China is Shifting to Eco-Friendly Solution for Global Sourcing



Introduction

China is now shifting to an eco-friendly solution for global sourcing. China has been the world's factory for decades, but with the rise of environmental awareness and a push from Beijing to diversify its industrial base, it is becoming an eco-conscious manufacturer as well.

The government has set ambitious goals for reducing carbon emissions and cutting back on pollution in its cities

It wants renewable energy sources like solar and wind power to make up 20% of total energy generation by 2020

And it wants renewables to account for at least 30% of its primary energy mix by 2030.


 

1. China is Shifting to Eco-Friendly Solution

China is a growing superpower and is now a climate leader. As a result of the greenhouse gas emissions, China is shifting towards eco-friendly solutions for global sourcing. They have created more sustainable measures to stop deforestation. China has also increased its carbon dioxide emission levels by about 10%. In addition, they have been slashing coal as their main fuel as it is harmful as well as coal as a percentage of total primary energy use from 58% to 65%.

The shift in this country may not be enough to have any major impact on the environment but it will help slow down the rate of emissions so that we can reduce emissions to stay under the 2-degree threshold which is critical.


In addition, they are shifting towards eco-friendly solutions for global sourcing.

The shift in this country may not be enough to have any major impact on the environment but it will help slow down the rate of emissions


Environmental awareness and a push from Beijing to diversify its industrial base

Since the 1980s, there has been a strong push from Beijing to diversify its industrial base. In addition, it has been trying to speed up the Chinese economy by reforming investment and by opening up the domestic market for competition. In 1993, China was one of the signatories to the Kyoto Protocol. This was a treaty that China eventually ratified in 2005. However, China didn't take any steps towards meeting their obligations until 2008 when they created a green fund to help finance projects focused on sustainable development.


In recent years, China has increased its awareness about environmental issues and this is being reflected in part by their moves away from coal-based energy production.



2. China is trying to bring more eco friendly product to the global procurement


China is making big steps in the process of global sourcing. They are trying to bring more eco-friendly products into their supply chain which will also benefit their customers and partners all over the world. This change can be observed by looking at China’s emission reduction, renewable energy consumption increase as well as its recent initiative for recycling waste material from all over the world.

China is shifting to eco-friendly solution for global sourcing

The first step China has taken in order to make their supply chain more sustainable was reducing its emission significantly by decreasing coal consumption which, according to Greenpeace’s latest report, decreased at around 18% between 2013 and 2015. This was done with an intention of transforming their economy from “high carbon to high efficiency”. In addition, China is also trying to decrease its greenhouse gas emission until 2030 by 45%.


Requirements from buyers from all over the world have helped to accelerate this change as their requests often involve eco-friendly raw material. This demand is also expected to increase in the future and it will be important for suppliers from China and other countries to prepare themselves with additional supply of new sustainable materials. China is definitely trying to bring more eco-friendly products into the global procurement.

The last step, China is trying to shift their supply chain towards a more sustainable solution is recycling waste material from all over the world. They have been successfully working on this project for many years now and most recently they started working with European countries as well by signing an agreement with Switzerland.



 

Conclusion

China is shifting to an eco-friendly solution for global sourcing. China tries to bring more eco-friendly products into the global procurement. Requirements from buyers from all over the world have helped to accelerate this change and it will be important for suppliers from China and other countries to prepare themselves with additional supply of new sustainable materials.

MWT Sourcing will always give you options to find or replace part or all of you product to an eco friendly solution.