Geographically speaking, industrial parks, whether spreading across 300 square kilometers, equivalent to a small city, or covering just a few sq km, serve as the most direct carriers of industrial, economic and productivity vitality.

During the 2024 Central Economic Work Conference in December, the establishment of zero-carbon industrial parks was highlighted, followed by the Government Work Report in March 2025, which listed the building of additional zero-carbon parks and factories as priorities.

As a result, the development of zero-carbon and low-carbon industrial parks has ushered in a new wave of enthusiasm.

Industrial parks are at the center of decarbonization strategies and processes. The approximately 15,000 industrial parks nationwide account for over 40 percent of national energy consumption, 80 percent of industrial enterprises, 50 percent of gross industrial output, and 31 percent of the country's carbon dioxide emissions. This is why industrial parks have consistently been at the forefront of pilot projects in China's efforts to advance low-carbon practices and accelerate the "dual-carbon" goals of peaking carbon emissions and achieving carbon neutrality.

The recently approved action plan for advancing the green and low-carbon development of manufacturing (2025-27) underscores the need for deep decarbonization of traditional industries in combination with the large-scale deployment of renewable energy technologies. China is accelerating the building of a comprehensive green manufacturing and service system centered on low-carbon products. In this process, industrial parks are embracing their unique roles as the frontlines of innovative practices.

Furthermore, with growing global awareness of supply chain emissions, zero-carbon industrial parks are becoming strategic hubs for supply chain carbon management. Many export-oriented parks are actively reducing emissions through green electricity procurement and more efficient production processes, striving to deliver products that are low-carbon not only in use but also in production. Till now, more than 70 national-level economic and technological development zones have begun developing zero-carbon parks, while many more are expected to follow. This transition is creating new market opportunities to further thrive an economy that aligns with climate requirements: carbon asset management, carbon trading, energy auditing and green finance which enable the decarbonization of global supply chains and support the broader green transition of both the domestic and the global economy.

Building zero-carbon industrial parks requires a comprehensive and integrated approach. This involves aligning multiple systems — from the supply of green energy and power to buildings, transportation and industrial operations — alongside essential enabling mechanisms such as green and transition finance, circular economy practices and effective carbon emissions and carbon asset management. The ultimate objective is to steer economic growth onto a path that is both carbon-neutral and economically sustainable.

China has set successful examples in developing zero-carbon industrial parks, positioning them as core demonstrations for ambitious green electricity portfolios, which in turn serve as catalysts for broader power system transformation. Smart technologies and digital infrastructure have also been deployed as the most effective tools to significantly enhance operational efficiency, reduce emissions and create more responsive and adaptive energy systems.

Furthermore, the transition to zero-carbon industrial parks presents a valuable opportunity for the large-scale renewal and modernization of existing facilities.

The central government has introduced a range of incentives — such as ultra-long-term special national bonds and interest subsidies — to support the replacement of outdated equipment with high-end, intelligent and green alternatives. Increasing investment in low-carbon assets will send a strong positive signal to the thousands of industrial parks across China.

These practices also present the opportunity for China to continue to contribute to the regional and global energy transition. According to 2023 statistics, more than 70 overseas industrial parks have been jointly developed by Chinese enterprises in partnership with host countries. Hopefully these jointly hosted industry parks in Asia and Africa can also lead to a meaningful combination of high-quality and low-carbon growth. The good trend is that in recent years, industrial parks have already evolved from being single-purpose manufacturing hubs to innovation-driven and R&D-oriented centers, increasingly adopting locally beneficial development models.

Three catchwords might be helpful in further advancing these efforts.

The first is "high-tech", characterized by advanced digitalization and high-value-added products. We are in the midst of a new industrial revolution, where artificial intelligence and digitalization will significantly drive industrial transformation and the development of a low-carbon economy. Therefore, in building zero-carbon industrial parks, we see the critique of application of advanced technologies to help enhance efficiency and achieve ultra-low emissions. These new technologies also call for innovative business models, management mechanisms and corresponding infrastructure.

The second is "multi-stakeholder". In the development of zero-carbon industrial parks, this term encompasses a wide range of actors — policy designers, operational managers, engineers and investors — regardless of their regional background. Given the unique nature of energy challenges, integrating supply-side and demand-side approaches is essential. For instance, China's "generation-grid-load-storage" integration exemplifies a comprehensive approach to coordinating supply and demand-side dynamics. A multi-stakeholder approach also spans the entire value chain, therefore efforts around product-level carbon accounting and data disclosure, low-carbon and green product certification, carbon credit methodologies and etc, ensure that production emissions are transparently reflected and fairly traded alongside global commodity flows, while supporting incentives for green supply chains worldwide.

The last and most critical word is "localized". While developing low-carbon and zero-carbon industrial parks follows common principles, each park faces its unique characteristics and challenges. The key lies in tailoring strategies to the local context — leveraging regional strengths, aligning with local economic development priorities, and, most importantly, optimizing the use of local resources, both human and natural. Promoting effective models in a localized manner also helps expand market presence. Together, these efforts are essential to achieving the overarching goal: ensuring that the climate and economic benefits of the energy transition are retained locally — and that local progress contributes to a more effective global transition.

Li Ting is chief representative and managing director of RMI China. Li Wei is principal of buildings, infrastructure and supply chains at RMI China. The authors contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at [email protected].