Complete Process for Green Factory Creation: Time, Costs, and Incentive Policies Explained

2026-06-03
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Complete Process for Green Factory Creation: Time, Costs, and Incentive Policies Explained

I. Creation Overview

1.1 What is a Green Factory

A green factory is a manufacturing enterprise that integrates sustainable development principles into every stage of the product lifecycle—including design, production, and logistics—to achieve land efficiency, non-toxic raw materials, clean production processes, waste resource recovery, and low-carbon energy use.

1.2 Policy Basis

  • Made in China 2025
  • Implementation Guidelines for the Green Manufacturing Engineering
  • General Principles for Evaluation of Green Factories (GB/T 36132)
  • Green Factory Evaluation Requirements by Industry

1.3 Create Meaning

  • Boost Your Enterprise's Green Competitiveness
  • Enjoy fiscal and tax incentives
  • Build a positive social image
  • Promote sustainable development

II. Detailed Creation Process

2.1 Phase 1: Self-Assessment and Diagnosis (1-2 months)

Work Responsibilities:

  1. Learn Green Factory Evaluation Standards
  2. Self-check against evaluation criteria item by item
  3. Identify gaps and opportunities for improvement
  4. Create work plan
  5. Establish a working group

2.2 Phase 2: Rectification and Improvement (3-6 months)

Key Tasks:

  • Upgrade infrastructure (facility retrofitting, equipment modernization)
  • Strengthen management systems (energy and environmental management)
  • Implement technical upgrade projects (energy saving, water conservation, emission reduction)
  • Build an Information System (Energy Management Center)
  • Conduct carbon emission accounting

2.3 Phase 3: Self-Assessment (1 months)

Work Steps:

  1. Collect and compile supporting documents
  2. Prepare Self-Assessment Report
  3. Self-score reaches 80 points or higher
  4. Prepare submission documents

2.4 Phase 4: Nomination Submission (1 months)

Submission Channel:

  • National Level: Recommended by the provincial department of industry and information technology.
  • Provincial: Recommended by the municipal department of industry and information technology

Submit Materials

  • Green Factory Self-Assessment Report
  • Supporting documents
  • Recommendation Letter

2.5 Phase 5: Expert Review (1-2 months)

Review Method:

  • Material Review: Experts review application materials
  • On-site verification: Inspect the factory in person
  • Defense Inquiry: Enterprise presentation and response to expert questions

2.6 Phase 6: Public Announcement (1 month)

After approval, the green factory list will be publicly announced on the Ministry of Industry and Information Technology website for 7-15 working days. Once there are no objections, it will be officially released.

III. Time Period

3.1 Total Time

From launch to certification:Usually 6-12 months.

Time for each phase of 3.2

StageTime
Self-Assessment Diagnosis1-2 months
Rectify and Improve3-6 months
Self-assessment1 months
Submit Recommendation1 months
Expert Review1-2 months
Publish Notice1 months

IV. Creation Costs

4.1 Direct Cost

  • Consulting Fee (Optional): 5K - 15K
  • Evaluation Report Preparation Fee: 2 - 5 ten thousand yuan
  • Third-party inspection/verification fee: ¥3 - 8 million

4.2 renovation investment

  • Energy-saving equipment upgrade: 50–500 ten thousand yuan
  • Eco-friendly facility upgrade: 30–300 million yuan
  • IT system construction: 20 million - 100 million yuan
  • PV Project Construction: 100 - 1000 ten thousand yuan

Total investment reference for 4.3

  • Small Business: 100K - 300K
  • Mid-sized Enterprise: 300K - 800K CNY
  • Large Enterprise: 800 million - 2000 million yuan

5. Incentive Policy

5.1 National Award

  • Funding Reward: 50 - 200 ten thousand yuan
  • Priority support for green manufacturing system integration projects
  • Priority to Green Credit

5.2 Provincial Award

  • Cash reward: 20 - 100 million (varies by province)
  • Technology Upgrade Project Subsidy
  • Electricity subsidy policies

5.3 City-level Award

  • Funding Reward: 10 - 50 ten thousand yuan
  • Land, tax, and other policy support

5.4 Other Offers

  • Environmental tax reduction
  • Prioritize Green Products
  • Export Green Channel

6. Regulatory Authorities

6.1 Ministry of Industry and Information Technology

Responsible for the selection and management of national-level green factories.

6.2 Provincial Department of Industry and Information Technology

Oversees the selection of provincial green factories and national-level recommendations.

6.3 Municipal Bureau of Industry and Information Technology

Responsible for cultivating and guiding green factories within the jurisdiction.

7. Post-Certification Management

7.1 Dynamic Management

Green factories operate under dynamic management and undergo review every 3 years.

Submit 7.2 information

Submit green manufacturing-related information and data as required.

7.3 Undo Cases

  • Major safety, environmental, or quality incidents
  • Obtaining the Green Factory title through fraud or deception
  • Refusal to cooperate with supervision and inspection

VIII. Conclusion

Creating a Green Factory is a key pathway for enterprises to achieve green transformation. Understanding the full creation process and incentive policies helps businesses plan effectively, complete certification efficiently, and benefit from policy support.

Source: Mengzheng Certification

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