Climate and energy policy in China

China’s climate policy is shaped by its commitment to the Paris Agreement, requiring national action plans to limit global warming (1). In response, China has set dual carbon goals to peak emissions before 2030 and reach carbon neutrality by 2060 (1). Policy development has accelerated through frameworks such as the 14th Five-Year Plan and the 1+N system, which sets sector-specific pathways (1). These measures have driven rapid growth in renewable energy, now exceeding 50% of installed power capacity (1).

The 2026 two sessions process

Each year, China’s legislature, the National People’s Congress, and the Chinese People’s Political Consultative Conference hold the Two Sessions to establish the policy agenda (2). At the 2026 meetings, China released its 15th Five-Year Plan, outlining priorities for 2026–2030 (2). Highlights include a new carbon intensity reduction target of 17% by 2030 and targets to replace 30 million metric tonnes of coal annually with renewable energy (2). The discussions reaffirmed support for low-carbon transition sectors, including renewables, electric vehicles, hydrogen, and energy storage, while emphasising a balance between economic development and emissions reduction (2).

Corporate climate policy engagement in China

Chinese companies engage on climate and energy policy through a structured, state-led system (2). The Two Sessions remain a key moment in this process, providing a formal route for industry perspectives to be raised (2). Many senior executives hold positions as delegates or representatives, submitting proposals and recommendations linked to energy transition pathways and technology development (2).

Corporate positions at two sessions 2026

The 2026 Two Sessions featured policy proposals primarily from the oil and gas, new energy, and automotive sectors (2). The oil and gas sector acknowledged the long-term energy transition while advocating for a continued role for fossil fuels (3). China National Petroleum Corporation deputies submitted proposals supporting expanded oil and gas exploration and the development of coalbed methane (3). Sinopec’s president called for stronger support for hydrogen (3). The new energy sector expressed support for emissions trading, renewable energy deployment, and circular economy measures (3). Sungrow Power Supply supported the Green Electricity Trading Scheme, while Ganfeng Lithium called for circular economy measures (3). The automotive sector generally supported the transition to a lower-emissions energy mix (4). Geely advocated for the use of methanol to decarbonise heavy-duty vehicles (4). SAIC Motor advocated for the simultaneous promotion of oil and electricity in the automotive sector (4). Chery advocated for an increase in hydrogen-reduction steelmaking to decarbonise the automotive supply chain (4).