Development and Reform Commission Announces Accounting Methods for Greenhouse Gas Emissions in 10 Industries such as Steel Electrolytic Aluminum
September 04 22:00:21, 2025
The National Development and Reform Commission (NDRC) has taken another step forward in enhancing the system for monitoring and reporting greenhouse gas emissions. Recently, the NDRC issued detailed guidelines for the accounting and reporting of emissions from the first group of 10 key industries, including steel, chemicals, electrolytic aluminum, power generation, power grids, magnesium smelting, flat glass, cement, ceramics, and civil aviation. According to an official from the NDRC, the goal of this initiative is to strengthen the statistical system for greenhouse gas emissions and lay the groundwork for the development of a national carbon trading market.
**Ten Key Industries Take on Emission Reduction Responsibilities**
As part of its efforts to improve transparency and accountability, the NDRC has released emission accounting methods for these critical sectors. These industries are major contributors to greenhouse gas emissions, particularly in heavy manufacturing and energy-intensive sectors. Reducing emissions in these areas is essential for achieving broader environmental goals. China has set ambitious targets, aiming to cut carbon dioxide emissions per unit of GDP by 40% to 45% compared to 2005 levels by 2020.
The NDRC also emphasized that developing corporate greenhouse gas accounting methods is a crucial step toward building a comprehensive carbon emissions trading system. This includes establishing a three-tiered framework—national, local, and corporate—for tracking and reporting emissions. The initiative also aims to implement direct reporting mechanisms for key enterprises, ensuring greater accuracy and consistency in data collection.
Xie Ji, deputy director of the NDRC’s Circumcilliny Department, highlighted that progress under the "Twelfth Five-Year Plan" for energy efficiency and emission reduction has been slower than expected. The original target was to reduce energy consumption per unit of GDP by 16% over five years, but only 5.5% was achieved in the first two years, with just 32.7% of the plan completed so far.
Bao Yunyu, executive director of the China Energy Research Institute, noted that the current situation regarding energy conservation and emissions control remains challenging. Many key indicators, such as energy use per unit of GDP, continue to face significant pressure.
With the release of industry-specific emission accounting methods, it is expected that carbon trading and other related initiatives will gain stronger support. These tools will help companies better understand their environmental impact and take more effective measures to reduce emissions.
**Industrial Sectors Become a Major Focus**
Over the past five years, China's industrial sector has grown rapidly, becoming a central source of both energy consumption and greenhouse gas emissions. In 2010 alone, industrial energy use reached 2.1 billion tons of standard coal, accounting for 65% of total societal energy consumption and roughly 65% of national carbon dioxide emissions from fossil fuel combustion.
Among the 10 industries now targeted, energy and heavy industries are at the forefront of emission monitoring efforts. The Ministry of Industry and Information Technology had already introduced specific regulations on carbon emissions in key sectors before 2015, setting stricter requirements for capacity reductions in various industries over the following three years.
By 2015, China aimed to fully meet its national greenhouse gas control targets, with a projected drop of over 21% in carbon dioxide emissions per unit of industrial added value compared to 2010 levels. By 2020, this figure is expected to fall by approximately 50% from 2005 levels, marking a shift toward a low-carbon industrial system.
The NDRC also confirmed that the new emission accounting standards apply to Chinese civil aviation companies. Airlines can now calculate their greenhouse gas emissions using the provided guidelines and prepare detailed emission reports accordingly.
This initiative serves as a reference for carbon trading, enhances corporate reporting systems, and improves the overall statistical framework for measuring greenhouse gas emissions. Earlier, the Ministry of Industry and Information Technology had also called for the establishment of an industrial greenhouse gas monitoring system and the creation of a standardized evaluation framework for carbon emissions.
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