Carbon Emission Newsletter -February,2025
No.1
Five central government departments jointly issue “Guidelines for Formulating Product Carbon Footprint Accounting Standards”
The guidelines provide a foundational framework for the development of product carbon footprint (PCF) standards in China, with a target of establishing 100 standards by 2027 and 200 by 2030. They aim to promote alignment and mutual recognition with international standards. The guidelines outline specific pathways and technical requirements, driving the development of PCF standards for both primary manufacturing and end-use products. They emphasize coordinated efforts across various types of standards—national, industry, local, group, and enterprise-level—and advocate for regular evaluation after the standards are formulated. Additionally, the guidelines call for cross-departmental collaboration in the development and maintenance of these standards and encourage broader applications of PCF standards in areas such as carbon pricing and carbon "dual control" policies.
No.2
SSE, SZSE, and BSE officially released the “Sustainability Reporting Guidance for Listed Companies”
On January 17, China's three major stock exchanges issued the "Sustainability Reporting Guidance for Listed Companies," which complements the earlier "Guidelines on Corporate Sustainability Disclosure for Listed Companies." Alongside the new guidance, the first set of supplementary documents was introduced, including Attachment No.1: General Requirements and Disclosure Framework, and Attachment No.2: Response to Climate Change. These documents assist listed companies in establishing a sustainability governance framework and serve as a comprehensive toolkit and reference for ESG reporting. Specifically, Attachment No.2 details methods for calculating carbon emissions, outlines procedures for scenario analysis, and identifies 22 key areas of disclosure.
No.3
Database of National Greenhouse Gas Emission Factor (First Edition) officially launched
On January 10, the first phase of the Database of National Greenhouse Gas Emission Factors, collaboratively developed by the Ministry of Ecology and Environment (MEE) and the National Bureau of Statistics, was officially released. This database offers a comprehensive set of emission factors across various sectors to facilitate accurate carbon emission accounting. These factors are consistent with the emission sources and classifications outlined in existing standards, such as the "Guidelines for Greenhouse Gas Emission Accounting Methods for Enterprises by Industry." The initial release covers both direct emission factors—such as those from fuel combustion, wastewater and solid waste treatment, carbonate use, and agricultural production—and indirect emission factors related to net purchased electricity and heat.
No.4
France calls on EU to delay, water down sustainability reporting and due diligence requirements
France has called on the European Commission to postpone and revise crucial European regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), in order to alleviate the regulatory burden on businesses, particularly small and medium-sized enterprises (SMEs). France suggests that the CSDDD should apply only to companies with more than 5,000 employees and revenues exceeding €1.5 billion, along with other proposed changes to streamline compliance obligations. While these proposals aim to mitigate economic pressures on businesses, they have sparked concerns regarding policy uncertainty and potential impacts on corporate sustainability investments.
No.5
Trump signs order on withdrawing U.S. from the Paris Agreement again
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