Welcome to Carbon Brief’s China Briefing.
China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.
Key developments
New EU-China climate statement
CLIMATE STATEMENT: European Council president António Costa and European Commission president Ursula von der Leyen signed an EU-China agreement on climate with Chinese premier Li Qiang at today’s EU-China summit, following a meeting with President Xi Jinping. (The Chinese version calls the statement a “joint statement”, while in the EU version it is a “joint press statement”). In it, the two sides “agree to demonstrate leadership together to drive a global just transition” and promote “ambitious, equitable, balanced and inclusive outcomes” at COP30. The statement also highlighted an agreement to “facilitat[e] access to quality green technologies and products, so that they can be available, affordable and beneficial for all countries, including the developing countries”.

NO LANGUAGE ON COAL: According to a commission press release, the EU “reiterated its commitment to…enhance” climate cooperation with China, plus “encouraged China to propose an ambitious plan for its emission reductions up to 2035 and to step up its international finance contributions”. This echoed earlier comments to Reuters by EU climate commissioner Wopke Hoekstra that China must “take more of a leadership role” on climate action and “move out of the domain of coal”. However, the joint statement itself did not contain any language on coal. According to the statement, focuses for bilateral cooperation include the “energy transition, adaptation, methane emissions management and control, carbon markets and green and low-carbon technologies”, with the commission press release noting that the two sides had “intensive engagement” on emissions trading systems and the “circular economy” over the past 18 months.
CLEAN-TECH TENSIONS: The commission press release also noted that “current trade relations remain critically unbalanced”, with no further details on an expected agreement on electric vehicles. In an earlier meeting, according to state news agency Xinhua, Xi told his counterparts that “China and the EU should deepen green and digital partnerships and promote mutual investment cooperation”. It said he added: “It is hoped that the European side will keep trade and investment markets open, refrain from using restrictive economic and trade tools, and provide a favorable business environment for Chinese enterprises to invest and prosper in Europe.”
MEANS OF PRODUCTION: Earlier, China had issued “new restrictions” on technologies crucial to manufacturing electric vehicle (EV) batteries, reported the New York Times, with government licenses required for “any overseas transfer”. Cory Combs, head of supply chain research at consultancy Trivium China, told Carbon Brief: “My expectation is that Beijing will clear major Chinese producers to use their own tech in their own overseas facilities, but not to license to foreign competition”. He added that these restrictions were less likely to “impede climate cooperation” compared to the “massively disruptive” controls on exports of minerals and gallium metal extraction technologies.
Controversial ‘megadam’ launched
MEGADAM: Premier Li Qiang launched a “megadam” project, which is “expected to be the world’s largest hydroelectric facility”, on the Yarlung Tsangpo River in Tibet, reported the Hong Kong-based South China Morning Post (SCMP). It added that the project, which raised significant concerns when proposed earlier this year, could provide 300 terawatt-hours of electricity – “three times that of the Three Gorges dam” and roughly the same as the UK’s entire output. According to the Communist party-affiliated newspaper People’s Daily, Li “described [the dam] as a project of the century”, adding that “special emphasis must be placed on…prevent[ing] environmental damage”. The project could also help “bolster economic growth as current drivers show signs of faltering”, Reuters said. (See below.)
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POWER ‘TORRENT’: Elsewhere, China has completed a 4,000km power transmission project in the Taklaman desert that will “create a torrent of green power” from renewable-energy rich Xinjiang province, according to Xinhua. The new infrastructure, which took 15 years to build, will “double transmission distance and boost transmission capacity” to three gigawatts (GW), allowing “connections to other regional power grids for long-distance power transmission”, SCMP reported. Separately, nationwide installations of solar capacity in June reached 14GW, down 36% year-on-year and down from 93GW of new solar in May, BJX News said.
INTER-GRID TRADING: Regulators approved a proposal by China’s two major grid companies to develop “routine power-trading” between different operators in China, BJX News reported, with the aim of strengthening China’s power supply. Business news outlet Jiemian said that, according to the grid operators’ plan, regulators will focus on “listed trading” (挂牌交易) of low-carbon electricity between specific provinces. A government official told industry outlet International Energy Net that the move was partially driven by the need to manage the integration of large amounts of new renewable energy capacity into the grid.
Clean-tech a key growth driver
LEADING THE PACK: According to an official at China’s National Bureau of Statistics (NBS), China’s “new-three” industries “continue to maintain high growth rates”, China Environment News reported. The climate-related news outlet quoted an NBS official stating that China’s new-energy vehicle (NEV) industry grew 36% and the lithium-ion battery industry grew 53% in the first half of 2025, compared to overall economic growth of just over 5%. Meanwhile, the number of patents generated by clean-tech companies has “doubled” since 2020, with “53,000 invention patents granted” in 2024, according to the state-run newspaper China Daily.
‘GREEN FINANCE’: China has released a catalogue clarifying which projects can receive “green finance”, reported BJX News, noting that the list includes manufacturing of lithium-ion batteries and other “power-industry equipment projects”. The catalogue “serves as a reference for the future issuance of green loans and green bonds” and should “boost liquidity in the green finance market”, according to China Daily.
NEW PLAYBOOK: A high-level meeting on “urban work” attended by President Xi Jinping ended by pledging that the “focus [of China’s housing industry] will be directed toward building green, low-carbon and beautiful cities”, state news agency Xinhua reported. Reuters said that the meeting underscored that China is “abandoning [a strategy of] breakneck urban growth that once super-charged its economy”. Output of the heavily polluting steel, cement and glass industries fell in June, driven by China’s ongoing housing industry slump, according to Bloomberg, although it noted “hot weather” had limited construction activity.
Captured

China’s energy-related investment and construction in “belt and road initiative” member states during the first half of 2025 (H1 2025) has already exceeded similar “engagement” in the whole of 2024, according to a new report. Clean-energy engagement in H1 2025 – particularly solar, wind and waste-to-energy – “reached new records” compared to the same period in previous years. Report author Prof Christoph Nedopil Wang told Carbon Brief that high oil and gas activity was “mostly explained by a single large gas-related construction project in Nigeria”, with clean-energy power outweighing fossil fuels in terms of newly added generation capacity.
Spotlight
Chinese clean-tech exports to cut emissions equal to Spain’s footprint
New analysis for Carbon Brief by Lauri Myllyvirta, senior fellow at the Asia Society Policy Institute, finds that the low-carbon technologies exported by China in 2024 alone could cut emissions overseas by 220m tonnes of carbon dioxide (MtCO2), roughly equivalent to Spain’s total annual CO2 output.
This issue features an abridged version of the analysis, which is available in full on Carbon Brief’s website.
China’s output of clean-energy technologies is enabling rapid deployment around the world, but their production is energy- and carbon-intensive.
Nevertheless, these clean-tech exports are having immediate global climate benefits – contradicting many commentaries linking China’s clean-tech boom to the sharp rise in its emissions.
Specifically, manufacturing clean-energy equipment for export resulted in an estimated 110MtCO2 of emissions in 2024, or just 1.1% of China’s CO2 from fossil fuels. Yet the solar panels, batteries, electric vehicles (EVs) and wind turbines exported in 2024 will avoid an estimated 220MtCO2 annually when put into operation overseas.
Moreover, these products will continue to generate emissions savings for as long as they continue operating, avoiding a cumulative total of 4bn tons of CO2 across their lifetime.
Looking beyond direct equipment exports, overseas clean-energy investments announced by Chinese companies in 2023-24, such as solar panel manufacturing plants, will generate another 90MtCO2 of avoided emissions per year, once the projects have been built.
In addition, overseas clean-power generation projects announced by Chinese investors in 2023-24 would save another 40MtCO2 per year.
Overseas footprint
China’s clean-energy footprint spans essentially the entire world, but in terms of resulting emission reductions, the largest destinations for China’s overseas clean-energy activity are south Asia and the Middle East and north Africa (MENA) region.
This reflects both the large volumes of Chinese clean-technology activity reaching these countries and their highly carbon-intensive power grids, which means that installing new solar panels offsets high-emissions generation, for example.
