E phatlalalitsoe · Lesotho
China's New Product Carbon Footprint Standards: What Foreign Founders Need to Know
Five Chinese ministries have issued a 2026–2028 action plan to build a national product carbon footprint standard system, covering over 100 standards across five key sectors. Foreign founders operating in China should understand how these standards may affect compliance, supply chains, and market access.
China's New Product Carbon Footprint Standards: What Foreign Founders Need to Know
In a move that will shape how companies measure and report the carbon footprint of their products in China, five government departments—the State Administration for Market Regulation (SAMR), the National Development and Reform Commission (NDRC), the Ministry of Ecology and Environment (MEE), the Ministry of Industry and Information Technology (MIIT), and the National Energy Administration (NEA)—have jointly issued an action plan for building a product carbon footprint standard system for key products over the period 2026–2028.
For foreign founders registering or operating a company in China, this development is significant. It signals that carbon footprint standards are becoming a formal part of China's industrial and trade policy, and companies in targeted sectors may soon face new expectations for calculating and disclosing the carbon footprint of their products. While the plan itself is a policy framework, it sets the stage for future standards that could affect supply chain requirements, procurement decisions, and market access.
What the Action Plan Covers
The action plan, titled "Action Plan for the Construction of a Standard System for Carbon Footprints of Key Products (2026–2028)," is structured into three parts: overall requirements, key construction tasks, and implementation safeguards, totaling 20 articles. It is guided by the principles of prioritizing urgent needs, coordinated advancement, and industry collaboration.
The plan focuses on five key directions:
- Energy
- Raw materials
- Consumer goods
- Machinery and equipment
- Transportation tools
Under these directions, the plan calls for the development of more than 100 national standards for product carbon footprints. It also encourages some national standards to be developed in parallel with international standards, aiming to achieve basic coverage of national carbon footprint standards for key basic energy sources, raw materials, and intermediate products that play a significant role in driving industrial chains and supply chains.
Why This Matters for Foreign Founders
If you are running a company in China or planning to establish one, this action plan is a signal that carbon footprint management is moving from voluntary initiatives to standardized practices. The standards being developed will provide consistent rules for calculating and reporting the carbon footprint of products. For foreign-invested enterprises, particularly those in the five targeted sectors, this could mean:
- Supply chain requirements: Your Chinese suppliers or customers may ask for carbon footprint data aligned with national standards.
- Market access: As standards become more widespread, they may influence procurement policies or market entry requirements.
- International trade: The plan explicitly aims to help respond to changes in international economic and trade rules. This suggests that China's standards may be designed to facilitate compatibility with global carbon accounting practices, which could benefit exporters.
It is important to note that the action plan is a framework for standard development. It does not itself impose mandatory requirements on individual companies. However, the standards developed under it may later be referenced in regulations or procurement practices. Foreign founders should monitor the release of specific standards in their sectors.
How to Prepare
Given the direction of policy, foreign founders operating in China can take practical steps now to prepare for a future where carbon footprint standards are more prevalent:
- Understand your sector's exposure: Determine whether your products fall under the five key directions—energy, raw materials, consumer goods, machinery and equipment, or transportation tools.
- Engage with suppliers: Start conversations with your Chinese suppliers about their ability to track and report carbon footprint data.
- Monitor standard development: Keep an eye on the SAMR and other ministry websites for drafts and final versions of product carbon footprint standards relevant to your products.
- Consider voluntary reporting: Even before standards are finalized, voluntary carbon footprint reporting can help you identify hotspots and prepare for future requirements.
The action plan also emphasizes strengthening coordination of carbon footprint standards for key products and improving the national standard system. This suggests that the government will continue to update and expand the standards over time.
Next Steps
The SAMR has stated that it will work with relevant departments to ensure the implementation of the action plan, providing technical support for the green transformation of economic and social development. For foreign founders, this means the policy environment will continue to evolve, and staying informed is essential.
If you are considering registering a company in China or already operate one, ChinaMNC can help you navigate these regulatory developments and ensure your business stays compliant. Contact us on WhatsApp or WeChat at +86 153 1898 8535 for assistance with company registration and ongoing operations in China.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.