On June 5, 2025, the China Building Materials Federation (CBMF) convened a work meeting of the Carbon Peak and Carbon Neutrality Promotion Committee of the Building Materials Industry (“Carbon Committee”) in Qufu, Shandong Province. The meeting aimed to explore systematic approaches to industrial governance in the context of current market conditions and to further advance the sector’s green and low-carbon transformation.
CBMF President Yan Xiaofeng chaired the meeting and delivered a keynote address. The meeting was also attended by Executive Vice President Chen Guoqing; Executive Vice President and Chairman of China National Building Material Group Co., Ltd. Zhou Yuxian; Executive Vice President and Chairman of Beijing Jinyu Group Co., Ltd. Jiang Yingwu; Executive Vice President and Chairman of Anhui Conch Group Co., Ltd. Yang Jun; Resident Vice Presidents Liu Jianhua and Sun Xingshou (also CBMF Chief Economist); and Deng Xikun, CMP Director of Huaxin Cement, representing the federation's executive vice presidents.
Yan Xiaofeng: Promote Industry-Wide Governance through Coordination and Compliance
In his speech, President Yan emphasized that the Carbon Committee has successfully fostered industry-wide consensus on green and low-carbon development, with leading enterprises taking proactive and exemplary action. He underscored the need to balance near- and long-term goals, central and regional interests, and the roles of government and market forces.
He called for adherence to the principles of the rule of law, commercial integrity, and market-based operations. Under the guidance of relevant government departments, the industry must coordinate efforts to strictly implement laws, regulations, and industrial policies. Trade associations should serve as information hubs and coordination platforms, supporting government efforts in capacity management and encouraging enterprises to operate in compliance with laws and uphold fair competition. This will enable the industry to phase out outdated capacity and foster a healthier development environment.
Yan urged the Carbon Committee to enhance strategic coordination and provide leadership in addressing sector-wide and critical challenges. The committee should serve as a central force in driving the sector’s high-quality, safe, and low-carbon development.
Focus Areas and Policy Synergies
Participants reviewed work plans related to:
Cement sector capacity governance and industry environment optimization;
Progress and next steps in establishing a national carbon trading market for the cement industry;
General developments in the building materials industry’s carbon peaking and neutrality efforts.
Extensive discussions followed.
The meeting affirmed that since its establishment, the Carbon Committee has actively led the industry in addressing strategic challenges. Under the guidance of the National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology (MIIT), and Ministry of Ecology and Environment (MEE), the committee has coordinated resources and contributed to the development of key dual-carbon policies, including the 2024 Catalogue for Guiding Industrial Structure Adjustment and the 2024 Cement and Glass Industry Capacity Replacement Guidelines.
The committee has also supported “Six-Zero Factory” initiatives, major decarbonization technology pilot projects, standardization system development, promotion of green building materials, and international cooperation. These efforts have produced substantial policy, technological, and standardization results, accelerating green and low-carbon transformation across the sector.
Establishing a New Industry Management Mechanism
The meeting stressed that overcapacity has become a critical issue affecting the sector’s stability. It called for the creation of a new governance model centered on capacity reduction, especially targeting excess production beyond approved limits. The approach should uphold legal and market principles while coordinating policy tools across energy efficiency, environmental protection, quality, standards, and production licensing.
It was agreed that the cement sector would serve as the pilot for establishing a modernized governance model comprising:
Refined capacity control via dynamic list management;
Regulated supply-demand adjustment through production volume monitoring and verification;
Market-driven competitive mechanisms focused on anti-monopoly, anti-dumping, and anti-counterfeit efforts.
This integrated framework will guide effective capacity governance, facilitate supply-demand balance, and support orderly competition—offering a replicable model for other segments of the building materials industry.
The meeting noted that, with strong support from CBMF, the cement industry has officially entered the national carbon emissions trading system. Based on the principle of “emissions come at a cost; reductions create value,” the market will increasingly reward efficient enterprises and penalize laggards.
Cement companies were urged to assess the impacts of carbon trading, enhance carbon data quality management, and build internal trading capabilities to meet compliance requirements on schedule. Industry stakeholders should closely monitor challenges in the carbon market’s implementation, conduct in-depth research, and actively communicate with regulators to further refine the carbon trading system for the sector.
Editor: Zhang Hanwen
Reviewer: Shen Yulu, Li Yuemei
