Going Green: An overview of China-EU climate cooperation

Recently a Chinese think tank with official background released a report that looked into the status of China's cooperation on the environment and climate. It reaches an interesting conclusion that

Green is the distinctive color of China-EU cooperation

signifying that climate and environmental cooperation between the two sides is of great importance.

The report takes a look at the accomplishments of the cooperation as well as the challenges, maintaining that there is still great potential for both sides to continue promoting their relationship.

I Accomplishments

i. Establishing Multi-layered partnerships

Led by climate diplomacy between the heads of state and government and guided by intergovernmental cooperation mechanisms, China and the EU have established multilevel, multi-platform, and multilateral communication channels, including cooperation at regional and local levels and cooperation between think tanks, businesses, and other organizations.

Government level

• China and the EU launched the Low Carbon Cities Partnership.

• The China-France Carbon Neutrality Center (CNC) was officially inaugurated in November 2023, the first CNC between China and the EU.

• China has conducted practical cooperation with Germany, France, Italy, and other EU member states.

  China and Germany set up a joint environment and climate change working group, implemented the International Climate Initiative (IKI), and carried out dozens of projects in such fields as climate partnership, NDCs, carbon market, low-carbon transport, and climate-smart development.

  China and France launched a joint working group on green and low-carbon economies.

  China and Italy have cooperated on several projects in the fields of climate change adaptation, provincial-level response to climate change, and carbon capture and storage. Between 2012 and 2019, Italy supported China in organizing annual training courses on climate change and sustainable development.

Think tank level

• The EU has been involved in the work of the China Council for International Cooperation on Environment and Development (CCICED) since its second phase in 1997 and sent high-level representatives to serve as members of the CCICED.

• Continued efforts were made to facilitate the Sino-German Track II Dialogue (T2D) on Climate Change and Sustainable Development and promote academic exchanges between Chinese and German climate experts.

• The China-EU Environmental Policy Research Center was established in 2021 as a broader platform for communication and cooperation among think tanks.

Industry level

• The European Union Chamber of Commerce in China and the China Chamber of Commerce to the EU were established in 2000 and 2019, respectively, and eight China-EU ecological parks have been built in China.

• The China-EU Green Economic Cooperation and Development Summit was held in 2021, and Chinese and EU enterprises launched the Green Action Initiative, strengthening their climate exchanges and cooperation.

• Since 2016, China and Germany have collaborated on the demonstration project “Energy Saving in the EnergyIntensive Industry through Energy Diagnosis.”

ii Fruitful results

Carbon markets

China and the EU have maintained close communication and cooperation on the construction of carbon markets. The two sides established a mechanism of regular dialogues on carbon markets, signed the memorandum of understanding on emissions trading cooperation, and strengthened research and capacity building in carbon quota allocation, carbon market pilots and transition, information disclosure, and other fields.

Climate investment and financing

China and the EU conduct practical cooperation on climate investment and financing, leading the way in sustainable finance. The International Platform on Sustainable Finance (IPSF) was jointly launched, which released the “Common Ground Taxonomy-Climate Change Mitigation” (the CGT) to promote the alignment of green finance taxonomies, improve the comparability and interoperability of China and EU taxonomies, and guide cross-border flows of green capital.

Industrial transition cooperation

• In December 2023, the first China-EU Partnership Dialogue was held, and ten typical cases of China-EU cooperation on green and low-carbon development were selected and released for the occasion. The cases involved Germany, France, Malta, Finland, and Switzerland, among others, and covered a wide range of areas such as green energy transition, energy conservation, carbon reduction and efficiency, green and low carbon science and technology innovation, and the development of circular economy.

• Under the Sino-German Energy Partnership Framework, the Sino-German Demonstration Project on Energy Efficiency in City Quarters was implemented, and comprehensive mid-to-long-term energy efficiency enhancement plans have been formulated.

Cooperation in climate change adaptation

• China, the Netherlands, and other countries jointly launched the Global Commission on Adaptation (GCA), and the first regional office of the GCA—the China Office—was established in 2019.

• EU organized the Strategic Dialogue on Climate Change Adaptation, the EU-China Online Workshop on Urban Adaptation to Climate Change, the China-EU Expert Dialogue on Climate Risk, Impact and Adaptation, and other high-level events.

II Challenges

China and the EU have motivations to enhance their cooperation on environment and climate, and at the same time face forces that impede their cooperation. Challenges such as geopolitical issues and the sluggish global economy have introduced many uncertainties to China-EU cooperation.

• There are strategic divergences at the policy level. The EU is changing its strategic stance toward China, viewing China as a “cooperation partner, an economic competitor, and a systemic rival”. It emphasizes the need to manage risks and reduce dependency and has launched a series of regulations and policies to promote the localization of European industries.

• The EU prioritizes the independence of its industrial and supply chains, establishing a carbon border adjustment mechanism, initiating anti-subsidy investigations against Chinese electric vehicles using foreign subsidies regulation, and reviewing European investments in China.

Full text to the report in English:

https://f2.xhinst.net/group2/M00/00/82/CgoMnmY1XI6AOPf5AA__fgBgAas113.pdf