wind Power Project was connected to the grid, with an offshore distance of 85.5 kilometers, setting a new domestic record.Green finance provided strong support: as of the end of the second quarter, the balance of green loans in both RMB and foreign currencies reached 42.39 trillion yuan, with a year-on-year growth of 14.4%, providing solid financial guarantees for low-carbon projects.

Highlights in Local Practices

Xicheng District of Beijing has become the city’s first district-level administrative area where all government office compounds achieve carbon neutrality; 66 commercial buildings in the district signed green electricity contracts totaling 1.6 billion kWh.Guangzhou completed the construction of China’s first near-zero energy consumption building with a height of over 170 meters. Tianhe Stadium was retrofitted into the country’s first large-scale near-zero carbon sports venue, and the total installed capacity of distributed photovoltaics in the city reached 3.4987 million kW.

Progress in Technological Innovation

The International CCUS Technology Innovation and Cooperation Organization was established in Beijing, aiming to achieve an annual carbon dioxide capture capacity of 1.3 billion tons by 2050. At the national level, carbon emission assessment was incorporated into energy conservation review for the first time, and the application for zero-carbon park construction was officially launched—promoting the dual carbon work from pilot demonstrations to a new stage of systematization and institutionalization.