Key facts
- China has launched a three-year action plan for heavy industry decarbonization starting in 2026.
- The plan targets nine high-emission industries, including steel, aluminum, cement, and coal power.
- Laggard industries face higher power costs as a penalty.
- China aims for new-energy heavy-duty trucks to be 40% of new sales by 2030.
- Over 1.6 million new-energy heavy-duty trucks are expected by 2030.
- These trucks are projected to carry 18% of highway freight.
- The initiatives aim to decarbonize transport and combat air pollution.
China has unveiled a comprehensive three-year action plan designed to drive decarbonization across its heavy industry, commencing in 2026. This policy targets nine industries identified as major energy consumers and high emitters, including steel, aluminum, cement, and coal power sectors. The plan mandates energy conservation and carbon reduction upgrades, with a clear threat of increased power costs for industries that fail to meet the new standards. This initiative is part of a broader strategy to combat air pollution and reduce overall carbon emissions.