The environmental impact that your factory might cause through carbon emissions.
In a concerted effort to combat climate change, China has rolled out comprehensive initiatives focusing on regulatory frameworks, technological innovation, and sector-specific emission controls. Asian countries, particularly China, are pursuing these measures to reduce CO2 emissions and address the risks associated with climate change.
China's Key Climate Change Initiatives
One of the key initiatives is the 2025–2030 National Plan, which aims to phase out ozone-depleting and high-global warming potential substances through stringent regulatory controls, technical innovation, emissions monitoring, and inter-agency enforcement. The plan also emphasises capacity building, scientific research, and promoting green technologies aligned with international commitments.
Another initiative is the development of the Product Carbon Footprint (PCF) Management System. This system will integrate carbon footprints at the product level, standardize emission factor databases, and promote labeling, certification, and information disclosure mechanisms covering the full product lifecycle. The goal is to support carbon peaking and neutrality goals and decarbonize supply chains.
China is also transitioning its energy mix, moving away from coal towards renewables, natural gas, and nuclear power. Thousands of coal mines have been closed, reducing coal production by over 25%. Solar power has become cheaper than coal in China, further driving renewable adoption.
New provincial and sector-specific renewable energy consumption quotas have been introduced, targeting heavy industries such as iron and steel, cement, polysilicon, and data centers to meet 25–70% of their energy demand through low-carbon sources. Provinces like Sichuan, Yunnan, and Qinghai have higher targets up to 70%.
Investors Addressing CO2 Emissions in Utilities, Energy, and Commodities Sectors
Investors are playing a crucial role in addressing CO2 emissions in these sectors. They are supporting large-scale grid integration of solar and wind, which constituted 46.4% of global installed power capacity in 2024, especially in China. Battery energy storage systems (BESS) are essential in managing variability in renewables; China leads global battery production with over 75% share, lowering costs due to a vertically integrated supply chain. Utility-scale battery system costs have fallen 93% from 2010 to 2024, catalysing growth in renewables and grid flexibility.
Investors are also directing capital towards cleaner energy sources and technologies in commodities sectors to meet mandated low-carbon energy shares. For instance, in heavy industry sectors like steel, cement, and aluminum, new renewable consumption quotas are driving investment flows.
Investors are also emphasising carbon footprint transparency through systems like the PCF framework, helping to identify emissions hotspots and promote climate-aligned financing decisions.
Candriam's Role in Climate Change Mitigation
Candriam, a global investor, considers the CO2 emissions of companies in their equity analysis and provides investors with tools to measure the impact of their portfolios on climate change. Candriam invests globally in projects aimed at reducing greenhouse gas emissions or their impacts on climate, with three projects for the next three years in the areas of renewable energy, energy efficiency, and reforestation. Candriam's climate compensation measures complement their careful stock selection, ensuring that the companies they invest in also invest in solutions that aim to reduce emissions by at least 20 percent compared to the investment universe.
In conclusion, China’s strategy combines regulatory mandates, technology-driven market shifts, and multilateral coordination to reduce emissions. Asian countries broadly are ramping up renewable capacity, enforcing sector-specific targets, and fostering innovation to address climate change, with investors deploying capital in ways that support energy transition and carbon management. These efforts reflect integrated responses to industrial emissions in utilities, energy, and commodities sectors to meet international climate goals.
- In alignment with international climate commitments, China's environmental science initiatives focus not only on regulatory frameworks and technological innovation, but also on investing in renewable energy and promoting green technologies, as demonstrated by Candriam, a global investor, who considers the CO2 emissions of companies in their equity analysis and invests in projects aimed at reducing greenhouse gas emissions.
- A significant portion of China's strategies to combat climate change includes the development of the Product Carbon Footprint (PCF) Management System, which will help in standardizing emission factor databases and promoting labeling, certification, and information disclosure mechanisms, as investors are also emphasizing carbon footprint transparency through systems like the PCF framework.
- China's efforts to combat climate change also extend to real-estate sector, as new provincial and sector-specific renewable energy consumption quotas have been introduced, targeting heavy industries to meet 25–70% of their energy demand through low-carbon sources, which is a crucial step for investors addressing CO2 emissions in these sectors, supporting large-scale grid integration of renewables, and promoting carbon peaking and neutrality goals.
