Growth Goes Green

China's economic miracle was once viewed as a calamity for the environment, but the nation has achieved what was once thought impossible: achieving growth while protecting the natural world. This series explores how the world's second-largest economy is reducing its carbon footprint even as its economy powers ahead.

China's carbon dioxide emissions in the first quarter of 2025 fell 1.6 percent from a year earlier even as the nation's 5 percent economic growth placed heavier demands on power supply. It is the first time that emissions reduction has occurred during a period of strong growth, according to UK-based climate change website Carbon Brief, dispelling the belief that economic development comes at the expense of the environment.

The strategy of embracing both growth and environmental protection rests on China's efforts, both public and private, to adopt sustainable clean-energy policies.

China has a national target for carbon dioxide emissions to peak before 2030 and to attain carbon neutrality before 2060. In 2023, the total industrial added value reached 39.9 trillion yuan, accounting for 31.7 percent of GDP. The added value of the manufacturing industry accounted for 26.2 percent of GDP and approximately 30 percent of the global total; it is a big contributor to the nation's emissions.

By 2030, China has vowed to increase output from "green" factories to over 40 percent of manufacturing.

Nearly 20 years ago, in the lush mountains of Zhejiang, President Xi Jinping, then Party secretary of the povince, coined the phrase: "Lucid waters and lush mountains are invaluable assets." This simple statement, called the "two mountains" vision, signaled the start of a quiet revolution that is moving Chinese development toward a balance between nature and prosperity. In ensuing years, that vision has created a national strategy that shapes the lives of farmers, entrepreneurs and households.

As the world faces mounting climate challenges, pressures on resources and an urgent need for new development models, China's "two mountains" journey is proving more relevant than ever. The ultimate question is: Can we truly pursue prosperity without sacrificing the environment so critical for our future?

China's answer can be measured in hard data.

Forest coverage in China increased to 24.7 percent last year from 20.4 percent in 2005 adding over 45 million hectares of new forests and placing China at the forefront of global reforestation. Surface water that meets good quality standards jumped to 90 percent from 36 percent.

At the same time, China's GDP soared to 134.9 trillion yuan (US$19 trillion) last year from 18.5 trillion yuan in 2005, creating the world's largest middle class. Per-capita disposable income surged sixfold.

On the climate front, non-fossil fuel energy use last year rose to 19.7 percent of total consumption from 7.4 percent in 2005, with renewable power generation exceeding 3.5 trillion kilowatt-hours, or more than a third of electricity output. China's national carbon trading market, largest in the world, covers over 5 billion tons of carbon dioxide emissions.

Of course, numbers alone don't tell the whole story. The "two mountains" spirit is perhaps best reflected in improved daily lives of millions of people.

In rural Chongqing, once-bleak hillsides have been revived through mass planting of mulberry trees, stabilizing soil and restoring local silk production. Edible mushroom farming and other eco-friendly agriculture have diversified incomes and helped reverse the tide of rural outmigration. In Xinjiang's Bayingolin prefecture, drones and AI-powered monitoring are helping restore grasslands and fight encroaching desert sands, while offering new career paths for young people.

In China's industrial heartland, towns like Keqiao in Zhejiang Province have become global showcases for green manufacturing. Textile mills there recycle plastic bottles and plant fibers into high-quality fabrics. Advanced pollution controls, including water-saving methods of dyeing, have helped clean up rivers. Made-in-China green textiles are in demand, from leading international fashion brands to consumers increasingly seeking eco-friendly clothing.

In cities, the changes are equally striking. Shanghai, Beijing, Chengdu and dozens of other urban centers have embraced green transport modes like electric cars, shared bikes and clean-energy bus systems. Extensive greenways provide relief from city concrete. China's advanced recycling systems turn household trash into electricity and reduce pressure on landfills. Urban wetlands are being restored as nature habitats.

Businesses are also greening. Supermarkets and restaurants have shifted toward recyclable packaging and zero-waste initiatives. In schools, environmental education is now a core subject.

Driving much of this green revolution is a new generation of Chinese entrepreneurs, engineers and skilled workers, supported by job opportunities in the dynamic industrial trio of electric vehicles, lithium batteries and solar panels.

China manufactures nearly 70 percent of the world's electric vehicles, with brands like BYD and Nio globally popular for their innovative technologies and affordability. China is also a leader in production of lithium batteries used in electric cars and storage of renewable power. Contemporary Amperex Technology Co (CATL) has become the world's largest supplier of lithium batteries. On the solar front, China manufactures 80 percent of the panels used to trap the sun's energy.

International partnerships are integral at every stage, spanning technology, finance, supply chains and education. Global companies such as France's Veolia manage waste-to-energy and water treatment plants in major Chinese cities. Multinationals like Apple, H&M and Volkswagen have partnered with Chinese suppliers to promote renewable energy and ensure that Chinese factories are global leaders in green standards.

International banks, including HSBC and Citi, have become major underwriters of China's green bonds, channeling investment into solar farms, green transport and eco-friendly urban renewal. Energy multinationals like Shell and BP are developing hydrogen, wind and smart grid projects through joint ventures with Chinese firms. Experts from around the world are helping restore wetlands, protect endangered species and share experiences in low-carbon urban development.

The green revolution in China reverberates beyond its borders. Policymakers from Africa, Southeast Asia and beyond are now studying how Chinese towns have transformed "lucid waters and lush mountains" into actual eco-friendly prosperity.

Such rapid progress doesn't come without challenges. It often takes time for national policy goals to trickle down to the local level. Regional disparities persist. Prosperous eastern coastal provinces and big cities have typically moved faster than remote or less-developed areas. Yet progress steadily continues.

As wildfires, drought, extreme heat and flooding test communities from California to Bangladesh, the world's search for a sustainable blueprint grows ever more urgent. China's story is far from perfect, but it demonstrates that ambition, investment and shared learning can drive transformation on a large scale.

China's "two mountains" story is an invitation to the world to reimagine growth for a prosperous, sustainable shared future.

(The author is an associate researcher at the Institute of Ecology and Sustainable Development, Shanghai Academy of Social Sciences.)