Core Viewpoint - The Chinese photovoltaic industry is transitioning towards a model that balances "green manufacturing" and "manufacturing green" as it faces challenges in carbon emissions and resource consumption while expanding capacity [1][2]. Industry Overview - The photovoltaic industry in China is experiencing significant growth, with a cumulative installed capacity of over 1 billion kilowatts as of May 2023, surpassing thermal power for the first time [1]. - The industry is under pressure to enhance its green and low-carbon transformation, with 95% of surveyed companies setting climate goals and 87% disclosing carbon emissions data [1][2]. Carbon Emissions - The total carbon emissions from the 44 companies that disclosed their operational data reached 105 million tons of CO2 equivalent for 2024, with a notable increase from 45.23 million tons in 2022 to 70.57 million tons in 2024, marking a 46.6% rise from 2022 to 2023 and a 5.7% increase from 2023 to 2024 [2]. - The primary drivers of rising carbon emissions are production expansion and potential increases in energy consumption due to technological upgrades [2]. Policy and Regulation - The Ministry of Industry and Information Technology is set to release guidelines to promote high-quality development in the photovoltaic sector, focusing on resource utilization, energy management, and ESG disclosures [2]. - Regulatory guidance from stock exchanges emphasizes the need for companies to disclose 21 ESG-related topics, including emissions and biodiversity [2]. Product Carbon Footprint - The carbon footprint of photovoltaic products is becoming a critical factor in market competitiveness, with strict requirements in regions like France and South Korea [3]. - 25 companies have disclosed carbon footprint data for over 80 products, while 11 others are working on carbon footprint assessments without disclosing quantitative data [3]. Supply Chain Emissions - Scope 3 emissions from the supply chain account for over 90% of total greenhouse gas emissions for companies focused on photovoltaic components, and over 50% for those producing silicon materials [4]. - 20 companies have disclosed their Scope 3 emissions, with several integrating supplier emissions into their management practices [4][5]. Renewable Energy Utilization - 40 companies reported using renewable energy, totaling 57.1 million megawatt-hours in 2024, resulting in a reduction of over 32.55 million tons of CO2 equivalent [5]. - Companies like Sungrow Power Supply and Tongwei Co. have reported that renewable energy constitutes over 60% of their total energy consumption [5]. Water Resource Management - 80% of companies involved in the production of polysilicon, silicon wafers, and solar cells have disclosed water resource consumption data, with some taking targeted actions based on water resource assessments [6]. - The industry faces challenges in recycling retired photovoltaic components, with predictions of significant volumes of waste starting in 2025 [6][7]. Recycling Challenges - 16 out of 31 companies involved in component production have disclosed efforts in waste component recycling, but the lack of a mandatory recycling mechanism and high costs of recycling technologies pose significant challenges [7]. - The industry is encouraged to adopt a circular economy approach, integrating production, usage, and recycling processes [7].