VII. Strengthening International Energy Cooperation Across the Board
China bases international cooperation on the principle of mutual benefit and win-win results while embracing the concept of green development. It is endeavoring to ensure energy security in an open environment, open its energy sector wider to the world, promote high-quality Belt and Road cooperation, actively engage in global energy governance, guide global cooperation in climate change, and build a global community of shared future.
1. Opening the Energy Sector Further to the World
China is committed to a stable global energy market and is opening its energy sector wider to the world. It has greatly eased market access for foreign investment, and has built a market-based international business environment that respects the rule of law to facilitate free trade and investment. It has adopted pre-establishment national treatment plus a negative list, reducing restrictions on access to the energy sector for foreign investment. It has lifted the restrictions for foreign investment to enter the sectors of coal, oil, gas, electric power (excluding nuclear power), and new energy. It is promoting the energy industry in pilot free trade zones such as Guangdong, Hubei, Chongqing and Hainan, and supports further opening up of the entire oil and gas industry in the China (Zhejiang) Pilot Free Trade Zone. International energy companies such as ExxonMobil, GE, BP, EDF and SIEMENS are steadily expanding investment in China. Major foreign investment projects such as Tesla's Shanghai plant are well under way. Foreign-funded gas stations are spreading.
2. Promoting Energy Cooperation Among BRI Countries
China follows the principles of extensive consultation, joint contribution and shared benefits, and pursues open, green and clean governance in its energy cooperation with BRI countries towards high-standard, people-centered and sustainable goals. It attempts to bring benefits to more countries and their people while maintaining its own development trajectory, and to create conditions favorable to further common development.
Pragmatic and mutually beneficial energy cooperation. China engages in extensive cooperation with over 100 countries and regions around the world in terms of energy trade, investment, industrial capacity, equipment, technology, and standard setting. The high standards of Chinese enterprises are much sought after by partner countries for their energy projects, which help to turn local resource advantages into development strengths. They will also drive technical progress in these countries, create more jobs, stimulate the economy, and improve people's lives. In this way China and its BRI partners will grow together by leveraging and incorporating their respective strengths. China builds cooperation with countries and large transnational corporations in the field of clean energy through third-party markets, to create an energy cooperation framework which is open, transparent, inclusive, and mutually beneficial. In 2019, China established Belt and Road energy partnerships with 30 countries.
A silk road with green energy. China is the largest renewable energy market and the largest clean energy equipment manufacturer in the world. It is actively working towards green and low-carbon global energy transition by engaging in extensive cooperation in renewable energy. Its efforts can be seen in cooperation projects such as the Kaleta hydropower project in Guinea, the Kaposvar PV power station project in Hungary, the Mozura wind park project in Montenegro, Noor Energy 1 - the CSP+PV solar power project in Dubai of the UAE, the Karot hydropower project and the first phase of the solar PV power project in the Quaid-e-Azam Solar Park in Pakistan. The wide application of renewable energy technologies in the Chinese market is helping to reduce the cost of renewable energy across the globe and accelerate the green transition process.
Greater energy infrastructure connectivity. China is promoting transnational and cross-regional energy infrastructure connectivity, creating conditions for complementary cooperation and reciprocal trade in energy resources. A batch of landmark energy projects such as the China-Russia, China-Central Asia and China-Myanmar oil and gas pipelines have been completed and brought into operation. China has now connected its grid with the power grids of seven neighboring countries, giving a strong boost to energy infrastructure connectivity and realizing optimal allocation of energy resources on a larger scale, which facilitates economic cooperation within the region.
Wider global energy access. China actively implements the UN sustainable development goal of ensuring "access to affordable, reliable, sustainable and modern energy for all". It also takes an active part in global cooperation on expanding energy access. To improve energy access in partner countries and benefit ordinary people, China has employed multiple financing methods to develop electric power projects using grid-connected, microgrid, or off-grid solar systems according to local conditions, and donated clean cooking stoves to regions still using traditional cooking fuels.
