China Leads in Climate Action,Backed by Renewable Energy dominance
Table of Contents
- China Leads in Climate Action,Backed by Renewable Energy dominance
- Background: The Global Climate Action Landscape
- Frequently Asked Questions
- What is China’s current climate policy?
- How does China’s dominance in renewable energy manufacturing affect global prices?
- what role do subnational actors, like California, play in climate action?
- What is the ‘green premium’ and why is it declining?
- How can businesses benefit from investing in climate action?
Kuala Lumpur,malaysia – November 20,2025 – china is rapidly establishing itself as a pivotal force in global climate action,moving beyond pledges to demonstrate concrete progress in the energy transition,according to industry leaders speaking at the Fortune Innovation Forum in kuala Lumpur on Tuesday. This shift comes as other nations grapple with shifting political landscapes and the complexities of implementing climate policies.
The increasing prominence of China’s climate leadership was highlighted against the backdrop of the COP30 summit currently underway in Belém,Brazil. Attendees noted a significant presence of Asian countries at the conference,with China maintaining a notably large pavilion showcasing its advancements and commitments.This growing influence signals a potential reshaping of climate diplomacy, with Beijing taking a more assertive role.
A Shift in Climate Diplomacy
“Climate diplomacy is now being pushed very much by the Chinese,” stated Faroze Nadar, executive director of the UN Global Compact Network Malaysia and Brunei. Fellow panelists concurred, emphasizing that China’s actions are matching its rhetoric.
ying staton, Chief Sustainability Officer and Vice President for Asia Pacific at Plastic Energy, succinctly put it: China is not just talking, it’s walking the walk.
staton explained that the eastern superpower is actively driving the global energy transition by expanding renewable energy production and together lowering costs.
Dominating the Renewable Energy Landscape
China’s dominance in key renewable energy sectors is substantial. Currently,the nation produces 90% of the world’s solar panels,60% of wind turbines,and 85% of battery cells. It also holds a leading position in the supply of rare earth metals, essential components in many green technologies. This manufacturing capacity provides China with significant leverage in shaping the future of sustainable energy.
| technology | China’s Global Share (2025) |
|---|---|
| Solar Panels | 90% |
| Wind Turbines | 60% |
| Battery Cells | 85% |
| Rare Earth Metals | Dominant |
Did you Know?
China’s investment in renewable energy surpassed that of all developed nations combined in 2023, according to the International Energy Agency.1
U.S. Influence Remains Despite Federal Shifts
Despite the previous U.S.governance’s withdrawal from key climate agreements, American influence at climate talks hasn’t entirely diminished. A delegation of state and local representatives,including California Governor Gavin newsom,traveled to Brazil for COP30,demonstrating continued commitment from subnational actors. Staton noted that there are so many policy levers that you can pull, and frequently enough it’s the local municipal governments who have the more direct levers.
The Role of Business and Profitability
Nadar emphasized the crucial role businesses play in driving climate action,stating that the new economy is going to build on the climate movement,so there is business sense in being part (of it).
He added that businesses are ofen easier to collaborate with due to their focus on profitability. The UN global Compact Network Malaysia and Brunei, under Nadar’s leadership, frequently partners with Sarawak Energy-Malaysia’s largest green energy producer-on corporate sustainability initiatives.
Pro Tip: Framing climate action as a strategic advantage, rather than a cost, can unlock significant investment and innovation.
Staton highlighted the decreasing green premium
-the additional cost associated with sustainable practices. The more you build and the more you scale, the cheaper these solutions become, and that’s how you drive the green premium to zero,
she explained. She pointed to renewable energy as an example, noting that a green premium existed 20 years ago but has since disappeared.
Aiying Wang, President & CEO of Greater China, SEA and India at Envac AB, echoed this sentiment, stressing the importance of scale for both green technology and infrastructure to enable businesses to do the right thing
without compromising profitability.
Background: The Global Climate Action Landscape
Global efforts to combat climate change have intensified in recent years, driven by the urgency of the climate crisis and the increasing recognition of the economic opportunities associated with a sustainable transition. The Paris Agreement, adopted in 2015, set a global goal of limiting warming to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit it to 1.5 degrees Celsius. However, achieving these goals requires significant reductions in greenhouse gas emissions across all sectors of the economy. China, as the world’s largest emitter, plays a critical role in this effort, but its growing economic influence also presents opportunities for accelerating the global transition to a low-carbon future.
Frequently Asked Questions
What is China’s current climate policy?
china has pledged to peak carbon emissions before 2030 and achieve carbon neutrality by 2060. It is investing heavily in renewable energy and phasing out coal-fired power plants, although the pace of this transition remains a subject of debate.
How does China’s dominance in renewable energy manufacturing affect global prices?
China’s large-scale production capacity has driven down the cost of solar panels, wind turbines, and battery cells, making renewable energy more affordable and accessible worldwide.
what role do subnational actors, like California, play in climate action?
state and local governments can implement policies and initiatives that go beyond national commitments, demonstrating leadership and driving innovation in areas such as renewable energy, energy efficiency, and sustainable transportation.
The ‘green premium’ is the extra cost associated with choosing sustainable products or practices. It’s declining due to technological advancements, economies of scale, and increasing demand for sustainable solutions.
How can businesses benefit from investing in climate action?
Businesses can benefit from enhanced brand reputation, access to new markets, reduced operating costs (through energy efficiency), and increased resilience to climate risks.
What are your thoughts on China’s growing role in climate leadership? Share your perspective in the comments below!
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1 International Energy Agency, Renewable Energy Market Update (Accessed November 20, 2025)