On the manufacturing side, Saudi Arabia is the main destination, with a major EV production facility, two solar factories and one for wind turbines. There are also a total of five battery manufacturing projects in Morocco and Oman.
OECD Europe is the largest destination for China’s exports and overseas manufacturing investments by value. However, relative to the volume of exports, the resulting CO2 savings are smaller than in other major destinations, due to lower carbon intensity of power generation.
Another way to look at China’s clean-energy exports and investments is to consider where they have the biggest emissions impact, relative to the total CO2 output in each region.
On a relative basis, sub-Saharan Africa stands out, in addition to MENA.
China’s clean-energy exports in 2024 alone, as well as 2023-24 investments, are set to cut annual emissions in sub-Saharan Africa by around 3% per year. This indicates a rapid uptake of solar power in the region, relative to the size of the region’s electricity systems.
Downstream opportunity
In 2024, clean-energy industries contributed more than 10% of China’s GDP for the first time, underscoring the country’s dominant role in the global manufacturing of certain low-carbon technologies and reinforcing its strategic interest in the continuation and acceleration of the global clean-energy transition.
On the surface, this dominance may suggest that other countries have limited economic opportunities in clean energy.
However, China’s involvement in global supply chains is still largely limited to exports and manufacturing, while most of the value is downstream – in project development, system integration, installation and end-user services.
For example, in 2024, China exported $177bn worth of solar panels, EVs, batteries and wind turbines.
By contrast, the downstream value of overseas clean-energy products and projects relying on Chinese components is an estimated $720bn annually, four times the value of the exported raw components.
Watch, read, listen
AIR-CON DEMAND: China’s “two new” programme could encourage more consumers to trade in their air conditioners for more energy-efficient units, reducing cooling demand by 4.1% this summer, according to a new report by thinktank Ember.
WINNING STRATEGY: Volt Rush discussed how China – and other countries – made solar energy “one of the cheapest sources of power on Earth”.
MERZ’S CHOICE: A comment by three policy experts for Dialogue Earth said Germany could become a “vital broker between Europe and China”, but must “step up” engagement with China on climate.
ENERGY SECURITY: Bashir Bayo Ojulari, head of the Nigerian National Petroleum Corporation, spoke with Xinhua about how other developing countries are “leveraging” China’s model of clean-energy growth coupled with a “reasonable mix of hydrocarbons”.
$7.6bn
The total economic losses caused by “natural disasters” in China in the first half of 2025, Reuters said, adding that “floods caused the most damage”. Regions across China have continued to suffer from extreme heat and deadly torrential rains over the past two weeks.
New science
Unveiling deployable rooftop solar potential across Chinese cities
Nature Cities
A new study on rooftop solar photovoltaics (RPV) in China found that “only 42% of the national technical potential is realistically deployable”. The paper assessed where RPV is deployable across 367 Chinese cities, considering factors including building type, “regional characteristics” and “policy limitations”. It found that, due to “regulatory factors”, deployable RPV is mainly found in urban public and industrial buildings, particularly in western, northern and central regions. They added that “to maximise value, initial deployment should prioritise public and industrial buildings in central and southern cities”.
Role of pumped hydro storage in China’s power system decarbonisation
The Electricity Journal
Developing 120GW of pumped hydro storage (PHS) – in line with China’s target for 2030 – will be “sufficient to balance electricity supply and demand by 2050” in the country, given expected growth in energy storage battery capacity, a new study said. The authors used a “high-resolution power system planning model” to assess the role of PHS in China’s power system. They argued that batteries are “emerging as a more economical solution” for energy storage compared to PHS, adding that “over-investment in PHS could lead to unnecessary electricity price inflation”.
China Briefing is compiled by Wanyuan Song and Anika Patel, with contributions from Ushika Kidd. It is edited by Wanyuan Song and Dr Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 24 July 2025: EU-China climate statement; World’s largest megadam; Clean-tech exports appeared first on Carbon Brief.
China Briefing 24 July 2025: EU-China climate statement; World’s largest megadam; Clean-tech exports
Climate Change
Environmental Groups Take Trump Administration’s ‘God Squad’ to Court
The Endangered Species Committee, known as the God Squad, issued a rare exemption from compliance with the Endangered Species Act for oil and gas activities in the Gulf of Mexico.
