Achieving Sustainable Development: Insights from China’s 14th Five-Year Plan on Green and Low-Carbon Progress

Looking through the data on the “14th Five-Year Plan”: from systematic layout to comprehensive breakthroughs, constructing a new paradigm for global green and low-carbon development.

During the “14th Five-Year Plan” period, China has established a systematic framework for green and low-carbon development based on energy structure optimization, focusing on the transformation of key industries, strengthening environmental governance, and innovating the financial system as a link. This framework has achieved comprehensive and pioneering results, injecting strong green momentum into high-quality development and contributing Chinese wisdom and strength to global sustainable development.

This article is the third piece in the series “Data on the 14th Five-Year Plan,” showcasing the panorama of China’s green and low-carbon development from source reduction to actual effect verification and long-term financial support.

Dual-Driven Approach Leads to Continuous Energy Consumption Reduction

Since the beginning of the “14th Five-Year Plan,” China has achieved significant results in energy conservation and emission reduction in key areas through a dual-driven approach of industrial transformation and energy revolution. By 2024, the country’s energy consumption per unit of GDP had decreased by 6.96% compared to the end of the “13th Five-Year Plan,” and carbon dioxide emissions per unit of GDP had notably declined. The green transformation of high-energy-consuming industries has progressed steadily. In the steel industry, significant improvements in water resource utilization efficiency and pollutant reduction have been achieved through technological upgrades and management optimizations. By 2024, the new water consumption per ton of steel had decreased by 4.9% compared to 2020, with sulfur dioxide and nitrogen oxide emissions down 47.09% and 37.88%, respectively.

For example, Baoshan Iron & Steel Co., a leading company in the industry, reported an environmental protection investment of 10.076 billion yuan in 2024, a 61.47% increase from 2020. The new water consumption per ton of steel dropped by 13.79%, while the reductions in nitrogen and sulfur oxide emissions exceeded 40%.

The optimization of the energy structure continues, with the installed capacity of renewable energy reaching 1.889 billion kilowatts by the end of 2024, accounting for approximately 56% of China’s total installed capacity. This figure has doubled since the end of the “13th Five-Year Plan,” making renewable energy a core pillar of energy supply. The construction of a green manufacturing system has accelerated, with the number of national-level green factories increasing from 2,783 in 2021 to 6,430 in 2024, widely applying green technologies in production processes to lead low-carbon industrial development.

Technological innovation has injected core momentum into industrial emission reduction. A joint implementation plan released by nine departments, including the Ministry of Science and Technology, has outlined breakthrough targets for low-carbon core technologies. By the end of 2024, the number of patents held by A-share listed companies in the environmental protection sector reached 23,000, over 70% more than at the end of the “13th Five-Year Plan,” accelerating the research and development and industrial application of green low-carbon technologies.

China Leads the Global New Energy Vehicle Market

The explosive growth of the new energy vehicle (NEV) industry has become a highlight of green transportation transformation during the “14th Five-Year Plan.” In 2024, NEV sales in China reached 12.8659 million units, accounting for 40.93% of total vehicle sales, an increase of 35.53 percentage points from 2020, with an impressive annual compound growth rate of 75.14%. In the first four months of 2025, NEV sales continued to be strong, reaching 4.3 million units, up 46.24% year-on-year, further increasing market share to 42.75%.

Leading company BYD has performed exceptionally well, holding a dominant position in the Chinese market while playing a significant role in the global NEV market. In the first four months of 2025, BYD sold 1.3809 million NEVs, a 46.98% increase year-on-year. From 2021 to 2024, the company’s sales grew at a compound annual growth rate of 117.85%, with NEV sales reaching 4.2721 million units in 2024, making it the top seller in China’s automotive market, as well as in brand and global sales for new energy vehicles. The company’s ESG rating has also been recognized by international institutions, consistently rated above A since 2020.

