Today, 149 countries around the world, collectively accounting for over 80% of global carbon emissions, have announced their commitment to carbon neutrality. Practical actions at the subnational level—within provinces, states, and cities—are essential for achieving these goals. The need for localized efforts aligns with the long-standing mission of Energy Foundation China (EF China) and its partners, who are dedicated to exploring pathways for subnational low-carbon transitions and fostering sustainable prosperity. Such efforts are becoming particularly significant for China as the country advances toward its “dual carbon” goals – peaking CO2 emissions before 2030 and achieving carbon neutrality before 2060.

 

Supporting Subnational Pilot Programs to Advance Carbon Reduction Practices

In 2009, China set a goal to reduce CO2 emissions per unit of GDP by 40-45% from the 2005 level by 2020. Since then, climate action and emission reduction have become integral to the country’s economic and social development agenda. However, challenges remain in defining clear priorities, strategies, and policies for the low-carbon transition, as well as in mobilizing public support for low-carbon development. To facilitate the rollout of national low-carbon policies, implementing pilot initiatives at the subnational level offers an innovative approach for gaining practical experience and insights.

Acknowledging the importance of local-level action, EF China has actively participated in subnational low-carbon pilot programs.

In February 2010, EF China, in collaboration with its partners, initiated the China Low-Carbon Economy Research and Pilot Project for Climate Change Response. This project provided crucial theoretical support for formulating low-carbon transition pilot plans in Guangdong and Hubei Provinces, Chongqing Municipality, and the cities of Nanchang in Jiangxi Province and Baoding in Hebei Province. In July 2010, China released the Notice on Launching Low-Carbon Provinces and Cities Pilot Program, officially initiating the first batch of low-carbon pilots across five provinces and eight cities. EF China and its partners supported the implementation plans across all the thirteen pilot areas, conducting research on critical issues such as pilot targets, priority sectors, supporting measures, task allocation, and timelines, which informed local policies and measures.

 

At the same time, carbon trading gained increased attention across different sectors. In October 2011, China designated Beijing, Tianjin, Shanghai, Chongqing, Hubei, Guangdong, and Shenzhen as pilot regions for carbon emissions trading. EF China and its partners played an active role in supporting preliminary research for emissions trading in four of these pilot areas—Beijing, Tianjin, Shanghai, and Guangdong. Their efforts included analyzing management measures, developing methodologies for emissions data accounting and reporting, and researching allowance auctioning systems. To effectively integrate international experience into the carbon trading pilots, EF China facilitated exchanges between Chinese policymakers and researchers and their international counterparts by organizing a series of seminars, training programs, and learning sessions. These efforts laid the groundwork for the four pilot regions to launch their carbon emissions trading schemes within two years and provided insights for nationwide implementation in the future.

The shared origins of air pollutants and greenhouse gas emissions reveal a profound underlying connection between the two, as reflected in the 2015 revision of China’s Law on Air Pollution Prevention and Control, which promotes coordinated control of both air pollution and greenhouse gas emissions. Cities serve as essential platforms for implementing these coordinated measures, so overcoming departmental silos to set shared targets and pathways is a critical step.

 

In 2018, EF China, together with its research team, cooperated with the city of Shenzhen to pioneer a dual-target approach for meeting both air quality standards and peaking carbon emissions. This initiative yielded significant findings: demand management and structural adjustment demonstrated strong synergies in emission reduction, with notable benefits from industrial restructuring and cross-regional collaborative management. The research further indicated that coordinated governance could not only lower emissions of air pollutants and CO2 but also create new sustainable development opportunities amid accelerated low-carbon transitions across industries. These insights provided vital support for Shenzhen’s green transformation by dispelling concerns that air quality improvement and carbon reduction efforts might hinder economic growth, which further promoted the development of national-level policies that balance air quality, carbon reduction, and sustainable growth. Additionally, the project team developed a practical guide, Achieving Triple Goals Action Guide and the Shenzhen Experience, serving as a model for other cities aiming to achieve synergies across climate, environment, and economic objectives.

Deepening Subnational Efforts to Support Low-Carbon Sustainable Development Systematically

Since the announcement of the “dual carbon” goals, low-carbon transition and sustainable development have become strategic priorities on China’s economic and social policy agenda. Governments at the provincial and municipal levels are now tasked with formulating targeted transition policies and plans that will, in turn, inform national policy formulation.

“Starting in 2020, EF China has made promoting subnational low-carbon transitions a core priority, committing to strategic and systematic approaches in both thought and practice,” stated Fu Sha, Director of Strategy and Planning at EF China. “Our focus now is on refining targeted strategies and fostering comprehensive integration of low-carbon initiatives at local level.”

EF China has categorized Chinese provinces and cities into five groups based on the availability of local fossil fuel and renewable energy resources, as well as their economic development conditions: economically developed regions with limited fossil and renewable energy resources; economically underdeveloped regions abundant in both fossil and renewable energy resources; economically underdeveloped regions lacking fossil fuels but rich in renewable resources; economically underdeveloped regions rich in fossil fuels but lacking renewable resources; and regions with the potential to achieve zero emissions ahead of others. Building on this classification, EF China has identified the most promising provinces and cities and delivered targeted support through comprehensive research on top-level design, action plans, sectoral pathways, and complementary measures. EF China leverages its strengths across departments and collaborates with partners from diverse fields—including energy, industry, air quality management, transportation, urban development, finance, international cooperation, and communication—to support local-level transition and development efforts in a holistic manner.

