Policy Trends and Drivers of Low-Carbon Development in China’s Industrial Zones

The report analyzes the evolving policy landscape for low-carbon development in China's industrial zones, highlighting a shift from rigid command-and-control regulations toward more flexible economic instruments and performance standards. It examines the role of the 12th Five-Year Plan and the cascading effect of national directives from the State Council and NDRC to provincial and municipal levels, specifically focusing on regional emissions trading pilots and the increasing importance of GHG inventories and auditing.

• The 12th Five-Year Plan (FYP) established critical environmental targets for 2015, including reducing energy consumption per unit of GDP by 16% and carbon dioxide emissions per unit of GDP by 17% from 2010 levels.
• There is a clear trend toward the use of economic instruments over traditional regulations, with a steady rise in implementation during the 12th FYP period, peaking at 10 instruments in 2013.
• Economic instruments are primarily focused on subsidies and carbon pricing, with grants (22%), cap and trade (19%), and technology subsidies (16%) being the most prevalent types.
• Regulatory approaches are shifting from inflexible 'fiat-based' measures, such as bans and plant closures, toward flexible performance and intensity standards, which are now used at a rate of 4 to 1 compared to inflexible options.
• Information programs and auditing are increasing, with nearly 25% of all reviewed programs mentioning audits between 2007 and 2014, driven by the need to verify GHG inventories and performance targets.
• National policies are effectively cascading to subnational levels, evidenced by a rapid increase in municipal and provincial policies since 2010, particularly those related to regional emissions trading pilots.
• Regional emissions trading schemes in China utilize energy and carbon-intensity benchmarks rather than absolute emission caps to address competitiveness concerns and prevent production leakage.

APA

Sawyer, D., & Thieriot, H. (2015). Policy Trends and Drivers of Low-Carbon Development in China’s Industrial Zones. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/drivers-low-carbon-development-china-industrial-zones-en.pdf

Chicago

Sawyer, Dave, and Hubert Thieriot. Policy Trends and Drivers of Low-Carbon Development in China’s Industrial Zones. International Institute for Sustainable Development, 2015. https://www.iisd.org/system/files/publications/drivers-low-carbon-development-china-industrial-zones-en.pdf.

Wikipedia

{{cite report |last1=Sawyer |first1=Dave |last2=Thieriot |first2=Hubert |title=Policy Trends and Drivers of Low-Carbon Development in China’s Industrial Zones |publisher=International Institute for Sustainable Development |date=March 2015 |url=https://www.iisd.org/system/files/publications/drivers-low-carbon-development-china-industrial-zones-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sawyer2015policy, author = {Sawyer, Dave and Thieriot, Hubert}, title = {{Policy Trends and Drivers of Low-Carbon Development in China’s Industrial Zones}}, institution = {International Institute for Sustainable Development}, year = {2015}, month = mar, url = {https://www.iisd.org/system/files/publications/drivers-low-carbon-development-china-industrial-zones-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }