At the 2025 Annual Meeting of the World Economic Forum in Davos, climate change emerged as one of the most pressing topics, with United Nations Secretary-General Antonio Guterres highlighting the world's addiction to fossil fuels as a \"Frankenstein's monster.\" Amidst this backdrop, China positioned itself as a leading force in the global response to climate change.
Chinese Vice Premier Ding Xuexiang emphasized the country's unwavering commitment to environmental sustainability, outlining ambitious goals to reach peak carbon emissions by 2030 and achieve carbon neutrality by 2060. These targets are integral to China's broader strategy for a green transformation, which seamlessly integrates environmental, economic, and technological advancements.
One of the cornerstone initiatives in China's climate strategy is its national carbon emissions trading market. Launched in 2021, this market has become the world's largest in terms of greenhouse gas coverage, encompassing over 2,400 emission units within the power sector alone. This innovative approach has incentivized major industrial sectors to reduce emissions, resulting in a significant cost saving of 35 billion yuan ($4.8 billion) in the power generation industry.
China's advancements in renewable energy further underscore its leadership in the green transition. In 2024, the country installed more than half of the world's new solar capacity, solidifying its position as a global powerhouse in clean energy. Projections for 2025 indicate that renewable energy will generate approximately 3.3 trillion kWh of electricity annually, marking a 50-percent increase from 2020 levels and accelerating the shift away from traditional fossil fuels.
Beyond energy production, China is making substantial progress in fostering a circular economy. With over 260,000 resource recycling enterprises and a production value expected to reach 5 trillion yuan in 2025, the country is actively reducing waste and promoting sustainable consumption patterns. Innovations in recycling technology, such as converting plastic bottles into polyester fibers for clothing, highlight the economic and ecological benefits of these initiatives.
Financial support for environmental initiatives is also on the rise. The Ministry of Finance recently announced a 7.5 billion yuan budget for the treatment of discarded electrical and electronic products, part of a nearly 100-billion-yuan allocation for pollution control across air, wastewater, and soil.
China's commitment extends to international climate cooperation, particularly through South-South cooperation. By facilitating technology transfers and providing financial assistance, China is supporting developing nations like Ethiopia and Sri Lanka in their renewable energy projects, fostering global sustainable development.
\"China's pursuit of green transition is a long-term commitment rather than an act of expediency,\" Ding stated at Davos. \"No matter how the international landscape may evolve, China's determination and action for proactive climate response will not change.\" Through these comprehensive efforts, China is not only addressing its own environmental challenges but also playing a pivotal role in shaping global climate action and sustainable development.
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Davos 2025: China's green transition sets pace for climate cooperation
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