The development of the NEV industry not only reduces carbon emissions in the transportation sector but also enhances competitiveness across the entire industrial chain. In the battery sector, China’s lithium-ion battery production saw a year-on-year increase of 20.1% in 2024, totaling 29.457 billion units, with a compound growth rate of 11.81% from 2021 to 2024, capturing about 80% of the global market share. The rapid proliferation of charging infrastructure has supported this growth, with the number of public charging stations reaching 3.579 million by the end of 2024, a 3.43 times increase from 2020, creating a robust charging network covering urban and rural areas for NEV adoption.

Success in the Battle for Clean Air, Water, and Soil

The results of environmental governance have become evident during the “14th Five-Year Plan.” By 2024, the annual average concentration of PM2.5 in 338 cities dropped to 29.42 micrograms per cubic meter, a decrease of 9.72% from the end of 2020. Beijing, as a model for air pollution control, saw PM2.5 concentrations fall by 19.74% compared to 2020, with continuous improvements in air quality. Key regions for air pollution prevention have also shown significant improvements, with the average proportion of good air quality days in 74 cities reaching 82.7% in December 2024, an increase of 17.9 percentage points from December 2020.

Water quality improvements have been notable as well, with the proportion of surface water achieving excellent quality (Class I-III) rising from 84.6% in December 2020 to 93% in December 2024, and significant ecological restoration results in key river basins. The Yangtze River Economic Belt, recognized as a pioneer in green development, reported an excellent water quality ratio of 98% in December 2024, exceeding the national average by 5 percentage points and improving by 2.6 percentage points from December 2020, achieving a virtuous cycle of “protecting while developing.”

The risk to soil environments has also been largely controlled. By 2024, heavy metal content at key soil risk monitoring points showed an overall downward trend, with the safe utilization rate of contaminated arable land reaching 92%, and the pollution control rate for prioritized supervision areas exceeding 75%.

Green Finance Fuels Low-Carbon Development

Green transformation is supported by green finance. In recent years, the government has issued several important documents, including the “Guiding Opinions on Further Strengthening Financial Support for Green and Low-Carbon Development,” to promote the development of green finance. Currently, China’s green finance landscape is robust, with a continuous increase in products such as green loans, bonds, and funds supporting clean energy and energy-saving sectors, facilitating green economic transformation. Green loans remain the main financing channel, with the balance of green loans from financial institutions rising from 11.95 trillion yuan at the end of 2020 to 36.6 trillion yuan by the end of 2024, with over 60% directed toward carbon reduction projects.

The green bond market has experienced exponential growth, with an average annual issuance scale of 1.11 trillion yuan in the domestic market from 2021 to 2024, which is 3.94 times that of the “13th Five-Year Plan” period, including innovative varieties such as carbon-neutral bonds and blue bonds, with issuance expanding from financial institutions to real enterprises. Moreover, green funds have significantly contributed to the green economy. ESG funds, which focus on investing in environmentally friendly, socially responsible, and well-governed companies, have become an important force driving the development of the green economy. By the end of 2024, the total number of domestic ESG funds reached 553, with a scale of 513.617 billion yuan, marking a 207.22% and 4.25% increase, respectively, from the end of 2020.

The capital market’s support for environmental protection enterprises has also intensified. From 2021 to 2024, the average annual financing amount for listed companies in the ecological protection and environmental governance sector (including initial public offerings, additional issues, rights issues, and convertible bonds) reached 5.684 billion yuan, an increase of 32.78% compared to the 2016-2020 period. Companies like Huicheng Environmental Protection and Sanfeng Environment have achieved technological upgrades and scale expansion through the capital market.

The green achievements of the “14th Five-Year Plan” represent not just a series of dynamic numbers but a profound transformation in development philosophy. Under the guidance of the “dual carbon” goals, China is stepping forward with a stronger commitment towards a modern society that thrives in harmony with nature, enhancing the quality and substance of high-quality development and contributing Eastern wisdom to global climate governance.