China’s stated carbon-neutrality target has placed a net-zero transition at the center of its economic and climate policy discussions, with potential implications for global emissions.

On the demand side, a shift toward a lower-carbon economy could influence consumer behavior, increase demand for cleaner goods and services, improve resource efficiency, and redirect private and public investment toward climate-aligned projects. On the supply side, it could accelerate technological innovation and support the gradual retirement of high-emission industries and infrastructure.

With this framing, achieving carbon neutrality on an accelerated timeline would require broad, socioeconomic changes. Working alongside other initiatives, the Low Carbon Economic Growth Program focuses on analyzing alternative economic metrics, evaluating green fiscal and financial mechanisms, and assessing incentives for lower-emission infrastructure and technology.