On 2 April, China’s Ministry of Finance debuted its first ever green sovereign bonds on the London Stock Exchange. The money raised will go towards projects in China in sectors such as clean transportation, marine conservation and recycling.

The event makes China the latest of more than 50 jurisdictions to issue green sovereign bonds, Xie Wenhong, head of the China Programme at the Climate Bonds Initiative (CBI), told Dialogue Earth. The industry had long been looking forward to China following suit, he said.

Dialogue Earth consulted several experts regarding the launch. Broadly, they welcomed it as a move that would help spur international investment in green projects in China, and offer the country an opportunity to deepen climate cooperation with the UK and EU. China could also include green investment plans in its new climate action plan under the Paris Agreement, they said.

How significant was the bond issuance?

Governments issue green sovereign bonds to raise funds for environmental protection and green development. The money is often invested in areas such as renewable energy, low-carbon transport, green buildings and conservation. It supports national green-development strategies and attracts international investment to projects related to sustainability.

China’s green sovereign bonds issue in London was worth RMB 6 billion (GBP 624.38 million). Of this, half have a 3-year maturity at 1.88% interest, and the other half a 5-year maturity at 1.93%.

For comparison, in 2016 China issued RMB 3 billion of ordinary sovereign bonds in London. Xie explained that it is normal for green sovereign bonds issues to be comparatively large. Germany, for example, issued USD 7.7 billion of green bonds in 2020, alongside ordinary sovereign bonds to the same value.

However, Xie notes that consideration needs to be given to the demand for green funds, and whether it will be possible to use all the money raised. The first ever green sovereign bond was a USD 800 million 5-year bond issued by Poland in 2016, according to a report by the CBI. EU nations, including France, Germany and Hungary, followed suit, along with emerging economies such as Chile, Indonesia and Thailand. In 2017, France issued USD 7.5 billion worth of 22-year green sovereign bonds and has since “tapped”, or increased, the size of the issue to USD 29.5 billion. In 2020, Egypt issued USD 750 million of 5-year green sovereign bonds, the report notes.

China’s debut of RMB 6 billion (USD 824 million) is not particularly large. Mao Xuxin, head of the Bank of China’s London Research Centre, told Dialogue Earth it was understandable for China to keep its first green sovereign bond issue relatively small as it would lead to a higher ratio of bids to sales. According to Xinhua News Agency, the London bonds “spurred strong demand” from international investors. This was despite the interest rates being lower than those of regular government bonds issued in Hong Kong at a similar time, with a similar maturity length. In the end, the bids were 6.9 times greater than the bonds available, Xinhua reported.

Issuing an RMB-denominated bond in London has another advantage for China: it helps internationalise the currency, says Zhang Chuanjie, an environmental, social and governance (ESG) senior researcher at the Bank of China’s London branch. Growth in green finance, Zhang explained, is seen as a way to drive that process, within which the UK is a key location.

“Globally, the UK has always been an important site for the RMB foreign exchange spot market. After Hong Kong, London and Singapore are the two most important international centres of RMB business,” he said.

A focus on climate adaptation in the use of funds

In February, the Ministry of Finance published a framework for issuing green sovereign bonds. It specified possible uses of the funds, including direct investments in projects, contributions to project running costs, support for local governments, and tax rebates. The catalogue of eligible projects refers to an existing list for green bonds, with six major categories:

• Clean transportation
• Sustainable water resources and wastewater management
• Sustainable management and restoration of biological and land resources
• Restoration of marine environments
• Prevention of pollution
• Resource recycling and reuse

“At present, renewable-energy projects – wind and solar power – are not on the list,” Xie observed. “In contrast, a large number of sectors related to ecological conservation and restoration have been incorporated into the framework.” He believes this may signal the emergence of a new trend: using fiscal tools and the bond market to finance projects focused on climate adaptation and resilience.

Sean Kidney, CEO of the CBI, told Dialogue Earth: “The framework is meeting the requirements of China’s national ‘taxonomy’, the Green [Bond Endorsed] Projects Catalogue. That is perfect for sending the right signals to the market.”

Making national climate plans investable

The green transition is a vast project, and the most important aspects of it – climate actions and the energy transition – are facing huge funding gaps. A recent report from the World Economic Forum puts demand for climate finance up to 2030 at USD 9 trillion a year, increasing to USD 10 trillion a year from 2031 to 2050.

A report from the consultancy Oliver Wyman found that China will need RMB 3.5 trillion a year in green finance from 2020 to 2060. Current policy would see an estimated RMB 2.4 trillion of that come from government, leaving a RMB 1.1 trillion gap to fill, the reports states. Market reports have shown that the lack of private investment has consistently been a problem.

Sovereign debt is backed by the state. This means lower risk, making it more attractive for some investors. Green sovereign bonds are, therefore, a good way to leverage private investment in national or regional green transitions. In 2019, the CBI’s Green Bond European Investor Survey found an appetite for more green bonds from sovereign issuers.

Sovereign bonds can also catalyse the corporate bond market. A working paper from the International Monetary Fund found that “the number and the size of corporate green bond issuance increase more in a jurisdiction after the sovereign debut”.

The same research found the effect was strongest in countries with stronger climate policies. That is, alignment between green sovereign bonds and national policies is more likely to drive green investment by the private sector.

Sovereign bonds aligned with national strategies are generally more attractive, said Thomas Dillon, head of sovereign ESG at Aviva Investors, the UK’s biggest investment firm, in a seminar.

Antonina Scheer agrees. She is a policy fellow at the London School of Economics (LSE)’s Transition Pathway Initiative Centre (TPI Centre). The LSE is the academic partner of the investor-led TPI, which aims to support companies and investors in aligning with the low-carbon transition. Scheer told Dialogue Earth that, to encourage private investors to participate in climate finance and investment actions, it is worth considering how investment frameworks and standards can align with national strategies.

Scheer noted that incorporating investment plans into the updated Nationally Determined Contributions (NDCs) “could also boost investor confidence and drive more private climate investment”. Under the Paris Agreement, signatories should have submitted updated NDCs in February – but most countries, including China, have not. Countries that haven’t yet finalised their NDCs could still include investment needs and plans in those documents.

International cooperation

In theory, it doesn’t matter where you issue sovereign debt – international investors will always be able to buy it. But, says Mao, launching in London draws more attention. “Issuing bonds in London helps China attract international investors, and offers the City a chance to diversify its offering of green financial products and distinguish itself from Wall Street,” Mao added. The Bank of China’s London branch also plans to issue new sustainability bonds this year, in both RMB and GBP, Zhang noted.

Kidney told Dialogue Earth that usually, countries tend to issue their green sovereign bonds at home, and this is the first time another country has done so in London. “China is doing it specifically to underline the green underpinnings of the UK-China climate dialogue, i.e. for political purposes,” he said, welcoming the move. The UK government recently announced that China and the UK are set to restart formal climate talks, with China’s environment minister to visit London and the talks to become institutionalised for the first time.

According to a Bloomberg report, China’s choice of London to issue green sovereign bonds “will test appetite among international investors to shift climate bets to the world’s top polluter” and is aimed at “showcasing the nation’s green leadership credentials as the US retreats under President Donald Trump”.

