China Links Climate Goals To Industrial Policy To Strengthen Economic Resilience

How China made climate resilience part of its economic growth strategy

The war in the Middle East has disrupted oil and gas supplies, leaving governments to confront energy pressures as they prepare for next month’s COP31 UN climate conference in Antalya, Turkey. The disruption has renewed an enduring question: how can climate action strengthen the resilience of an economy?

China offers a useful case in answering that question. Its factories supply technologically advanced products that are essential to the green transition at competitive prices.

Linking climate goals with industrial policy

China has production cost advantages in electric cars, batteries and equipment for wind and solar power. Behind these products lies a broader development strategy that increasingly connects climate objectives with industrial policy and development planning.

That connection gives the transition a purpose beyond compliance with international agreements. It links climate action with protecting people’s living environment, modernising production and creating sources of growth.

The approach matters because climate goals, industrial policy and financial incentives need to support the same investments if a transition is to strengthen economic resilience. A related requirement is that responsibility for implementation remains clear.

China’s example, as presented in the source, is therefore not limited to its role as a major producer of green technologies. It also shows how climate objectives can be incorporated into the wider direction of industrial and economic development.

Shouqing Zhu, who has held senior policy and advisory roles with the World Economic Forum, UN agencies and World Resources Institute, is associated with the analysis. Against continuing energy pressures, the case highlights the importance of aligning climate action with production, investment and long-term growth.

Source: South China Morning Post