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13 July 2026 – China released the 15th Five-Year Plan for Building a Beautiful China (the “Beautiful China Plan”) on 3 July 2026. Building upon the 15th Five-Year Framework Plan for National Economic and Social Development (the “Framework Plan”), the Beautiful China Plan details an implementation agenda covering pollution control, climate mitigation, ecological protection, monitoring, permitting and enforcement through 2030.

Importantly, the Beautiful China Plan further entrenches the mitigation of non-CO₂ climate pollutants, including methane, nitrous oxide (N₂O), hydrofluorocarbons (HFCs), sulfur hexafluoride (SF6),tropospheric ozone, and black carbon, within China’s broader environmental governance system.

Key Targets

The Beautiful China Plan reiterates several targets already established in the Framework Plan, including to:

  • Develop 30 million tonnes of CO₂-equivalent mitigation capacity by 2030 through non-CO₂ mitigation projects in coal mining, crop cultivation and livestock production, waste treatment, and chemical manufacturing[1]. The Beautiful China Plan provides examples of non-CO₂ mitigation solutions, including oxidation of ultra-low-concentration coal-mine ventilation-air methane (VAM), enrichment and purification of low-concentration coal-mine methane, industrial nitrous oxide (N₂O) tail-gas treatment and recovery, hydrofluorocarbon (HFC) recovery and utilization, and sulfur hexafluoride (SF₆) recovery and substitution in power equipment;
  • Reduce CO₂ emissions per unit of GDP by 17% during 2026–2030 compared to the 2025 level[2]；
  • Increase the share of non-fossil energy in total energy consumption from 21.7% in 2025 to 25% by 2030b;
  • Reduce average PM₂.₅ concentrations in cities at or above the prefectural level from 28 µg/m³ in 2025 to below 27 µg/m³ by 2030b; and
  • Reduce national emissions of NOₓ and VOCs by more than 8% respectively during 2026–2030b.

The Plan also establishes several additional environmental targets relevant to non-CO2 climate-pollutant mitigation, including to:

  • Increase the share of good or excellent air-quality days in cities at or above the prefectural level from 83.6% in 2025 to 85% by 2030 and reduce the share of heavy-pollution days or worse from 0.9% in 2025 to below 0.9% by 2030[3];
  • Ensure total coal consumption continues to decline, with PM2.5 concentrations reduced by 15%, 10%, and 15%, respectively, in the Beijing-Tianjin-Hebei region and surrounding areas, the Yangtze River Delta region, and the Fen-Wei Plain, by 2030a;
  • Raise the share of clean transportation in key industries to 75% nationwide and 85% in priority air-pollution-control regions by 2030a;
  • Increase the comprehensive utilization rate of livestock and poultry manure to at least 85% by 2030 (reiterating a target provided in the 2024 Guiding Opinions on Accelerating the Comprehensive Green Transformation of Agricultural Development and Promoting Rural Ecological Revitalization)a, raise the rural domestic sewage treatment rate from 55% in 2025 to 70% by 2030c, complete remediation of more than 60% of historic solid-waste stockpilesa, and build around 200 zero-waste cities by 2030a; and
  • Reduce carbon emissions per unit of product in industries covered by the national emissions trading system by about 3% during 2026–2030 compared to the 2025 levelc.

Looking beyond 2030, the Beautiful China Plan restates the targets in China’s 2035 Nationally Determined Contribution (NDC) of reducing China’s economy-wide net greenhouse-gas emissions to 7%–10% below its peak levels by 2035. It also sets a separate domestic target of reducing national PM₂.₅ concentrations to below 25 µg/m³ by 2035a.

Specific Non-CO₂ Climate Pollutant Mitigation Actions Mentioned in the Plan

Beyond the key targets mentioned above, the Plan calls for stronger control of methane, N₂O, fluorinated gases, and other non-CO₂ climate pollutants. To support implementation across these areas, it also emphasizes a set of cross-cutting institutional, technical, and market-based measures. It prioritizes stronger monitoring, accounting, reporting, and verification, as well as the routine compilation of the national greenhouse-gas inventory. It also calls for improving the national greenhouse-gas emission-factor database and developing product carbon-footprint rules that can achieve international mutual recognition. In addition, the Plan promotes recovery and utilization technologies and further advances both the national carbon emissions trading market and the national voluntary greenhouse-gas emissions reduction market.

Methane

The Plan promotes methane-mitigating projects in the coal mining, agriculture and waste sectors. In coal mining, it calls for ultra-low-concentration ventilation-air methane thermal-storage oxidation and low-concentration coal-mine methane enrichment and purification. In agriculture and waste, it promotes livestock and poultry manure collection, treatment, utilization, and waste classification and resource recovery. Notably, the Plan does not set out specific controls on methane leakage, venting, or flaring in the oil and gas sector.

