Green development blossoms in Shanghai

BEIJING, Oct. 24, 2025 /PRNewswire/ -- A news report from chinadaily.com.cn

The year 2025 marks the 20th anniversary of the "Two Mountains Theory", a concept that stresses clear waters and lush mountains are invaluable assets, highlighting the crucial role of green development in China.

Shanghai, long at the frontier of reform and transformation in the country, has reported outstanding results in its green transition efforts.

According to Qiu Wenjin, deputy director of the Shanghai Development and Reform Commission, who participated in the National Ecology Day events in Shanghai on Aug 15, the city has made significant progress in building application scenarios for green and low-carbon advancements, driving breakthroughs in green and low-carbon technologies and the development of emerging green and low-carbon industries.

As of June, new energy vehicles, hydrogen energy, energy conservation and environmental protection had become new engines for the economy.

In the construction sector, the city has constructed green buildings totaling 437 million square meters and ultralow energy buildings totaling 17 million sq m. In transportation, over 1.8 million NEVs have been sold. Additionally, a total of 1.05 million charging stations and 254 battery swap stations have been built.

A slew of policies for different industries have been introduced in recent years to encourage the green and low-carbon development of businesses.

With its low-carbon development strategy, Shanghai has become a hotbed for many foreign enterprises pursuing green initiatives. With the introduction of a series of green policies and the continuous optimization of the business environment, an increasing number of global investors are expanding their low-carbon and sustainability investments, leveraging their expertise to support Shanghai's transformation.

New cornerstone

The inauguration of German automotive supplier ZF Group's auto parts remanufacturing center has set a green benchmark for the industry in the Asia-Pacific region.

Relocated from downtown, the new center at the Yangshan Free Trade Zone in Shanghai's Lin-gang Special Area offers a 40 percent increase in production space. This allows ZF to develop a wider array of products to meet rising domestic demand and expand its reach into key Asia-Pacific markets, including Southeast Asia, Japan and South Korea.

Plans are underway to scale up production with new offerings, such as automotive control arms, air pumps, and components for NEVs, in addition to the products such as automatic transmissions, valve bodies and electric steering systems it makes.

The center also benefits from the unique advantages of the Yangshan zone, such as streamlined bonded maintenance services and overseas licensing support, allowing seamless cross-border operations for the group.

As the operator of this cutting-edge hub, ZF brings in a century of expertise and global influence. Founded in 1915, the Fortune Global 500 company ranks as the world's second-largest auto parts supplier and is a global leader in passenger car chassis technology and commercial vehicle components, as well as industrial products. In 2024, its global revenue reached 41.4 billion euros ($48 billion).

ZF has connections with China dating back to its market entry in 1980. The company has 30 years of dedicated development in Shanghai, including the establishment of a manufacturing plant in 1995. Today, the group is deeply rooted in China, with its Asia-Pacific headquarters in Shanghai, and five large research and development centers and around 50 factories located across 26 cities. In 2024, ZF sales in Shanghai were worth approximately 23 billion yuan ($3.2 billion).

Remanufacturing is one of the cornerstones of ZF's future strategy, integral to both its after-sales market expansion and sustainability goals.

With 60 years of experience in the field, ZF operates 20 remanufacturing facilities across 11 countries. In China it has a remanufacturing presence that spans a decade, with the new Shanghai hub joining several smaller facilities.

Aligned with the national push for dual-carbon goals — China has pledged to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060 — sustainability is embedded in ZF's business strategy.

"Out of 17 core targets of the United Nations' 2030 Sustainable Development Goals, ZF contributes to eight," said Du Xing, head of ZF's sustainability in the Asia-Pacific region.

These targets include quality education; affordable and clean energy; decent work and economic growth; industry, innovation and infrastructure; sustainable cities and communities; responsible consumption and production; climate action and partnerships for the goals.

ZF's sustainability roadmap aligns with China's dual-carbon goals and circular economy plans. "Our long-term vision is to achieve climate neutrality across the whole value chain by 2040," said Du. "By 2030, we aim to reduce absolute carbon emissions in our own operations by 80 percent compared to 2019 and decrease upstream and downstream carbon emission intensity by 40 percent."

Concrete actions are underway. In China, more than 100 energy-saving projects are being executed this year, aiming for savings of 12,000 megawatt-hours. Shanghai alone will see over 30 projects saving 3,800 MWh. For instance, an upgrade to the quenching process at the group's Jiading electric steering plant will cut annual electricity use by over 360,000 kWh.

Green energy adoption is another focus. "Starting this year, all ZF factories worldwide will run on 100 percent renewable electricity," Du said. As of 2024, 15 facilities in China, including three large Shanghai plants, had achieved this.

Additionally, ZF's long-term green steel supply deal with Swedish company Stegra will cut 475,000 metric tons of carbon dioxide annually, with similar partnerships being forged with Chinese low-carbon and green steel producers.

China's promotion of the circular economy and green energy presents vast opportunities, particularly in the NEV sector, which has increased domestic brands' market share.

"As a leading auto parts supplier, ZF embraces this trend, unlocking greater market scale and business potential," Du said. "We hope China will introduce more detailed laws, regulations and standards to support healthy industry growth, building on existing circular economy plans," he added.

