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The ever-increasing challenges related to water security and climate mitigation underscore the pressing need for forward-thinking systems planning tools to drive urban sustainability transitions. In this study, we propose a novel city-level multi-objective planning framework that explores the nexus between carbon trading and water management, with the aim of facilitating water-efficient urban industrial restructuring. The framework integrates cap-and-trade mechanisms into a two-layered optimization model, creating an integrated approach to optimizing carbon emissions and generating economic opportunities for improving water efficiency. To illustrate the potential application of this framework, we conducted a case study focusing on Dongguan City, a water-stressed industrial metropolis in southern China. The results illustrate potential synergies between water planning strategies and carbon trading schemes, which could be harnessed to enable targeted reductions in water usage and carbon emissions. Furthermore, our findings identify the textile, apparel, and paper products manufacturing industries as primary candidates for strategic production scale reduction, emphasizing the importance of sustained support for the development of the computer and electronic manufacturing sector as a catalyst for urban sustainability transitions. By pioneering this new nexus-based perspective, our study offers valuable insights into long-term strategic planning for a low-carbon and resource-efficient urban economy. • Synergizing carbon trading and water management within a novel integrated planning framework. • Implementing resource-efficiency-driven optimization for water- and carbon-intensive manufacturing sectors. • Gaining insights into the specific roles of key manufacturing sectors in water management and carbon trading. • Introducing carbon trading systems may help in promoting water-efficient industrial restructuring. [Display omitted] [ABSTRACT FROM AUTHOR]

The Chinese government has announced ambitious carbon reduction goals to address climate change, however, there has been limited scientific attention to the achievement of deep decarbonization in regions with insufficient economic development. Moreover, the complex impacts of climate change mitigation on energy system, environment and economic development remain unclear in Northwest China. Here we construct a comprehensive evaluation model system to evaluate the effects of different climate mitigation pathways in Qinghai, Ningxia, Gansu and Xinjiang provinces. Results show that the four provinces need to vigorously increase the share of electricity that consumed in final energy to 53.1–60.0% and 52.9–62.0% for 2 °C and 1.5 °C target, respectively, and reduce total energy demand to 11.6–44.4 Mtoe and 8.2–34.1 Mtoe in 2050. Meanwhile, the CO 2 emissions for their energy systems will reach peak by 2025 at lower values. Moreover, the synergies of CO 2 reduction are most conducive to abating SO 2 pollution and also contributing to decreasing PM 2.5 concentrations. Additionally, the GDP losses in 2050 fluctuate from 5.0 to 21.7 billion USD in the 2 °C scenario to 11.5–52.7 billion USD in the 1.5 °C scenario. Our study provides practical guidance on achieving carbon reductions in less developed regions of China and lays foundations to promote decarbonization of energy systems in other provinces. • Realizing climate goals requires low-carbon energy systems led by electricity. • Energy-related carbon emissions in Northwest China will peak by 2025. • More ambitious climate and clean air policies are needed for air quality improvement. • Economic loss shows an upward trend in the future under climate targets. [ABSTRACT FROM AUTHOR]