The National People’s Congress of the People’s Republic of China approved China’s 14th Five Year Plan (the “Plan”) at the annual “two sessions” in early March 2021, setting forth the overarching economic and social policy directive for the country in the coming five years. Released months after President Xi Jinping’s carbon neutrality pledge of September 2020, which targets to peak carbon emissions before 2030 and reach carbon neutrality in 2060, the Plan is expected to provide a clear roadmap for achieving the climate goals.
The Plan specifies binding indicators for energy intensity and CO2 emissions intensity, which demand a 13.5% reduction in energy consumption per unit of GDP and a 18% decrease in CO2 emissions per unit of GDP by 2025. In addition, the Plan proposes to establish a modern energy system, detailing the construction of major energy projects and setting the goal of increasing the share of non-fossil energy in China’s total energy consumption from 15.8% to around 20% by 2025. The Plan also calls for regional and departmental action plans on peaking CO2 emission before 2030 and acknowledges that the country would make efforts to reach carbon neutrality by 2060.