Industrial N2O

The Plan specifically promotes industrial N₂O tail-gas treatment, recovery, and utilization. More broadly, its provisions on non-CO₂ monitoring, accounting, reporting and verification, together with the emphasis on fixed-source permitting, monitoring and enforcement, could provide implementation channels for future sector-specific standards or facility-level requirements.

Fluorinated Gases (including HFCs and SF6)

The Plan calls for strengthened control of fluorinated gases and promotion of recovery and utilization technologies. It specifically includes HFC recovery and utilization, as well as SF₆ recovery and substitution in power equipment. The Plan also calls for strict actions to prevent illegal production, sale and use of ozone-depleting substances, which aligns with China’s broader fluorinated-gas-control and ozone-layer-protection policies including the National Plan on the Implementation of the Montreal Protocol on Substances that Deplete the Ozone Layer (2025–2030). 

Tropospheric Ozone

Tropospheric ozone forms when NOₓ and VOC emissions react in the presence of sunlight. Controlling tropospheric ozone is essential to preventing photochemical smog. To support tropospheric ozone control, the Plan combines targets to reduce NOₓ and VOC emissions by more than 8% during 2026–2030 with measures to revise mandatory national VOC-content standards for key products, strengthen full-process VOC controls, and pilot an environmental protection tax on VOC emissions. It also promotes low- or zero-VOC raw-material substitution in automobile, construction machinery, furniture, parts manufacturing, printing, and vehicle-repair industries.

Synergetic Control of PM2.5 and non-CO2 Climate Pollutants

The Plan reinforces PM₂.₅ control while strengthening measures relevant to ozone precursors (e.g., NOₓ and VOCs), ammonia, and black carbon. It calls for comprehensive air-pollution-control upgrades for about 100 traditional industrial clustersa. For mobile sources, it calls for accelerating the phaseout of certain diesel trucks (meeting China III or below exhaust emission standards), and non-road machinery (meeting China I or below exhaust emission standards), replacing diesel freight vehicles with electric trucks, accelerating the retirement and renewal of older operating vessels, and building a national smart mobile-source supervision platform and national atmospheric mobile-source laboratory. These measures can support reductions of PM₂.₅, ozone precursors, and black carbon emissions.

Conclusion

The Beautiful China Plan largely carries forward targets and policy directions already contained in the Framework Plan, while adding more detailed indicators, project categories, and implementation measures. However, it does not set pollutant-specific reduction targets for non-CO2 climate pollutants. Instead, the 30 million tonnes of CO2-eq goal is provided for mitigation capacity instead of verified emissions reductions. Therefore, key issues for future tracking include additional policy developments on how mitigation-project performance will be evaluated, whether facility-level monitoring and public disclosure will be required, and how emission standards and pollutant-discharge permits will be upgraded, expanded, and/or enforced.

Additional IGSD China Resources:

[1] All targets marked with “a” are targets that are not included in “Column 1: Key Targets for Building a Beautiful China during the 15th Five-Year Perid.” Therefore, the Plan doesn’t specify if they are binding or non-binding targets.

[2] All targets marked with “b” are binding targets included in “Column 1: Key Targets for Building a Beautiful China during the 15th Five-Year Perid.”

[3] All targets marked with “c” are expected (non-binding) targets included in “Column 1: Key Targets for Building a Beautiful China during the 15th Five-Year Perid.”

12 July 2026 – China issued its 15th Five-Year Plan for Building a New Energy System (“Energy Plan”) on June 13, 2026. The Energy Plan sets out China’s priorities for upgrading the energy system during 2026–2030, with an emphasis on energy security, non-fossil energy deployment, infrastructure modernization, and low-carbon development. According to China’s 2024 Biennial Transparency Report, the energy sector accounted for 47.3% of the country’s methane emissions in 2021, making it the largest methane-emitting sector and central to mitigation efforts this decade.

Key quantitative targets

Key targets provided in the Energy Plan include to, by 2030:

  • Peak coal and oil consumption;
  • Raise non-fossil energy to 25% of total energy consumption;
  • Increase non-fossil energy to 50% of electricity generation;
  • Add approximately 20,000 kilometers of oil and gas pipelines; and
  • Increase natural-gas transmission capacity to 500 billion cubic meters per year.

The Energy Plan addresses methane emissions through a range of provisions related to coal mine methane, oil and gas methane, carbon markets, and carbon-footprint policies, as discussed below. However, as such plans are “strategic roadmaps,” binding mitigation requirements and implementation measures will still be needed to realize of the massive methane mitigation opportunities in the Plan.

Coal Mine Methane

The Energy Plan expressly calls for China to deepen coordinated coal production and coal mine gas extraction, steadily advance methane-emissions control in the coal sector, and expand coalbed methane development in the eastern Ordos Basin—one of China’s most resource-dense energy corridors. These provisions reinforce China’s Methane Emissions Control Action Plan and the amended national coal mine methane standard (GB 21522—2024). To turn these commitments into measurable results, China may establish a quantitative coal-methane reduction target, coal-mine gas extraction and/or utilization targets, and specific implementation milestones for low-concentration mine methane or ventilation-air methane. The Plan’s practical impact will therefore depend on follow-up implementation measures and compliance-assurance actions.

Oil and Gas Methane

The Energy Plan supports expanded oil and gas production, pipeline construction, gas storage, and liquefied natural gas infrastructure. It also promotes greater electrification and the development of “low-carbon” and “zero-carbon” oil and gas fields. These measures may reduce carbon dioxide emissions from energy use. However, the Plan does not specify methane leak detection and repair requirements, restrictions on routine venting or flaring, methane-intensity targets, or measurement-based methane reporting requirements in the oil and gas sector. China should avoid building new natural-gas infrastructure without these measures in place. The current expansion presents a narrow window of opportunity to embed strong methane controls across the supply chain.

Carbon Markets and Carbon-Footprint Policies

The Energy Plan also promotes voluntary emissions-reduction projects, energy-sector carbon accounting, and product carbon-footprint policies. While mandatory regulation ensures lasting mitigation, establishing or expanding market-incentive, carbon-accounting and carbon-footprint measures could reduce barriers to future regulation by creating incentives for methane mitigation in the coal, oil, and gas industries. Indeed, China has already released “China Certified Emissions Reduction” (CCER) methodologies for coal mine methane utilization and methane recovery from oil and gas operations. For these markets to deliver credible reductions, related projects must require genuine additionality, proper baselines, stringent measurement and verification, and safeguards against leakage and double counting.

The Energy Plan is a meaningful step for methane mitigation in national energy planning, particularly in the coal sector. However, its mitigation impact now depends on whether general policy provisions are translated into follow-up implementation measures and facility-level compliance.

Additional IGSD China Resources:

Introduction and Overview

On May 5, 2026, China’s State Council promulgated the Overseas Investment Regulation, which enters into effect on July 1, 2026. Beyond the legal details discussed below, the Overseas Investment Regulation is part of a key trend: China is increasingly sensitive to how overseas stakeholders perceive Chinese investment and export dominance. It also signals expanding government intervention in foreign investments and outbound trade.

The Overseas Investment Regulation includes key priorities including effective overseas investment management across stakeholder groups, a more orderly cross-border allocation of industrial and supply chains, improved overseas investment security assessments, stronger risk monitoring and corporate compliance capacity, and improved protection of Chinese citizens’ and legal persons’ legitimate overseas interests. The policy priorities also include high-quality Belt and Road country cooperation based on transparency, integrity, high standards, and sustainability.

Key Stakeholders and Liabilities.

Key stakeholder responsibilities described in the Regulation include:

Investors. Investors are the primary focus of the Overseas Investment Regulation and retain autonomy to make investment decisions and bear commercial risks, but must complete required approval, filing, reporting, and fund-registration procedures. They also must submit truthful materials; comply with export-control, data, security-review, and other legal requirements; and strengthen internal governance, compliance, safety, emergency-response, and risk-management systems.

Government Authorities and Officials. Government authorities and officials are required to improve their management and service system, coordinate economic development and security, classify and guide investment activities, strengthen supervision and risk prevention, and provide overseas risk warnings and protection support.

Industry, Commercial, and Professional Organizations. Industry associations, chambers of commerce, trade promotion groups, professional service providers, and financial and insurance institutions must also support overseas investment. They do so through information services, market development, financing, insurance, legal and accounting assistance, dispute resolution, and other professional support, while adhering to relevant compliance and risk management standards.

Liabilities. The Overseas Investment Regulation also provides liabilities for violations by investors and government authorities and officials, including penalties for prohibited investments, false materials, refusal to cooperate with review, disruption of market order, abuse of power, dereliction of duty, or unlawful disclosure of confidential information. Although the Overseas Investment Regulation requires overseas investors to strengthen compliance and observe applicable laws and international practices, it establishes neither a clear, standalone Chinese liability regime for violations of host-country law nor a specific complaint mechanism for affected parties.

Key Policy Signals for Overseas Investment Governance

The Regulation sends two key policy signals:

  • China aims to ensure that outbound investments support global integration and follow international standards. The Regulation frames overseas investment as part of China’s role in global economic governance. Specifically, Article 4 commits China to align with international economic and trade rules, promote high-quality Belt and Road cooperation, build multilateral and bilateral investment cooperation mechanisms, help shape international investment rules, and promote industrial- and supply-chain cooperation.  This positioning responds to a geopolitical environment increasingly shaped by investment screening, trade restrictions, and supply-chain fragmentation.
  • China also aims to strengthen requirements for responsible, lawful, and sustainable overseas investment by Chinese investors. The Regulation sets standards for responsible and lawful overseas investment. Under Article 5, investors must comply with laws, regulations, and international practices, respect local customs, and fulfill social responsibilities. Investors are prohibited from damaging the ecological environment, infringing on workers’ rights, jeopardizing national security, or harming national or public interests. This requirement confirms that investment outcome depends not only on capital but also on environmental practice, host-country acceptance, social legitimacy, and credible risk management.

Policy Implications and Conclusion

Overall, the Regulation marks an important step in China’s efforts to strengthen its overseas investment management system and reputation. It makes clear that overseas investment should be carried out under stronger environmental, compliance, and risk-management standards. The Regulation provides important guidance for advancing higher-quality, better-regulated, and more responsible overseas engagement. Its implementation will help shape the role of Chinese overseas investment in Belt and Road and South-South cooperation, global supply-chain connectivity, and international investment governance. The Regulation signals expanding government intervention in foreign investments and outbound trade.

Additional IGSD China resource:

China’s 15th Five-Year Framework Plan for National Economic and Social Development (hereinafter referred to as “the Plan”), released on March 13, 2026, identifies the country’s key targets and priorities for economic and social development during 2026–2030, including on climate change mitigation. This policy brief provides an overview of key targets and priorities that are relevant to the mitigation of non-CO2 super climate pollutants, including methane, hydrofluorocarbons (HFCs), black carbon, tropospheric ozone, and nitrous oxide (N2O), as well as for improving cooling efficiency.

The Plan includes a project-based target for specific non-CO2 super climate pollutants. It states that China will develop projects to reduce methane, N2O, and HFCs in the coal mining, crop cultivation and livestock production, waste treatment, and chemical production sectors, with the goal of building 30 million tons of CO₂-equivalent mitigation capacity by 2030.

The Plan also includes other targets relevant to the mitigation of super climate pollutants. These targets include:

  • Reducing CO₂ emissions per unit of GDP by 17% cumulatively for 2026-2030 (a slightly lower target in comparison to the reduction target of 18% and achieved reduction of 17.7% for 2021-2025);
  • Raising the share of non-fossil energy in total energy consumption to 25% in 2030 (from 21.7% in 2025);
  • Reducing energy consumption per unit of GDP by around 10% by 2030;
  • Lowering PM2.5 concentration to below 27 micrograms per cubic meter in cities at or above the prefectural level by 2030 (from 28 micrograms per cubic meter in cities at or above the prefectural level in 2025);
  • Reducing the emissions of nitrogen oxides (NOx) and volatile organic compounds (VOCs) by over 8% respectively by 2030;
  • Increasing the share of surface water bodies rated at good quality to 85% in 2030 (from 80% in 2025); and
  • Increasing forest coverage rate to 25.8% in 2030 (from 25.1% in 2024).

The Plan includes strategies and priorities that are relevant to the mitigation of super climate pollutants. These are described below.

  • Developing governance and policy frameworks to achieve China’s carbon peaking goal by 2030 that can support the mitigation of super climate pollutants. The Plan provides for the implementation of policies and standards on local carbon assessment, sectoral carbon control, enterprise carbon management, project carbon evaluation, and product carbon footprint. Specifically, China will establish rules and standards for product carbon-footprint accounting, issue standards for key product carbon emissions-limits, create a product carbon-labeling and certification system, regularly update the national greenhouse gas (GHG) inventory, expand the coverage of the national carbon emissions trading market, and accelerate the development of the voluntary GHG reduction trading market.
  • Promoting key sectoral priorities for energy conservation and carbon reduction that can implement measures on super climate pollutants mitigation. The Plan highlights actions and projects to peak coal and oil consumption, strengthen management of high-energy-consuming and high-emission projects, deploy green and low-carbon technologies, construct zero-carbon factories and parks, and improve cooling efficiency. Furthermore, the Plan calls for strengthening energy efficiency governance in key sectors through the energy efficiency labeling system and Top Runner program.[1]
  • Advancing development priorities in the energy sector that can guide relevant methane mitigation strategies and policies in China. The Plan identifies hydrogen energy as one of the prioritized new growth industries, including its application in transportation, electricity, and industry. Additionally, as part of the energy infrastructure development plan, China will promote green hydrogen and strengthen the operation and dispatch system for the national oil-and-gas network. It is also noteworthy that the China-Russia gas pipelines are listed as one of the key energy-infrastructure projects by 2030. Lastly, China is enhancing energy security through measures such as increasing natural gas production and boosting gas storage capacity.
  • Supporting domestic market-building initiatives that can align with cooling efficiency improvement. As part of China’s efforts to build a strong domestic market, the Plan calls for promoting green consumption, including the sale of green and low-carbon products. These efforts could advance the market penetration of high-efficiency and climate-friendly cooling equipment in China. This is particularly significant given that China produces over 80% of global room air conditioners, with roughly 60% of that production destined for the domestic market.
  • Providing near-term opportunities for international cooperation on super climate pollutant reduction through China’s opening-up agenda and Belt and Road Initiative. As China promotes its high-level opening-up agenda, the Plan highlights efforts to promote compatibility between domestic and international rules and standards, making China’s rules compatible with leading international economic and trade rules. The Plan provides that such measures can help foster a transparent, stable, and predictable trade environment and support the integration of domestic and international trade. Key areas for mutual recognition of international and Chinese rules and standards include energy efficiency, water efficiency, and carbon footprint standards for key products. Additionally, the Plan calls for strengthening policy communication and strategic alignment with partner countries and international organizations involved in the Belt and Road Initiative, especially in areas such as energy and green development.
  • Advancing environmental-quality priorities, including controlling air pollution and emerging environmental pollutants, can support the synergistic control of super climate pollutants. For example, the Plan states that China will further strengthen efforts to control particulate matter and VOCs in key regions. These measures reinforce the broader air-quality and industrial-upgrade context in which the policies on mitigating the super climate pollutants can be strengthened and implemented. Additionally, the Plan provides that China will establish a coordinated governance and risk-control system for persistent organic pollutants, endocrine disruptors, antibiotics, microplastics, and related substances. This suggests a tightening of the chemical and environmental risk governance system that could further refine the pathways for refrigerant transition in China.

In conclusion, the 15th Five-Year Plan offers key strategic and policy guidance for mitigating super climate pollutants within China’s national development planning framework for 2026–2030. Going forward, we will continue to monitor how these targets and priorities are integrated into China’s regulatory and standardization systems, as well as into the sectoral and subnational 15th five-year plans to be released in 2026 and beyond.

Additional IGSD China resources:

[1] China’s Energy Efficiency Top Runner Program provides for the regular publication of catalogues of the most energy-efficient products, enterprises and public institutions together with their energy-efficiency levels. The program is intended to guide products and industries toward continuous technological upgrade and improved efficiency levels. It also establishes a mechanism for the timely incorporation of Top Runner energy-efficiency levels into the mandatory energy-efficiency performance standards and energy-consumption limit standards.

On March 12, 2026, China enacted its landmark Ecological and Environmental Code (“the Code”), which is set to take effect on August 15, 2026. Comprising over 1,240 Articles organized into a hierarchical structure of Parts, Subparts, Chapters, and Sections, the Code marks a shift from fragmented regulation to a unified legal framework that integrates pollution control, ecological protection, green transition, and climate response. Importantly for climate change mitigation, the Code clarifies the legal obligations of enterprises and public institutions to control greenhouse gas (GHG) emissions (Arts. 9 and 949) and empowers national ministries/agencies to promulgate standards on pollution control and green and low-carbon development (Art. 70). Notably, the Code consolidates and updates existing laws, while leaving room for future institutional strengthening and sector-specific legislation. This is especially relevant to climate-related content in the Code. In particular, Part IV of the Code establishes the legal foundation for green and low-carbon development, which can later be supplemented with dedicated laws and regulations on GHG emissions control (Art. 1,239).

Overview of provisions related to mitigating super climate pollutants

The Code does not create a specific regulatory framework for super climate pollutants, such as methane, hydrofluorocarbons (HFCs), black carbon soot, tropospheric ozone, and nitrous oxide (N2O). However, Part II on Pollution Control, Part IV on Green and Low-Carbon Development, and Part V on Legal Liabilities are all relevant for understanding China’s legislative approach to mitigating super climate pollutants. Specifically, Part II includes provisions addressing coalbed methane and HFCs. Part IV contains a chapter on climate change requirements. And Part V specifies legal liabilities for violations of GHG emissions-related requirements. Further details on these provisions are provided below.

Pollution Control

Part II contains provisions that directly support methane and HFC mitigation. In its Subpart 2 on air-pollution-control, the Code incorporates sector-specific requirements relevant to methane mitigation, including compliance with coalbed methane emission standards (Art. 203) and the recovery and treatment of flammable gases from landfills (Art. 218). Additionally, the Code provides for the control of ozone-depleting substances through measures including total-quantity control and quota management (Art. 254). The water pollution and solid waste Subparts (Subparts 3 and 6) contain Articles relevant to methane mitigation. The Code requires the treatment of urban sewage and wastewater (Arts. 303-304), supports rural wastewater and garbage treatment (Art. 305), strengthens control of fertilizer use (Arts. 306-308) and promotes the comprehensive utilization and safe disposal of livestock manure (Art. 309). Regarding solid-waste control, the Code requires comprehensive management of solid waste to reduce waste at sources, increase resource reutilization, and minimize landfill volumes (Arts. 466-467). Furthermore, it establishes integrated systems for the classification, collection, resource utilization, and harmless treatment of household waste (Arts. 499-515), including emissions monitoring and data disclosure requirements for household waste treatment facilities (Art. 513).