Experts who spoke with Dialogue Earth all mentioned the effect of the change in administration at the White House and agreed this could be an opportunity for better climate cooperation between China and the UK, and China and the EU. Speaking to the Financial Times, Adair Turner, chair of the Energy Transitions Commission, said that China, the EU and the UK should form a climate coalition of “the world apart from the US” in response to the US retreat under President Trump. If China’s first green sovereign bonds are successful, there are hopes they will result in more climate investment both in the country and internationally.

This article was originally published by Dialogue Earth

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Writing in The Guardian ahead of the visit, Miliband said: “The only way to respond to [the climate crisis] is with decisive action at home and abroad… climate action at home without pushing larger countries to do their fair share would not protect current and future generations. Emissions know no borders, and we will only protect our farmers, our pensioners and our children if we get other countries of the world to play their part.”

On Monday 17 March, Ed Miliband met with Chinese Vice Premier Ding Xuexiang in Beijing. The two sides agreed to enhance cooperation in jointly addressing climate change. Ding, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, noted that China is ready to work with the UK to earnestly implement the important consensus reached by the leaders of both countries, consolidate the momentum for improvement and development of bilateral ties, deepen cooperation in areas such as financial services, trade and investment and low-carbon development, and jointly address climate change to better benefit the people of both countries and the world.

Miliband and China’s National Energy Administrator Minister, Wang Hongzhi, also co-hosted the 8th China-UK Energy Dialogue in Beijing on 17 March. The two sides exchanged views on topics including clean energy technologies, energy transition, energy security and global energy governance. Following the dialogue, Miliband and Minister Wang signed a Memorandum of Understanding on the China-UK Clean Energy Partnership, which identifies priorities for collaboration, including power market reform, power grids, battery storage, offshore wind energy, carbon capture, utilisation and storage (CCUS), clean low-carbon and renewable hydrogen.

Earlier, on Saturday, 15 March, Miliband met with China’s Ecology and Environment Minister, Huang Runqiu, and held in-depth discussions on topics including cooperation in climate change. Minister Huang outlined China’s policies, actions, and achievements in combating climate change, expressing China’s willingness further to deepen policy dialogue and practical cooperation with the UK in areas such as carbon markets, climate investment and financing, and climate adaptation. He emphasised that such collaboration would contribute positively to global climate governance.

The Energy Secretary will refresh the 10-year-old UK Clean Energy Partnership with China – which will now provide clarity on areas where the UK government can securely collaborate with China on areas of mutual benefit – such as new emerging technologies, including hydrogen and carbon capture and storage. The UK will also share expertise on phasing out coal, having closed its last coal-fired power station last year.

Ed Miliband said:  

“We can only keep future generations safe from climate change if all major emitters act. It is simply an act of negligence to today’s and future generations not to engage China on how it can play its part in taking action on climate. 

That is why I will be meeting Chinese ministers for frank conversations about how both countries can fulfil the aims of the Paris Climate Agreement, to which both countries are signed up.  

Our Plan for Change and clean energy superpower mission is about energy security, lower bills, good jobs and growth for the British people. It is with this mission that we can also influence climate action on a global stage, fight for our way of life and keep our planet safe for our children and grandchildren.”

Coinciding with Miliband’s visit to China, CBBC, in partnership with the British Embassy and the British Chamber of Commerce in China, hosted the UK-China Clean Energy Reception in Beijing. The event brought together nearly 200 guests, including representatives from the UK government, Chinese companies and UK businesses, providing a valuable platform for business and government stakeholders to network and explore collaboration opportunities in the sector. 

CBBC’s Chief Executive Peter Burnett, who is visiting China, attended the event alongside Tom Simpson, CBBC’s Managing Director for China.

Speaking at the event, CBBC’s Chief Executive Peter Burnett said:

“There are important shared objectives between businesses in the UK and China, including tackling climate change, promoting sustainability, and developing clean, efficient, and safe energy solutions. For businesses, this dialogue is incredibly important. All successful businesses mitigate as much risk from their operations as they can. Managing climate-related risks has become an essential business objective, particularly as we have seen the significant impact of climate change worldwide. At CBBC, we will continue to prioritise this issue. Addressing climate change is not just necessary – it also supports economic growth, prosperity, and job creation.”

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This was the focus of a panel discussion at the UK-China Business Forum 2025, featuring insights from Herbert Lonsdale, International Automotive Consultant and former Global Skills Ambassador for the Institute of the Motor Industry; Simon Bisp, Head of Customer Services for BYD; David Wong, Head of Innovation and Technology at the Society of Motor Manufacturers and Traders (SMMT); and Professor Xu Hongming, Chair of Energy and Automotive Engineering at the University of Birmingham. The panel explored how the UK and China can work together to accelerate the adoption of smart transport technologies, particularly electric vehicles (EVs), and address the challenges of transitioning to a greener future.

Herbert Lonsdale opened the discussion by highlighting the challenges facing the UK automotive industry. “We’re in the midst of a perfect storm,” he said. “The industry is undergoing an enormous transition, and while EV sales are growing by 20% annually, this growth is largely driven by the fleet market. The retail market remains depressed.” Lonsdale emphasised the need for a clear government strategy to encourage EV adoption. “Instead of focusing on fines for non-compliance, we should be telling people why driving an EV is a good idea,” he said. He pointed to China’s extensive charging infrastructure, with 6.5 million chargers nationwide, as a model for the UK to follow. “We’re lagging behind in terms of charging infrastructure, and there’s also a scarcity of skilled workers. We need to provide vocational training to address the shortage of 43,000 advanced technology students by 2030,” he added. Lonsdale called for bolder initiatives, such as the training programs piloted in Shandong, China, to be replicated in the UK. “The government needs to create a skilled workforce to attract investment and build large-scale manufacturing capabilities,” he said.

Simon Bisp of BYD echoed Lonsdale’s call for a customer-centric approach to EV adoption. “Incentives are important, but it’s equally crucial to communicate the benefits of EVs to consumers,” he said. Bisp highlighted BYD’s strategy of developing multiple solutions to stay ahead of the curve. “Traditional manufacturers often find that their new products are outdated by the time they hit the market. At BYD, we’re already working on future solutions so we’re ready when the time comes,” he explained. Bisp also emphasised the importance of affordability, noting that BYD’s plug-in hybrid models have been particularly successful in bridging the gap for consumers hesitant to fully transition to EVs.

David Wong of SMMT provided a detailed analysis of the UK’s EV market, noting that while battery electric vehicles accounted for 19.6% of new registrations in 2024, this fell just short of the 22% target. “For vans, the figure was even lower at 5.2%, well below the 10% target,” he said. Wong attributed part of this shortfall to the lack of incentives for retail consumers. “Current incentives are primarily aimed at company cars, benefit-in-kind schemes, and salary sacrifice programs. From April 2025, EV owners will also be subject to excise duty, which could further dampen demand,” he explained. Wong called for the removal of the Expensive Car Supplement (ECS) for EVs, which applies to vehicles costing over £40,000. “More than 40% of EVs fall into this category, and they are already 24% more expensive than their petrol equivalents. Removing the ECS would make EVs more accessible to the masses,” he said.

