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China has unveiled a major step in its climate agenda through a speech delivered by President Xi Jinping at the UN climate forum. Xi stated that the country is committed to cutting greenhouse gas emissions by 7 to 10 percent from its peak level by 2035. In addition, China aims to increase the share of non-fossil energy beyond 30 percent and expand wind and solar capacity to 3.6 terawatts. The announcement immediately drew international attention as China remains the world’s largest emitter.

In his address, Xi Jinping stressed that the energy transition is not merely a political choice but an urgent necessity. China wants to demonstrate its seriousness in addressing the climate crisis while safeguarding economic growth. The emission reduction target was presented as part of the national plan update under the Paris Agreement. While the 7 to 10 percent figure is significant, experts argue it is still insufficient to keep global warming below 1.5 degrees Celsius.

At the same time, the goal of surpassing 30 percent non-fossil energy consumption is considered realistic. China has already positioned itself as a global leader in renewables with large-scale expansion in solar panels, wind turbines, and batteries. The figure of 3.6 terawatts for wind and solar illustrates long-term ambition, though analysts believe the pace of installation may be more moderate compared to the rapid growth of the past two years.

The emission reduction announcement raises questions about feasibility. Some energy experts argue that China’s emission peak could occur earlier than 2030. If so, achieving a 10 percent reduction by 2035 will be even more challenging. On the other hand, flexibility in defining the peak year gives the government room to design a transition strategy aligned with economic stability.

The central government also faces a dilemma between sustaining heavy industry and accelerating the phaseout of coal-fired power plants. Retrofitting projects and restrictions on operating hours are being considered as options. Each of these measures will significantly affect how the emission reduction target unfolds.

China’s strategy is not only about reducing emissions but also building a clean energy foundation. The 3.6 terawatt capacity goal for wind and solar represents a sixfold increase compared to 2020. This reinforces China’s dominance in the global clean energy supply chain. Yet, challenges remain. Integrating this massive capacity into the power grid requires new infrastructure, including smart grids and large-scale storage systems.

Moreover, the intermittency of renewable supply demands careful load management strategies. Without proper planning, surplus electricity could go to waste. The government has already laid out plans for flexible systems to ensure that this capacity can be absorbed efficiently.

Xi Jinping’s announcement sparked mixed responses worldwide. Developed countries saw it as a positive signal but still below expectations. The European Union urged China to raise its ambition to align more closely with the 1.5-degree pathway. Meanwhile, the United States regarded the commitment as a foundation for closer cooperation in clean energy technology.

Environmental organizations welcomed the new target but emphasized the need for transparency in implementation. Detailed emission intensity data from heavy industries are expected to be released to allow the world to measure actual progress. For developing countries, China’s strategy is seen as an opportunity to strengthen the global green energy supply chain.

From an economic perspective, the target opens up new opportunities for clean energy investors. The solar panel, battery, and wind turbine markets are expected to maintain steady growth under clear policy direction. China’s green manufacturing sector will also gain additional momentum. Politically, however, the relatively conservative target could increase international pressure.

China must balance domestic needs with global demands. Aggressive emission cuts risk slowing economic growth, while a cautious approach risks damaging credibility. Xi Jinping is positioning China as a leader in the energy transition without compromising national stability.

Across Asia, China’s climate policy will have direct impacts on clean energy commodity prices. Huge domestic demand will influence the global supply chain, particularly in solar panels and batteries. Neighboring countries like Indonesia, Vietnam, and Malaysia could benefit from export opportunities for raw materials and technological cooperation. Moreover, China’s climate commitment provides moral pressure for developing nations to enhance their own climate ambition.

Despite the clarity of the targets, implementation will face major hurdles. Power infrastructure must be upgraded to absorb large volumes of renewable energy. China also needs to address its dependence on coal, which still dominates its energy mix. On the ground, local governments often delay central policies to preserve industrial output and employment.

Furthermore, China’s national carbon market is still in its early stages. If expanded with stricter regulations, it could become an effective tool for cutting industrial emissions. However, if too lenient, risks of greenwashing will persist. International oversight and multilateral cooperation will therefore play an essential role.

Innovation is another key to achieving the emission reduction target. China is already leading in electric vehicle production, lithium batteries, and green hydrogen development. By pushing for more research and development, Beijing aims to create a technological ecosystem that supports the energy transition. Collaboration with universities, tech firms, and international partners is a vital component.

In addition, subsidies and fiscal incentives continue to flow. The government is supporting large-scale renewable projects while tightening emission standards for heavy industries. These steps are designed to strike a balance between emission reduction and sustained economic growth.

China now stands at a critical juncture in its energy transition journey. The 10 percent emission reduction target for 2035 provides clear direction, though many observers still consider it conservative. The world will closely watch Beijing’s next moves, from curbing coal use to ensuring emission data transparency. For Olam News readers, this is not only about climate change but also the future of the global economy. Continue reading related coverage on Olam News to explore how China’s climate policies could reshape business and geopolitics across Asia.

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Carbon EmissionsChinaclimate changeRenewable EnergyUnited Nations