As a strategic hub for traditional industries and economic engine in the northern region, Shandong Province is the only comprehensive pilot site to replace old resource-based growth models with new ones, approved by China’s State Council. Iron and steel, cement, petrochemical, electrolytic aluminium and other two-high industries account for a big proportion of Shandong’s industry structure. Although its share of fossil energy is higher than the national average, Shandong boasts rich renewable energy resources such as wind power, photovoltaic, geothermal, etc. Its total installed capacity of wind power and photovoltaic ranked first domestically.

In 2023, WRI China launched the Shandong Province Inclusive Low-Carbon Transition Project, focusing on issues including the top-level design of the dual-carbon mechanism, energy transition, deep decarbonization of “Two High” (High-Consuming, High-Intensity) industries, and transition finance. The project aims to leverage policy research, dialogue and exchange, as well as capacity building, to support the implementation of pilot projects, and come out with replicable as well as scalable best practices for green and high-quality development for cities worldwide.