Carbon Peak/Carbon Neutrality Action Plan

In the post-pandemic era, achieving "green economic recovery" through all-around low-carbon transformation has increasingly become a broad consensus. China's vision of carbon peak and neutrality has also sent a clear signal to other countries, injecting new vitality into the global response to climate change and green recovery. Achieving carbon peak and neutrality is a systematic, strategic and overall work. Companies should incorporate carbon peak and carbon neutrality into the overall strategic layout as soon as possible and formulate scientific action plans, which will help form a resource-saving development mode and a green, low-carbon and high-quality branding effect.

What is carbon peaking and carbon neutrality?

On September 22 2020, President Xi Jinping said at the General Debate of the 75th United Nations General Assembly that China will increase its national contribution and adopt more vigorous policies and measures to peak carbon dioxide emissions by 2030 and strive to achieve "carbon neutrality" by 2060.

Carbon peak refers to a region or industry's annual carbon dioxide emissions reaching a historical high and then going through a plateau to a continuous decline. It is a historical inflexion point for carbon dioxide emissions to change from increase to decrease, marking the decoupling of carbon emissions from economic development. The peak goal includes peak year and peak. Carbon neutrality means that the direct and indirect emissions of carbon dioxide from human activities in an area over a certain period of time (usually one year) are offset by the carbon dioxide absorbed through afforestation, etc., to achieve "net zero"carbon dioxide emissions.

Why should companies formulate carbon peak/neutrality action plans?

In order to achieve the goal of carbon dioxide peaking and carbon neutrality, China has taken addressing climate change as a national strategy, integrating it into the overall layout of ecological civilisation construction and the overall economic and social development; and incorporated the systemic concept into the whole process of carbon neutrality, and strengthened top-level design.

At present, China has established a "1+N" policy system to achieve peak carbon neutrality. The "1" consists of two documents: Working Guidance For Carbon Dioxide Peaking And Carbon Neutrality In Full And Faithful Implementation Of The New Development Philosophy and Action Plan for Carbon Dioxide Peaking Before 2030. "N" consists of implementation plans for key areas and industries and relevant support and guarantee plans. Meanwhile, all provinces, autonomous regions and municipalities have developed their own implementation plans for achieving the carbon peak. Overall, a carbon-neutral policy system with clear objectives, reasonable division of labour, solid measures, and orderly articulation has been established.

Formulating carbon peak/carbon neutrality action plans will help companies prepare themselves in advance and facilitate their transformation. At present, companies in all sectors are actively taking action. For example, Yili Group released a zero-carbon future plan and roadmap, which will drive upstream and downstream companies in the industrial chain to continuously carry out environmental protection actions throughout the life cycle, control energy consumption from the source, reduce greenhouse gas emissions, and protect the ecological environment. Moutai Group has implemented five major projects of "water increase, gas improvement, soil preservation, micro protection, and ecosystem balance" and comprehensively promoted the five major actions of "energy saving, carbon reduction and efficiency, green product design, green transformation of industrial chain, green technology innovation, and green and low-carbon life", and accelerated the development of green and low-carbon cycle with concrete measures.