The world's dependence on fossil fuels is a "Frankenstein monster," UN Secretary-General António Guterres warned at the annual meeting of the World Economic Forum in Davos 2025, where climate change has become one of the most heated topics.
In the face of growing environmental challenges, China has established itself as a leading force in the global response to climate change. Through technological innovation, policy advocacy and international cooperation, China is not only addressing its own environmental challenges, but also playing a key role in promoting global climate action and sustainable development.
China's commitment to tackling climate change is evident in its ambitious environmental targets. At the Davos forum, Chinese Vice Premier Ding Xuexiang reaffirmed his commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. These goals are part of China's broader green transformation strategy, which combines environmental, economic and technological progress.
In recent years, China has taken significant steps to reduce its carbon footprint, with its climate policies demonstrating its commitment to the global fight against climate change.
One of the key programmes of China's approach is the development and implementation of a national emissions trading market, which has been designed to encourage major industries to reduce emissions through incentives to lower emissions. This market, which was launched in 2021, has made China the largest emissions market in the world by GHG coverage.
The country is leading high-emitting industries to the necessary structural transformation by linking market mechanisms with environmental objectives. The market, which now includes more than 2,400 emission units in China's power sector, has helped reduce the total cost of emission reductions in the power sector by 35 billion yuan ($4.8 billion), demonstrating the effectiveness of the market in achieving cost-effective emission reductions.
In addition to its emissions trading efforts, China is aggressively promoting its green energy sector. The country has become a world leader in renewable energy, particularly in solar, wind and nuclear power.
In 2024 alone, China installed more than half of the world's solar capacity, cementing its role as a key player in the global clean energy market. In 2025, the country's renewable energy sector is expected to generate approximately 3.3 trillion kWh of electricity annually, a 50% increase from 2020 levels. This rapid growth in renewables is part of a broader strategy to accelerate the transition away from traditional fossil fuels and promote a more sustainable energy mix.
China's commitment to sustainable development goes beyond energy production. The country has made significant strides in developing its circular economy, which focuses on reducing waste, promoting recycling and encouraging sustainable production and consumption patterns.
In recent years, China has implemented policies aimed at promoting the recycling of key materials such as plastics, metals and e-waste. As of 2024, there were more than 260,000 recycling enterprises in China, with production exceeding 3.5 trillion yuan ($480 billion). This year, the production value is expected to reach 5 trillion yuan.
At the Davos forum, Ding gave an example that highlights the growing trend in China to use technology in the recycling process. A Chinese company using new material technologies can produce one T-shirt from polyester fibre recovered from eight plastic bottles and one jacket from 28 plastic bottles.
This process enables the recycling of more than 30 billion plastic bottles a year, achieving a real win-win from both an environmental and economic perspective, Ding added.
Earlier this month, the Ministry of Finance announced for the first time a budget of 7.5 billion yuan for the treatment of discarded electrical and electronic products, with the funds directly distributed among 92 companies. This was part of the nearly 100 billion budget allocated for pollution control in areas such as air, wastewater and soil in 2025.
At the international level, China is also leading efforts to promote climate cooperation and provide support to developing countries. Through technology transfers, financial assistance and policy dialogues, it is actively engaged in climate change cooperation among developing countries and provides support to other developing countries. For example, China has helped Ethiopia and Sri Lanka in renewable energy technology transfer projects, assisting them in formulating provincial-level energy development plans and establishing joint research and promotion centres.
"China's transition to a green economy is a long-term commitment, not a simplification step," Ding said. "No matter how the international landscape evolves, China's commitment and actions for a proactive climate response will not change."
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