Guangdong is an economically developed region with limited fossil and renewable energy resources. Since October 2020, EF China has partnered with 13 organizations to conduct systematic research and analysis to inform Guangdong’s “1+N” policy framework to synergize pollution reduction and carbon reduction. This collaboration encompasses preliminary research on carbon peaking and carbon neutrality policy frameworks, as well as an analysis of key issues and measures such as energy efficiency enhancement, low-carbon infrastructure, and technological innovation. Additionally, this effort explores low-carbon pathways in sectors such as transportation, construction, industry, and energy, conducting research on green finance, market mechanisms, and promoting related pilot demonstrations. This comprehensive analysis has provided Guangdong both technical and theoretical support in formulating and implementing policies for carbon peaking and neutrality, thereby fostering green and sustainable development across the region. As a pioneer in green and low-carbon transformation, Guangdong is poised to serve as a model for other provinces and cities, as well as for national implementation.

 

Suzhou, another economically developed city with limited fossil and renewable energy resources, has been exploring pathways for coordinating emission reduction and sustainable development. In 2021, EF China supported Suzhou in identifying innovative models to achieve these goals. Through in-depth engagement with local government, research institutions, and industry, EF China established key focus areas for its work in Suzhou, including pathways to achieve the “dual carbon” goals, renewable energy structure transition, industrial energy efficiency improvements, implementation of negative-emissions technologies (NET), green zero-carbon buildings and low-carbon city, low-carbon transportation systems, coordinated air quality management, innovative low-carbon financing, and public outreach. To date, over 20 collaborative research projects have been undertaken, yielding strong results. For instance, EF China conducted a scientific analysis of the pathways for Suzhou and Xiangcheng District to achieve their “dual carbon” targets; supported Suzhou High-Speed Rail New City in becoming one of Jiangsu Province’s pilot areas for carbon peaking and carbon neutrality in urban-rural development; and carried out research on energy storage and virtual power plants that enabled Suzhou to effectively manage peak energy demands during the summer of 2024. Suzhou’s low-carbon transition now serves as a valuable model for cities worldwide.

 

The Inner Mongolia Autonomous Region, an economically underdeveloped region abundant in both fossil and renewable energy resources, can serve as a model for low-carbon and sustainable growth in similar areas. Since 2021, EF China has collaborated closely with national and local think tanks to provide support for Inner Mongolia’s exploration of green, low-carbon transition pathways. This partnership involves conducting comprehensive, science-based research to inform the development of the autonomous region’s “dual carbon” policies; evaluating the status-quo, potential, and incentives for wind-solar hydrogen production and other low-carbon technologies, and advancing new energy innovations and the green, low-carbon transformation of Inner Mongolia’s energy and industrial structures. EF China has also facilitated knowledge exchange among local government and representatives from key industries, focusing on crucial topics in green transformation to enhance policy understanding and technical capabilities. To date, over 5,000 participants have benefited from these training sessions. In the first half of 2024, Inner Mongolia led the nation with a GDP growth rate of 6.2%. Notably, investments in the renewable energy sector contributed 20.9% to the region’s overall investment growth. Inner Mongolia has also reversed its historically poor performance in “dual control” metrics – total energy consumption and energy intensity – advancing from the bottom of the list to the top. This achievement establishes Inner Mongolia as a leading example of how resource-abundant, economically underdeveloped regions can successfully achieve synchronized low-carbon and sustainable development.

 

Linfen, an economically underdeveloped region abundant in fossil fuel but lacking renewable energy resources, exemplifies the challenges faced by many areas. In 2023, EF China partnered with government and university research teams to establish a multi-stakeholder cooperation model, helping Linfen explore pathways for coordinating pollution control, carbon reduction, and sustainable development. The collaboration has focused on conducting research and pilot programs to establish strategic frameworks and implement emission reduction measures across key sectors, alongside innovations in environmental management, project financing, and public outreach. The ultimate objective is to reduce Linfen's reliance on fossil fuel consumption and help the city move beyond its status as one of those with the worst air quality. EF China and its partners have also provided sustainability recommendations across various sectors, including hydrogen energy, premium steel production, heavy-duty new energy trucks, modern logistics, and green tourism. These initiatives have paved the way for Linfen to tap into the potential of low-carbon transition for coordinated growth across multiple industries.

 

Hainan, with the potential to achieve zero emissions ahead of others, has been a key focus for EF China. In 2018, EF China set an important goal to support Hainan in achieving zero-emission transportation and world-class air quality, providing systematic and comprehensive backing for Hainan’s transition to zero emissions. In 2023, EF China developed a transformation strategy targeting net-zero emissions in Hainan by 2050, providing robust support for ongoing initiatives. Guided by this strategy, EF China collaborated with various partners on research, pilot projects, and both domestic and international exchanges to advance Hainan’s carbon neutrality efforts across five core areas: fostering green and low-carbon growth drivers, creating a clean energy island powered by zero-carbon electricity, developing integrated non-electric solutions for end-use sectors, achieving WHO-standard air quality, and strengthening support measures, capacity building, and public outreach.

 

Subnational low-carbon transitions play a decisive role in achieving China’s “dual carbon” goals. In 2023, EF China has made grants in 27 regions/provinces/cities in China to propel these efforts forward. By uniting the expertise and resources of various stakeholders, EF China aims to deliver comprehensive “all-in-one” solutions to drive low-carbon transition and sustainable development across regions, offering local insights and best practices that will not only support China’s climate initiatives but also contribute to global climate action.