China can play significant role in global decarbonization efforts: former IEA chief

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By Yin Yeping (Global Times) 11:15, April 01, 2025

Notably, during the 13th China-Japan-ROK Trilateral Economic and Trade Ministers' Meeting in Seoul, South Korea on Sunday, the economic and trade departments of the three countries agreed to discuss accelerating negotiations on the trilateral free trade agreement, strengthen supply chain cooperation and dialogue on export control, deepen collaboration in digital and green economies, enhance local cooperation, and jointly foster a favorable environment for business collaboration, according to Xinhua.

Beyond regional cooperation, China can also play a very significant role on global cooperation, according to the former IEA chief.

"With its advancements in decarbonization technologies and practices, China can play a very significant role by setting a carbon price," he said, stressing that to establish a truly global green economy, the world needs a standardized carbon market. "As a major player in green technology, China is in a strong position to lead discussions with Europe in this field."

China is a global leader in various aspects of the green development, according to reports from the IEA. The country is set to cement its position as the global renewables leader, accounting for 60 percent of the expansion in global capacity to 2030, according to the agency's renewable energy report for 2024.

The report noted that since 2020, China's cumulative solar PV capacity has almost quadrupled and wind capacity has doubled, driven by cost-competitiveness and supportive policies. "China's success stems from comprehensive support for both large-scale and distributed renewables across all renewable technologies," it said.

Tanaka said that while protectionism and trade disputes arise, China's "serious" efforts on decarbonization and technology development is still the right direction. "It is also very important to maintain dialogue with other global players via this platform regarding trade disputes. That is the right thing to do," he said.

Rising protectionism

Both the US and the EU have imposed hefty tariffs against Chinese new-energy products. In September 2024, the US imposed a 100 percent tariff on Chinese EVs. In December 2024, the US unveiled plans to raise tariffs on solar wafers, polysilicon, and some tungsten products from China, according to the Associated Press. This year, the new US administration has imposed a 20 percent tariff on all imports from China, among other tariff measures.

Meanwhile, at the end of October 2024, the EU imposed tariffs on China-made EVs after a so-called anti-subsidy investigation. Then in December 2024, an EU trade official suggested that the bloc could target Chinese wind turbines in another so-called investigation, according to Bloomberg.

"This is the trade-off - if you restrict cheap and high-quality Chinese solar cells, batteries, or EVs, the cost of decarbonization in the US or Europe will increase significantly," Tanaka said. Asked about the impact of the US' recent decision to impose a 25 percent tariff on all cars and auto parts, he said that "the answer is simple - American consumers will suffer, which is foolish."

Having said that, Tanaka said he believes energy transformation is driven by demand rather than supply. "Since demand is the key driver, I don't think the overall trajectory will change. While protectionist policies under the new US administration may slow things down, the direction toward green transformation will probably remain the same," he said.

China has repeatedly called for dialogue and consultation to address trade disputes and firmly opposed protectionism from the US and the EU.