China Releases Action Plan for Carbon Peaking During the 15th Five-Year Plan Period
ISSUING AUTHORITY:
State Council
DATE OF ISSUANCE:
July 5, 2026
EFFECTIVE DATE:
July 5, 2026
The State Council has issued the Action Plan for Carbon Peaking During the 15th Five-Year Plan Period (2026–2030) (the “Action Plan”). It comprehensively lays out the overall requirements, targets, and implementation pathways for carbon peaking during the 15th Five-Year Plan period, covering energy restructuring, industrial transformation, transport and building decarbonization, and supporting policy mechanisms.
The Action Plan calls for a sweeping restructuring of the energy mix. By 2030, non-fossil energy will account for 25% of total energy consumption. Coal consumption will face further pressure: all coal-fired boilers of 10 tons/hour or less will be phased out, with progressive replacement of medium and small units across industries. For the first time, the plan includes a dedicated section on data center power infrastructure — newly built facilities will primarily operate on non-fossil energy.
The Action Plan targets the construction of approximately 100 national-level zero-carbon industrial parks and 500 zero-carbon factories during the 15th Five-Year period. Traditional industries like steel, electrolytic aluminum, cement, flat glass, petrochemicals face mandatory energy-saving and carbon-reduction retrofits. In transportation, new energy vehicles are expected to account for 30% of the national vehicle fleet by 2030. All newly constructed urban buildings must fully comply with green building standards.
The Action Plan establishes a national carbon emission data management system and a national greenhouse gas emission factor database. The national carbon emission trading market will be expanded to cover the petrochemical and chemical industries. A National Low-Carbon Transition Fund will be established, and financial institutions are encouraged to conduct carbon accounting for their investment portfolios. The Action Plan also calls for improved green finance standards and disclosure requirements, and the development of a unified national corporate sustainability disclosure standards system — key signals for foreign investors looking for transparency and comparability in China’s ESG landscape.
The Action Plan signals that carbon compliance is no longer a distant target — it is now a binding requirement with sector-specific timelines, mandatory retrofits, and expanding carbon market coverage.
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