Europe and China collaborate on a climate agreement centering on clean technology, bypassing pledges for reducing coal usage
The European Union (EU) and China have released a joint press statement at the EU-China Summit in Beijing on July 24, 2025, marking the 10th anniversary of the Paris Agreement and the 50th year of diplomatic relations between the two powers. The statement focuses heavily on clean technology development and cooperation, with a goal of making these solutions affordable and accessible worldwide.
The partnership aims to advance solar panel production, scale up electric vehicle (EV) adoption, build large-scale battery storage systems, and promote clean energy more broadly. However, the statement did not address coal use, despite growing pressure from environmental advocates. This omission suggests a diplomatic sensitivity around coal, reflecting China's continued reliance on coal for its energy needs and complex political considerations.
Regarding clean technology, both sides agree to promote the deployment and accessibility of quality green technologies and products. Yet, China’s clean-tech production remains energy- and carbon-intensive, presenting challenges for truly sustainable solutions. The EU stresses the need for ambitious emissions reductions and increased international finance contributions from China, highlighting the balance required between leveraging China's manufacturing capacity for cost-effective climate technology and maintaining EU industrial competitiveness.
The cooperation on carbon markets and emissions trading systems signifies an important area of bilateral engagement aimed at enhancing mechanisms to reduce greenhouse gas emissions. Over the past 18 months, both parties have had intensive discussions on emissions trading and circular economy principles as part of the broader climate cooperation.
The Medog Dam project, with an estimated cost of $137 billion, will become the largest hydropower station in the world and generate around 300 billion kWh of electricity annually, replacing energy from hundreds of coal plants. While this project is a major boost to China's goal of reaching carbon neutrality by 2060, it has drawn criticism for its environmental and geopolitical risks. The dam's location near the Yarlung Tsangpo Grand Canyon could harm biodiversity and disrupt agriculture downstream. Additionally, the dam's construction has led to local community displacement, raising humanitarian concerns.
Key commitments in the statement include supporting the UNFCCC and the Paris Agreement, turning climate targets into real-world outcomes, submitting updated 2035 climate goals, expanding global renewable energy access, boosting adaptation support, collaborating on areas like methane reduction, carbon markets, and low-carbon technology. The potential impact of the EU-China climate statement on international carbon markets is significant, with analysts estimating the carbon market could grow to $100 billion by 2030.
In summary, the EU-China climate statement presents a mixed bag of progress and challenges. While there is strong collaboration on clean and low-carbon technologies, the absence of explicit commitments on coal use remains a concern. The joint statement supports multilateral climate governance but reveals limits in the scope of agreement on fossil fuel phase-out and immediate emissions targets. The surge in clean-tech exports from China has saved 4Gt in cumulative lifetime emissions from just 2024 exports, but if upstream processes are not cleaned up, China could export "dirty green" solutions that undermine broader climate goals. The Medog Dam project, while a significant step towards carbon neutrality, faces criticism for its environmental and geopolitical risks.
- The EU-China partnership is centering on advancements in clean energy technology, aiming to make solar panel production, electric vehicle adoption, and large-scale battery storage systems more affordable and accessible worldwide.
- Although the statement did not directly address the issue of coal use, environmental advocates have pressed for its reduction, suggesting a diplomatic sensitivity surrounding China's continued reliance on coal energy.
- Both the EU and China have pledged to support the UNFCCC and the Paris Agreement, committing to turn climate targets into real-world outcomes, submit updated 2035 climate goals, and expand global renewable energy access.
- The collaboration on carbon markets and emissions trading systems is an essential aspect of the bilateral engagement, aiming to reinforce mechanisms for reducing greenhouse gas emissions and potentially growing the carbon market to $100 billion by 2030.
- However, concerns over the Medog Dam project's environmental implications and potential geopolitical risks have sparked debate, despite the project being a significant step towards China's goal of carbon neutrality by 2060.
- Achieving true sustainability in clean-tech production is challenging, as China's current clean technology remains energy- and carbon-intensive, requiring further attention and improvement to align with ambitious emissions reductions targets.
