Prospects for Low-Carbon Industrial Technologies in China’s Carbon Neutrality Goals Unveiled in New Report

On May 28, 2025, the report titled “Prospects for Low-Carbon Technologies in Industry Under China’s Carbon Neutrality Goals” was successfully launched at the Tsinghua University Carbon Neutrality Research Institute. This report was initiated by the Tsinghua University Carbon Neutrality Research Institute, supported by the Energy Foundation, and led by the Environmental Planning Institute of the Ministry of Ecology and Environment. Over twenty experts from more than ten organizations attended the launch event, where they discussed the key issues and future pathways for the development of low-carbon technologies in industry, in the context of China’s carbon neutrality goals.

The event was co-hosted by Fu Sha, the Director of Strategic Planning at the Energy Foundation, and Professor Zhang Qiang, Deputy Director of the Department of Earth Sciences at Tsinghua University. Distinguished speakers included He Kebin, an academician of the Chinese Academy of Engineering and Director of the Tsinghua University Carbon Neutrality Research Institute, Wang Jinnan, an academician of the Chinese Academy of Engineering and Honorary Director of the Environmental Planning Institute, as well as Zou Ji, CEO and President of the Energy Foundation China.

These experts emphasized that advancing carbon peaking and carbon neutrality is a fundamental requirement for achieving high-quality development in China and is a significant national strategy for promoting harmony between humanity and nature. The industrial sector plays a crucial role in the deep low-carbon transformation needed to meet these ‘dual carbon’ goals. In the transition to low carbon in China’s industry, technological innovation and advancements are the core driving forces.

Against this backdrop, there is an urgent need to focus on the strategic demands of carbon neutrality in the industrial sector, systematically deploy cutting-edge low-carbon technologies, identify key technological pathways, and build a comprehensive solution system. This will provide strong support for accelerating the cultivation of new productive forces and promoting high-quality industrial development.

During the report presentation, Yan Gang, the lead organizer and Deputy Director of the Environmental Planning Institute, introduced the main content and key conclusions of the report. The report systematically outlines the critical technological pathways for achieving carbon neutrality in China’s industrial sector and constructs a technological map that covers major industries and emission reduction links. It forecasts that under carbon neutrality scenarios, China’s industrial carbon emissions could be reduced to 450 million tons by 2060, representing a decrease of approximately 95% compared to 2025.

Furthermore, the report identifies four common technologies—material substitution and waste recycling, electrification and clean power substitution, hydrogen substitution, and CCUS (Carbon Capture, Utilization, and Storage)—which together contribute nearly 80% of the emissions reduction potential in industrial technologies. The technological evolution pathway indicates that the period from 2025 to 2035 will see the large-scale application of low-carbon process technologies in the industrial sector, during which energy efficiency enhancement technologies and material substitution and waste recycling technologies will significantly reduce industrial carbon emissions. The period from 2035 to 2050 will witness a breakthrough in disruptive process technologies, with accelerated development of electrification and clean power substitution technologies, as well as the large-scale application of hydrogen substitution technologies, facilitated by declining costs and improved maturity of green hydrogen. The period from 2050 to 2060 will enter a phase of deep application for carbon removal technologies, with CCUS technology reaching maturity and expected to contribute 24% to emissions reduction by 2060.

Based on the research findings, the report proposes a series of policy recommendations, including planning and deploying a comprehensive set of key technologies for industrial carbon neutrality, continually enhancing the carbon market’s incentive role for these technologies, accelerating breakthroughs and demonstration of common technologies through special scientific projects, and developing supportive fiscal and tax policy frameworks conducive to the growth of carbon neutrality technologies. This approach aims to expedite the deployment of common technologies with clear industrialization paths and significant emissions reduction potential, driving the Chinese industrial sector towards a high-quality and sustainable green transformation.

In the roundtable discussion, key participants included He Kebin, Wang Jinnan, Liu Bingjiang, former Chief Engineer of the Ministry of Ecology and Environment, Liu Yang, Deputy Director of the Climate Change Response Department at the Ministry of Ecology and Environment, and several other experts from various organizations. The discussion was moderated by Professor Zhang Qiang.

This report was collaboratively completed by over 40 experts from 24 organizations, including the Environmental Planning Institute, the Metallurgical Industry Planning Institute, the China Academy of Building Materials Science, and others. Throughout the report’s preparation, a series of technical forums and academic salons were organized around the theme of industrial technologies aimed at carbon neutrality, establishing a platform for industry-academia-research collaboration in low-carbon technologies. The report team conducted field research at more than 70 enterprises across sectors such as steel, cement, non-ferrous metals, petrochemicals, and coal chemical industries to gain insights into their experiences and technological needs in low-carbon transitions. Additionally, valuable opinions from over 20 senior experts were consulted to maximize consensus within the industry and research community.