Buying green can drive China’s climate action

Nature & Climate Perspective

**China's pivot toward green procurement establishes structural demand for high-integrity ecological supply chains, directly reinforcing LULUCF conservation and ecological restoration benchmarks. **

• Mitigates upstream biodiversity loss by enforcing sustainable raw material sourcing requirements across state-backed infrastructure projects.
• Incentivizes durable biological carbon sequestration by demanding verifiable proof of origin under enhanced LULUCF safeguards for bio-based materials.
• Bolsters long-term regional environmental stability through reduced industrial runoff and localized watershed protection tied to green manufacturing mandates.

Market & Policy Outlook

**Institutionalizing green procurement accelerates corporate Scope 3 decarbonization and sets a new pricing floor for transition finance aligned with ICVCM Core Carbon Principles. **

• Catalyzes regulatory harmonization between domestic procurement rules and international transfer mechanisms such as Article 6.2 ITMO frameworks.
• Expands market liquidity for tracked renewable instruments, surging transactional volume and pricing premiums for I-RECs and CCP-eligible CCER offsets.
• Imposes stringent Scope 3 emissions reporting on suppliers, compelling multinational and domestic tier-one vendors to commit to SBTi-aligned reduction pathways.