China's Energy Transition

VI. Contributing to a Global Community of Shared Future

Maintaining energy security and addressing climate change are common challenges the world faces, and accelerating the development of green and low-carbon energy is a common opportunity for the world. By advancing its own energy transition, China is actively contributing to the global energy transition. Through its commitment to the principle of planning together, building together, and benefiting together, China is working with other countries to promote sustainable global energy development and build a global energy governance system based on equity, justice, balance and inclusiveness.

1. Providing New Drivers for Global Green Development

China has actively promoted green development by transforming its own development models and engaging in extensive energy cooperation worldwide. Through its efforts, China has provided new drivers for global green development.

China’s green energy development has become an engine for global energy transition. Since 2013, China has been responsible for over 40 percent of the annual additions to global renewable energy capacity. In 2023, the newly installed capacity in China accounted for more than half of the world’s total. According to the Renewables 2023 released by the International Energy Agency (IEA), China is a front-runner in the global renewable energy sector and a major driving force behind the world’s rapid expansion of renewable energy capacity. From 2014 to 2023, the global share of non-fossil fuels in energy consumption rose from 13.6 percent to 18.5 percent, with China contributing 45.2 percent to this increase.

China's new energy industry provides green power for the world. Through sustained technological innovation, a sound system of industrial and supply chains, sufficient market competition, and the advantages of a super-scale market, China’s new energy industry has developed rapidly. This has enriched global supply, eased global inflationary pressures, and contributed to coordinated international efforts to combat climate change and improve people’s lives. China-made PV modules and wind power equipment have enabled the widespread economic use of renewable energy in an increasing number of countries. According to a report from the International Renewable Energy Agency (IRENA), over the past decade the average cost per kilowatt-hour of global wind power projects has decreased by more than 60 percent, and PV power projects by more than 80 percent. The reductions are largely attributable to China’s efforts.

China’s further opening up creates new opportunities for deeper international cooperation on clean energy. China has been building a world-class business environment that is market-oriented, law-based and internationalized, promoting energy trade and investment liberalization and facilitation, and providing opportunities for foreign-funded enterprises to share the dividends of the country’s energy transition. It has implemented a foreign investment management system based on pre-entry national treatment and a negative list, and removed restrictions on foreign investment in all energy industries except nuclear power plants. Additionally, China has introduced a catalogue of encouraged industries for foreign investment and stepped up policy support for foreign investment in clean energy. Multinational companies such as GE, BP, and Siemens are steadily expanding their investment in China’s energy sector, and many foreign investment projects are well underway across the country, including EDF’s offshore wind power project, Tesla’s electric vehicle project in Shanghai, and LG Energy Solution’s battery project in Nanjing.

2. Promoting Belt and Road Cooperation in Green Energy

Under the framework of the Belt and Road Initiative, China follows the principle of planning together, building together, and benefiting together in energy cooperation. It is committed to open, green and clean cooperation that pursues high-standard, people-centered, and sustainable development. It works together with partner countries to deepen the energy transition, advance green cooperation in the energy sector, and achieve sustainable development.

Advancing green energy cooperation among Belt and Road countries. China has issued a number of policy documents directed at expanding its cooperation with Belt and Road countries in the field of green energy, including the Guidelines on Jointly Promoting Green Development of the Belt and Road. In 2021, China pledged to stop building new coal-fired power plants overseas, and began to focus on green and low-carbon energy projects in its energy cooperation with partner countries. Today, China is collaborating with over 100 countries and regions on green energy projects and has launched a significant number of signature energy projects and “small yet smart” people-centered programs that effectively solve accessibility and affordability problems of electricity supply in those countries and regions, and provide them with clean, safe and reliable energy supply solutions.

Jointly building platforms for high-level energy cooperation. Initiated by China, the Belt and Road Energy Partnership includes 33 member countries from across the world. Within this partnership, six major regional energy cooperation platforms have been formed – the China-ASEAN platform, the China-League of Arab States platform, the China-African Union platform, the China-Central and Eastern Europe platform, the China-Central Asia platform, and the APEC Sustainable Energy Center. A mechanism has been established for regular meetings between the energy ministers of the Shanghai Cooperation Organization member states. Focusing on energy security, energy transition, energy access, and sustainable energy development, China contributes its solutions to the reform of global energy governance.

3. Jointly Promoting Global Sustainable Energy Development

In recent years, the international situation has become increasingly complex, with various forms of green barriers on the rise. This has made it more challenging to keep global energy industrial and supply chains stable and maintain energy security in an open environment. In response to these new challenges, China is prepared to fulfill its responsibility as a major developing country by working alongside other countries to improve the industrial and supply chains of clean energy, share knowledge and experience, advance the transition to green and low-carbon energy, and contribute to global sustainable energy development and a global community of shared future.

– Expanding pragmatic cooperation on energy transition. China upholds open and mutually beneficial cooperation and promotes the fruition of the Global Development Initiative. It is committed to improving bilateral and multilateral cooperation mechanisms in the energy sector, strengthening the exchange of policy ideas and best practices in energy transition, and advancing cooperation and capacity building on green and low-carbon technologies, in an effort to build a beautiful world with green energy. China opposes overstretching the concept of national security and imposing baseless restrictions on normal international development cooperation. It is ready to work with the international community to explore new types of energy across more fields and create a future of sustainable energy for the benefit of humanity.

– Keeping global energy industrial and supply chains open and stable. As a firm advocate of true multilateralism, China opposes all forms of unilateralism and protectionism. It rejects all forms of decoupling, any severing of industrial and supply chains, and the “small yard and high fence” approach, as it endeavors to keep global energy industrial and supply chains open and stable. China is ready to work with other countries to strengthen dialogue and communication, promote trade and investment liberalization and facilitation, and build secure, stable and efficient global energy industrial and supply chains that are open, inclusive, and mutually beneficial. Major countries should focus more on the future of the earth and humanity and act in a responsible manner by ensuring global energy security, promoting green development, and maintaining market order, thus fulfilling the responsibilities commensurate with their status.

– Improving global energy access. Poverty eradication is the common responsibility of the international community, and ensuring the supply of electricity and other energy sources is one of the basic conditions allowing underdeveloped areas to eliminate poverty and narrow the gap. China has successfully eradicated extreme poverty in the largest and most challenging battle against poverty that benefits the greatest number of people in human history. It is prepared to work with other countries to implement the UN 2030 Agenda for Sustainable Development, aiming to help less developed countries and regions in strengthening their energy supply capacities while supporting their efforts to promote clean and renewable energy. Thus, they will be able to achieve the goal of ensuring access to affordable, reliable, sustainable and modern energy for all.

– Tackling challenges posed by global climate change. The earth is the home of all humanity, and climate change is a common challenge facing all countries. China has implemented a proactive national strategy on climate change, defined its peak carbon and carbon neutrality goals, and contributed to the global climate change response with concrete actions. It is ready to work with other countries to uphold the principle of equity and common but differentiated responsibilities and respective capabilities, while working towards the targets outlined by the Paris Agreement, as it helps to build a fair and rational global climate governance system directed towards cooperation and mutual benefit. Developed countries should provide funding, technology, and capacity-building support for renewable energy deployment in developing countries, and help address the dual challenges of energy supply security and the green and low-carbon energy transition, as all nations move together towards a greener, more inclusive, and sustainable future.