Core Insights - The report emphasizes that China's "carbon peak" is closely related to the Nationally Determined Contributions (NDC) [3][11][12] - The third round of NDC announced by President Xi Jinping expands the scope to cover all economic sectors and sets absolute reduction targets for greenhouse gas emissions [13][12] - The report indicates that while China's carbon emissions continue to rise, the growth rate is showing signs of convergence [5][9] Industry Analysis - As of Q3 2025, certain industries such as cement, aluminum, electricity, and steel are nearing or have achieved carbon peaking, while sectors like transportation and petrochemicals face significant challenges [6][24][25] - The report outlines that achieving carbon peaking in high-energy-consuming industries will require deep decarbonization, technological innovation, and capacity optimization [27][30] - The transition to a cleaner energy system is highlighted as a priority, with increased investments in non-fossil energy sources, including large-scale wind and solar projects, and upgrades to smart grid systems [6][29] Investment Recommendations - The report suggests focusing on sectors that have undergone significant adjustments, such as banking and insurance, as well as areas related to environmental protection and renewable energy [30] - It is anticipated that carbon peaking-related investment directions will become a major focus as the "14th Five-Year Plan" is implemented [30]

Core Viewpoint - The article highlights the progress made in achieving China's "dual carbon" goals over the past five years, emphasizing the significant advancements in renewable energy capacity and the acceleration of low-carbon industrial processes [1] Energy Sector - China's cumulative installed capacity for wind and solar power has reached 1.68 billion kilowatts, more than three times the capacity in 2020, achieving the international commitment six years ahead of schedule [1] - Energy is identified as a critical area for advancing carbon peak and carbon neutrality goals, underscoring its importance in the national economy [1] Economic Transformation - From 2021 to 2024, the cumulative decline rate of energy consumption per unit of GDP is projected to be 11.6%, meeting the progress requirements of the 14th Five-Year Plan [1] - The "three new" economy, which includes new industries, new business formats, and new models, accounts for over 18% of GDP [1] Industrial Development - The process of industrial low-carbonization is accelerating, with over 150 million tons of outdated steel production capacity eliminated [1] - By the end of 2024, a total of 6,430 national-level green factories will be cultivated, contributing approximately 20% to the total output value of the manufacturing industry [1] - There are 491 green industrial parks at the national level, with energy consumption per unit of industrial added value being only two-thirds of the national average [1] - In the first half of this year, the added value of high-tech manufacturing accounted for 16.4% of the total industrial output above designated size [1]