China is intensifying its efforts to achieve its ambitious climate goals by prioritizing offshore wind energy development and implementing green trade measures. These strategic moves are designed to contribute to the nation’s commitment to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060, often referred to as the “30-60 goals”.
Offshore Wind Power Surge
China is making significant strides in expanding its offshore wind capacity.
World’s Largest Offshore Wind Farm: China is currently constructing the world’s largest commercial floating offshore wind farm off the coast of Hainan. This 1 GW project, being developed by state-owned firm PowerChina, will generate approximately 11 times more power than the current largest floating wind farm in Norway. The project will be completed in two phases, with 200MW by 2025 and the remaining 800MW by 2027.
Floating Technology Advantages: Unlike traditional offshore wind farms that require anchoring turbines to the seabed, this floating wind farm will have turbines floating on the ocean surface. This allows for placement farther out to sea, where wind speeds are greater, unlocking new potential for wind power expansion.
Rapid Industry Growth: China’s offshore wind energy industry is rapidly expanding, necessitating the development of floating offshore wind technology as near-shore space becomes limited. While floating wind turbine electricity production can be more expensive due to technological and engineering challenges, large-scale projects like PowerChina’s are crucial for developing expertise and driving down costs.
Ambitious Capacity Targets: The National Energy Administration has set a target to install around 65GW of wind power and 98GW of solar power in 2023, totaling over 160GW combined. China has set a goal to reach 1,200GW of total installed capacity of wind and solar power by 2030, potentially reaching this target by the end of July 2024, six years ahead of schedule.
Green Trade Measures
China is also actively promoting green trade to support its climate objectives.
Addressing Trade Barriers: China is committed to addressing green trade barriers, which involve measures that impose restrictions on imported products to ensure compliance with specific environmental standards.
Carbon Footprint Management: The country plans to launch carbon emissions statistics and accounting initiatives, develop carbon footprint management systems, and establish carbon labeling and certification systems.
Promoting Green Industries: China is focused on developing cross-border e-commerce, establishing overseas smart logistics platforms, and promoting green trade activities.
Leading Green Trade: China led the world in green trade in 2024, with significant contributions to the global green and low-carbon transition. Exports of wind turbines surged by over 70 percent, while photovoltaic (PV) products maintained strong performance, exceeding 200 billion yuan for the fourth consecutive year. Lithium battery exports also reached a record high.
China’s Climate Goals and Progress
China has set ambitious climate goals and is making significant progress in achieving them.
“30-60” Goals: China aims to peak carbon dioxide emissions before 2030 and achieve carbon neutrality before 2060.
Renewable Energy Targets: In 2020, China pledged to reach 1,200 gigawatts of renewables capacity by 2030. The country is on track to meet that target by 2025, and could boast as much as 1,000 gigawatts of solar power alone by the end of 2026.
Increased Renewable Energy Use: China currently produces 31% of its electricity from renewable sources including wind, solar, hydroelectricity, and geothermal. Estimates predict that by 2026 solar will overtake coal as China’s leading energy source.
Reducing Carbon Intensity: China aims to lower its carbon dioxide emissions per unit of GDP by over 65 percent from the 2005 level by 2030.
Challenges and Opportunities
While China is making considerable progress, it faces challenges in its transition to a low-carbon economy.
Continued Reliance on Coal: Despite investments in renewable energy, China still relies heavily on coal, which impacts its emissions reduction efforts.
Balancing Economic Growth and Climate Goals: China needs to balance its economic growth with its climate goals, ensuring a sustainable and equitable transition.
Green Trade Barriers: China needs to effectively respond to green trade barriers to ensure continued growth in its green industries.
Despite these challenges, China’s commitment to renewable energy and green trade presents significant opportunities.
Economic Growth: The green transition can drive economic growth by fostering innovation, creating new industries, and expanding into global markets.
Energy Security: Increasing reliance on domestic renewable energy sources can enhance China’s energy security and reduce dependence on imported fossil fuels.
Global Leadership: China’s leadership in renewable energy and green trade can position it as a global leader in addressing climate change.
By accelerating offshore wind development and implementing green trade measures, China is demonstrating its commitment to achieving its climate goals and contributing to a sustainable future.