Wong also highlighted lessons the UK can learn from China, particularly in terms of product development and decision-making speed. “Chinese manufacturers have a product development cycle of about two years, compared to four to seven years in the UK and Europe. We need to move from a linear to an intuitive process to keep up,” he said. Wong pointed to the lengthy permitting processes in the UK as a major bottleneck. “It takes longer to permit a wind farm in the UK than to build it. We need to reduce the time it takes to connect new assets to the grid from 14-15 years to a maximum of seven,” he argued. He also cited delays in activating charging infrastructure as a barrier to growth. “I’ve seen chargers installed at a local Waitrose but left unused for six months. This is unacceptable,” he said.

Professor Xu Hongming brought an academic perspective to the discussion, emphasising the UK’s strengths in research and education. “The UK has been a leader in technology and research for over a century. Our education system remains world-class, and we’re in a strong position to drive innovation,” he said. However, Xu cautioned against over-reliance on battery technology alone. “We should be exploring multiple energy choices, including hydrogen fuel cells for heavy-duty vehicles. Solid-state batteries hold promise but are not yet ready for production,” he explained. Xu also highlighted the importance of international collaboration, noting that a quarter of undergraduate and 95% of postgraduate students in his department are from China. “These students are eager to work within the UK’s boundaries and contribute to our decarbonisation efforts,” he said.

The panel concluded with a consensus on the need for stronger collaboration between the UK and China to overcome the challenges of the green transition. Herbert Lonsdale summarised the discussion by calling for a coordinated approach to skills development, infrastructure investment, and consumer engagement. “The UK and China have complementary strengths. By working together, we can accelerate the adoption of smart transport solutions and achieve our climate goals,” he said. As the world moves towards a more sustainable future, the insights from this panel underscored the critical role of international partnerships in driving innovation and progress.

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Chaired by James Brodie, Regional Director for Scotland and Commercial Director for Industrial at the China-Britain Business Council, the discussion featured insights from David Finnon, CTO of Red Rock Renewables; Chong Ng, Associate Director of Applied Research at the Offshore Renewable Energy Catapult (OREC); and Alex Grant, Partner at Pinsent Masons Law Firm. The panel examined the opportunities and challenges of integrating Chinese technology and expertise into the UK’s renewable energy landscape, with a particular focus on offshore wind.

James Brodie opened the discussion around the UK’s green transition by highlighting the UK’s leadership in offshore wind and China’s rapid rise in the sector. “The UK has been at the forefront of offshore wind globally, but China has now overtaken us in installed capacity. What more can Chinese suppliers and investors do to help the UK meet its net-zero targets?” he asked. The question set the stage for a conversation about collaboration, innovation, and the practicalities of integrating Chinese technology into UK projects.

David Finnon of Red Rock Renewables shared his experience of working on large-scale renewable energy projects, including a facility that will power half of Scotland’s homes. “We have two and a half years to get this project up and running,” he said. Finnon reflected on the challenges of bringing Chinese technology to the UK, recalling an attempt in 2011 to introduce Goldwind turbines. “It was like trying to plug a UK appliance into a Chinese socket—it just didn’t work. The technology had to be extensively modified, and for just three turbines, it wasn’t economically viable,” he explained. Finnon emphasised that while Chinese manufacturers are now more willing to adapt their products for international markets, success depends on volume and the establishment of local service networks. “It’s not just about plug-and-play; we need to build the infrastructure and expertise to support these turbines over their 30-year lifespan,” he said.

Finnon also highlighted the rapid evolution of offshore wind technology. “Fifteen years ago, turbines were 4 megawatts (MW); now, we’re looking at 15 MW turbines with blades as long as 236 metres. The scale of everything—turbines, ships, and installation equipment—has grown exponentially, and we’re struggling to keep up,” he said. Despite these challenges, Finnon expressed optimism about the potential for collaboration. “We’ve built strong relationships with our parent company in China, and that trust has been crucial. Recently, we closed a £3.5 billion deal for the Inch Cape project, which was driven by technical considerations rather than politics or funding,” he added.

Chong Ng of OREC echoed Finnon’s sentiments, emphasising the importance of collaboration and quality assurance. “Our aim is to catapult the offshore renewable sector forward. We’ve set up an investment fund to help UK companies explore opportunities in China and vice versa,” he said. Ng noted that while Chinese manufacturers are now more willing to modify their products for international markets, ensuring reliability remains a key challenge. “The industry is a small circle, and newcomers need to build relationships and trust. Quality is critical—if investors see that a product isn’t working, it undermines confidence,” he explained. Ng also highlighted the cost advantage of Chinese turbines, which are roughly one-third the price of European models. “If we can combine economies of scale with improved quality, we’ll find a middle ground that benefits everyone,” he said.

Ng raised an important question about the pace of innovation in the sector. “China installed the UK’s entire offshore wind capacity in just one year. They don’t need time to think—they just act. Meanwhile, European manufacturers are struggling to keep up,” he said. He warned against letting political agendas hinder progress. “If we’re too driven by politics, we risk missing out on a once-in-a-lifetime energy transition. Wind power is one of the most advanced forms of renewable energy, and if we cut off supply from China, where will we turn?” he asked.

Alex Grant of Pinsent Masons brought a legal perspective to the discussion, drawing on his experience working on 9 gigawatts of renewable energy capacity across Europe and Asia. “There are perceived risks when dealing with Chinese suppliers, but the market dynamics are broadly similar whether you’re in the Middle East or Europe,” he said. Grant highlighted the advantages of Chinese manufacturers, including lower unit costs and economies of scale, but acknowledged the challenges of bankability and quality assurance. “Developers need confidence in yield quantities and supplier responsiveness. These are areas where Chinese manufacturers are still building their reputation,” he explained.

Grant also addressed the shifting risk profile in supply contracts, which has made projects less bankable. “In recent years, there’s been a push to de-risk projects, but this has led to extreme positions that make it hard to achieve financial certainty. We need to find a more equitable allocation of risk,” he said. He compared the offshore wind industry to the oil and gas sector 60 years ago, noting that it is still in its infancy. “We’re innovating at an incredible pace, but that brings challenges. Developers are struggling to keep up with quality assurance as technology evolves,” he said.

The panel concluded with a consensus on the need for collaboration, trust, and a balanced approach to risk if the UK is to achieve a smooth green transition. James Brodie summarised the discussion by emphasising the importance of leveraging China’s industrial might to accelerate the UK’s green transition. “The UK and China have complementary strengths in the renewable energy sector. By working together, we can overcome technical and regulatory challenges and drive the global energy transition forward,” he said. As the world races to meet net-zero targets, the insights from this panel underscored the critical role of international collaboration in achieving a sustainable future.

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The discussion explored BYD’s strategic focus on the UK, the role of policy in accelerating the EV transition, and the company’s innovative approach to technology and customer experience. The conversation provided valuable insights into how BYD is navigating the challenges and opportunities of the global EV market.

Peter Burnett opened the discussion by asking Simon Bisp about BYD’s significant commitment to the UK, and why the UK offers BYD a particular opportunity. Bisp, who previously worked at Peugeot, explained that his transition to BYD was driven by the company’s unique positioning as a pioneer in electric and battery technology. “At Peugeot, the shift to EVs felt like a necessary direction, but at BYD, it’s in their DNA. They started as a battery manufacturer, and EVs have always been their focus,” he said. Bisp highlighted the UK’s importance as one of the largest automotive markets in Europe, particularly in light of the recent decision not to impose tariffs on EVs. “The UK’s policy environment has made it an even more attractive market for us,” he added.

