China is intensifying efforts to promote green consumption as part of its broader transition toward a sustainable, low-carbon economy. On January 5, 2026, the Ministry of Commerce of the People’s Republic of China, together with eight other central government departments, issued the Notice on Implementing the Action to Promote Green Consumption (关于实施绿色消费推进行动的通知) to strengthen incentives for environmentally responsible consumption across the economy.
This policy initiative includes measures such as subsidies for the purchase of energy-efficient household appliances and actions to reduce the use of single-use plastic products, reflecting a systematic approach to shift domestic consumption patterns toward green alternatives.
Executive Summary
- The Ministry of Commerce and eight other ministries jointly issued the Notice on Implementing the Action to Promote Green Consumption on January 5, 2026.
- The policy outlines a comprehensive action plan with 20 measures to foster green consumption and accelerate the transition to low-carbon lifestyles.
- Key components include expanding subsidies and incentives for the purchase of green products (such as energy-efficient appliances) and reducing single-use plastic consumption through structural measures.
- Implementation spans product supply, consumer demand stimulation, green services expansion, circular economy integration, and plastic reduction strategies.
- The policy supports strengthened recycling and reuse logistics, including development of waste collection and reuse systems.
- For business, this framework signals enhanced market opportunities in energy-efficient products, green supply chains, recycling systems, and plastic alternatives.
Policy Framework and Authority
The Notice on Implementing the Action to Promote Green Consumption was jointly issued by the Ministry of Commerce of the People’s Republic of China along with eight other central ministries, including the National Development and Reform Commission, Ministry of Ecology and Environment, and others, on January 5, 2026. The notice presents a strategic action plan consisting of 20 policy measures across seven key areas aimed at expanding and structuring green consumption across the Chinese economy.
This action plan builds on directives from the Communist Party of China (CPC) and the State Council to deepen the green transformation of both production and consumption, supporting sustainable lifestyles while advancing economic development. Its issuance reflects a coordinated central government effort to integrate environmental objectives with consumer market stimulation.
Consumption-Led Green Transition
The green consumption action plan aligns with China’s broader strategic objective of shifting from traditional consumption patterns toward more resource-efficient and low-carbon consumption models. By integrating environmental goals with consumption incentives, the policy seeks to influence consumer behavior and supply chain dynamics in a way that contributes to both environmental outcomes and domestic demand growth.
Subsidies and other financial incentives for greener products, such as energy-efficient home appliances and digital devices, aim to lower the upfront cost of adopting green technologies, thereby accelerating market penetration and stimulating consumer demand for higher-value, lower-impact goods. Simultaneously, the plan’s measures to reduce single-use plastics and enhance recycling infrastructure reflect an effort to embed circular economy principles into daily consumption.
Expanding Subsidies for Energy-Efficient Appliances
A central element of the green consumption framework is the expansion of subsidies for the purchase of energy- and water-efficient household appliances. The action plan encourages the adoption of certified green products by offering percentage-based subsidies tied to the sales price of eligible items. These appliances, including refrigerators, washing machines, air conditioners, and computers, receive financial support to make green options more economically attractive compared with less efficient alternatives.
The subsidy levels typically scale with energy efficiency: products meeting higher efficiency standards are eligible for larger subsidies, which can increase consumer willingness to adopt environmentally preferable models. This structured approach not only supports environmental objectives but also encourages manufacturers to prioritize energy-efficient design and innovation.
Digital and Smart Product Incentives
In addition to traditional appliances, the policy also covers digital and smart products such as mobile phones, tablets, and smartwatches, especially those that meet defined energy efficiency or sustainability criteria. Subsidy schemes for these products aim to encourage upgrades toward greener digital technologies, thereby expanding the reach of green consumption beyond conventional durable goods.
This broader inclusion of digital devices reflects an understanding that consumer technology also contributes to overall energy use and carbon emissions, so incentivizing green upgrades can have measurable environmental benefits while stimulating additional consumption demand.
Reducing Single-Use Plastic Use
Another pillar of the green consumption action plan is reducing the use of single-use plastic products. The policy encourages retailers and e-commerce platforms to implement measures that shift consumers away from disposable plastics toward reusable or recyclable alternatives. Key directions include promoting alternative packaging materials (such as biodegradable or bamboo-based options), encouraging efficient reuse systems in supply chains, and facilitating recycling initiatives.
Reducing single-use plastics is part of a broader effort to integrate environmental considerations into everyday consumption. By discouraging wasteful packaging and fostering adoption of recyclable or reusable materials, the policy contributes to waste reduction goals, supports recycling industry development, and enhances circularity in consumer goods sectors.
Recycling and Resource Recovery
The action plan also includes measures that aim to strengthen recycling infrastructure and resource recovery systems. By supporting the establishment of more accessible recycling points, intermediate centers, and sorting facilities, the policy promotes efficient sorting and reuse of waste materials, including appliances and packaging. This helps bridge gaps in the reverse logistics that often inhibit widespread resource reclamation.
Green Supply Chain Development
In parallel, the plan encourages businesses to build green supply chains by incorporating environmental criteria into procurement and logistics. Initiatives such as promoting shared logistic pallets and reducing excess packaging underline efforts to reduce the environmental footprint of distribution networks.
Innovation in the supply chain, including carbon footprint evaluation and adoption of renewable energy sources, paves the way for more resilient and sustainable markets, while also creating new commercial opportunities for service providers and technology developers supporting these systems.
Driving Consumer Awareness and Behavior
Effective implementation of green consumption policies often depends on consumer awareness and preferences. The action plan therefore emphasizes outreach and education efforts to increase public understanding of green products and environmentally responsible choices. These efforts include promotional campaigns, consumer incentives such as green points programs, and partnerships with retail platforms to highlight green product categories.
Through these initiatives, the policy seeks to reshape consumer expectations and behavior by embedding environmental impact considerations into purchasing decisions.
Synergy With Broader Economic Goals
By aligning green consumption incentives with broader economic goals, such as stimulating domestic demand and enhancing industrial innovation, China’s approach reflects a dual objective: supporting environmental sustainability while driving economic momentum. This strategy helps mitigate potential slowdowns in traditional consumption drivers by channeling consumer demand toward high-efficiency, quality products that align with national development priorities.
What This Means for Business
- Increased Market Opportunities: Subsidies for energy-efficient and smart products create demand growth opportunities for manufacturers and retailers of certified green appliances and digital devices.
- Competitive Advantage Through Innovation: Firms that integrate higher environmental standards into product design and certification may capture a larger share of subsidies-enabled consumption.
- Supply Chain Evolution: Businesses involved in recycling, green logistics, and packaging alternatives can benefit from structural shifts toward circular supply chain models.
- Brand Differentiation: Companies that successfully align with green consumption trends and effectively communicate sustainability credentials are likely to build stronger consumer loyalty and market positioning.
- Regulatory Preparedness: Enterprises should monitor evolving standards, such as energy efficiency and product certification requirements, to ensure compliance and to optimize access to incentive programs.
Sources
- Notice on Implementing the Action to Promote Green Consumption (关于实施绿色消费推进行动的通知), Ministry of Commerce and eight other ministries, 5 January 2026.
https://english.www.gov.cn/news/202601/05/content_WS695b79d7c6d00ca5f9a086a3.html (State Council of China)
- China to further promote green consumption — State Council Information Office, 7 January 2026. (SCIO)
- Commerce and nine ministries issue green consumption action plan — People’s Daily report, 7 January 2026. (paper.people.com.cn)
- Detailed policy measures on green consumption implementation — Sina Finance summary, 5 January 2026. (Sina Finance)