It is also important to note that Part II of the Code requires that air-pollution-control measures promote coordinated control of air pollutants, including particulate matter, sulfur dioxide, nitrogen oxides, volatile organic compounds, ammonia, and GHGs (Art. 189). This coordinated control requirement is especially relevant for reducing black carbon soot, tropospheric ozone, and methane emissions, including in the transportation, waste, agriculture, and fossil-energy sectors.

Development of the Circular Economy

Chapter 2 under Part IV on the Development of Circular Economy addresses GHG emissions during production, waste management, and consumption. For production, the Code encourages adopting green design and advanced technologies and equipment to conserve resources and reduce GHG emissions (Arts. 960-974). Notably, in the waste-management context, the Code supports the comprehensive utilization of crop straw and livestock and poultry manure, thereby helping reduce methane emissions (Art. 981). It also includes strengthened provisions on the classification, treatment, and resource recovery of household solid waste (Arts. 983-984). For consumption, the Code encourages green consumption incentives and trade-in programs for consumer goods (Arts. 992-993). It further strengthens the government’s green procurement program (Art. 994) and requires enterprises to adopt green procurement practices and develop green supply chains by prioritizing energy-efficient, water-saving, and resource-conserving materials, products, and services (Art. 1,000).

Energy Conservation and Green Low-Carbon Transition

Chapter III under Part IV on Energy Conservation and Green Low-Carbon Transition includes provisions that are especially relevant to improving cooling efficiency and reducing methane emissions. Specifically, the Code emphasizes the importance of the energy-conservation standard system and the energy-efficiency labeling system for achieving energy-conservation goals, especially for high-energy-consuming products like household appliances (Arts. 1,008 and 1,011). It also supports coalbed methane extraction and utilization (Art. 1,015), encourages the green and efficient extraction of oil and natural gas (Art. 1,016), and promotes the high-quality development of hydrogen energy (Art. 1,024).

Climate Change

Chapter IV under Part IV on Addressing Climate Change forms the primary statutory foundation for climate governance in China, as China has not yet enacted a dedicated climate change law. The Code clarifies key points about agency authorities and climate-governance mechanisms. It designates the Ministry of Ecology and Environment as the responsible agency for national climate-change work, while assigning the National Development and Reform Commission a coordinating role in achieving the country’s carbon peaking and neutrality goals (Art. 1,026). It also provides that product carbon footprints are measured in carbon dioxide equivalent, thereby including GHGs beyond CO2 in such measurements (Art. 1,036). Additionally, the Code states that China supports international cooperation on climate-related technologies, such as hydrogen energy and carbon capture, utilization, and sequestration (Art. 1,051).

Legal Liabilities and Compliance Assurance

Part V of the Code provides that any entity or individual that pollutes the environment or violates green and low-carbon provisions shall be held legally liable (Art. 1,052). Part V is essential to ensuring compliance with and enforcement of the provisions discussed above, as well as key compliance-assurance mechanisms such as data monitoring, reporting, and verification (Arts. 1,085-1,093), and environmental impact assessment (Arts. 1,094-1,100).

Conclusion

Overall, China’s Ecological and Environmental Code strengthens the legal foundation for addressing super climate pollutants. It embeds relevant provisions across the Parts and Chapters on pollution control, circular economy, energy conservation, climate governance, and legal liability. While it does not create a standalone legal regime for these pollutants, it provides a stronger basis for the next steps including implementation measures, and strengthened compliance and enforcement.

We will continue to monitor future developments, particularly in policy design, standard development, monitoring and enforcement action, and pilot projects in key sectors. As China’s regulatory framework evolves, it may also help shape the global supply chains and impact the broader international climate cooperation. Therefore, the significance of the Code lies not only in its current provisions, but also in the broader regulatory and institutional developments it may support in the next phase of implementation.

Additional IGSD China resources:

On 24 February 2026, the Government of Himachal Pradesh launched the state’s first comprehensive emissions assessment and policy roadmap to tackle short-lived climate pollutants (SLCPs) and other non-CO₂ emissions, in a ceremony held in Shimla. The report, Tackling Non-CO₂ Emissions: Pathways for Himachal Pradesh, establishes a 2019 emissions baseline and models sector-specific pathways through 2047. The report was developed by the Department of Environment, Science, Technology & Climate Change, Government of Himachal Pradesh, in partnership with the Institute for Governance & Sustainable Development (IGSD) and The Energy and Resources Institute (TERI).  

Hon’ble Chief Minister Sukhvinder Singh Sukhu, present at the launch of the report, said:

“Protecting our glaciers, rivers, and mountain ecosystems is a responsibility we owe to future generations. This report gives us a science-based roadmap to reduce harmful pollutants while strengthening livelihoods, hydropower reliability, and public health. Himachal Pradesh will continue to lead with evidence-based climate action. I congratulate all partners who have helped in the development of the report. Building knowledge pools like this can only support our plans to ensure a sustainable future for our state.”

