Energy Insider: China Releases Climate Actions Report Ahead of COP29, Carbon Trading Surges

China's climate and energy activities have been summarized in a recent report focusing on policy developments, industry progress, and international interactions. The key highlights include China's annual climate actions report, China's response to global climate finance pressures, a notable increase in carbon emission allowance trading, a WTO complaint regarding EU tariffs on electric vehicles, and the global expansion of Chinese wind-turbine manufacturers.

The annual climate report revealed that by 2023, 17.9% of China's energy consumption came from non-fossil sources, marking a 0.3 percentage point increase from the previous year. Coal's share decreased slightly to 55.3%. Renewable energy capacity reached 1,516 GW, forming 51.9% of China's power capacity. These developments came ahead of the COP29 summit in Baku, Azerbaijan, with discussions anticipated on climate targets for 2025 through 2035. China is currently drafting its targets to present at COP29 [para. 1][para. 2].

In its diplomatic efforts, China called on developed nations to fulfill their climate finance obligations, urging a commitment of $100 billion annually to developing countries by 2025. This followed significant pressure from these countries seeking Beijing's contribution to new financial goals. Despite this, China emphasized that according to international treaties, the primary obligation lies with developed nations [para. 2][para. 3][para. 4].

Sany Renewable Energy Co. Ltd., a Chinese wind-turbine maker, has secured contracts in India to supply 1.6 GW of wind turbines, exemplifying its global expansion amid stagnant domestic demand. The contracts, notably with Indian conglomerate JSW Group and Singapore's Sembcorp Industries Ltd., highlight overseas demand for Sany's technology and product quality. This move comes as China's wind power market is anticipated to see little growth in newly installed capacity, predicted to remain around 80 GW this year [para. 5][para. 6].

Moreover, China has filed a complaint with the WTO against the EU's tariffs on its electric vehicles, claiming these measures lack a factual basis and violate WTO rules. This dispute marks China's broader resistance to unilateral trade measures purportedly enacted under climate change pretenses, which China plans to challenge at COP29. Chinese authorities argue these measures increase costs and are unreasonable, urging countries to abandon unilateralism [para. 7][para. 8][para. 9].

Finally, China's carbon emission allowance market saw a trading surge in the third quarter, with 17.2 million tons traded, the highest quarterly volume this year. September alone posted a record 7.8 million tons. The 2022 allowances dominated this trading activity. Such increased trading is partly attributed to announced plans to include the cement, steel, and electrolytic aluminum sectors in the national emission trading system by year-end. The continued development of the carbon market will see these industries actively incorporated, promoting broader environmental regulation efforts by the Ministry of Ecology and Environment [para. 10][para. 11].

In conclusion, these events underscore China's proactive approach in managing its climate policies amid global expectations, while also fostering its renewable energy industry and addressing international trade disputes in the context of climate action.