Increased Export of Renewable Energy from China Contributes to Reduced Carbon Emissions in Other Nations
In a significant move towards combating climate change, China announced in September 2021 that it would stop supporting new coal projects abroad [1]. This decision was primarily influenced by international climate commitments and global policy shifts towards reducing coal financing to meet the Paris Agreement goals.
The pledge aligns with efforts by the G7, EU, and G20 to fulfill the Paris Agreement objectives by reducing greenhouse gas emissions globally [1]. Many countries and international financial institutions, including the World Bank and Asian Development Bank, also adopted policies to cease funding coal power projects abroad, creating diplomatic and financial incentives for China to follow suit [1].
The decision restricted participation in coal projects abroad by state-owned banks, credit agencies, insurance companies, and development institutions affiliated with the government, limiting China’s ability to support such projects internationally [1].
However, China continues to approve new coal power projects domestically due to energy security concerns and grid management issues revealed by power shortages. The Chinese government prioritizes preventing domestic outages over international coal financing, promoting coal as “insurance” against supply disruptions while still working on emissions trading and clean energy transitions internally [2][4].
China's clean energy footprint almost spans the entire world, with exports to 191 of the 192 other UN member states, and manufacturing and project finance investments in dozens of countries [3]. The largest emission reductions are associated with direct clean technology equipment exports, particularly solar panels, followed by manufacturing at Chinese factories overseas [3].
A new report by Carbon Brief states that China's exports of clean energy technologies, such as solar panels, batteries, electric vehicles, and wind turbines, helped reduce global emissions by 1% in 2024 and will avoid some 4 billion tons of carbon dioxide over the useful life of those products [3]. When factoring in China's plans to build overseas manufacturing plants for clean energy products and to construct overseas clean power projects, the avoided CO2 increases to 350 million tons of carbon dioxide a year [3].
China has set a goal of becoming a net-zero economy by 2060, ten years later than the target many western countries have set for themselves [3]. The global carbon dioxide savings from using these products for just one year outweigh the emissions from manufacturing them [3]. The reduction of 350 million tons of carbon dioxide a year amounts to 1.5% of global emissions outside China and is almost equal to the annual emissions of Australia [3].
As the global leader in clean energy, particularly in the area of exports, China's successes in this field offer valuable lessons for other nations [3]. Instead of criticizing China's faults, we should learn from its successes in the area of clean energy.
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[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4]
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