World's green factory: China's system to decarbonize manufacturing

China's 14th Five-Year Plan (2021-2025) has positioned green development as a cornerstone of its pursuit of high-quality economic growth, marking an intensive period of industrial transformation.

Official reports and policy documents from the Chinese government – including the National Development and Reform Commission and the Ministry of Industry and Information Technology – highlight a concerted national effort to reduce carbon intensity, expand the clean energy industry and establish a comprehensive green manufacturing system.

Spearheading green energy transition

A primary focus of the 14th Five-Year Plan is the promotion of low-carbon and green industries. Official data confirms significant progress in restructuring the energy mix and building the clean energy supply chain.

China has solidified its position as the world's leader in renewable energy, with its installed wind and solar capacity consistently ranking first globally for years.

Global energy think tank Ember released a report in October saying that due to China's massive scale of clean energy deployment, global renewable electricity generation exceeded coal in the first half of 2025 for the first time on record.

The rapid development of its wind and solar product exports is helping other countries curb their own carbon emissions, establishing China as a major force in the global climate governance system.

The new energy vehicle (NEV) revolution

The NEV sector represents one of the most visible and commercially successful facets of China's green upgrade in industries.

Positioned as a strategic emerging industry, the NEV sector has experienced exponential growth and technological breakthroughs during the period.

China has not only seen a dramatic rise in NEV production and sales but has also become the world's largest NEV market for several consecutive years. The emphasis is on continuous technological advancement in areas like power batteries and intelligent connected vehicles, fostering a complete industrial chain.

Perfecting the green manufacturing

Beyond energy and mobility, the 14th Five-Year Plan outlines comprehensive targets for a green manufacturing system, focusing on improving resource efficiency and establishing a circular economy.

The national green manufacturing system is being concretely built through the designation of thousands of national-level green factories. This effort concentrates on promoting low-carbon industrial practices and accelerating the research and application of green manufacturing technologies. This systematic approach aims to fundamentally transform industrial output, laying a solid foundation for the overall peaking of industrial carbon emissions by 2030.