Burnett then turned to the role of policy in shaping the EV market, noting that BYD had recently outsold Tesla in the UK. “How much does policy matter in driving this transition?” he asked. Bisp acknowledged that policy plays a significant role but emphasised that it primarily affects the speed of adoption rather than the overall strategy. “Our objective is to be the number one brand in every market we enter. Price and accessibility are key factors, and we’ve achieved price parity in the UK. Now, it’s about educating consumers,” he explained. Bisp pointed out that while many customers want to be environmentally conscious, price remains a decisive factor. BYD’s plug-in hybrid models, which offer an easier entry point for consumers with low EV penetration, have been particularly successful. “In China, 50% of our sales are plug-in hybrids, and they offer an impressive range of up to 2,000 kilometres,” he said.

The conversation then shifted to the challenges of transitioning to EVs in the UK. Burnett noted that dealers are now required to ensure that 28% of their sales are battery-powered EVs or face fines, with a broader target of 100% EV sales by 2030. Bisp expressed some reservations about this approach. “British people don’t like being told what to do. Instead of focusing on penalties, we should be encouraging people to buy EVs by highlighting the benefits,” he said. He criticised the current system, which allows manufacturers to offset targets by buying credits from others, arguing that investment in infrastructure would be more effective. “Tesla focused on creating reasons to purchase their vehicles rather than treating it as a profit centre. There’s a lot more we can do to make EVs appealing,” he added.

Burnett then asked about BYD’s recent US$5 billion post-IPO fundraising and how the company prioritises its investments. “Is the focus on EVs and battery development, or are there other areas?” he inquired. Bisp explained that BYD’s chairman, Wang Chuanfu, is deeply committed to innovation and adaptability. “The chairman often says that companies that don’t move forward simply die. He’s instilled a culture of constant evolution within BYD,” Bisp said. He shared an anecdote about visiting BYD’s museum in Shenzhen, which chronicles the company’s journey from its humble beginnings to its current status as a global leader. “I have a presentation for investors that I have to update every month because things change so quickly. We have over 100,000 engineers out of a million employees, and they are the beating heart of the organisation,” he said.

Bisp emphasised that BYD’s approach to innovation is not about solving specific problems but creating a “basket of solutions” for future challenges. “We don’t design for a particular problem; we develop a range of solutions that we can draw from when needed,” he explained. This philosophy extends to advanced driving technologies, automation, and alternative propulsion methods. “We’re working on solutions for problems that may or may not arise in the future,” he added. Bisp also highlighted BYD’s vertically integrated supply chain, which gives the company greater control over quality and costs. “When we first started making cars, people said we wouldn’t be able to sell them. So, we created our own sales network,” he said.

The discussion concluded with a brief mention of autonomous vehicles. Bisp noted that the technology for self-driving cars already exists, but regulatory hurdles remain. “The tech is there; it’s just a matter of regulation,” he said.

The fireside chat underscored BYD’s commitment to innovation, customer experience, and strategic growth in the UK. As Simon Bisp put it, “Our goal is not just to sell cars but to drive the transition to a sustainable future. The UK is a key part of that journey, and we’re excited about the opportunities ahead.” With its focus on education, accessibility, and cutting-edge technology, BYD is well-positioned to lead the charge in the global EV revolution.

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The potential for Sino-Scottish collaboration in renewable energy is vast. China, already the world’s largest producer of solar panels and wind turbines, is projected to account for 60% of global renewable energy generation by 2028. Meanwhile, Scotland, with its ambitious climate targets and abundant natural resources, is positioning itself as a hub for green energy innovation. Together, these two nations have the tools, talent and vision to accelerate the global transition to a sustainable future.

The Chinese advantage: Scale, technology, and investment

China’s dominance in renewable energy is no accident. Decades of strategic investment in clean energy technologies have made it the world’s largest producer of solar photovoltaic (PV) panels, wind turbines, and battery storage systems. The country’s industrial might is unparalleled, with its factories churning out the components needed for large-scale renewable energy projects at a pace and cost that few other nations can match. For the UK, which is striving to meet its Net Zero targets by 2050, tapping into China’s manufacturing capabilities and technological expertise is not just an option – it’s a necessity.

Chen Xiaomeng, CEO of Redrock Renewables, a company with significant operations in Scotland, has seen firsthand the benefits of combining Chinese technology with Scottish innovation. His company’s Inch Cape offshore wind project, set to power one million homes, is a prime example of what can be achieved when these two nations work together. “China has become a testing ground for scaling new technologies, particularly in hydrogen,” Chen noted. “The UK, with its advanced regulatory frameworks and expertise in offshore wind is an ideal partner for deploying these technologies in the West.”

However, the partnership is not without its challenges. Chinese companies investing in the UK often face hurdles, including lengthy consent processes, policy uncertainty, and a skills shortage exacerbated by rapid industry growth. CNOOC, one of China’s largest energy companies, re-entered the renewables sector after a hiatus, but its representatives have pointed out that the fiscal regime in the North Sea is no longer as competitive as it once was. This makes it difficult to invest in speculative renewable projects, though opportunities with clear synergies remain attractive.

Sinopec and PetroChina, two other major Chinese energy players, have also expressed interest in the UK market, citing its connectivity to global energy giants like BP and Shell as a key draw. However, they too have highlighted the complexities of navigating the UK’s regulatory environment and the need for stable, long-term policy frameworks to encourage investment.

Bridging the skills gap: A shared challenge

One of the most pressing challenges facing the renewable energy sector – both in the UK and globally – is the skills gap. As the industry grows, so too does the demand for a workforce equipped with the technical expertise to design, build, and maintain renewable energy infrastructure. This is where collaboration between Chinese and Scottish educational institutions and training organisations can play a transformative role.

OPITO, a non-profit organisation that has long provided training for the oil and gas industry, is now leading efforts to support the transition to renewables. Its North Sea Transition Deal includes a people and skills programme aimed at ensuring an equitable transition for workers moving from fossil fuels to clean energy. Standardised training, OPITO argues, is essential to bridge the skills gap and ensure that the workforce is prepared for the challenges of the green economy.

In Scotland, educational institutions like North East Scotland College are also stepping up. The college has established a Green Energy Skills Hub, working with industry leaders like Shell and Robert Gordon University to provide transition courses for hundreds of students. “We are shifting our focus towards the renewable sector,” said Iain Cocker from the college. “Collaboration between academia and industry is key to equipping the next generation with the skills they need.”

Skills Development Scotland has also emphasised the importance of inspiring young people to pursue careers in renewable energy. Work-based learning and apprenticeships, they argue, will be crucial in building the workforce of the future. This is a challenge that China is also grappling with, as it seeks to standardise qualifications and training to support the development and deployment of hydrogen technologies and other emerging sectors.

Innovation and collaboration: The key to success

Innovation is at the heart of the renewable energy transition, and nowhere is this more evident than in Aberdeen’s Energy Transition Zone (ETZ). This ambitious initiative aims to create an integrated energy cluster that will support the transition to renewables over the next two decades. With a project pipeline that includes 17GW of floating offshore wind near Aberdeen, the ETZ is attracting significant investment and fostering collaboration between industry, academia, and government.

Logan Energy, a company focused on driving down costs in the renewable energy sector, has highlighted the importance of diversifying the supply chain. By working with developers and generators to reduce costs and improve efficiency, Logan Energy is demonstrating how international collaboration can lead to tangible benefits. “International standardisation is key to achieving our goals,” a representative noted. This sentiment is echoed by companies like Proserv, which is open to joint ventures with Chinese firms to provide the secure, local content required to meet concerns around inward investment.

