InfluenceMap published its initial report on China, Corporate Climate Policy Engagement in China, in 2025. Our ongoing research aims to provide global and Chinese investors with clear assessments of how companies and industry associations are engaging with the country’s evolving climate and energy policy landscape. This 2026 briefing provides an update following the annual Two Sessions policy process, where key climate and energy priorities for the coming years were discussed and set out.
China's climate policy is shaped by its commitment to the Paris Agreement, requiring national action plans to limit global warming. Scientific guidance from the IPCC has reinforced the need for rapid emissions reductions and strong government intervention. In response, China has set "dual carbon" goals to peak emissions before 2030 and reach carbon neutrality by 2060. Policy development has accelerated through frameworks such as the 14th Five-Year Plan and the 1+N system, which sets sector-specific pathways. These measures have driven rapid growth in renewable energy, now exceeding 50% of installed power capacity, positioning clean energy as central to China's energy system and future economic strategy.
Each year, China’s legislature, the National People’s Congress (NPC), and top political advisory body, the Chinese People’s Political Consultative Conference (CPPCC), hold the Two Sessions, parallel meetings to establish its economic, industrial, and social policy agenda for the upcoming years. At this year’s Two Sessions, China released its 15th Five-Year Plan, which outlines its policy priorities and directives for 2026–2030. Some highlights of how China's climate and energy policy is evolving based on this year's discussions:
InfluenceMap’s research shows that Chinese companies engage on climate and energy policy through a structured, state-led system, using a range of established channels. These include participation in government consultations, support for policy-relevant research, and the use of media and public messaging to signal positions. The Two Sessions remain a key moment in this process, providing a formal route for industry perspectives to be raised. While companies do not typically engage through open lobbying on specific policies, many senior executives hold positions as NPC delegates or CPPCC representatives. Through these roles, they submit proposals and recommendations linked to energy transition pathways and technology development.
This year's Two Sessions featured policy proposals submitted from companies primarily in the oil and gas sector, the new energy (solar, battery) sector, and the automotive sector. While, as in other economies, the voices of the fossil fuel industry remain prominent on climate and energy policy, the role and messaging of new energy sectors are expected to play an increasingly important part in supporting China's transition and signalling its direction to the global stakeholder community. The following summarises key comments from major players during the 2026 Two Sessions.
| Sector Summary | Key Corporate Policy Positions |
|---|---|
| Oil / Gas Sector The oil and gas sector acknowledged China’s climate goals and long-term energy transition, while advocating for a continued role for fossil fuels in the energy mix. Many proposals supported technologies and infrastructure that would sustain this role, often framed around the need to ensure energy security and system stability during the transition. | China National Petroleum Corporation (CNPC) Several NPC deputies from China National Petroleum Corporation (CNPC) submitted proposals. These included support for expanded oil and gas exploration and reserves, and development of coalbed methane to boost fossil gas production. Other proposals called for a greater role for biogas, and support for the petrochemical sector’s low-carbon transition, including carbon footprint standards and further development of the carbon market. Sinopec Sinopec’s president called for stronger support for hydrogen, including pipeline infrastructure and closer integration with the power system. An NPC deputy also promoted linking fossil gas and hydrogen, including hydrogen blending, alongside support for gas-fired power pricing mechanisms and a larger role for biogas. Other proposals backed the development of biofuels and geothermal energy. |
| New Energy Sector The new energy (solar, battery) sector expressed support for key areas of climate policy, including emissions trading, renewable energy deployment, and circular economy measures. However, overall engagement activity from this sector remains more limited than that of the oil and gas sector, meaning its support for the low-carbon transition is less prominent in the policy process. | Sungrow Power Supply Sungrow Power Supply’s chairman appeared to support China’s carbon market and Green Electricity Trading Scheme. He broadly supported specific elements of the Green Electricity Certificate (GEC) system and suggested accelerating the internationalization of the carbon market. Ganfeng Lithium Ganfeng Lithium’s chairman called for circular economy measures in his policy proposals. He advocated for policy to support the new energy vehicle repair industry. He also suggested establishing aircraft-specific battery recycling for low-altitude aviation. |
| Automotive Sector The automotive sector generally supported the transition to a lower-emissions energy mix, with proposals spanning multiple decarbonisation pathways and technologies. | Geely Geely’s chairman advocated for the use of methanol to decarbonize heavy-duty vehicles, requesting that the Ministry of Transport prioritize the promotion of methanol-powered commercial trucks in the transport sector. He further suggested that the National Energy Administration accelerate the establishment of national standards for green methanol. SAIC Motor A SAIC Motor NPC deputy advocated for the simultaneous promotion of oil and electricity in the automotive sector, arguing that procurement policies, including trade-in programs, should no longer differentiate between ICE-powered vehicles and new energy vehicles. She also called for measures to promote the uptake of new energy vehicles, including improved charging infrastructure and reduced insurance rates. Chery Chery’s chairman advocated for an increase in hydrogen-reduction steelmaking to decarbonize the automotive supply chain. In addition to promoting the decarbonization of virgin materials, he also supported the use of recycled materials, such as steel and aluminum, to achieve emissions reductions in the automotive sector. |
