China-EU green partnership for shared climate goals gains momentum

Amid growing global environmental challenges, China and the European Union (EU) are stepping up cooperation in sustainable development and green transition, underscoring their shared commitment to sustainable growth and climate action.

With both sides aiming for ambitious carbon neutrality goals – 2060 for China and 2050 for the EU – their deepening partnership is widely seen as a powerful force in advancing global decarbonization efforts.

The China-EU green initiatives now span clean energy, green technology and sustainable infrastructure, opening up a broad space for industrial collaboration and policy innovation.

Analysts say closer synergy between the two of the most important economies can significantly accelerate the global green transition while injecting much-needed certainty and momentum into international climate governance.

Closer engagement

Chinese and European companies are ramping up investment across the green value chain, covering everything from upstream energy projects to downstream logistics and clean transportation.

For instance, battery maker China Aviation Lithium Battery (CALB) is investing 2 billion euros (about $2.3 billion) in a lithium battery plant in Portugal. Meanwhile, CATL, a leading Chinese green energy solution provider, has launched gigafactory projects in Germany, Hungary and Spain to support the region's electric vehicle (EV) ecosystem.

In Croatia, a Chinese consortium is constructing the Korlat solar power plant, which is expected to be the country's largest photovoltaic facility, reducing carbon emissions by 150,000 tonnes per year.

Meanwhile, European firms are expanding their green footprint across China, buoyed by the country's vast clean energy market and supportive policies. Earlier this year, German industrial giant Siemens opened its first industrial ecosystem hub in western China, while Danish energy firm Danfoss launched its first carbon-neutral factory in Nanjing.

In 2024, Danfoss' operations in China saw strong growth in areas such as data centers and energy storage.

In this year's government work report, China pledged to prioritize industry, urban development, energy and transportation as part of green transition efforts. "This closely aligns with Danfoss's core business and reflects our shared vision for a greener, more energy-efficient future," said Kim Fausing, president and CEO of Danfoss.

Alongside growing business ties, policy coordination between China and the EU has also deepened. So far, the two sides have established five high-level dialogue mechanisms and over 70 sectoral exchanges under the framework of the leaders' meeting, covering areas ranging from green technology standards to industrial cooperation.

A flagship initiative is the EU-China Roadmap on Circular Economy launched in 2024, which focuses on cooperation in plastics, batteries and remanufacturing, according to the German Society for International Cooperation (GIZ).

"We need to step up cooperation with China to tackle global challenges such as climate change and the environment," said Jessika Roswall, EU commissioner for environment, water resilience and a competitive circular economy. "We have a vital opportunity ahead of us to show that multilateralism can deliver."

Deeper synergy

While the EU has long been a leader in green innovation, particularly in wind power, solar energy, environmental policy and green finance, China has emerged as a global manufacturing and innovation powerhouse capable of rapidly scaling up green solutions. Experts say this complementarity creates a powerful foundation for accelerating the global green transition.

"The complementary strengths of China and the EU in green industries provide a solid basis for expanding cooperation," said Wang Yiwei, director of the Center for European Studies at Renmin University of China.

He noted that there is "ample room" for collaboration in key areas, such as clean energy and transportation, the latter being one of the largest sources of greenhouse gas emissions worldwide.

China holds a dominant position in the manufacturing of renewable technologies such as solar panels and wind turbines, and leads in electric vehicle battery innovation. The EU, meanwhile, has advantages in sustainable aviation fuels, carbon pricing mechanisms and regulatory expertise.

"The EU, aiming to vastly increase its renewable energy usage as part of its carbon neutrality targets, stands to benefit from closer collaboration with China," said Gianni di Giovanni, executive committee member of the European Union Chamber of Commerce in China.

"By deepening this cooperation, both regions can further lower costs, enhance efficiencies, and make renewables the cornerstone of their energy systems," he said, stressing the EU's unique strengths in contributing financial expertise and regulatory support for Chinese green enterprises going global.

The EU also operates one of the world's most developed carbon markets through its Emissions Trading System. Greater alignment between the EU and China's carbon markets could "catalyze investments in low-carbon technologies and level the playing field for industries across both economies," Di Giovanni added.

Amid rising risks from trade tensions and geopolitical uncertainty, experts are urging stronger China-EU policy dialogue and efforts to build mutual trust.

To unlock the full potential of China-EU collaboration, Di Giovanni called on both sides to better leverage existing trade and economic dialogue platforms. "These mechanisms are essential to overcoming trade barriers and mitigating geopolitical risks."

According to observers, China-EU green cooperation carries "broader global significance," especially as other major players face divisions or scale back from multilateral climate commitments.

Their green partnership also serves as a model for Global South countries, given that traditional industrialization patterns often result in significant environmental and economic costs, Wang said.

(Cover: A wind-solar hybrid power station in Jiujiang, Jiangxi Province, eastern China, July 12, 2025. /VCG)