China-EU green partnership: Leading the charge toward global carbon neutrality

Editor's note: The article is written by Cong Fu, associate professor at the Institute of European Studies, Chinese Academy of Social Sciences. It reflects the author's opinions and not necessarily the views of CGTN. 

Amidst severe challenges in global climate governance, China and the European Union, as two major global economies, are accelerating the process toward global carbon neutrality by deepening green cooperation. In 2024, the China-EU green partnership achieved new breakthroughs: both sides reached multiple cooperation agreements in areas such as clean energy technology sharing, carbon market connectivity, and the alignment of green finance standards. According to the International Energy Agency, China and the EU together account for more than 60 percent of the world's installed renewable energy capacity. Their complementarity in industries such as photovoltaics, wind power, and hydrogen has formed a solid foundation for building the "China-EU green supply chain."

Firstly, China and the EU are reaching new heights in cooperation on clean energy technology. About 85 percent of the solar panels in Portugal come from China, and China has participated in localized photovoltaic and wind power projects in Croatia, Serbia, and Romania. In the hydrogen sector, Shanghai-based Envision Energy has signed a hydrogen cooperation agreement in Spain and plans to build hydrogen equipment factories and zero-carbon hydrogen industry parks. For electric vehicles, Chinese battery makers CATL, BYD, and EVE Energy have set up factories in Germany and Hungary, strengthening Europe's electric vehicle supply chain. The complementary supply chains in photovoltaics, wind, and hydrogen have laid a solid foundation for the China-EU green supply chain.

Secondly, the China-EU carbon market interconnection mechanism was upgraded in 2024. The two sides signed a new Memorandum of Understanding (MoU) on strengthening cooperation in carbon emissions trading. The updated MoU includes cooperation on voluntary carbon markets, emphasizing on integrating new industries into carbon markets of both sides, and promoting harmonization of methodologies for carbon emissions statistics and verification.

Overall, the China-EU green partnership is progressing steadily and has become a strong driving force in global efforts to address climate change and promote green transformation.