#China #Ningbo #Sinopec #carbon footprint #BASF

Sinopec and BASF Set New Carbon Accounting Benchmark

In a significant milestone for the chemical industry, the China Petroleum & Chemical Corporation (Sinopec) and BASF have mutually acknowledged their carbon footprint accounting methods. The announcement was made during the 2025 International Conference on Petroleum and Chemical Products in Ningbo, China, held on October 22-24. This agreement marks a critical step forward for international collaboration in carbon accounting and sets a new benchmark for transparency and trust in carbon data among companies.

This landmark collaboration exemplifies China's initiative towards international alignment and mutual recognition in carbon footprint metrics. Sinopec and BASF have engaged TÜV Rheinland, a leading global independent certification body, to perform a consistency review of their methodologies. After thorough evaluations, TÜV Rheinland confirmed that their approaches are compliant with international standards such as ISO 14067:2018 and national standards in China, GB/T 24067-2024, maintaining consistency in their essential elements. A formal statement of consistency was issued, leading to this pivotal consensus on mutual recognition of their carbon accounting practices.

The alignment aims to enhance the comparability and transparency of carbon footprint data across various regions and supply chains, thereby optimizing data usage efficiency. This is expected to facilitate coordinated carbon reduction initiatives throughout the value chain and foster sustainable development for both companies and the industry as a whole.

Sinopec has positioned itself at the forefront of carbon footprint management since it became the first Chinese company to pursue product carbon footprint accounting in 2015, initially developing a methodological framework specifically for petrochemical products. By 2023, Sinopec achieved the milestone of automating carbon footprint accounting for petroleum and chemical products in China. In 2024, Sinopec, alongside CNPC, CNOOC, PipeChina, and several other firms, spearheaded the establishment of the first China Carbon Footprint Alliance within the energy and chemical industry value chain in an effort to collaboratively reduce emissions throughout the supply chain.

Beginning in 2021, China has systematically been developing a carbon footprint management system. The country is exploring the establishment of standards for comprehensive lifecycle carbon accounting for products. The goal is to lay the groundwork for this system by 2027, including the issuance of national carbon footprint accounting standards consistent with international practices.

Overall, the partnership between Sinopec and BASF exemplifies how collaborative efforts between companies can lead to meaningful progress in combating climate change. By recognizing each other's methodologies, both companies are not just advancing their goals but also setting a precedent for others in the industry. This agreement could have far-reaching effects beyond the Chinese market, potentially influencing global practices in carbon accounting as the industry moves towards sustainability.