China's engagement in the climate agenda is typically analyzed through a domestic policy lens, focusing on its role as the world's largest emitter of carbon dioxide and its transition from a carbon-intensive manufacturing growth model. However, China also plays a significant role in international collaboration and coordination in climate action, particularly in promoting sustainable economic development and debt sustainability among emerging markets and developing economies.
China's energy policy has evolved to reduce reliance on fossil fuels, especially coal, and promote renewable energy. In 2014, President Xi Jinping called for an "energy revolution," and in 2017, the Energy Supply and Consumption Revolution Strategy (2016–2030) was officially launched, aiming to build a "clean, low-carbon, safe, and efficient" energy system. Recent pledges include reaching carbon neutrality by 2060 and transitioning to a new type of power system centered on new energy. To achieve these goals, China plans to encourage the uptake of renewable energy, expand energy storage capacity, promote distributed renewable generation, and develop new energy vehicles (NEVs).
China's role in promoting the energy transition internationally is crucial. It should contribute to increasing global investment in low-carbon industries, including both domestic and overseas investment in renewable energy. Additionally, China should play a larger role in supporting low- and middle-income countries in achieving an energy transition through its overseas investment, particularly through initiatives like the Belt and Road Initiative (BRI).
China's role as a creditor has also evolved. With a Net International Investment Position of US$2.15 trillion, China has substantial influence over debtor countries. Decisions such as ending overseas coal finance not only enhance China's political and diplomatic standing but also align with economic interests by reducing exposure to climate-related risks.
Energy Transition Domestic Policy:
Promoting Renewable Energy Internationally:
Creditor Role and Debt Sustainability:
By fostering international collaboration and promoting sustainable development, China can play a pivotal role in global climate action and ensure long-term economic stability.