China’s Zero-Carbon Industrial Parks Lead the Way to a Green Future

China is embarking on an ambitious plan to construct zero-carbon industrial parks, a key component of its push toward a greener economy. This initiative gained prominence at the Central Economic Work Conference, where national leaders outlined economic priorities for 2025, placing green transition high on the agenda.

Pioneering a Green Economy

Set to peak carbon emissions before 2030 and achieve carbon neutrality by 2060, China views going green as essential for its modernization efforts. The development of zero-carbon industrial parks is seen as a crucial step in achieving these climate goals.

While a universally accepted definition of a “zero-carbon industrial park” is still evolving, several Chinese cities began developing their own concepts in 2021. Ordos City, located in north China’s Inner Mongolia Autonomous Region, has emerged as a forerunner in this endeavor.

In 2022, Ordos announced the creation of the world’s first zero-carbon industrial park and upgraded it in July 2024. The city also established a local standard for zero-carbon industrial parks in 2023, a national first. The Ordos park now hosts a diverse range of companies, including battery manufacturers, solar panel producers, hydrogen fuel developers, and electric vehicle companies.

“The availability of cheap, emission-free electricity is the park’s biggest draw,” said Zhang Yuan, a zero-carbon strategies manager at Envision Group, in an interview with The Economic Observer.

Challenges Ahead

Building zero-carbon parks presents significant challenges for companies and local governments. Achieving carbon neutrality on a small scale is complex. According to Liu Jiagen, deputy chief engineer at the Architectural Design and Research Institute of Tsinghua University, “It’s more challenging for a building than a park, and more challenging for a park than a city.”

Liu explained that while cities can invest in dedicated renewable energy plants and industrial parks have space for solar panels and energy-efficient infrastructure, stand-alone buildings face greater hurdles. Additionally, the emissions associated with manufacturing construction materials are a significant contributor to overall carbon emissions.

“Whether these embodied emissions should be included in carbon emission calculations is still a matter of debate,” Liu noted.

In July 2023, China’s Ministry of Housing and Urban-Rural Development released draft technical standards for the country’s zero-carbon structures and sought public opinion. However, these standards have yet to be finalized.

A Path Forward

Despite the challenges, China’s commitment to developing zero-carbon industrial parks signifies a major step towards a sustainable future. As the nation continues to innovate and refine its approach, these parks could serve as models for green development worldwide.