Sushil Kumar Singla, Secretary (Environment, Science & Technology and Climate Change), Himachal Pradesh, said:

“Our state’s unique terrain, high-elevation, and rapidly-expanding urban spaces make us more vulnerable to the impacts of Short-Lived Climate Pollutants such as black carbon and methane. These degrade air quality and contribute to glacier melt, which, in turn, threatens water security, agriculture, hydropower, and disaster resilience.   This report, with its rigorous scientific assessment of non-CO₂ emissions, is a critical reference framework in that respect. It also spotlights actionable solutions across key sectors.”

DC Rana, Director, Department of Environment, Science, Technology & Climate Change, said:

“Increasingly, and at a steady pace, Himachal Pradesh has witnessed shifts in its climate. From excess rainfall, including extremely heavy rainfall days, to heat stress, which has started impacting hilly regions as well, the adverse effects of a warmer climate are coming to pass now. These have a ripple effect: for instance, warmer and drier conditions increase forest fire incidences, which lead to black carbon emissions that deteriorate air quality. Considering these overlapping climate and air-quality challenges, mitigating SLCPs becomes essential. This report will help to frame policies that address such SLCP challenges in the state.”

Durwood Zaelke, President of IGSD, emphasized the urgency of targeting super pollutants. He said:

“For a Himalayan state like Himachal Pradesh, cutting methane and black carbon is the fastest strategy available for turning down the heat. These pollutants are driving near-term warming and amplifying the pace of glacier melt. This makes the report valuable for the state’s policymaking and for the people of Himachal Pradesh to ensure a secure future in the face of changing climatic conditions.”

Vibha Dhawan, Director General, The Energy & Resources Institute (TERI), said:

“Climate change is not an abstraction in the world today. Especially for vulnerable Global South countries, the ramifications of negative environmental changes are high. In India, Himachal Pradesh – with its sensitive ecology and landscape – is a critical state from the lens of a rapidly changing climate. But if we need to formulate targeted policies to save fragile ecosystems, we need precise data to work with. To this end, the report offers a range of data-led insights and policy actions that can support the important work the state government is already doing. With collective effort, we can realize the goal of a climate-resilient Himachal Pradesh.”  

Carolina Urmeneta, Waste and Circular Economy Program Director at the Global Methane Hub, said:

“The launch of a comprehensive SLCP emissions policy roadmap by the government of Himachal Pradesh will help build resilience of the most pristine and eco-sensitive zones of the country, while contributing to temperature reductions by addressing methane, especially in the waste and agriculture sector (accounting for a large share of the methane emissions). The report shows that practical and cost-effective solutions exist, and the policy actions that ensue have the potential to deliver improved livelihoods and better public health outcomes to the citizens and rural communities of Himachal Pradesh. We commend the leadership shown in publishing this policy, while emphasizing that real impact depends on its effective implementation, which is of regional and global importance in the global climate crisis, and supports India’s net zero targets under the Paris Agreement.”

Zerin Osho, Director, IGSD India, said:

“We cannot change what we cannot measure. This report addresses that challenge by providing the right data sets and policy tools to act now and to track progress over time. This is more than an emissions inventory. It is a decision-support framework for departments, districts, and investors. By integrating air quality and climate action, Himachal Pradesh can secure rapid climate benefits while improving public health and rural incomes.”

Read the full report, Tackling Non-CO₂ Emissions: Pathways for Himachal Pradesh, here or on the Himachal Pradesh Department of Environment website.

See the Government of Himachal Pradesh press release here.

On 9 February 2026, the China Ministry of Ecology and Environment (MEE) issued the Circular on Further Strengthening the Management of Ozone-Depleting Substances (ODSs) and Hydrofluorocarbons (HFCs), which takes effect on 1 March 2026. The Circular covers the full lifecycle management of ODSs and HFCs, including production (including by‑production), sales, consumption, servicing, end‑of‑life recovery, reclamation, and disposal. Overall, it serves as an important government document supporting the implementation of the Regulation on the Administration of ODSs, related to China’s obligations as a Party to the Montreal Protocol on Substances that Deplete the Ozone Layer and its Kigali Amendment. (IGSD’s English reference translation of the Regulation on the Administration of ODSs is available here.) 

