China's incentive framework for CCUS has entered a new phase in 2025 with the full integration of CCUS projects into the National Certified Voluntary Emission Reduction (CCER) market. This provides a direct and scalable revenue stream, as projects in the thermal power and petrochemical sectors can now monetize captured CO2 through carbon credits traded on the national exchange. Furthermore, the People's Bank of China (PBoC) has expanded its Carbon Reduction Supporting Tool, providing low-interest loans specifically for large-scale CCUS industrial clusters. Regional governments in hubs like Guangdong, Shandong, and Xinjiang have also introduced localized subsidies and land-use incentives to attract investment. While direct '45Q-style' tax credits are still under legislative review, the combination of CCER monetization and preferential green financing has significantly improved the Internal Rate of Return (IRR) for demonstration projects, moving the sector beyond reliance on R&D grants.

statutory

China has made significant progress in 2025 in codifying the regulatory framework for CCUS, specifically addressing the critical issue of subsurface pore space rights. The 2024 revision of the Mineral Resources Law, coupled with 2025 implementation rules, explicitly defines the state's ownership of deep geologic formations and establishes a licensing system for CO2 storage. This has eliminated the legal ambiguity that previously hindered large-scale onshore projects. Furthermore, the Ministry of Ecology and Environment (MEE) has released comprehensive permitting guidelines that integrate CCUS into the national Environmental Impact Assessment (EIA) system. For offshore projects, new sea-area use rights regulations allow for the vertical integration of storage sites with existing oil and gas concessions. While a unified national 'CCUS Law' is still in the drafting stage, the current matrix of ministerial regulations provides a robust legal basis for commercial-scale deployment.

market

The Chinese CCUS market is uniquely characterized by its 'Cluster-Hub' model, which leverages large-scale state-owned industrial parks to create concentrated carbon markets. By 2025, major hubs like the Shengli Oilfield and the Guangdong-DAPing project have established cross-sectoral CO2 supply chains, where captured emissions from power plants are sold for Enhanced Oil Recovery (EOR) or chemical production. This internal market is bolstered by the maturation of third-party CO2 transport services, reducing the capital burden on individual emitters. China is also exploring a 'Carbon Management Service' model, where specialized firms manage the entire capture-to-storage lifecycle. However, market transparency regarding lifecycle emissions and credit verification remains a priority, with the 2025 standards focusing on digital tracking to ensure that market-based incentives are tied to verifiable sequestration volumes.

strategic

CCUS is strategically positioned as a core component of China's '1+N' policy framework for reaching carbon neutrality by 2060. The 2025 update to the National Climate Strategy identifies CCUS as the primary technology for deep decarbonization of the coal-dominated power sector and energy-intensive heavy industries like cement and chemicals. Strategically, China aims to build at least five 'Ten-Million-Tonne' scale industrial CCUS clusters by 2030, with 2025 marking the peak investment period for the initial infrastructure. This strategic vision is integrated with the nation's energy security goals, as CCUS-EOR is utilized to stabilize domestic oil production while lowering its carbon footprint. The strategic focus also extends to international cooperation, with China leading CCUS technology transfer within the 'Belt and Road' initiative and BRICS+ frameworks, positioning itself as a global leader in large-scale carbon management infrastructure.

mrv

Unified national technical standards for CCV accounting and safety.

Strategic Impact Analysis

Economic Impact

Standardization significantly reduces engineering and design costs for large-scale projects, enhancing bankability and scalability.

Technical Impact

The 2024 energy-efficiency standards steer CCUS development from 'demonstration' to 'performance-driven', setting benchmarks for industry clusters.

Environmental Impact

A core pillar of the Dual-Carbon framework, ensuring precise quantification and verification of emission reductions to prevent greenwashing.

Technical Metadata

Lead Institution Standardization Administration of China

Release Date 2026-01-12

Legal Weight Technical Standard

Original Document

Last Intelligence Audit 2026-03-19