An Analysis of Deep Decarbonization Trends in China’s Industrial Sector

China's industrial sector, responsible for over 70% of national carbon emissions, is pursuing deep decarbonization through five primary trends: improving energy efficiency via stricter regulations, scaling the recycling of steel and plastics, increasing industrial electrification to reduce coal reliance, piloting carbon capture, utilization, and storage (CCUS), and expanding hydrogen energy utilization.

• China's industrial sector is a primary target for climate mitigation as it accounts for more than 65 percent of national energy consumption and over 70 percent of carbon emissions. While energy efficiency has historically been a major contributor to savings, the rate of decline in energy consumption per unit of industrial added value slowed from 4.6 percent in 2017 to an expected 3.5 percent in 2018.
• The scaling of 'recycle and reuse' practices is reducing demand for carbon-intensive materials. Specifically, waste steel consumption in China rose 38.9 percent in the first nine months of 2018 compared to 2017, helping the country meet its 13th Five-Year Plan goal for waste steel consumption to reach 20 percent of crude steel production ahead of schedule.
• Industrial electrification is viewed as essential for the energy transition. To limit global temperature rise to below 2°C, the end-use sector's electrification rate must increase from 24 percent in 2017 to 53 percent by 2050. Specifically for industry, the electrification rate is projected to reach 39 percent by 2050, up from 19 percent in 2010.
• China is increasing its focus on carbon capture, utilization, and storage (CCUS) through demonstration projects in coal-fired power plants and coal chemical enterprises. However, the commercial scalability of CCUS is hindered by high costs, insufficient technical capacity, and a lack of coordinated policy and legal mechanisms.
• Hydrogen energy is emerging as a key tool for industrial decarbonization, particularly in the steel and chemical industries. China established the National Alliance of Hydrogen and Fuel Cell in 2018 and launched industrial parks in Wuhan, Shanxi, Shanghai, and Liaoning, though it still faces bottlenecks in infrastructure and top-level policy.

APA

RMI (2019). An Analysis of Deep Decarbonization Trends in China’s Industrial Sector. https://rmi.org/resources/an-analysis-of-deep-decarbonization-trends-in-chinas-industrial-sector/

Chicago

RMI. An Analysis of Deep Decarbonization Trends in China’s Industrial Sector. 2019. https://rmi.org/resources/an-analysis-of-deep-decarbonization-trends-in-chinas-industrial-sector/.

Wikipedia

{{cite report |author=RMI |title=An Analysis of Deep Decarbonization Trends in China’s Industrial Sector |date=15 May 2019 |url=https://rmi.org/resources/an-analysis-of-deep-decarbonization-trends-in-chinas-industrial-sector/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2019analysis, author = {{RMI}}, title = {{An Analysis of Deep Decarbonization Trends in China’s Industrial Sector}}, institution = {RMI}, year = {2019}, month = may, url = {https://rmi.org/resources/an-analysis-of-deep-decarbonization-trends-in-chinas-industrial-sector/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }