As the Chinese government prepares to release its annual blueprint for agricultural and rural development—the Number One Document—several key policy pronouncements have emerged, clarifying the leadership’s broader goals and targets. Among them, the recently issued Guiding Opinions on Accelerating the Comprehensive Green Transformation of Agricultural Development and Promoting Rural Ecological Revitalization deserve particular attention.
Context
Issued by the Ministry of Agriculture and Rural Affairs (MARA), the Guiding Opinions prominently bring an environmental agenda into agricultural and rural development. As the title suggests, agriculture must undergo a “green transformation”, while rural development should shift from simple “revitalization” to “ecological revitalization”.
Building on the strategic plan for the “comprehensive green transformation of economic and social development” released by CPC Central Committee and the State Council in August 2024, the Guiding Opinions outline a sectoral strategy that, alongside the overarching plan, aims to drive ecological reform and support China’s dual carbon goals: peak carbon emissions by 2030 and carbon neutrality by 2060.
Broadly speaking, the document explores ways to integrate ecological protection into agricultural production and rural development. It calls for the promotion of cleaner agricultural practices, focusing on four key areas:
- Conservation of land and water and reduced use of agricultural inputs such as fertilizers, pesticides, and veterinary drugs
- Utilization of agricultural waste (e.g., straw and animal manure) to build circular agricultural systems and enhance nutrient recycling
- Protection of agricultural ecosystems and biodiversity
- Development of green and low-carbon industry chains that maximize the value of ecological products
The document reaffirms quantitative targets set in MARA’s 14th Five-Year Plan (5YP) on Green Agricultural Development (2021-25). Amongst the targets to be achieved by 2025, the Guiding Opinions call for:
- A livestock and poultry manure utilization rate of over 85%
- An increase of approximately 4 million hectare in efficient water-saving irrigation
- A fertilizer utilization rate of over 43% for major grain crops
- A green pesticides coverage rate of over 60% for major crops
- Implementation of the antibiotic reduction action in aquaculture on over 65% of large-scale farms
Why this document matters
The Guiding Opinions do not simply rehash green targets formulated in the 5YP on Green Agricultural Development. What sets the document apart from earlier policies is its focus on linking ecological farming practices to economic benefits. Carbon footprint and labeling systems could be one such mechanism by which the economic value of ecological products can be unlocked, the document suggests. Currently, agriculture is not integrated into China’s national carbon market, but policymakers and think tanks are working on methodologies to account for carbon emissions from agricultural production.
Carbon labels that track the emissions associated with food products would not only help consumers identify and pay premium prices for low-carbon options but also provide farmers with better access to green finance. Concrete proposals for how to implement such mechanisms that take into account the small-scale, decentralized structure of China’s agriculture sector have already been put forward, including by MARA’s own Research Center for Rural Economy (RCRE).
In addition to helping farmers monetize ecological products with low carbon emissions, carbon footprints and labeling systems can be expected to become more relevant for international trade, as a growing global emphasis on carbon levies makes it important for exporters to account for and reduce the carbon emissions embedded in their products. The EU’s Carbon Border Adjustment Mechanism (CBAM) is a prominent example for such a carbon levy. While CBAM currently excludes agricultural products, future revisions will likely incorporate them.
What to watch
If implemented on a broader scale, China’s approach to greening the agricultural sector would prioritize market incentives and private-sector engagement, in contrast to the EU’s model, which relies on direct subsidies through CAP payments. The effectiveness of China’s strategy in integrating environmental policies with economic incentives for farmers and industries will be crucial to watch.
A key area of focus will be the development of carbon accounting methodologies in agriculture as well as labeling systems for agricultural products. Their success, however, will depend on the robustness of the regulatory frameworks and accounting standards to be developed. As a biophysical system involving millions of small-scale and dispersed farmers, agriculture poses greater challenges to tracking carbon footprints than industry. In addition, consumer trust in the reliability of labels will be crucial.
China is likely to seek closer collaboration with international counterparts in designing agricultural carbon footprint accounting and labeling systems. Ensuring harmonization and mutual recognition of standards will be essential, including for European stakeholders engaged in trade and cooperation with China.
References
[2] CPC Central Committee and State Council (2024). Opinions of the CPC Central Committee and the State Council on Accelerating the Comprehensive Green Transformation of Economic and Social Development [中共中央 国务院关于加快经济社会发展全面绿色转型的意见]. Available at https://www.gov.cn/zhengce/202408/content_6967663.htm, last accessed on 10/02/2025.
