China’s top economic and energy regulators have jointly released a sweeping policy directive to initiate the large-scale construction of “zero-carbon industrial parks,” marking a significant acceleration in the country’s pursuit of carbon neutrality and green industrial transformation.

Issued on June 30, 2025, by the National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT), and the National Energy Administration (NEA), the policy—formally titled Notice on Launching the Construction of Zero-Carbon Industrial Parks (NDRC Environment and Resources [2025] No. 910))—lays out a coordinated plan to reshape industrial energy systems, promote low-carbon technologies, and develop replicable models for decarbonization across China’s vast network of industrial zones.

Coordinated Effort to Lead with Pilot Parks

The notice calls on local governments to recommend no more than two candidate parks by August 22, 2025, for inclusion in a first batch of national-level zero-carbon demonstration zones. Selection will consider factors such as local renewable energy resources, carbon reduction potential, and power supply security. The goal is to support regions with the right conditions to pioneer zero-carbon transitions, while establishing a foundation for wider adoption across the country.

Under the policy, local development and reform commissions (DRCs), in collaboration with MIIT and NEA counterparts, will assess park-level feasibility, conduct impact modeling, and submit formal applications based on a standardized outline. National authorities will then evaluate submissions based on industrial representativeness, carbon mitigation potential, and integrated demonstration value.

Strategic Context: Green Transformation with Chinese Characteristics

The directive comes amid China’s broader “dual carbon” strategy—its commitment to peak carbon emissions before 2030 and achieve carbon neutrality by 2060. Zero-carbon parks are positioned as foundational nodes within this long-term strategy, supporting both national carbon targets and regional economic upgrading.

While earlier policies focused on energy-intensive industries and emission reduction standards, the new directive shifts attention to place-based, system-level transformations. Industrial parks, which concentrate production, infrastructure, and energy loads, are seen as ideal testbeds for integrated decarbonization solutions.

Core Tasks: From Energy Structure to Industrial Synergy

The document outlines eight key task areas for implementation, ranging from energy transition and emissions management to infrastructure upgrades and technological innovation.

1. Energy System Restructuring:
Parks are encouraged to increase reliance on renewable energy through direct green power connections, local clean energy integration into distribution networks, and participation in green certificate trading. New models such as hydrogen-electric coupling and localized storage deployment are explicitly promoted.

2. Energy Efficiency and Carbon Management:
Industrial facilities within the parks are expected to establish energy and carbon management systems, retire outdated equipment, and upgrade to high-efficiency technologies. The policy supports the construction of “ultra-efficient” or “zero-carbon” factories where feasible.

3. Industrial Structure Optimization:
Zones are urged to pivot toward low-energy, high-value-added industries, fostering “green manufacturing with green energy.” Relocation of high-energy-consuming industries to resource-rich and energy-secure parks is also encouraged.

4. Resource Conservation and Circularity:
Parks must improve spatial planning, promote land-use efficiency, and enhance systems for waste heat, water, and material recycling. The development of industrial symbiosis and cascading energy utilization is prioritized.

5. Infrastructure Modernization:
Comprehensive upgrades to park infrastructure—including electricity, heat, gas, hydrogen, water, and environmental controls—are mandated. Standards for ultra-low or near-zero energy buildings and low-carbon transportation are introduced.

6. Technology Integration and Innovation:
The policy encourages collaborations among parks, enterprises, and research institutions to pilot scalable low-carbon technologies. Demonstration scenarios should be built around commercially viable solutions.

7. Digital Carbon Management:
Parks are to establish energy-carbon management platforms capable of real-time monitoring, forecasting, and load optimization. These platforms will underpin initiatives such as demand-side management and resource coordination.

8. Market and Institutional Reform:
The directive calls for broad stakeholder participation—including grid operators, energy service providers, and local governments—and experimentation with new models such as virtual power plants to enhance system flexibility and market integration.

Funding and Institutional Support

To ensure policy traction, the directive includes a robust set of enabling mechanisms. These include:

Financial Incentives: Parks may access existing central funds and qualify for local government special bonds. Policy banks are encouraged to provide long-term credit for eligible projects, while qualified enterprises may issue bonds for construction.
Talent and Expertise Support: External experts and institutions may be engaged to support carbon accounting, efficiency upgrades, and product carbon footprint certification.
Streamlined Approvals: The policy signals possible adoption of single-window approval systems for multi-energy integration projects, along with piloting regional-level energy reviews and carbon assessments.
Land and Resource Guarantees: Enhanced support is promised for land and sea-use approvals, particularly for new energy sources and supporting infrastructure within zero-carbon zones.

Oversight and Evaluation Framework

Implementation will follow a phased approach. Local DRCs will first submit applications for candidate parks. After central review and selection, the NDRC will announce the first cohort of national-level parks, which will then receive targeted guidance and troubleshooting support.

Each park will undergo a structured evaluation upon completion. Provincial authorities will lead self-assessments, followed by a formal national evaluation process based on a trial indicator system (provided in the policy annex). Parks that pass evaluation will earn the designation of “National Zero-Carbon Industrial Park.”

Outlook: Pilots First, Scale Later

While the policy provides clear direction and generous institutional support, challenges remain. These include aligning stakeholder incentives, ensuring data accuracy for carbon management, and translating demonstration success into scalable models.

Still, the move signals a decisive pivot toward systems-based decarbonization at the industrial park level—an approach with high potential for replicability and impact. As China navigates its complex energy transition, the success of these zero-carbon parks may provide a critical blueprint for industrial transformation across other emerging economies.