The role of academia and policy

The University of Aberdeen, with its long-standing links to China, is playing a pivotal role in fostering collaboration. Established in 1495, the university has a rich history of working with Chinese institutions, including the Aberdeen Institute of Data Science and AI and the Confucius Institute. Professor Peter Edwards, a prominent academic at the university, has emphasised the importance of building on these historical ties to drive innovation in renewable energy. “Our notable alumni, including James Cantlay, James Legge, and Thomas Sutherland, have played a significant role in building bridges between our two nations,” he said. “Today, we are continuing that tradition through research partnerships and cultural exchanges.”

Policy support is also critical to the success of Sino-Scottish collaboration. Great British Energy, a venture launched in Aberdeen, aims to provide finance to projects where the private sector is unable to de-risk them. This is particularly important for oil and gas majors transitioning to renewables. By engaging with initiatives like Great British Energy, Chinese developers can explore new opportunities for collaboration and investment.

A bright future for collaboration

The potential for Sino-Scottish collaboration in renewable energy is immense. With 90% of oil and gas skills transferable to renewables, Aberdeen is well-positioned to lead the transition. By combining the talent pool and know-how of both nations, the challenges of the energy transition can be overcome. As the world moves towards a greener future, the spirit of collaboration between China and Scotland will be key to achieving global energy security and sustainability.

China’s industrial might, combined with Scotland’s innovative spirit and energy expertise, creates a powerful partnership that can drive the renewable energy revolution forward. By working together, these two nations can ensure a sustainable future for generations to come. As Lord Provost Dr Cameron aptly put it, “The combination of our expertise can help ensure a more sustainable future globally.” In the race to Net Zero, Sino-Scottish collaboration is not just an opportunity, it’s a necessity.

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Wen Xu recalls first climbing Muztagh Ata in Kashgar prefecture, Xinjiang, back in 2004. “The snow was thigh deep and we had to use snowshoes to spread our weight. Snow bridges allowed us to cross crevasses.”

The scientist and explorer has now made the trip a dozen times, to collect ice cores and bear witness to the impacts of the climate crisis. “That thick snow is now a mix of hard snow and bare ice,” he says. “We need crampons to get around up there now. The snow bridges have gradually disappeared, while the crevasses have got wider and deeper, forcing us to make long diversions to avoid them.”

Glacier melt has been accelerating in this arid north-western part of China in recent years. By 2050, glaciers smaller than half a square kilometre will disappear here, according to the latest research from the Chinese Academy of Sciences’ Tianshan Glaciological Station. That is under any climate change scenario, and taking into account possible increases in precipitation.

Experts interviewed by Dialogue Earth say glacial melt is an important symbol of global warming. Smaller glaciers may be doomed no matter what we do, but they become alert beacons for climate action as they diminish. The only effective solution to global glacier loss is rapid cuts in greenhouse gas emissions, the experts say.

Meanwhile, UNESCO has proclaimed 2025 the International Year of Glaciers’ Preservation, with 21 March to become World Glacier Day.

What happens when a mountain glacier melts?

China’s glaciers are mostly to be found on the Qinghai-Tibet Plateau. By their seasonal melt, they feed rivers including the Yangtze, Yellow, and Yarlung Tsangpo (which flows on to become the Brahmaputra). Surveys show that between the 1970s and 2010, a fifth of China’s total glacial area melted permanently, meaning 12,442 square kilometres of glacier loss.

Dialogue Earth consulted Tian Lide, a researcher at Yunnan University’s Institute of International Rivers and Eco-security. “When we talk about glaciers melting, people think that means rising sea levels,” he said. “But that’s a risk primarily from ice caps melting in Antarctica, where 90% of the world’s ice is found, and Greenland, second in terms of ice volume.”

Mountain glaciers have nevertheless been melting with surprising speed, and with a more direct impact on human activity, Tian explains. The melt causes more water to flow, with ice dams forming at the ends of the glacier. When those dams collapse in a glacial lake outburst flood (GLOF), there can be catastrophic consequences for those living and farming downstream.

Melting mountain glaciers can also trigger dangerous ice avalanches. In July 2016, a collapse in the Ngari prefecture of western Tibet caused 600 million cubic metres of glacier to fail. Nine people from local herding families who were grazing their livestock on summer pastures were killed.

A much less obvious result of this glacial melt is methane. Between May 2022 and July 2023, a team of Chinese researchers analysed gas taken from the ice caves and meltwaters of the Laohugou No. 12 glacier – the largest valley glacier on the Qinghai-Tibet Plateau’s Qilian Mountains. Their study found that methane levels were two to three times higher than atmospheric background levels. Conversely, CO2 levels were about 2.5 times lower. This may be because the fine sediment scraped from glaciers is rich in minerals. As the sediment mixes with meltwater and atmospheric gas, it undergoes “chemical weathering” which induces CO2 absorption.

However, across a 100-year period, methane’s global warming potential is 28 times that of CO2, rising to 84 across 20 years. The methane levels at the Laohuguou No. 12 glacier prompted a headline in The Paper saying “Melting mountain glaciers are pumping greenhouse gases into the atmosphere like chimneys.”

Early warnings

The results of a seven-year scientific survey of the Qinghai-Tibet Plateau, involving a 28,000-strong expedition team, were published in August last year. They concluded that the region is getting warmer, wetter and greener. It is also getting darker. As glaciers and snow melts, and vegetation spreads, the land becomes less reflective and absorbs yet more heat.

Adequate management of downstream rivers requires more accurate and timely warnings of disasters like ice avalanches and glacial lake failures, the survey found.

Early warning is currently the best way to reduce the damage of these disasters. When an ice avalanche blocked the flow of the Yarlung Zangbo River in 2018, scientists were able to keep a close eye on the situation with sensors and from helicopters to ensure local people were moved away from the danger. The blockage was eased 56 hours later when the water overcame it, with no loss of life.

The following year, China devised a way to monitor such blockages on the Yarlung Zangbo. Ten-metre-high monitoring towers were installed at vulnerable sites to provide regular observations in all weathers. Real-time monitoring of water levels also began. As of May 2024, five early warnings had been issued.

Glaciers and water security

The Taklamakan is China’s largest desert. Yet in August 2024, this north-western expanse flooded. Lü Xinsheng, chief forecaster at the Xinjiang Meteorological Bureau, told media that high temperatures are rapidly melting the snowpack and glaciers surrounding the desert. The tributaries of the Tarim River swelled and the river eventually burst its banks, turning parts of the Taklamakan into temporary inland seas.

This is not the first time the Taklamakan has flooded. In August 2022, a lake appeared in the southern portion of the desert, causing some people online to speculate incorrectly that climate change could turn the desert into something like an oasis. Chen Yaning, of the Chinese Academy of Sciences’ Xinjiang Ecology and Geography Institute, says: “Changes to glaciers and the hydrological cycle caused by the climate will increase the uncertainty of water supplies, while glacial melting will impact on future water security in the area.”

The aforementioned Chinese Academy of Sciences’ Tianshan Glaciological Station research reaches a similar conclusion. Faster melting will increase the flow of water through rivers, to a point. But once these flows have peaked, they will go into a steady decline.

