China’s Green Leap: New Energy Vehicles Take Center Stage in Carbon Footprint Reporting

The Ministry of Industry and Information Technology (MIIT) of China has announced a pilot program, where battery manufacturers for New Energy Vehicles (NEVs), including electric and hybrid cars, will be required to report the carbon footprint of their products starting from 2026. The initial phase focuses on data collection for representative battery models, expanding to mandatory reporting for all manufacturers by 2027. MIIT emphasizes that the pilot project’s goal is to develop a system rather than enforce compliance. A secure platform will be created for manufacturers to provide data and coordinate independent verification.

Batteries are a significant source of greenhouse gas emissions throughout their life cycle, especially high-energy-density lithium-ion batteries. Meanwhile, lithium iron phosphate batteries typically have a smaller carbon footprint. Some European Union countries already require carbon footprint reporting at the level of individual batteries. Accurate and standardized measurements are essential for achieving internal carbon neutrality goals and ensuring the competitiveness of China’s NEV exports.

Chinas Green Leap
Illustration: Nano Banana

Building a Carbon Management Framework

The initiative proposes the creation of a structured battery carbon footprint management system covering standards, data platforms, monitoring, verification, and evaluation. Companies will provide data on select products in 2026, gradually expanding to all battery models. The carbon footprint calculations cover four life cycle stages: material extraction, battery production, distribution, and recycling. Metrics are normalized by the total energy output of the battery.

Activity data includes monitoring energy and material consumption during production, transportation, and recycling, while background data involves carbon emission factors for raw materials, energy sources, and components. Regional power factors and ‘green’ certificates are considered to reflect differences in energy sources across China. Full battery lifecycle emissions are calculated using measured cycles based on national standards, aligning the methodology with international life cycle assessment (LCA) frameworks.

Various stakeholders participate in the reporting system. Battery manufacturers input activity data, perform calculations, upload results, and coordinate with independent auditors. Suppliers offer traceable data on raw materials, components, transport, and recycling. Verification agencies review and certify submitted data per national or industry standards. Universities, research institutes, industry associations, and enterprises support and update the database of background factors. Industry experts engage in reviewing factors, evaluating methodologies, and policy development.

International Collaboration and Future Advancements

MIIT plans to summarize the 2026 pilot project results, refine standards, and explore supportive policies, coordinating with other authorities, including the State Administration for Market Regulation, to ensure alignment with broader carbon emissions management policies. This initiative is also expected to spur technological innovations in battery manufacturing and lifecycle management, potentially serving as a model for systematic carbon emissions accounting in the automotive sector.

Enhancing global collaboration, China is working closely with international partners to align NEV standards with global practices and has been integrating AI and IoT technologies in this sector. This advancement not only harmonizes standards but also fosters a conducive environment for innovation, creating a robust market landscape for NEVs both domestically and internationally.

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