Environmental groups are suing the Trump administration over its decision to exempt oil and gas drilling in the Gulf of Mexico from complying with the Endangered Species Act, a move they say threatens both the coastline region and the law designed to protect threatened plants and animals.
Environmental Groups Take Trump Administration’s ‘God Squad’ to Court
Climate Change
Great White Sharks Are Overheating
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Climate Change
China Briefing 16 April 2026: Billions for grid | Petrochemical plan | China’s high-seas bid
Welcome to Carbon Brief’s China Briefing.
China Briefing handpicks and explains the most important climate and energy stories from China over the past fortnight. Subscribe for free here.
Key developments
Surge in grid investment
TRILLION-YUAN ERA: China’s two largest power grid operators invested a total of 167.5bn yuan ($24.5bn) in the first quarter of 2026, reported state broadcaster CCTV. State Grid said that during this period it spent more than 10bn yuan on connecting “new energy” projects to the grid, up 50% from last year, reported Shanghai-based news outlet the Paper. The two state-owned enterprises (SOEs) plan to invest 1tn yuan ($146bn) annually over the 15th five-year plan period (2026-2030), said finance news outlet Yicai.
POWER CURBED: However, in what Bloomberg called a “clear signal that the grid is struggling to absorb all the extra power from the rapid growth in renewables”, solar and wind utilisation rates – the percentage of total power generated by a source that is used by the grid – fell again at the start of the year. They stood at 90.8% and 91.5%, respectively, in January and February 2026, according to a post by an SOE-linked research institute republished by energy news outlet International Energy Net. The rates are now “approaching [minimum] limits that the government had relaxed only two years ago”, added Bloomberg.

SIX PROVINCES SUPERVISED: A recent meeting of the National Energy Administration (NEA) concluded that China’s renewable installations had seen “steady growth” in 2026, adding that the body must make “sustained efforts” to “expand” investment in renewable power, reported International Energy Net. Separately, International Energy Net also said that the NEA will increase “supervision” of the power sectors in six provinces – Hebei, Jilin, Xinjiang, Fujian, Hunan and Guangdong. The outlet said this would entail scrutinising how they implement “energy conservation and carbon reduction” tasks, with a “focus” on coal plants, how they construct large clean-energy bases and their consumption of new energy, as well as their power infrastructure and markets.
Conflict spurred cooperation with China
CHINA ‘WINNING’: In Vienna, Chinese climate envoy Liu Zhenmin told state news agency Xinhua that the Middle East conflict has created an urgent need for countries to rethink energy security strategies and accelerate the energy transition. Xinhua also cited Liu as warning against over-reliance on a single source of energy imports. Meanwhile, state broadcaster CCTV published a segment arguing that a “greener” system will “provide a strong guarantee” for energy security, although it did not mention the conflict. Several outlets have continued to highlight how low-carbon energy has helped China weather the conflict and boosted sales of Chinese technologies, including the New York Times, Wall Street Journal, Associated Press, Indian Express, Washington Post and Bloomberg. Semafor said China was “winning the global energy war”.
MANY MEETINGS: United Arab Emirates crown prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Chinese president Xi Jinping discussed how to “prevent further impacts” from the conflict on energy security, said Xinhua. Australian prime minister Anthony Albanese said he addressed “regional energy security” with Chinese premier Li Qiang, reported Reuters. A post by China-Russia Information Net on nationalist media outlet Guancha quoted a Chinese diplomat in Russia telling reporters that “current dramatic changes in the international situation” are causing the two countries to discuss “further energy cooperation”. The Philippines is continuing to consider “oil and gas cooperation” with China, despite territorial disputes, Reuters also reported.