Key provisions in the Circular include:

  • Production quota licensing: Entities producing controlled substances for controlled consumption and feedstock shall submit an application by 31 Oct. each year for the quota for the following year.
  • Sales record‑filing: Sellers of controlled substances (including polyol blends and blended refrigerants) shall file a record with the municipal-level ecology and environment authority in the city where they are located. For renewals, the sales record shall be filed between Dec. 1 and Jan. 31 of the following year.
  •  Consumption quota-licensing or record‑filing: large-scale HCFC consumers (≥100 t/yr with baseline records) and certain CTC consumers shall apply for consumption quota licensing (submit applications by 31 October each year for the following year’s quota). Other consuming entities, including feedstock users, air conditioner manufacturers/installers, PU foam users of polyol blends, fire suppression product manufacturers, lab reagent and electronic gas purification entities, and quarantine and treatment entities using controlled substances such as methyl bromide, shall complete record‑filing (for renewals, consumption records shall be filed between Dec.1 and Jan. 31 of the following year).
  •  Record‑filing for servicing and end‑of‑life recovery, regeneration, and destruction: Entities engaged in servicing and dismantling/scrap handling of systems containing controlled substances, and entities conducting recovery, reclamation, or destruction activities shall complete record‑filing at the city level for servicing/dismantling and at the provincial level for recovery, reclamation, or destruction.
  • Control of by-produced carbon tetrachloride (CTC): Methylene chloride producers with CTC by-production and entities with CTC feedstock design use exceeding 1,500 t/yr are required to install automatic monitoring equipment, connect it to the ecology and environmental authorities’ monitoring network, and ensure data accuracy.
  • Control of by-produced HFC-23: Facilities with HFC-23 by-production are prohibited from emitting HFC-23 directly. If the by-produced HFC-23 is not used as feedstock or for other permitted purposes, it must be destroyed using required technologies. The facilities are required to develop an HFC-23 monitoring plan, and carry out standardized measurements and periodic reporting in accordance with the Technical Specification for Accounting Methods and Reporting of By-product Trifluoromethane Emission from Chlorodifluoromethane Production Facility (HJ 1420—2025) (effective as of 1 March 2026). Furthermore, the facilities shall take measures for leakage detection and repair to reduce fugitive HFC-23 emissions.
  • Record keeping and reporting via the national system: Producers, sellers, users, servicers, end-of-life handlers, and recovery, reclamation, and destruction entities shall use the ODS Information Management System for quota applications or record-filing, retain complete original records for at least three years, and report data quarterly (production, sales, and consumption: within fifteen working days after the quarter’s end) or annually (servicing or end-of-life recovery, reclamation, and destruction: within thirty working days after the year’s end).
  • Strengthened enforcement: Ecology and environment authorities will prioritize inspections and supervision in relevant sectors, using automated monitoring, cross-agency data screening, big-data analytics, and on-site checks to identify violations, especially unlicensed or over-quota production or sales, improper buying or selling, illegal consumption of phased-out substances or unlicensed/over-quota consumption, and failure to meet record-keeping or filing requirements.

Additional IGSD resources related to this topic:

8 January 2026 – China recently released two national policy instruments to advance the transition to energy-efficient, climate-friendly residential air conditioners (ACs) in its domestic market. These instruments also aim to strengthen the domestic collection and recycling systems needed to improve lifecycle refrigerant management. IGSD provides further details on these instruments, referred to as “Circulars,” below, with links to the original Chinese versions.

  1. Circular on Implementing the Large-Scale Equipment Upgrade and Consumer Goods Trade-in Policies in 2026 (National Development and Reform Commission and Ministry of Finance, 8 January 2026):

This Circular incentivizes the purchase of energy-efficient ACs and supports end-of-life AC and refrigerant management through:

  • Providing a subsidy to individual consumers who purchase ACs with level-1 energy efficiency performance, the highest level under China’s AC energy efficiency standards, at 15% of the product sale price, with a cap of RMB 1,500 per unit and limiting to one unit per consumer; and 
  • Supporting improvements to end-of-life AC and refrigerant management by strengthening the recycling system, including the collection points, transfer stations, and sorting centers, and by strengthening supervision of disassembly/recycling enterprises.

2. Circular on Green Consumption Promotion Action (Ministry of Commerce, together with the National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Ecology and Environment, Ministry of Housing and urban-Rural Development, Ministry of Agriculture and Rural Affairs, the People’s Bank of China, the State Administration for Market Regulation, and the National Financial Regulatory Administration, 4 January 2026):

This Circular contains several AC-related provisions:

  • Encouraging consumers to buy green smart appliances, including fluorine-free ACs;
  • Promoting the development of a green supply chain, including prioritizing the procurement of high-efficiency equipment and conducting the carbon-footprint evaluation; and  
  • Supporting the establishment and improvement of collection and recycling systems, which include the collection points, transfer stations, and sorting centers. 

Together, these two policy instruments are expected to incentivize the transition to energy-efficient and climate-friendly ACs in China’s domestic market and to support lifecycle refrigerant management by strengthening the collection and recycling system for end-of-life ACs. We will continue to monitor these developments, as they serve as useful examples of policies for transitioning cooling systems in a major Global South producer of cooling equipment.

Additional IGSD resources related to this topic:

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