Low-carbon tech key to addressing energy demand China looks to speed up cooperation with developing nations for green transition

Editor's note: China Daily is publishing a series illustrating the efforts being made to achieve the country's carbon peak and carbon neutrality goals.

BEIJING, Sept. 16, 2025 /PRNewswire/ -- A report from China Daily

The conflicting trajectories of a global climate crisis and the world's ever-growing need for energy could be addressed by the transition and use of green and low-carbon technologies, and China, with its leading position in these fields, could capitalize if it can overcome some obstacles, experts said.

More than half of the population in sub-Saharan Africa lacks access to electricity, and over 2 billion people worldwide struggle to find affordable clean cooking methods, according to the International Energy Agency's World Energy Outlook 2024.

The growing consensus has been to meet this rising demand with green, low-carbon solutions. China is expected to play a crucial role in addressing this challenge, making full use of its rapidly advancing and affordable green, low-carbon technologies.

The potential for cooperation is significant, especially through China's green Belt and Road Initiative, yet the path forward is fraught with challenges, experts said during a roundtable forum in Beijing last week on the challenges and prospects of investing in and applying national green and low-carbon technology. The forum was part of the launch ceremony for the Green and Low-Carbon Technology Application Committee.

Obstacles exist both within developing nations and in the broader international landscape, where trade barriers that target China's products for solar and wind power generation pose additional difficulties.

Experts suggest that while government-led cooperation platforms should enhance their effectiveness by incorporating market mechanisms, companies must also explore innovative partnership models with local stakeholders to meet the dual demands of clean energy and job creation in developing nations.

Wang Can, a professor and chairman of the school council of Tsinghua University's School of Environment, in an interview with China Daily, highlighted the significant potential in low-carbon cooperation between China and countries involved in the Belt and Road Initiative.

"Countries participating in the Belt and Road Initiative have reached a consensus on the development of renewable energy, with most setting clear development goals," he said.

In their efforts to promote overseas deployment of green technology, Chinese companies have not only exported equipment, but also implemented capacity building programs, providing training to local engineers to ensure sustainable project operations, Wang said.

Through the transfer of green technologies, he said China has helped many developing nations improve infrastructure, reduce fossil fuel reliance, promote industrial transformation and upgrading, and create new industrial chains.

He warned, however, of a series of challenging factors such as uneven regional development, insufficient policy enforcement, inadequate infrastructure and limited green financing.

Wang said that many developing nations still lack strong legal and market mechanisms to support a stable investment environment, which is crucial for advancing energy transition and achieving carbon neutrality.

Currently, some 34 countries, predominantly Western developed nations, have enshrined in law their carbon neutrality or net-zero goals, he said.

He added that no more than 8 percent of developing nations' annual demand for climate finance, which stands at around $470 billion, is met.

The significant shortfall could pose challenges to implementing capital-intensive projects like clean energy and power grid infrastructure, potentially further widening the technological adaptability gap in developing nations, Wang said.

To combat this, China has partnered with development banks and green funds to attract social capital to the sector, while also developing green bonds and carbon market mechanisms to expand funding sources.

Wang warned, however, that China's efforts may be subject to the adverse impacts of trade barriers.

"Our study estimates that if G20 countries maintain tariff barriers on green products, global solar and wind investment costs would increase by 6 percent and 3 percent, respectively, creating an additional $130 billion funding gap," he said.

Wang added that China is attempting to solve the problem by harmonizing international rules to curb green protectionism. The country has also been adopting localized production strategies by investing in manufacturing facilities, which can bypass tariffs and foster local industrial development.

Ma Minxiang, deputy director of the Yunnan Provincial Academy of Science and Technology, has promoted collaboration on green and low-carbon technologies with South and Southeast Asian countries for over a decade.

Ma, who is also secretary-general of the China-South Asia Technology Transfer Center, said there have been few successful examples in that time, despite consistent efforts from China and the high demand for such technologies in the region.

Solar pumping systems from Yunnan have been installed in India, Pakistan, Myanmar and Thailand. "Such technologies and products are quite popular there. The technologies have been applied even in some quite remote areas," Ma said.

He added that the limited number of successful cooperative projects for green and low-carbon development between China and South and Southeast Asian nations is largely due to insufficient enterprise participation.

Many green projects have been carried out by research institutions, and their involvement usually ended once their assigned tasks were completed, making it difficult for these projects to be sustained, he said.

Ma emphasized the crucial role of government-initiated platforms, such as the China-South Asia Technology Transfer Center, in facilitating the international expansion of Chinese companies with their products and technologies in the low-carbon sector.

Due to a lack of understanding of policies and the needs of local governments, Chinese companies often face limited avenues for entering foreign markets, he said.

Ma noted that financial support from the Chinese government for low-carbon technology transfer is limited, and foreign governmental bodies and research institutions collaborating with China on this issue often have no available funds to provide support at all.

Despite these challenges, government-initiated platforms could create a win-win situation, he said. While companies get the necessary avenues to seek business opportunities, they can also occasionally offer supplementary funding to support cooperative projects.

In the process of promoting the international expansion of China's low-carbon technologies, it is essential to further emphasize the primary role of enterprises in order to address the issue of insufficient capacity in the recipient countries to absorb relevant technologies, said Ma.

He called on Chinese companies to focus more on localized management in their efforts to promote green, low-carbon products and technologies internationally.

Shi Hui, senior investment advisor at the Embassy of Colombia in China, agreed. She said that while multiple Chinese companies have participated in solar and wind energy development in Colombia, the country's energy demand remains substantial.

Shi joined Colombian President Gustavo Petro on a visit to a Chinese green energy company in May, as part of his trip to China for the Fourth Ministerial Meeting of the China-Community of Latin American and Caribbean States Forum. She recalled that the president paid particular attention to distributed solar energy systems.

Such systems offer a highly viable clean energy solution for Colombia, especially given that approximately 53 percent of the country's territory and 270,000 households are not yet connected to the national grid.

Shi offered several suggestions for Chinese companies that are willing to seize the significant energy market opportunities in Latin America.

While Chinese companies possess significant advantages in capital, technology and large-scale production, local companies often have a deeper understanding of local policies, social environments and market dynamics, she said.

"If they collaborate through joint ventures, partnerships and joint bidding, it will undoubtedly enhance their competitiveness and enable them to complement each other's strengths," said Shi, emphasizing the importance of having a localized operational team as a strategy for Chinese companies to mitigate operational and market risks in Latin America.

Ma Dingping, secretary general of the Chongqing Energy Research Society, advocates a "product plus service" model as an ideal strategy to promote Chinese green, low-carbon technologies internationally.

This approach emphasizes integrating service provision with product exports and more actively involving foreign partners.

When Chinese photovoltaic panels are sold abroad, for instance, they may not be installed correctly, which can lead to inefficient power generation, he said. Additionally, these facilities might lack adequate power storage solutions, resulting in suboptimal use of the photovoltaic products.

These problems underscore the importance of service provision. The significance of the "product plus service" model extends far beyond ensuring that buyers get full value from their product investments, he said.

"By selling products and offering complementary services that encourage entrepreneurship and job creation, local individuals can learn from China's experience," he said.

SOURCE China Daily