Aiding transition

SKF, the Swedish high-end bearing manufacturer, has been at the forefront of green development and is dedicated to helping businesses transition to a clean, responsible, net-zero, and fully circular future in China. Shanghai is deemed a crucial hub for advancing SKF's mission in achieving these goals, according to Wang Hui, president of SKF China and Northeast Asia.

"We are committed to 'fighting friction' to move the world forward," said Wang. "By 'fighting friction', we mean advancing new technologies to enhance the operational efficiency of machines. 'Move the world forward' reflects our long-term vision, which goes beyond business to seek overall societal enhancement.

"Green and sustainable development is no longer an option; it is the core of our value chain, from product design and production to supply chain development and even our business model. We are transforming from a bearing supplier to a service provider, helping our clients become more energy-efficient," said Wang.

Over the past few years, SKF has made significant progress in its green transition in China. All its wholly-owned manufacturing sites, including those in Shanghai, Ningbo in Zhejiang province and Dalian in Liaoning province, are powered entirely by renewable electricity. SKF China has also implemented a smart carbon emissions management system to monitor the status of every piece of equipment, reducing carbon emissions by 60 percent in 2024 compared to 2023, according to Wang.

Shanghai, home to the headquarters of SKF China and Northeast Asia, has taken on more responsibilities and made strides in promoting SKF China's sustainable development, according to Wang.

The city boasts a robust manufacturing foundation, a rich talent pool and forward-looking policy support, all of which have laid the groundwork for SKF to produce green products and develop green factories. Moreover, these factors have assisted the development of recycling services, including remanufacturing and lubrication management.

According to Wang, the concept of life cycle management of bearings, covering design, production, supply chain management, reuse and remanufacturing, was first applied in Shanghai. This development is now a key case study promoted in the city.

Additionally, hydrogen-powered trucks, which produce zero emissions, have been introduced at SKF's Northeast Asia distribution center in Shanghai. According to the company, this initiative has reduced annual carbon emissions by 60 percent.

SKF's ceramic bearing was also developed in Shanghai for global markets.

In the coming years, SKF will continue to leverage its expertise to support the sustainable development of Shanghai and China. It will continue to promote its localization strategy in the country and strengthen collaboration with its clients in Shanghai, including those in steel production, wind power, aviation and semiconductors, to develop tailored solutions that address local demands and emerging challenges.

The company has also planned a SEK 3 billion ($321 million) decarbonization investment to phase out its own fossil gas use globally.

"Founded in Sweden in 1907, SKF has become deeply embedded in the Chinese market. Our offerings, including bearings, seals, lubrication management, condition monitoring and related services, are instrumental in ensuring the efficient operation of over 40 industries, such as railways, new energy and aviation. We are keen to practice sustainability with our local partners," said Wang.

Sustainability upgrade

BASF is celebrating its 140th anniversary in China this year. With its China headquarters in Shanghai, BASF has made strides in promoting innovative and sustainable development across the nation, contributing to China's green transition.

Apart from supplying products with sustainability attributes, especially in areas where customer demand is rapidly growing, the company is contributing to a sustainability upgrade across the value chain in China, which spans R&D, operations, supply chains and product innovations.

"BASF is committed to supporting the green transformation of China's industrial ecosystem. We do this by co-creating sustainable solutions with local partners, driving open innovation through industry-academia collaboration, and building low-carbon supply chains to enable the sustainable development of our customer industries," said Jeffrey Lou, president and chairman of BASF Greater China.

At the 2024 Shanghai International Carbon Neutrality Expo, BASF showcased recyclable paper cups developed in collaboration with its partners. These cups, featuring water-based barrier coatings, can be directly recycled in paper mills, thereby reducing carbon emissions and enhancing environmental protection. Guided by the Shanghai Foreign Investment Association, BASF and its partners launched an alliance to promote the recycling of paper cups, inviting more partners to join efforts to optimize resources, support a circular economy, and reduce carbon emissions.

Aiming to pioneer future innovations, BASF China has formed close partnerships with local academic institutions to capture emerging trends. BASF has collaborated with the Yangtze River Delta Physics Research Center and Beijing Welion New Energy Technology to develop a concept solid-state battery pack for e-mobility applications. This advanced battery design incorporates more than 20 BASF material solutions to tackle key challenges such as weight, thermal management, safety and sustainability, according to the company.

In line with its global commitment to achieve net-zero greenhouse gas emissions by 2050, BASF has played a role in shaping industry standards in China. The company contributed to the development of the Product Carbon Footprint Guideline through the global chemical industry initiative Together for Sustainability, promoting transparency across the supply chain.

According to BASF, China — the world's largest chemical market — is shifting toward a development model that emphasizes quality and sustainability. This transformation is unlocking opportunities across emerging sectors such as new mobility, the artificial intelligence industry and renewable energy, as well as industries including smart appliances, energy-efficient buildings and sustainable agriculture.

Looking ahead, BASF remains committed to embracing the circular economy and deepening its contribution to China's green transformation.

The company says its purpose is to "create chemistry for a sustainable future". BASF believes that sustainability and circularity are not just trends — they are the future.

View original content to download multimedia:https://www.prnewswire.com/news-releases/green-development-blossoms-in-shanghai-302593716.html

SOURCE chinadaily.com.cn