‘PROFOUND’ IMPACTS: Energy administration head Wang Hongzhi wrote a chapter in a “study guide” to the 15th five-year plan, published by industry outlet China Power News Net, in which he noted that “geopolitical conflicts are profoundly reshaping the global energy landscape”. He added that “traditional fossil fuels must continue to serve as a safety net while [China] simultaneously accelerates efforts to transition [to clean energy sources]”. Environment minister Huang Runqiu wrote in the CPPCC Daily, the official newspaper for the advisory body Chinese People’s Political Consultative Conference (CPPCC), that China will “earnestly” carry out “carbon peaking actions” in the next five years. Huang also said that, with “concerted efforts”, China’s 15th five-year plan targets are “achievable”.
Petrochemical plan published
UPGRADE DEADLINE: China issued a plan for either upgrading or phasing out “outdated” petrochemical plants by 2029, reported Reuters. It added that the plan did not confirm explicitly “how many plants may be upgraded or phased out”. The news outlet Economic Daily said that, according to the document, China would focus on upgrading or phasing out outdated capacity “as determined in 2025”, while also developing a “long-term working system” for assessing the industry. According to the full document, published on the Ministry of Industry and Information Technology (MIIT) website, carbon-emission assessments were part of the selection criteria, with policymakers planning on “developing or revising” further standards for carbon emissions under the plan.
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CHEMICAL OVERCAPACITY: The Paper quoted MIIT official Chang Guowu telling reporters that the plan will address the “low standards of design and construction” and “outdated processes” in older plants that lead to “significant” environmental risks. Xinhua said that, of China’s more than 27,000 petrochemical plants, “more than 1,600…outdated facilities” were reported in 2025, 600 of which required upgrading. Chemical news WeChat account WeLink Chemicals noted the policy was released against a backdrop of “overcapacity and declining demand for road transport fuels”, with the government having “stepped up efforts to curb overcapacity” in 2025.
More China news
- TARGET PLEDGED: China will cut the carbon intensity of its international shipping vessels by at least 15% by 2030 compared to 2025 levels, said climate outlet IdeaCarbon. It said China will also “significantly enhance” its influence in emission reduction talks at the International Maritime Organization.
- SANCHEZ VISITED: China and Spain “can contribute to finding solutions” for environmental issues, Spanish leader Pedro Sanchez told Xi Jinping, according to the Associated Press. Ahead of the meeting, Sanchez also argued China should play a more substantial role on climate change, said the Singapore-based Straits Times.
- CHINA COMMITTED: Huang Runqiu reaffirmed China’s support, “as always”, for global climate governance in a meeting with UN advisor Selwin Hart, said the Paper.
- FUNDING HALTED: The EU “quietly” approved a plan to prevent EU funds being provided to “clean technology projects containing Chinese inverters”, said the Hong Kong-based South China Morning Post.
- AI UNVEILED: Chinese researchers developed a “first-of-its-kind artificial intelligence model designed to track carbon emissions”, reported Xinhua, adding that it “could shift the balance of power” in global climate negotiations, such as by quantifying the “embedded carbon” of products that developed countries import from China.
- CONTROLS CONSIDERED: China is deliberating “limiting exports” to the US of the equipment needed to make solar panels, according to Reuters.
Spotlight
The debate over China’s bid to host the “high seas” treaty
The final preparatory commission for the Biodiversity Beyond National Jurisdiction (BBNJ) agreement has closed, laying the groundwork for the treaty’s first conference of the parties (COP1).
One key agenda item was China’s presentation of a bid to host the secretariat. In this issue, Carbon Brief examines the debate surrounding the bid.
The BBNJ agreement, also known as the High Seas Treaty, governs the sustainable use and conservation of the “high seas” – marine areas outside national jurisdictions – with a new United Nations (UN) body established to oversee enforcement.
As well as facing significant impacts from climate change, the ocean plays an important role as a carbon sink, absorbing around 29% of man-made emissions.
The treaty “recognis[es]” the need to address oceanic biodiversity loss and ecosystem degradation, according to previous Carbon Brief analysis, identifying key impacts from climate change, acidification, pollution and “unsustainable” use.
It aims to encourage conservation and sustainable use of marine biodiversity in the high seas, such as by managing “marine genetic resources”, creating protected areas in the ocean, developing environmental impact assessments and facilitating capacity-building and transfer of marine technology.