“Many are worried that their sources of water will dry up once the glaciers are gone,” says Tian Lide. “It depends on the river, though. Glacial and snow melt accounts for almost 80% of the water flowing into the Indus [River]. But glacial meltwater from the Sanjiangyuan (Three River Source) region accounts for 9.13% of the flow of the Yangtze, and 2.24% of the Yellow River’s flow. In many cases, glacial melt accounts for only a small part of a river’s total flow – most of the water comes directly from precipitation.”

Tian explains how precipitation and glacial meltwaters contribute to rivers in different ways: heavy rainfall will quickly increase river levels and may cause floods, but levels will fall equally quickly when rains ease; glaciers are a more stable source of water because they melt steadily, thus providing a sustained water source for those living downstream.

Glacial melt also plays a big role in regulating seasonal changes. In the cold of winter, glaciers grow. As temperatures rise in summer, they release more water, providing a steady source of water when it is needed most. That function will weaken as glaciers diminish, meaning droughts and floods could become more frequent and intense.

What can be done?

Scientists have tried a number of methods to slow glacial melt.

In 2023 and 2024, Chinese scientists attempted to “wrap up” the Tianshan No. 1 glacier. This involved laying insulating and reflective materials (often textiles) on the glacier’s surface to keep it cool and slow the melting.

Similar techniques have been used since the early 2000s to protect glaciers in the Alps. Research has found that wrapping can reduce snow and ice melting by 50-70%.

Commenting for a 2023 Scientific American article, glaciologist Matthais Huss from the University of Fribourg said the textiles approach is only worthwhile in lucrative ski areas. It is not feasible to cover the world’s glaciers in this way. Huss calculated that covering Switzerland’s 1,000 largest glaciers could prevent two thirds of the volume of ice lost every year, but would cost US$ 1.52 billion annually.

In September, a Chinese Academy of Sciences research team took a snow-making machine to the Dagu Glacier in Sichuan Province. The team aimed to turn Dagu’s meltwater back into snow and thereby slow its shrinkage. The outcomes of the intervention remain unclear. But Tian tells Dialogue Earth that, regardless, such methods are only currently suitable for glaciers of value to, for example, science or tourism. They cannot reverse the overall global trend of glacial loss. He says the only way to do that is by rapid cuts in greenhouse gas emissions.

A 2022 UNESCO report agrees. In the long term, its authors say, a third of the glaciers across UNESCO’s World Heritage glacierised sites will disappear by 2050, regardless of any measures taken. If global warming can be limited to 1.5C relative to pre-industrial levels, it adds, there is hope that the remaining two-thirds could be saved.

Priceless ice

Alongside their efforts to slow melting, Yunnan University glaciologists are racing to collect ice cores from the Qinghai-Tibet Plateau. Such material could yield potentially vital climate data. For example, analysis of air bubbles trapped in the ice can enable scientists to infer historical temperatures and greenhouse gas concentrations.

Many countries are preserving ice cores taken from polar or mountain glaciers in cold stores at research institutions or universities, but risks remain. In 2017, a freezer failure at the University of Alberta in Canada damaged part of the world’s largest collection of ice core samples from the Canadian Arctic. Some scientists have come up with a safer way of storing these samples: a vault has been built in Antarctica, where ice cores can be stored, hopefully, forever.

Wen Xu explains that current technology only allows limited data to be extracted from ice cores. With the glaciers still melting, future researchers may not be able to obtain ice cores themselves. The stored cores, however, will be available and could be studied using advanced techniques not yet developed. “These will be valuable research materials for future study,” he says.

This article was originally published by Dialogue Earth with the title What chance for China’s melting glaciers?

The post Can China’s glaciers survive rising global temperatures? appeared first on Focus - China Britain Business Council.

Clean energy technology – particularly the so-called new three of solar power, batteries and electric vehicles – emerged as an important source of growth in China’s exports in 2023. Thanks to booming markets at home and abroad, clean energy has become a key driver of economic growth.

A lot of media and policymaker attention is focused on possible US and European tariffs on China’s cleantech exports, with the perception that these could be a major blow to the industry.

What is missing from this picture is that half of all China’s exports of solar and wind power equipment and electric vehicles (EVs) now go to the Global South, according to UN Comtrade data. Emerging and developing countries have driven most of the recent growth in export volumes.

In 2024, the value of EV exports from China to the Global South overtook those to the EU, with China’s exports to developed markets falling and those to developing markets posting strong growth.

As we will see, Global South countries collectively have been the largest importer of solar and wind power equipment from China since at least 2015, but the gap widened in 2023 when the volume of these solar imports from China grew 70% year-on-year.

The US is a niche market for China’s cleantech

Solar and other clean energy have gone global in the past decade. Between 2010 and 2015, 70% of solar and 50% of global wind installation occurred in developed economies. By 2023, these shares had fallen to just over 20%.

The US now represents only 7% of the global market for newly installed solar power plants, and even the European Union and the US combined make up less than 20%.

The US has imposed tariffs on imports from China for a long time and, as a result, most of its supply already comes from other producers. Only 4% of China’s total exports of solar power and wind power equipment and EVs go to the US, compared with 15% of China’s overall exports.

This means that China’s cleantech exports are much less reliant on the US in particular and Western markets in general than its export industries overall. In a market where sales volumes are growing at 30% this year, the US is a footnote.

While the majority of solar, wind and EV exports already go to the Global South, the US and the EU remain the dominant importers of batteries. These are intermediate inputs into vehicle production and other manufacturing. Targeting them with high tariffs would hurt local manufacturing.

Cleantech exports to the Global South are booming

The falling reliance on developed markets comes down to China’s cleantech manufacturing boom having catalysed rapid deployment of solar, wind and EVs in the Global South. Around 47% of China’s exports of these products went to the Global South in 2024, a record-high share and close to matching exports to developed countries for the first time.

From 2021 to 2024, emerging and developing markets drove 70% of the growth in China’s exports of solar, wind and EVs, with seven of the ten top growth markets located in the Global South.

Examples include solar power booms in South Africa and Pakistan and strong growth in, for example, Brazil and Thailand. The five largest importers of wind power technology from China are all developing countries – South Africa, Egypt, Chile, Brazil and Uzbekistan – as are the five largest growth markets for solar: Saudi Arabia, Pakistan, Uzbekistan, Indonesia and India. Two Global South countries also feature on the list of the five largest importers of EVs – Brazil and Thailand.

This trend is expected to continue. Emerging and developing countries are expected to have a market share of 70% in solar PV and 60% in wind and in battery storage during this decade out to 2030, according to the International Energy Agency’s World Energy Outlook.

The US and other developed country markets are more significant in electric vehicles, due to high private car ownership. Yet, in the IPCC 1.5 and 2C pathways, the share of the US and the EU in global investment in electrified transportation falls from almost 50% in 2022 to 36% by 2035, with two-thirds of the market growth coming from outside these two regions. If Donald Trump’s policies slow down the electrification of the transport sector in the US, the significance of these markets will diminish further.

China’s increasing efforts to increase clean energy lending and co-operation will also stimulate demand from the Global South. Examples of this include recently announced new green energy deals with Indonesia, increased financing of renewable energy projects such as in Africa and Central Asia, and increasing share of renewable energy in projects under the Belt and Road Initiative.

