EU-China Climate Cooperation: Accelerating Green Ambition in a Changing Geopolitical Landscape

Christine Zhou, BwB Executive Director 

The global fight against climate change is at a pivotal juncture, with recent geopolitical developments altering the landscape of international climate leadership and ambition.  

The United States – historically a key player in international climate cooperation – has initiated a series of actions that mark a significant retreat from its climate commitments, including its withdrawal from the Paris agreement in January and a rollback of funding to a range of environmental initiatives.  

Yet, as Executive Secretary of the United Nations Framework on Climate Change Simon Stiell recently observed “[when] one government steps back from climate leadership, it opens up space for others to step forward and seize the vast benefits”. 

Changing Geopolitics and the Climate Leadership Gap 

It is in this context that the European Union (EU) and China are increasingly finding common ground, with new opportunities to accelerate the trajectory of their climate objectives through greater exchange and collaborative initiatives. The EU’s European Green Deal (EGD) and China’s ‘1+N’ policy framework set ambitious pathways​. Despite the presence of political and economic headwinds, both parties have upheld their climate commitments at home, sending a strong signal internationally. The EU’s European Green Deal (EGD) and China’s ‘1+N’ policy framework set ambitious pathways​.  

Launched in 2019, the EU’s EGD enshrined a 55% reduction in greenhouse gas emissions by 2030 (from 1990 levels) en route to net-zero by 2050, a target that was maintained at the latest 2024 EGD iteration alongside a proposed intermediate 90% reduction target by 2040. The publication of the bloc’s Clean Industrial Deal earlier this year marks a further acceleration in action by boosting support for clean technologies and streamlining permitting for green industry projects.  

China, for its part, formally committed to peak CO₂ emissions by 2030 and carbon neutrality by 2060 at the 75th United Nations General Assembly in 2020 and has since been actively integrating these targets into its national development strategy​. 

These parallel goals, while differing in precise timelines, establish a foundation for cooperation through a shared vision of a mid-century climate-neutral economy. 

Green Cooperation – A New Bright Spot in EU-China Relations? 

Despite major differences in their political systems, Brussels and Beijing have accelerated the frequency of institutionalised dialogues focused on climate and environmental action in recent years, resulting in a number of new or extended agreements. A centrepiece is the EU-China High-Level Environment and Climate Dialogue (HECD), a platform created in 2020 to drive collaboration and policy alignment, that brings together top officials on both sides on an annual basis. At the fifth HECD in June 2024 (in Brussels), co-chaired by European Commission Executive Vice-President Maroš Šefčovič and Chinese Vice-Premier Ding Xuexiang, both parties agreed to deepen green cooperation across the board​.  

The two delegations jointly reviewed the domestic climate policies of both the EU and China, and discussed potential collaborative efforts on issues ranging from clean energy transition and methane reduction to biodiversity and circular economy initiatives.  Several concrete outcomes emerged, including the updated EU-China Memorandum of Understanding on Emissions Trading, which extended formal collaboration that was initially established in 2018, and stepped up in 2023, to continue sharing best practices and address common challenges for a further five years. The renewed MoU facilitates annual policy dialogues, joint research, and technical exchanges on topics such as cost-effective Emissions Trading Scheme (ETS) implementation, expanding into new sectors, and improving market design​. With China having launched a national ETS in 2021 (initially for the power sector, with plans to expand to other sectors) and the EU expanding its scheme (which, on establishment in 2005, was the world’s first major carbon market) in 2023, this was an important signal globally that this is a crucial mechanism for driving a cost-effective transition to a carbon-neutral economy.  

Beyond the HECD, EU-China climate collaboration has continued to deepen through a range of initiatives over the past year. Notably, the EU launched the EU-China Climate and Environmental Think Tanks Engagement Initiative in late 2024 to foster dialogue and joint research on green development. The two parties have also increasingly aligned their positions at international climate negotiations. At COP29, both were instrumental in establishing the New Collective Quantified Goal (NCQG), aiming to mobilise US$300 billion annually by 2035 to support developing nations in combatting climate change. Both parties also contributed to operationalising Article 6 of the Paris Agreement, facilitating international carbon trading to promote cost-effective emissions reductions.  

