On 13 November, the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT), the State Administration for Market Regulation (SAMR), the Ministry of Housing and Urban-Rural Development (MoHURD) and the Ministry of Transport (MOT) jointly issued the Opinions on Accelerating the Establishment of a Product Carbon Footprint Management System.

The document indicates that a unified and standardized product carbon labeling certification system will be established at the national level. The aim is to provide guidance to enterprises in energy conservation and carbon reduction, by clearly labeling the quantitative information of a product’s carbon footprint. NDRC, in conjunction with SAMR, MIIT, MoHURD, MOT and other government departments, will further research and formulate management methods for product carbon labeling certification, clarifying the scope of application, label styles, certification processes, and management requirements. Enterprises are encouraged to actively participate in the product carbon labeling certification and use carbon labels on products, packaging, advertisements, and other locations.

To support the implementation of this certification scheme, the document proposes the formulation of standards for calculating product carbon footprints. By 2025, China will introduce around 50 carbon footprint calculation rules and standards for key products at the national level; by 2030, the number is expected to reach 200. Specifically:

  • SAMR, in collaboration with NDRC, will expedite the formulation of national standards for the basic elements of product carbon footprint calculation. These will specify the boundaries, calculation methods, data quality requirements, and traceability requirements for product carbon footprint calculations.
  • NDRC will identify key products for prioritized formulation of calculation standards.
  • Industry regulators, such as MIIT, MoHURD, MOT, and the Ministry of Agriculture and Rural Affairs, will collaborate with industry associations, leading enterprises and research institutions to research and formulate association standards for calculating the carbon footprint of key products. Once the time is ripe, these association standards can be adopted by government as national standards or sector standards.
  • Industry regulatory departments, in coordination with NDRC and SAMR, will issue a list of recognized standards, providing unified rules for enterprises and institutions to follow.

Regarding the alignment and mutual recognition with international standards, the document states that China will adhere to the principle of independence while enhancing communication and coordination with international counterparts, actively participating in the revision of international standards related to carbon footprints, and promoting alignment and mutual recognition of carbon footprint calculation rules and certification results with major trading partners. At the same time, China will monitor international organizations and major economies’ management systems related to carbon footprints, certification rules, and implementation effects, and convert relevant international standards into national or sector standards in line with China’s actual conditions.

With the date set for achieving the carbon peak approaching, China faces increasing pressure to reduce carbon emissions. It is foreseeable that this certification system will play a crucial role in China’s efforts to control and reduce carbon emissions, potentially becoming a de facto mandatory admission requirement. On the other hand, the emphasis on independence may lead to differences between China’s calculation standards and their international counterparts, potentially posing a new challenge for overseas companies entering the Chinese market.