Decoupling efforts will have a limited impact on China’s cleantech industry

China’s dominance in clean energy manufacturing has caused some major economies to try to diversify or decouple their supply chains from it. The US and India have clearly committed to slashing their dependence on China. Even those two markets have a very long way to go to meet their own demand without relying on the East Asian nation.

For example, the solar equipment production capacity in the world outside of China is barely sufficient to cater to the US market, meaning there is little possibility for other buyers to switch to non-Chinese supply. India is adding a significant amount of production capacity for solar cells and panels, but capacity additions in the key upstream input, polysilicon, are much more modest.

It’s entirely possible for the US and India to build their own supply chains for solar. Yet the impact on China’s cleantech industry will be limited, as the two countries’ strategy for doing this relies on high tariffs to shelter domestic production. This means that their producers won’t be able to compete overseas, surrendering this market to China.

While the US and India already have policies in place, the EU is torn between conflicting impulses. The bloc needs clean energy technology to meet climate targets, reduce reliance on imported fossil fuels and bring down energy prices. The EU is concerned about reliance on China but lacks the industrial policy framework to address the issue, and will find it hard to match the US on spending. The bankruptcy of Swedish battery maker Northvolt, dubbed “Europe’s best shot at a homegrown electric-vehicle battery champion”, made this evident. The industrial and supply-chain policies needed to reduce the EU’s reliance on cleantech imports from China could yet emerge, but the bloc can hardly afford to slow down clean energy deployment during the long period that such policies would take to yield results.

As other major economies pursue diversification, Beijing should have little to complain about. It has largely ringfenced its own domestic cleantech market – by far the largest in the world – to exclude imported products. How this has been done matters. Tariffs raise the cost of the targeted technologies and therefore have the potential to slow down the energy transition. While China has used trade barriers, the main thrust has been supporting and subsidising domestic supply of cleantech, in the process driving down prices and speeding up adoption not just in China but globally.

China has a strong self-interest in the global energy transition

Given the minor significance of the US market for China’s clean energy industry, the only real risk from the Trump administration to the industry would be if he succeeds in slowing down global climate action. This seems unlikely, as clean energy adoption is driven by economics more than altruistic global goals.

Given the important role that clean energy technology plays in the country’s economy and exports, China has a strong interest in making sure the global energy transition keeps accelerating. That will be seen in bilateral lending and diplomacy, and could also lead the country to take more forward-leaning positions in multilateral climate negotiations.

This article was originally published by Dialogue Earth with the title Why China’s clean energy need not fear US tariffs

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The second Thursday of COP29, 21 November, was Gender Day. The conference was drawing to a close, but, at last, a light was shone on the issue of gender equality.

Parties to the UN Framework Convention on Climate Change (UNFCCC) decided to extend the Enhanced Lima Work Programme on Gender for a second decade. Established in 2014, this programme encourages the use of data to actively make climate action – specifically, the work of implementing the UNFCCC and the Paris Agreement – gender-balanced. It also provides a roadmap for producing the parties’ new Gender Action Plan, in time for the COP30 summit in Brazil in 2025.

Gender has become a more common issue in climate change-related negotiations in recent years, with 81.5% of UNFCCC signatories mentioning gender in their Nationally Determined Contributions. A consensus is forming around the need to achieve gender equality and women’s participation and empowerment during action on climate change.

However, the renewable energy sector, which is key to the current energy and climate crises, remains dominated by men. In China, though the sector provides a huge number of jobs, the percentage of women in these roles has been falling. They also face various barriers in the sector, including a lack of career progression.

Experts consulted by Dialogue Earth at COP29 say that, despite scant official policy, businesses could nevertheless take action to help reduce gender imbalances, such as disclosing gender data in environmental, social and governance (ESG) reports. These experiences in the business world could then inform government policy.

Renewables: More women needed

The renewables sector is booming. According to a report from the International Renewable Energy Agency (IRENA), the global renewables workforce expanded by 18% in 2023 to 16.2 million jobs, up from 13.7 million in 2022. China is the sector’s biggest employer, accounting for about 7.4 million (46%) of those jobs; almost two-thirds of solar and wind power capacity added globally in 2023 was in China.

On the first day of COP29, China held a side event on women in sustainable development, where a new report from the NGO China Sustainability Tribune, “Insights and Corporate Practices of Women’s Empowerment in Climate Action”, was released. Hu Wenjuan, the editor of the China Sustainability Tribune and one of the report’s authors, told Dialogue Earth that the traditional energy industry has always been dominated by men, and this will be hard to change. But as an emerging industry, renewable energy provides a valuable opportunity to promote gender equality.

According to data from IRENA published in 2019, women accounted for 32% of renewable energy employment globally – better than the energy sector as a whole, at 22%.

The energy sector in China is doing slightly better than the global average: according to China’s National Bureau of Statistics, in 2019, 27.1% of the sector’s employees were women. In March 2024, a report from recruitment website Liepin said 30-35% of employees in China’s renewables sector were women.

Equality beyond numbers

Globally, there is an ever-increasing shortage of “green” talent. This has led to concerns about the speed of the energy transition. The same story is playing out in China: there aren’t enough people with green skills to fill the expanding number of jobs. According to multiple energy company representatives who talked to China’s The Paper in November, this shortage needs to be resolved as soon as possible.

Job opportunities created by the energy transition should benefit both men and women equally, says Anika Heckwolf, a policy fellow working on climate action and international finance at the London School of Economics. She adds: “Women, as half of the global population, are an essential force that cannot be overlooked in the process of the energy transition.”

“What’s critical is identifying the root causes of women’s underrepresentation, and eliminating those barriers to ensure that women have equal access to opportunities” — Anika Heckwolf, a policy fellow working on climate action and international finance at the London School of Economics

But while the percentage of women in the workforce is important, gender equality is not just about aiming for a 50% target, Heckwolf notes: “What’s more critical is identifying the root causes of women’s underrepresentation, and eliminating those barriers to ensure that women have equal access to opportunities.”

It is not simply a matter of overall numbers. The types of jobs women do, and their presence in management roles, are also factors. According to renewable energy sector data from Liepin, technical vacancies, such as those in engineering or research and development, tend to be filled by men. Women commonly fill roles in marketing and human resources departments, which usually pay less.

According to UN Women, women undertake the majority of low-paid, low-skill jobs, and so are at greater risk of losing their jobs. Women in part-time or temporary jobs are often the first to be laid off when companies hit hard times, such as at the height of the Covid-19 pandemic – making them 19% more likely to lose their jobs than men.

Change starts with data

Heckwolf says that at COP28, there was a call to action by UN Women on one very practical matter: the need to improve the gathering and use of gender-disaggregated data, which is crucial for driving and measuring progress. “Without data segmented by gender, taking meaningful action can become more challenging,” she says.

Overall gender balance in the workforce is a standard part of ESG reporting frameworks, and more and more firms are publishing such reports. As such, the availability of gender data from Chinese companies is improving. Yuan Ziqi, an independent consultant and writer, analysed over 1,000 Chinese ESG reports and discovered that, on average, the representation of women was shrinking across the board. In particular, Yuan noted a jump in workforce sizes among solar power firms between 2022 and 2023, yet the percentage of women in the photovoltaic workforce fell – by more than the average.

A requirement was put in place this year for 457 listed firms in China to start ESG reporting by April 2026.

