The European Union and China share a common interest in collaborating on decarbonization efforts, which could yield meaningful economic and geopolitical advantages for both. Such cooperation would enhance the EU’s resilience, boost its industrial sector, and solidify its position as a leader in clean technology. For China, it would offer an outlet for surplus green goods, ensure market access, and demonstrate its commitment too green growth, especially as the United States scales back its climate action.
A closer look reveals a greater alignment between the EU and China than is often perceived.Both are net importers of fossil fuels and are major producers of zero-carbon technologies, giving them a shared interest in maintaining global demand for green products. Furthermore, amidst increasing global uncertainty, both have identified the energy transition as the most promising path to competitiveness and innovation.
This opportune moment for collaboration is not indefinite. As scientific and political timelines for climate action converge, the coming months are crucial for keeping the world on track to meet the Paris Agreement’s goal of limiting global warming to 1.5 degrees celsius. The recent EU-China Summit has established a foundation for enhanced cooperation on decarbonization. Though, with pressure mounting to finalize 2035 climate targets before the United nations Climate Change Conference (COP30) in belém this November, the upcoming September meeting of the Council of the EU, under the danish presidency, will be a pivotal event.
Many European nations, especially France, are advocating for a more defined industrial and investment strategy before committing to ambitious 2035 emissions reduction targets. Consequently, EU heads of state and government must establish a framework for industrial transformation at the September meeting.A key component of this plan will be the EU’s approach to engaging with China.
europe is beginning to adopt a strategy similar to China’s, emphasizing the need to build new infrastructure before phasing out old systems. To effectively implement this, Europe must also learn from China’s systematic and coherent execution, which is characterized by long-term planning across the entire clean-tech value chain.
China, in turn, needs to present an ambitious 2035 emissions target that aligns with its 2060 net-zero goal.This would translate to an approximate 30% reduction from its projected peak emissions, expected this decade.Such a commitment would enhance China’s international credibility and create the necessary space for the EU to set a strong target.
Both Europe and China have staked their futures on green growth. To ensure this strategy is successful and to fully realize the benefits of decarbonization, they must find common ground on clean trade and investment. This is one of the few areas where strategic self-interest and the pursuit of global public goods converge.