China’s bid
China’s bid to host the secretariat focused on its “sustainability efforts” and “commitment to multilateralism”, reported the Earth Negotiations Bulletin.
The country’s bid document drew attention to several of its emission-reduction efforts, including “green shipping corridors” and strengthening carbon sinks through protecting mangroves, seagrass beds and coral reefs.
In a speech, Chinese ambassador to the UN Fu Cong said that the bid “reflects China’s unwavering support” for multilateralism, adding that a successful Chinese bid would lead to the first UN-related body headquartered in the Asia Pacific region. He said:
“That means it will not only be welcomed, but also be prioritised. It will have the full backing from all levels of government in China and its people.”
Li Shuo, director at the Asia Society Policy Institute’s China climate hub, attended the meetings. He said in a note that China’s decision to bid “reportedly came from [President] Xi Jinping”, galvanising a coordinated cross-ministry effort to secure host the secretariat.
Creating debate
China entering the race has caused a stir.
As host, it could inhibit “robust environmental safeguards” by “embedding elements of its domestic governance model” into how the treaty operates, wrote Dr Chime Youdon, research fellow at India’s National Maritime Foundation, on the organisation’s platform.
But such concerns are weakened by the fact that China would “want the treaty to function” if it were host, argued Prof Philippe Le Billon and Zelda Ladefoged, professor and master’s student at the University of British Columbia, in an article for the Conversation.
Nevertheless, they noted “sustained” worries around China’s influence, given the extensive involvement of its companies in distant-water fishing and deep-sea mining, which are not covered in the treaty.
Li told Carbon Brief that, as far as he saw, no-one was “actively pushing back against” the bid on any of the above grounds. Instead, he observed “anxieties” around “accreditation, information security and visa and conference participation issues”.
Daniel Kachelriess, cross-cutting coordinator at the High Seas Alliance, an umbrella group of non-governmental organisations focused on ocean governance, echoed this in comments to Carbon Brief. He said “values like neutrality and impartiality, transparency and accountability” are important for the decision, as well as practical issues such as “reliable” internet access.
The Financial Times reported that Chinese delegates have offered immunity to attendees and flexibility around visas, citing unnamed sources.
But a successful Chinese bid could be a “significant escalation” of China’s involvement in global environmental governance, wrote Le Billon and Ladefoged.
As such, the BBNJ could prove a “case study” of sustaining environmental progress without the US and of China “learning to translate its ambitions into leadership”, said Li.
Watch, read, listen
PROFIT PRESSURE: The Economic Observer investigated how higher profit remittance requirements for state-owned enterprises is placing pressure on the balance sheets of power, coal and other energy companies.
CARNEY’S CALCULUS: The Wire China Podcast discussed how a deteriorating relationship with the US affected Canada’s approach to importing Chinese electric vehicles.
AFRICAN SOLAR: Climate Home News interviewed a renewables company working in Africa about what the end of Chinese solar export rebates could mean for the continent.
FUEL PRICE WOES: The New York Times published a video about how rising diesel prices are hitting China’s long-haul truck drivers hard.
140%
The year-on-year rise in March in exports of Chinese new-energy vehicles (NEVs, including both plug-in hybrids and pure electric vehicles), reported Bloomberg, citing renewed interest caused by the “global energy shock stemming from the Iran war”.
-14%
The year-on-year fall in March in domestic sales of Chinese NEVs, reported Yicai, citing “changes to the NEV purchase tax exemption and the overlapping effects of the Chinese New Year holiday”.
New science
- Between 1978 and 2023, emissions of “gaseous reactive nitrogen” – including ammonia and nitrous oxide – from croplands in China more than doubled | PNAS
- There are “disparities in [the] energy transition” between households in rural China, with small, low-income households and areas in the Loess plateau facing a “disproportionate energy burden and energy poverty” | Communications Earth and Environment
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China Briefing is written by Anika Patel, with contributions from Lekai Liu, and edited by Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 16 April 2026: Billions for grid | Petrochemical plan | China’s high-seas bid appeared first on Carbon Brief.
China Briefing 16 April 2026: Billions for grid | Petrochemical plan | China’s high-seas bid
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