Summary of Key Points
The construction of national-level zero-carbon factories has officially commenced, with the government introducing clear and stringent regulatory indicators (such as carbon emissions per unit of energy consumption, the proportion of non-fossil fuels, and the physical verification of green electricity) as well as a dynamic management system. Leading companies (such as Envision and CATL) have already begun to plan and apply for these certifications in advance. Zero-carbon factories are not only a crucial step in achieving the "dual carbon" goals but also help export-oriented enterprises cope with carbon tariffs and enhance their global competitiveness. However, the implementation faces challenges such as the difficulty of obtaining direct supplies of green electricity, the high cost of process upgrades, and significant industry differences. Therefore, a phased approach tailored to different sectors is necessary. The strategy of leading companies, which focus on improving their internal capabilities before striving for the required standards, is worth emulating.
I. The Policy Sets Clear Requirements for Zero-Carbon Factories: Three Core Indicators + Dynamic Management
This policy is more than just issuing a label; it establishes a comprehensive system from entry to cultivation to final acceptance. The three key regulatory indicators are:
1. Carbon Emissions per Unit of Energy Consumption: The initial requirement is no more than 1.8 tons of CO₂ per ton of standard coal, with a long-term goal of reducing this to 0.2 tons (which means almost no use of high-carbon fuels).
2. Proportion of Non-Fossil Fuels: The initial requirement is at least 30%, with a goal of reaching 95% (using almost exclusively green electricity and gas).
3. Physical Verification of Green Electricity: For factories with annual electricity consumption exceeding 5 million kWh, the initial proportion of green electricity must be at least 10% (except for companies in the data processing industry), and this will increase to 35% by the end. Only green electricity generated on-site (e.g., from rooftop photovoltaic systems) or directly sourced from renewable power plants is recognized; purchasing green energy certificates does not count. This encourages companies to actually use green electricity rather than just meeting the requirements through certificates.
The application criteria are also clear: the factories must be national-level green factories with annual energy consumption of ≥1,000 tons of standard coal (approximately 8 million kWh), and no safety or environmental incidents in the past three years. Smaller companies cannot participate for now; the policy focuses on enabling capable supply chain leaders first.
Additionally, the policy emphasizes dynamic management, which means not only reducing emissions but also driving down carbon emissions throughout the entire supply chain, with regular assessments and improvements.
II. Why Are Companies Rushing to Build Zero-Carbon Factories?
For companies, zero-carbon factories are not just for show but a necessity for survival:
- Export Enterprises Cannot Avoid Carbon Tariffs: The EU will implement a Carbon Border Adjustment Mechanism (CBAM) on imported products starting in 2026. Zero-carbon factories meet international standards, allowing products to meet overseas customers' low-carbon requirements without additional costs.
- Driving Quality and Efficiency Improvements: Building zero-carbon factories requires optimizing energy structures (e.g., switching to green electricity) and upgrading production processes (e.g., using more energy-efficient equipment), which can reduce long-term operating costs.
- Enhanced Supply Chain Influence: Companies like CATL can include carbon footprint requirements in supplier selection, giving priority to low-carbon suppliers. This not only promotes carbon reduction across the entire chain but also strengthens their position as supply chain leaders.
III. What Are the Challenges in Implementation?
Despite the benefits, there are several practical hurdles:
- Insufficient Green Electricity Supply: Rooftop photovoltaic systems can only meet about 10% of the green electricity demand, and building wind power outside the factory site involves considerations such as land and grid connectivity. In many areas, there is a lack of wind and solar resources, and direct grid connections for green electricity require policy approval.
- High Costs of Process Upgrades: Industries like steel and chemicals emit carbon during production (e.g., steelmaking using coal). Upgrading to hydrogen metallurgy or CCUS (Carbon Capture, Utilization, and Storage) technologies is costly and has slow returns. Some steel companies may incur losses when implementing these technologies without subsidies.
- Industry-Specific Differences: Different industries have varying levels of carbon reduction potential. For example, the automotive industry has a long supply chain with significant room for improvement (e.g., switching to green electricity in painting processes), while industries like steel and construction materials have high emissions and face greater challenges in meeting targets.
IV. How Are Leading Companies Approaching This?
Leading companies like Envision and CATL are well-prepared, and their approaches can serve as a model:
- Building Systems First: They start by establishing carbon accounting systems (e.g., the Fangneng Carbon Platform) to understand their carbon footprint, then gradually introduce green electricity projects, and finally work on securing direct green electricity supplies.
- Collaborative Supply Chain Reduction: CATL uses the "Times Carbon Chain" platform to help suppliers calculate their carbon footprints and links carbon targets to procurement requirements. Starting in 2027, new suppliers must provide carbon footprint reports, motivating upstream partners to reduce emissions as well.
- Phased Implementation: Envision has divided the construction process into three stages: establishing the system by 2026, implementing green electricity infrastructure by 2028, and achieving the final targets by 2030, without rushing the process.
V. Industry-Wide Progress: A Graduated Approach
The policy takes into account industry differences. For example, the Qinghai plan outlines phased implementation based on the difficulty of carbon reduction:
- In 2026, the focus is on industries with lower carbon reduction challenges, such as lithium batteries, electronics, and data processing.
- In 2028, the focus shifts to high-energy-consuming industries like steel and chemicals.
- By 2030, the entire system will be mature, and all industries will be able to advance towards zero carbon.
This approach avoids putting too much pressure on traditional industries and allows pilot industries to gain experience, which can then drive progress in others.
In summary, zero-carbon factories are a key driver for the low-carbon transformation of the manufacturing sector. While the policy provides a clear direction, the successful implementation requires collaboration among companies, governments, and the entire supply chain to address issues related to green electricity, costs, and technology. The experience of leading companies can accelerate this process. For consumers, this may lead to more zero-carbon products in the future, contributing to a broader green transformation of society.