China has unveiled a major policy framework to transform its industrial base into a network of "zero-carbon" factories to align with the nation's dual carbon peak and carbon neutrality goals, expected to be achieved before 2030 and 2060, respectively.

The guideline for the development of zero-carbon factories, jointly issued by five government departments, including the Ministry of Industry and Information Technology, envisions the development of such factories through a phased and tiered approach, thereby driving carbon reduction, efficiency gains, and a green, low-carbon transformation in key sectors.

Zero-carbon factory development refers to a process in which factories continuously reduce carbon dioxide emissions within their premises and gradually move toward near-zero levels through emissions-cutting measures, such as technological innovation, structural adjustment and management optimization.

According to the MIIT, the term "zero-carbon factory" does not refer to achieving absolute zero carbon emissions. Instead, it focuses on minimizing emissions as much as possible while pursuing continuous improvements within current technical and economic constraints to maintain the lowest feasible emission levels.

The guideline said priority will be given to industries with pressing decarbonization needs, heavy reliance on electricity, and relatively lower technical hurdles to reduce emissions. Starting this year, China will select a batch of pilot zero-carbon factories to establish benchmarks for broader rollout.

"It represents the country's top-level design and comprehensive framework for zero-carbon factory development, serving as a pivotal blueprint for the transformation and upgrading of industrial enterprises in the foreseeable future," said Tian Jinping, a researcher at Tsinghua University's School of Environment.

Noting that the guideline was launched at the start of China's 15th Five-Year Plan (2026-30) period, Tian said he believes that the policy will help consolidate the foundation of the real economy, and drive the intelligent, green and integrated development of the manufacturing sector.

"The core objective of building zero-carbon factories — in line with the country's carbon peak and neutrality goals — is to direct industrial enterprises to embrace green technologies and methods that enhance efficiency, reduce emissions, cut pollution and boost productivity," he said.

This initiative, he added, will help foster green manufacturing capabilities and green productivity, strengthening the presence and competitiveness of China's industrial sector within the global supply chain.

According to the policy document, by 2027, China will have fostered a number of zero-carbon factories in sectors including automobiles, lithium batteries, photovoltaics, electronics and electrical appliances, light industry, machinery and computing power facilities.

By 2030, the initiative will be gradually expanded to industries such as steel, nonferrous metals, petrochemicals, building materials and textiles, exploring new pathways for decarbonizing traditional energy-intensive sectors.

Pan Xiaohai, deputy general manager of China International Engineering Consulting Corporation, in an article published by the MIIT, said the sector-specific, phased rollout takes into account various factors, such as industry dynamics, carbon emission patterns, decarbonization technologies and cost-effectiveness.

"It seeks to build front-runners in competitive sectors like automotive and lithium batteries while charting viable courses for traditional energy-intensive sectors such as steel and nonferrous metals, embodying a holistic yet prudent approach to advance carbon peaking and neutrality goals in the industrial sector," Pan said.

The guideline also details key implementation routes for building zero-carbon factories, including establishing a carbon dioxide emissions accounting system to identify and quantify emissions and removals, encouraging eligible factories to build industrial green microgrids, and promoting the application of next-generation information technologies.

Highlighting that building such factories is a complex, systematic project, Tian said that the efforts hinge upon three pillars: an energy system based on renewables, a technical system defined by low-carbon processes, and a management and service system empowered by intelligent technologies.

China's green transition is advancing within a global context of intensified climate action. Data shows that as of October last year, approximately 145 countries and regions — collectively accounting for nearly 77 percent of global emissions — had announced or were considering carbon neutrality targets.

Against this backdrop, China has steadily deepened its commitment to industrial decarbonization. Over the past decade, the country has rolled out a series of policy documents and practical measures aimed at promoting green manufacturing and scaling up green factories.

The move shifted to a higher gear in August 2022, when the MIIT, the National Development and Reform Commission, and the Ministry of Ecology and Environment jointly issued an implementation plan for carbon peaking in the industrial sector, proposing guiding green factories to upgrade and build super energy-efficient and zero-carbon factories.

Subsequent policies have called on green factories to deepen their efforts in energy conservation and carbon reduction, and actively pursue a zero-carbon status.

This push was further elevated last year in high-level government directives, which designated the construction of zero-carbon factories and industrial parks as a priority within the national carbon peaking program.

According to the MIIT, as of the end of 2025, China had cultivated 6,430 national-level green factories, with their output value share in the total manufacturing industry reaching 20 percent, up from 9 percent in 2020.

In recent years, provincial-level regions across China have also been developing pathways toward zero-carbon industrial transition. Key economic hubs including Jiangsu, Zhejiang and Guangdong provinces, as well as municipalities such as Tianjin and Shanghai, have introduced dedicated guidelines and evaluation criteria to advance pilot projects for zero-carbon and near-zero-carbon factories.

This momentum has been further strengthened by widespread policy incentives. According to a report by CIB Research, a Shanghai-based business think tank, supportive policies for the construction of zero-carbon parks and factories have been implemented across 29 provincial-level regions and in 152 cities nationwide.

Among these regions, Jiangsu has rolled out the most robust support measures, such as in the city of Kunshan, which offers rewards of up to 1 million yuan ($144,700) for factories officially recognized as "zero-carbon" and "near-zero-carbon".

At the corporate level, this momentum is equally strong. By November last year, close to 13,000 businesses had joined the global "Race to Zero" campaign, committing to halving their emissions by 2030. Over 2,300 major corporations worldwide have set explicit net-zero targets, actively advancing the development of zero-carbon facilities.

Hisense, a Chinese home appliance and consumer electronics manufacturer, has pledged to peak carbon emissions in its operations no later than 2026 and achieve operational carbon neutrality by 2050.

Tian, the Tsinghua University researcher, said the widespread adoption of zero-carbon factories and industrial parks will serve as a major lever for China's comprehensive green transformation under its carbon peaking and neutrality agenda.

He emphasized that this shift will enhance the competitiveness of the real economy, support the development of a modern industrial system centered on advanced manufacturing, and strengthen the material and technological foundation of Chinese modernization.

Strategically, Tian noted, it will also drive the integration of green practices across all stages — from planning, design and investment to production, distribution, lifestyle and consumption — ultimately contributing to the establishment of a resilient, green, low-carbon and circular economic system.

Xinhua contributed to this story.

jihaisheng@chinadaily.com.cn