Responding to the crisis in this region is critical due to high emissions and the region’s acute vulnerability to climate change.
Supporting China’s decarbonisation and accelerating the rate at which this happens is essential if we are to meet global climate targets – this is why China is a key focus of our work in the region. We work closely with partners on research, pilot projects, capacity building, and best practice sharing, whilst building international bridges for climate dialogue and collaboration for a more sustainable future.
China is currently at a stage where its greenhouse gas emissions are peaking. This means that emissions will soon stop increasing and begin to decrease, which is a critical step towards achieving global climate goals. Despite this progress, there are still significant challenges to overcome, as China, like many other countries, remains heavily dependent on fossil fuels. However, China has made substantial advancements in its transition to clean energy.
As of early 2024, China’s combined wind and solar capacity exceeded that of coal power, which marked a major milestone in the country’s efforts to transition energy production away from fossil fuels. CIFF’s partners have assisted this progress, closely supporting transition roadmaps, technical analysis, mechanism design, and market-based solutions to accelerate the shift to renewable energy.
In 2024, CIFF’s partners also played a key role in Japan and South Korea’s renewable energy progress, providing data analytics, scenario modelling, and policy recommendations.
Meanwhile, CIFF’s partners provided underpinning analyses and technical assistance to accelerate renewable investment in South-East Asia which reached $8.5 billion in 2024, a 37% rise from the previous year. Of the invested volume, $1.5 billion was for wind projects, a 75% increase from 2023.
In 2024, we saw Japan issue the world’s first sovereign climate transition bonds, designed to incentivise the private sector to transition away from investing in carbon-intensive, fossil fuel-centric production to funding decarbonised manufacturing. Japan has committed to issuing some ¥20 trillion ($133 billion) of GX Green Transformation bonds over the next decade. CIFF’s partners helped advise this initiative and provided technical support.
Furthermore, the first dedicated administrative regulation on China’s Emissions Trading Scheme (ETS) came into effect in 2024, and the country’s carbon market was announced in the same year to be expanded to cover high-emission industrial sectors of steel, aluminium and cement, raising the share of national CO2 emissions covered by the market from 40% of China’s total to 60%.
CIFF’s partners supported the development of ETS through stakeholder preparedness, technical assistance on methodologies, and practice sharing.
With China’s shift to “dual-control” of total CO2 emissions and carbon intensity, CIFF’s partners provided technical expertise and shared global best practice through platforms like the China Council for International Cooperation on Environment and Development (CCICED) to support China’s carbon-neutral future at both national and sub-national levels.
We also supported multiple dialogues on Global South cooperation on green development through platforms like the BRI International Green Development Coalition (BRIGC) at COP29 and other international moments to build international consensus and share solutions towards the global climate goals.
Electric vehicles present an important global opportunity to transition to lower environmental impact alternatives, without having to shift behaviour habits.
CIFF’s partners provided recommendations and technical advice to support EV roll-out, including standards, charging infrastructure deployment and pilots on prioritised right of way, in multiple geographies. They have also supported countries to improve vehicle-grid integration and battery supply chain decarbonisation. The success of the EV market in China is a strong example of the uptake of a green-aligned technology and has made EVs more accessible globally.
China’s EV penetration rate in passenger vehicles exceeded 50% from July 2024, with the number of charging poles increasing by 50% year on year, which strongly supports the expansion of the EV market. CIFF’s partners are also supporting the collaboration between China and Indonesia on sustainable EV supply chains.