3. Actively Participating in Global Energy Governance
As a staunch supporter of multilateralism, China builds bilateral and multilateral energy cooperation based on mutual benefit and win-win results. It supports the role of the International Energy Agency (IEA) and relevant cooperation mechanisms in global energy governance, promotes global energy market stability and supply security, and the green energy transition within the framework of international multilateral cooperation, and contributes ideas and solutions to the sustainable development of global energy.
Engagement in multilateral energy governance. China is an active participant in international energy cooperation under multilateral mechanisms such as the UN, G20, APEC and BRICS. It is making positive progress in joint research, releasing reports and founding agencies. China has set up intergovernmental energy cooperation mechanisms with over 90 countries and regions, and established ties with over 30 international organizations and multilateral mechanisms in the energy sector. Since 2012, China has become a member state of the International Renewable Energy Agency (IRENA), an observer country to the Energy Charter Treaty, and an affiliate of the IEA.
A facilitator in regional energy cooperation. China has built regional energy cooperation platforms with ASEAN, the League of Arab States, African Union, and Central and Eastern Europe, and organized forums on clean energy at the East Asia Summit. It has also facilitated capacity building and cooperation on technological innovation and provided training for 18 countries in clean energy use and energy efficiency.
4. Joining Forces to Tackle Global Climate Change
Embracing the vision of a global community of shared future, China works together with other countries to address global climate change and promote the transition to green and low-carbon energy.
Strengthening international cooperation on climate change. With support from the UN, World Bank, Global Environment Facility, Asian Development Bank, and countries such as Germany, China is focusing on green and low-carbon energy transition and developing extensive and sustainable bilateral and multilateral cooperation with other countries in exploiting renewable energy and showcasing pilot low-carbon cities through experience sharing, technical exchanges, and project dovetailing.
Supporting capacity building in developing countries to address climate change. China is committed to deeper South-South climate cooperation. It provides support to the least developed countries, small island countries, African countries and other developing countries in their response to climate change. Since 2016, China has set up 10 pilot low-carbon industrial parks, launched 100 mitigation and adaptation programs, and provided 1,000 training opportunities on climate change cooperation in developing countries to help them develop clean and low-carbon energy and jointly address global climate change.
5. China's Proposals for Developing Synergy on Sustainable Global Energy Development
Humanity has entered an era of connectivity when maintaining energy security and addressing global climate change have become major challenges confronting the whole world. The ongoing Covid-19 pandemic highlights all the more the interdependent interests of all countries and the interconnection of all peoples. China proposes that the international community should work together on the sustainable development of global energy, address the challenges of climate change, and build a cleaner and more beautiful world.
Jointly promoting the transition to green and low-carbon energy to build a cleaner and more beautiful world. It requires the joint effort of all countries to address the challenge of climate change and improve the global eco-environment. All countries should choose the green development path, adopt green, low-carbon and sustainable working practices and lifestyles, promote energy transition, and address problems relating to energy. We should join forces to tackle global climate change and make our contribution to building a cleaner and more beautiful world.
Jointly consolidating multilateral energy cooperation to accelerate the green economic recovery and growth. We should improve international governance and maintain an open, inclusive, balanced and reciprocal multilateral framework for international energy cooperation. We should expand communication and pragmatic cooperation in the energy sector to promote economic recovery and integrated development. We should strengthen transnational and cross-regional innovation on clean-energy and low-carbon technologies, and cooperation on technology standards, to promote energy technology transfer and rollout and improve international IPR protection.
Jointly facilitating international investment in energy trading to protect global market stability. We should eliminate energy trade and investment barriers, facilitate trade and investment, cooperate on energy resources and industrial capacity as well as infrastructure, improve connectivity, and promote efficient resource allocation and greater market integration. We should embrace the principles of extensive consultation, joint contribution and shared benefits, seek the greatest common ground to promote the sustainable development of global energy, and jointly maintain global energy security.
Jointly improving energy access in underdeveloped areas to address energy poverty. We should join forces to realize the sustainable goal in the energy sector, and ensure access to basic energy services such as electricity for people in need in underdeveloped countries and regions. We should help underdeveloped countries and regions to popularize advanced green energy technologies, train energy professionals and improve energy services to integrate the efforts on green energy development and the elimination of energy poverty.
