CHINA,CARBON NOTPEAKING YETHow is China's carbon peaking journey developing,and what opportunities does it create for SwedishcompaniesFOREWORDMore than three years have passed since China officially announced the "DualCarbon Goals"to achieve a carbon peak by 2030 and carbon neutrality by 2060.As ofthe beginning of 2025,China's carbon emission is still on a rise to peak.Meanwhile,China has pushed through significant achievement in enlarging renewable energycapacity and continued adjusting short-term targets in order to meet the goals.Withroughly six years remaining until 2030,the country continues to tackle challenges inreaching an optimal balance between the economic development,energy security andcarbon reduction.China aims to maintain robust economic growth for more than a decade to achieveits ambition of becoming a moderately developed country by 2035.This focus onGDP growth has,in the near term,led to trade-offs against key parameters of itsNationally Determined Contributions (NDCs),including reductions in total carbondioxide (CO2)emissions,energy intensity,and carbon intensity.Simultaneously,China's rising coal consumption for ensuring national energy security became acontradictory prerequisite for its green transition.Nevertheless,the regulatory framework established through the"1+N guidelines"and the nation's massive renewable energy capacity constructed and underconstruction offer the potential for China to achieve its carbon-peaking plan.Thisreport assesses China's progress towards some of its key carbon peaking pledges,focusing on both quantitative and qualitative developments up to February 2025.Regardless of whether China reaches its carbon peak by 2030,more sustainable anddifferential offerings will be needed in China's development progress.The nationalpush for green transition may generate more market offerings to Swedish companies,helping them tackle China's environmental challenges while aligning with theirglobal sustainability roadmaps.Swedish companies with leading and differentialsustainable offerings could unlock significant market potential in China,particularlyin advanced manufacturing equipment for energy-intensive industries,high-precision components embedded in green products such as electric vehicles,solarpanels,and wind turbines.LUTING FANAMANDA ALKEMARKRegional Manager Government AffairsLuting.fan@business-sweden.seAmanda.alkemark@business-sweden.se2