This is not, of course, to suggest that EU-China engagement over climate activity is free from conflict or challenges. China, for example, has raised concerns over whether the EU’s Carbon Border Adjustment Mechanism (CBAM) complies with World Trade Organization rules. However, the overall trajectory of interaction points towards enhanced collaboration, with both parties agreeing to “seek common ground while setting aside differences” in order to maintain momentum on climate collaboration. Indeed, looking towards the next HECD this summer, there are already emerging discussions about the potential need to form a climate coalition comprising the EU, China, and the UK. 

Mutual Lessons: What the EU and China Can Learn From Each Other 

While sharing the characteristics of being major carbon emitters with substantial resources at their disposal, the EU and China have diverged in terms of their respective strengths in the fight against climate change. For example, China has achieved impressively rapid renewable energy rollout and industrial scale, while the EU leads the way on policy innovation and the development of a carbon market. It is these distinctions in expertise and experience that provide fertile ground for accelerating climate initiatives through mutual learning. High-potential areas include: 

• Low-Carbon Urban Planning and Transport: China has been a global leader in scaling low-carbon urban transport, with battery-electric vehicles making up about 27% of new car sales in China in 2024 – double the EU’s 13%. In 2018, Shenzhen became the world’s first city to have all-electric public transport. Alongside 20,000 taxis, ride-hailing services, and ambulances, this electrification included about 16,000 buses, cutting bus-related CO2 emissions by 48% and halving fuel costs. This success was enabled by strong municipal subsidies, rapid charging infrastructure rollout, and clear procurement mandates that could work as a blueprint for European cities, many of which still have diesel public bus fleets. Conversely, Europe excels in human-centric design: cities such as Copenhagen and Amsterdam have made cycling central to urban planning, and others such as Paris and London employ congestion pricing to reduce car use. These demand-side strategies – along with strong building efficiency codes and district heating networks – could help Chinese cities avoid car dependency and energy waste as they urbanise.  

• Climate Adaptation and Nature-Based Solutions: China’s ‘Sponge Cities’ programme offers a compelling model for urban climate resilience. Since 2015, China has piloted initiatives such as permeable pavements, green roofs, wetland parks, and enhanced drainage in 30 cities with the aim of absorbing rainwater and reduce runoff. The deployment of this type of green infrastructure in Wuhan, for example, has cut urban flooding in pilot zones by up to 70%. As Europe experiences more extreme rainfall, similar engineering solutions and investment in nature-based solutions could enhance urban flood management.  

• Carbon Markets and Regulatory Experience: The EU’s experience in designing climate policies and markets offers valuable lessons and models that China could leverage to get to solutions and operational structures more quickly. The EU’s ETS has shown that putting a price on carbon can drive down emissions in a cost-effective way. Over time, the ETS has helped decouple emissions from economic growth, contributing to a scenario where EU emissions fell even as GDP rose. China has closely studied the EU’s experience when building its own carbon market, learning from the evolution of cap-and-trade rules, tightening caps, and managing volatility. With China having now launched an ETS for its power sector, ongoing EU-China carbon market cooperation is enabling China to draw on Europe’s know-how in allocation methods, monitoring and verification, and market oversight​. 

• Climate Policy and Law: The EU has developed a comprehensive legal and regulatory framework for climate action: binding national targets, climate laws, and a suite of policies (e.g., renewable energy mandates, vehicle emissions standards, efficiency directives) under the EGD. It also prioritises transparency and investor confidence, setting a global benchmark with its science-based green taxonomy and mandatory ESG disclosures.  China could learn from the EU’s experience in policy integration and enforcement. For instance, the latter’s use of legal targets (e.g., the ‘55% by 2030’ law) and independent monitoring could inform China’s implementation of its 2030/2060 goals. China’s policy system is already robust, but as it moves from target-setting to delivery, EU practices around transparent progress tracking, stakeholder engagement, and aligning climate goals with economic planning could be instructive. 

Green is the Colour of Cooperation 

Global geopolitical shifts have, somewhat unexpectedly, nudged the EU and China closer together on the issue of climate change. This cooperation is not without friction, but if both parties choose to focus on tangible outputs – such as advancing clean technology, improving resilience, and mobilising green finance – there is clear potential for mutual benefit. The EU brings deep experience in policy and regulatory frameworks, while China offers expertise in efficiently establishing and rapidly scaling up clean energy markets. By aligning efforts where possible and maintaining open channels for dialogue, the EU and China can support each other in delivering more effective climate action – both domestically and on the global stage.