China Industrial Decarbonization Research

Eurasia Development Group: the transition of key industries — steel, chemicals, cement and energy — toward greener production models is creating multibillion-dollar opportunities and could reduce China’s emissions by 90% by 2050.

Decarbonization of industrial sectors is becoming a priority of China’s national strategy amid the global climate crisis.

The report examines transition scenarios for major sectors — steel, chemicals, cement and energy — toward low-carbon technologies and assesses their economic and environmental impacts.

Key Findings:

• China’s steel sector is transitioning to low-carbon technologies: by 2050, emissions are expected to decline by 96%.
• The cement industry plans to reduce CO₂ emissions by 70% through CCUS and alternative binders.
• The chemical sector is expanding production of green hydrogen and ammonia — the market is expected to reach $6.8 billion by 2030.
• The energy sector is rapidly deploying renewable energy: the share of solar and wind generation is expected to exceed 50% by 2040.

Market Drivers

Tighter environmental regulations, rising fossil fuel costs and government incentives are making decarbonization a priority across all of China’s industrial sectors.
Green finance programs and tax incentives are accelerating the transition toward renewable energy, CCUS and hydrogen energy.

What This Means for Russian Companies

• Investment and joint ventures in the production of low-carbon hydrogen and ammonia for the chemical sector.
• Service and engineering solutions for the modernization of Russian energy and industrial facilities based on China’s experience.

Expert Commentary “China has extensive experience in decarbonization and a broad portfolio of technologies — from hydrogen-based metallurgy to CCUS — that can be effectively adapted for projects implemented by Russian companies,” says Konstantin Matveenkov, Director of ESG and Sustainable Development at Eurasia Development Group.