Circular economy retrofit of China’s industrial parks to be supported by Carbon Trust

aerial view of Planned development of Yeji Industrial Park in Anhui Province

In 2017, industry accounted for more than 40 percent of China’s GDP. Chinese industrial parks – vast expanses of land set aside to house the factories and systems that keep manufacturing at pace – are large enough that cities are growing around them. While a cornerstone of China’s powerhouse economy, this explosion of industrial growth has resulted in a range of negative environmental consequences, including major contributions to overall global greenhouse gas emissions, resource depletion and environmental pollution.

This project aims to address this challenge by introducing new business models and best practices in China’s expansive industrial parks to better align with the country’s ambition to become a more “ecological civilization”. The project will use circular economy principles to re-focus industrial processes, reduce the environmental impact of industrial parks, and find less resource-intensive ways to create sustainable economic value.

Initially focusing on a demonstration project at the Yeji Industrial Park, located in Anhui Province, neighboring Shanghai, the partnership will develop a model for more sustainable industrial park practices to be scaled across China and eventually, internationally.

The P4G partnership supports public-private partnerships on projects in a range of developing countries that advance green growth and the Sustainable Development Goals (SDGs).

“We are delighted to have our project selected for funding by P4G. Circular economy principles have a huge potential for decarbonising industry, and we are excited to undertake and deliver this demonstration project, which can then act as a model for scaling up into other locations, both here in China, and abroad.”

- Lijian Zhao, China Country Manager, the Carbon Trust

“Applying circular economy principles enables stronger, more competitive business models and new ways of creating value sustainably. The P4G partnership and pilot project will provide a unique opportunity to validate and scale relevant models, adding to our international work in this area.“

- Aleyn Smith-Gillespie, Associate Director and Practice Lead for Circular Economy, the Carbon Trust