Promoting the green and low-carbon transformation of economic and social development is a crucial link in achieving high-quality development. The Third Plenary Session of the 20th Central Committee of the Communist Party of China emphasized the need to improve the fundamental systems for ecological civilization, enhance the ecological environment governance system, and refine the mechanisms for green and low-carbon development. Since 2024, the Central Committee of the Communist Party of China and the State Council have issued guiding opinions on accelerating the comprehensive green transformation of economic and social development and promoting the green development of the manufacturing sector. Analysis of tax big data by the State Taxation Administration shows that in recent years, China’s industrial, energy, and transportation structures have been continuously optimized, with notable effects in emission reduction and water conservation.

— From the perspective of industrial structure, the proportion of "high-energy-consumption and high-emission" industries has continued to decline, while green and low-carbon industries have developed well. During the 14th Five-Year Plan period, the average annual growth rate of sales revenue in five high-energy-consumption industries—petroleum, coal, and other fuel processing; chemical raw materials and chemical products manufacturing; non-metallic mineral products; ferrous metal smelting and rolling processing; and non-ferrous metal smelting and rolling processing—was 1.8 percentage points lower than the average growth rate of industrial enterprises. Their share in the total sales revenue of industrial enterprises decreased from 27% at the end of the 13th Five-Year Plan period to 24.9% at the end of the 14th Five-Year Plan period. Meanwhile, the average annual growth rate of sales revenue in key green product manufacturing industries, such as new energy vehicles, photovoltaic equipment and components, lithium-ion batteries, and solar energy appliances, exceeded 30%. The sales revenue of green technology service industries, including new energy, energy conservation, and environmental protection, grew by an average of 51.1%, 28.5%, and 18.2% annually, respectively, while the sales revenue of ecological protection and environmental governance industries grew by an average of 13.2% annually, providing technological support for the green transformation.

— From the perspective of energy structure, the proportion of clean energy has steadily increased, and the energy consumption structure of high-energy-consumption manufacturing industries has been optimized. The share of sales revenue from clean energy power generation has steadily risen. In 2025, the sales revenue from clean energy power generation, including wind, solar, hydro, and nuclear power, accounted for 42.6% of the total power generation sales revenue, an increase of 7.2 percentage points compared to the end of the 13th Five-Year Plan period. Among these, the sales revenue from wind and solar power generation grew by an average of 25.4% annually during the 14th Five-Year Plan period.

— From the perspective of transportation structure, the new energy vehicle industry has shown strong growth momentum, and the proportion of railway and waterway freight volume has increased. The sales of new energy vehicles have maintained rapid growth. In recent years, China’s new energy vehicle industry has grown from scratch and expanded significantly, with production and sales ranking first globally for ten consecutive years. Data from unified motor vehicle sales invoices show that in 2025, domestic new energy vehicle sales increased by 25.9% year-on-year.

— From the perspective of pollution reduction and emission control, the environmental protection tax policy has generated tax benefits, and its effects in reducing pollution and controlling emissions have become increasingly evident. Since the implementation of the environmental protection tax in 2018, a total of 111.06 billion yuan in tax reductions and exemptions has been granted nationwide. Among these, 59.945 billion yuan was granted to promote centralized treatment and improve pollution control efficiency, 24.37 billion yuan to encourage cleaner production and reduce pollution emissions, and 26.134 billion yuan to promote comprehensive utilization and enhance governance benefits. At the same time, the number of centralized urban and rural sewage and domestic waste treatment plants benefiting from environmental protection tax incentives increased from 5,589 in 2021 to 6,415 in 2025, a growth of 14.78%. In 2025, the environmental protection tax revenue from key nationally regulated air pollutants, sulfur dioxide, and nitrogen oxides decreased by 33.8% and 34.03%, respectively, compared to 2020.

— From the perspective of water conservation, the pilot program for replacing water resource fees with taxes, which was rolled out nationwide on December 1, 2024, has achieved positive results. In 2025, taxpayers in the new pilot areas extracted 5.47 billion tons of groundwater, a decrease of 7.1% compared to 2024, and over 4,500 private wells were closed. The water consumption for special purposes, such as golf courses, ski resorts, car washes, and bathhouses, decreased by 34.3% compared to 2024. Additionally, tax reductions totaling 61.197 million yuan were granted to 381 taxpayers who met the criteria for water conservation incentives. The strong policy guidance of taxation has become a driving force for enterprises to voluntarily conserve water, reduce emissions, lower losses, and improve efficiency, promoting the conservation, intensive use, and recycling of water resources, as well as ecological and environmental protection.

Zhu Qing, a professor at the School of Finance and Taxation at Renmin University of China, believes that the solid achievements in China’s green transformation are the result of policy guidance and the collaborative efforts of market entities. The vigorous growth of green industries and the continuous release of transformation dividends have not only strengthened the ecological security barrier but also propelled China’s economic development toward a green and low-carbon transformation, injecting sustainable momentum into high-quality development.