China Launches Carbon Footprint Reporting for Automotive Power Batteries

On December 30, 2025, China’s Ministry of Industry and Information Technology (MIIT) issued the “Notice on Launching the Carbon Footprint Declaration Work for Automotive Power Batteries” (工信厅通装函〔2025〕551号), aiming to establish a nationwide carbon footprint reporting system for automotive power batteries starting in 2026. This initiative aligns with China’s broader carbon peaking and carbon neutrality (“dual carbon”) goals, reflecting a coordinated push toward cleaner, more transparent production and lifecycle processes in the electric vehicle (EV) supply chain.

Through this notice and associated implementation steps, MIIT seeks to lay the groundwork for a robust carbon accounting framework that supports both domestic sustainable development and international competitiveness in the NEV battery market.

Executive Summary

• On 30 December 2025, MIIT issued a notice launching a nationwide carbon footprint declaration system for automotive power batteries, effective from 2026, in support of China’s “dual carbon” goals.

• The requirement applies to all power batteries above 2 kWh sold in China, including imports, with battery pack manufacturers as the primary reporting entities.

• Reporting covers full lifecycle emissions, from raw materials and production to use, recycling, and disposal, supported by standardized accounting rules and third-party verification.

• Implementation will be phased, with a trial period in 2026 and full-scale application from 2027.

• The policy strengthens supply chain transparency, supports international alignment, and makes carbon performance a growing competitive factor for battery manufacturers.

Dual Carbon Goals and Industry Transformation

The “Notice” is aligned with China’s overarching carbon peaking and carbon neutrality (“双碳”) strategy, which has been articulated through multiple high-level policy directives, including the State Council’s “Work Plan on Accelerating the Establishment of a Dual Carbon Emissions Control System” issued in July 2024. Under this national guidance, the automotive sector, particularly power battery manufacturing, has been identified as a focal area for early carbon footprint reporting and management system development.

In addition to internal climate goals, this policy also positions China’s NEV supply chain to better navigate emerging international carbon regulations and trade standards, as carbon footprint transparency becomes increasingly relevant in global markets. Early engagement in carbon reporting can mitigate future trade barriers and facilitate mutual recognition of carbon data with major trading partners.

Scope of Application and Reporting Requirements

The carbon footprint reporting requirement covers all automotive power batteries sold within China with a rated energy exceeding 2 kWh, including both domestically produced and imported units. Manufacturers of power battery packs are designated as the primary reporting entities responsible for data submission.

Reporting obligations encompass the full lifecycle carbon footprint of power batteries, from raw material acquisition and manufacturing, through distribution and use, to recycling and disposal. By structuring the reporting around lifecycle emissions, the policy requires comprehensive evaluation of environmental impacts and fosters improvements in carbon efficiency across production stages.

Battery manufacturers must register on designated systems, collect activity and background data, perform self-assessment calculations, and upload third-party verification reports. This combination of internal reporting and external verification aims to enhance data credibility and consistency.

Phased Implementation and System Development

The carbon footprint reporting system will be implemented in two main phases. During the initial trial phase (roughly December 2025 through December 2026), participating manufacturers are expected to declare carbon footprint data for a representative subset of products, which facilitates initial system testing and data quality assurance.

Following the trial phase, the program is expected to expand into a formal declaration management system beginning in January 2027, covering all applicable power battery products marketed in China. This phased implementation approach allows the reporting framework to mature gradually, enabling refinement of technical standards and data infrastructure.

Carbon Accounting Rules and Data Standards

A critical component of the policy is the establishment of standardized carbon accounting rules and associated technical protocols. The reporting framework defines the methodology for calculating emissions, including guidelines on activity data, background emissions factors, and lifecycle boundaries.

The policy also emphasizes the development of a centralized background database and evaluation system that can support consistent, high-quality data sets, which are foundational for credible reporting. Over time, MIIT plans to align domestic accounting standards and certification procedures with international norms, promoting compatibility with global carbon reporting frameworks and facilitating cross-border recognition.

Administrative Coordination and Regulatory Support

Implementation of the carbon footprint reporting system will requires close coordination between MIIT and other relevant authorities in order to reduce overlap and enhance efficiency across related programs, preventing fragmented regulatory requirements and supporting a more coherent carbon governance system for the automotive sector. Carbon footprint management efforts will be integrated with existing automotive energy efficiency and emission trading policies to ensure policy consistency and regulatory alignment.

Industrial and Market Implications

The introduction of mandatory carbon footprint reporting for automotive power batteries carries several implications:

• Green supply chain transformation: Standardized carbon accounting is likely to incentivize manufacturers to innovate in battery design, material sourcing, and production processes to achieve lower lifecycle emissions.
• Export competitiveness: As global markets adopt stricter carbon standards and potential carbon border adjustment mechanisms, transparent carbon footprint data can help Chinese battery producers demonstrate compliance with international expectations.
• Operational adjustments: Firms will need to invest in data systems, lifecycle assessment expertise, and third-party verification processes to meet reporting requirements and ensure credible submissions.

International Alignment and Future Policy Integration

China’s carbon footprint reporting initiative for automotive power batteries is part of a broader trend toward lifecycle environmental management in industrial policy. Comparable measures in other markets, such as the European Union’s carbon reporting requirements for EV components, have already set precedents that emphasize standardized data and independent verification.

The MIIT notice anticipates that over time, domestic methodologies, certification standards, and background emissions datasets will be progressively harmonized with international practices, enabling smoother integration into global sustainability frameworks and improving the international competitiveness of Chinese EV battery producers.

What This Means for Business

For automotive power battery manufacturers and supply chain partners, the carbon footprint declaration policy represents both a compliance requirement and a strategic opportunity. Companies that invest early in robust carbon accounting systems, high-quality data infrastructure, and internal lifecycle management capabilities will be better positioned to meet regulatory obligations while also leveraging environmental transparency as a market differentiator.

Battery producers that adopt carbon optimization strategies, reducing emissions tied to materials, manufacturing processes, and logistics, may benefit from improved cost structures and heightened appeal to global customers focused on sustainability. At the same time, advanced reporting capabilities can support participation in emerging international value chains where carbon performance is increasingly a commercial prerequisite.

In addition, firms that proactively align with the evolving regulatory landscape, including potential links to emission trading and energy efficiency frameworks, can mitigate compliance risk and enhance strategic planning in a rapidly changing policy environment. Overall, this policy reinforces the importance of environmental performance as a competitive factor in the future of China’s automotive and NEV battery industries.

Sources

• Notice on Launching the Carbon Footprint Declaration Work for Automotive Power Batteries — Ministry of Industry and Information Technology (MIIT), December 30, 2025 (工信厅通装函〔2025〕551号) https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2025/art_4fcc7b031c434336abc328698de02f24.html