“Statutory disclosures are a start, but the companies should ask what the point of the data is,” says Yuan. The consultant has observed many Chinese firms taking equality in the boardroom more seriously because diversity is more visible there. Some firms have gone further, by starting to separate out gender data into executive, managerial and frontline roles.

LONGi, a multinational solar photovoltaics company headquartered in Xi’an, central China, is one such firm. It publishes detailed gender data on its website, which shows that as of end-2023, 20,000 of its 75,000 employees were female. Women represented 10% of engineers, 20% of senior managers, 21% of junior managers and 25% of “income-generation” roles, such as sales.

Heckwolf notes that while better data is important, data shortfalls do not excuse failure to act.

Chinese firms take action

Promoting gender equality is not just about social responsibility – it can also be profitable. Analysis from the International Labour Organization found that gender balance in the boardroom makes a company “almost 20% more likely to have enhanced business outcomes”. Pilot studies of small- and medium-sized enterprises and clean energy value chains found that an overall gender inclusion strategy can improve sales by up to 85%.

More time is needed to confirm that these findings carry through to actual practice. Molly Huang, secretary general of the Women in Renewables Alliance, tells Dialogue Earth that promoting gender balance relies on awareness and support at the executive level. If the board does not take gender equality seriously, change will not happen on the ground.

At China’s COP29 side event on women in sustainable development, two subsidiaries of China’s State Grid presented their experiences of implementing women-friendly practices. These included setting up women’s committees, encouraging women engineers to take part in innovation, and providing more development opportunities. During her speech, Hu Wenjuan said that, in a fiercely competitive market, more and more firms are keen to showcase the actions they are taking on gender issues, both for reasons of brand marketing and social responsibility.

Another driver is coming from the gender requirements of international projects. For example, a green hydrogen project by the International Hydrogen Fuel Cell Association, funded by the Global Environmental Facility and taking place in China, stipulates that at least 30% of its workforce must be women. External pressures like these may push Chinese firms to take more positive action on gender issues.

Hu points out that firms that are becoming more international must pay attention to how their gender balance reflects their brand image. This also creates more jobs for women, both in China and overseas.

As early as 2018, there have been reports on how Chinese investment in Ethiopia has boosted employment of women and improved their status in many parts of Africa. At the unveiling of the Beijing Action Plan for 2025-2027 during the Forum on China-Africa Cooperation (FOCAC), participants reaffirmed China’s industrialisation training support for people across the continent, particularly through capacity-building training for women and youth.

China’s ever-expanding portfolio of overseas renewable energy projects presents a fresh opportunity to promote gender equality. Chinese firms that choose to take the lead on this could go some way to cultivating a just global energy transition.

This article was originally published by China Dialogue with the title How can China’s renewables sector take steps towards achieving gender equality?

The post Can China’s renewables sector achieve gender equality? appeared first on Focus - China Britain Business Council.

Stretching approximately 400 kilometres along the Yellow River in northern China, the Solar Great Wall is projected to generate enough clean energy to meet the entirety of Beijing’s electricity needs by 2030. According to China Daily, the project’s completion is expected to produce 180 billion kilowatt-hours (kWh) annually. To contextualise, Beijing’s electricity consumption in the previous year was 135.8 billion kWh, indicating that the Solar Great Wall’s output would not only satisfy the capital’s energy needs but also provide surplus power for surrounding regions. But what exactly does this mean for China’s energy future, and how will it affect the environment?

A timeline for solar self-sufficiency

China broke ground on Solar Great Wall in early 2024, marking the start of an immense infrastructure project that will span desertified regions in Inner Mongolia, aiming to both generate energy and stabilise fragile ecosystems.

With a target completion date set for 2030, the project demonstrates China’s ambitions of achieving carbon neutrality. While financial specifics remain undisclosed, experts estimate it could require investment of up to $100 billion.

The sheer scale of the Solar Great Wall positions it as a cornerstone of China’s renewable energy strategy, with the added benefit of improving ecological conditions in some of the country’s most degraded landscapes.

A great leap in energy output

The Solar Great Wall’s energy production potential is staggering. By generating 180 billion kWh annually, it will also be able to provide surplus power for surrounding provinces. As reported by ECNS News, this capacity could conserve up to 12.6 million metric tonnes of coal annually and reduce carbon dioxide emissions by approximately 31.3 million tonnes.

The project’s energy distribution plan includes an ultra-high-voltage transmission line to connect the solar farm with urban centres in the Beijing-Tianjin-Hebei region. This should ensure a seamless supply of clean energy to some of China’s most densely populated areas.

Balancing the benefits and risks of solar power

While solar power offers significant environmental benefits, including carbon reductions, it is not without its challenges.

The Solar Great Wall is strategically located in desertified regions along the Yellow River, an area plagued by ecological degradation. According to China Daily, the decision to locate the Solar Great Wall in this region will avoid impacting arable land, and there is also a plan in place for ecological restoration through vegetation growth beneath and around the solar panels.

Moreover, the Solar Great Wall is projected to create around 50,000 jobs by 2030, significantly boosting local economies. Residents of affected areas are expected to see average annual income increases of more than RMB 20,000 (£2,300). This blend of environmental and economic uplift underscores the project’s far-reaching impact.

Large-scale solar farms, while undeniably valuable for reducing carbon footprints, often come with their own ecological risks. Habitat loss and the displacement of wildlife are real concerns, as is the potential for soil disruption during construction.

Another challenge lies in the production and disposal of solar panels. As noted by BBC News, “The manufacturing of solar panels involves hazardous materials, posing risks of environmental contamination if not properly managed.” Recycling solar panels at the end of their lifecycle remains an underdeveloped field, raising questions about long-term waste management.

To address these risks, the Solar Great Wall will employ ‘agrivoltaics’, a system that enables crops to grow beneath the panels, promoting biodiversity and enhancing land productivity.

Additionally, China is investing in recycling infrastructure to handle the eventual disposal of solar panels. Dr Rong Deng, a solar recycling expert at the University of New South Wales, told BBC News that, “Ordinary solar panels have a capacity of about 400W, so if you count both rooftops and solar farms, there could be as many as 2.5 billion solar panels.” A robust recycling framework is essential to ensure these materials don’t end up as waste.

Li Hong, an official from the Ordos energy administration, outlined the dual benefits of the Solar Great Wall in an interview with ECNS News: “This achievement will result in an annual green power output of 38 billion kWh, leading to savings equivalent to nearly 12.6 million metric tonnes of standard coal and a reduction in carbon dioxide emissions by approximately 31.3 million tonnes.”

Nevertheless, environmental advocates have urged caution. As The Electricity Hub notes, “While the Solar Great Wall could be transformative, its success hinges on effective mitigation strategies for both ecological and waste management challenges.”

The future of solar in China

The Solar Great Wall is more than just a renewable energy project; it is a symbol of China’s determination to lead the global energy transition. If successful, it will demonstrate how large-scale green initiatives can address climate change while revitalising degraded ecosystems.

Yet, as with any mega-project, the Solar Great Wall’s promise will only be realised through careful planning, community engagement, and a commitment to sustainability. If these challenges can be met, it could set a benchmark for other nations grappling with the dual demands of energy production and environmental preservation.

As the China Daily states, “The Solar Great Wall is a testament to what is possible when technological innovation meets ecological responsibility.”

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