The global energy transition is driving growing demand for transformers and other critical power equipment, increasing demand in turn for steel, copper, aluminium and other industrial materials. As a new generation of grid infrastructure is built, material choices made today will shape the embodied carbon of equipment that may remain in service for decades. This report examines how China’s transformer industry can meet rising demand while reducing its production-stage carbon footprint. It assesses market growth, manufacturing capabilities, material-related emissions and evolving policy and market signals, and identifies grain-oriented electrical steel (GOES) as a priority starting point for action. The report also explores how credible carbon data, green procurement, product innovation and value-chain collaboration can support a more efficient, lower-carbon and globally competitive transformer industry.