China's clean-tech exports are driving down global CO2 emissions: Study

China's exports of solar panels, batteries, wind turbines and electric vehicles (EVs) are helping other countries cut their carbon emissions, a study published on July 22 shows – a bright spot in China's trade story, which is overshadowed by tariffs and cut-throat competition.

- David Fogarty

These clean-tech exports in 2024 alone will cut carbon dioxide (CO2) emissions produced outside the country by 1 per cent, or about 220 million tonnes, which is nearly four times Singapore's annual emissions.

China is by far the largest producer of clean-tech goods, as well as the world's top market for renewable energy investment and EVs. Its vast production capacity and competition at home have slashed prices of the green goods it exports around the globe.

That has made new renewable energy projects cheaper in most cases than fossil fuel alternatives, according to the International Renewable Energy Agency (Irena).

Power generation, mainly from coal and gas, is the top source of global CO2 emissions, and rapid investment in renewables is displacing polluting fossil fuels and boosting energy security.

China's clean-tech exports will help other countries to avoid 4 billion tonnes of CO2 over the lifetime of the products, said the study by Mr Lauri Myllyvirta, senior fellow at the Asia Society Policy Institute and lead analyst at the Helsinki-based Centre for Research on Energy and Clean Air (Crea).

There is also a further cumulative benefit. The CO2-saving impact will be compounded by emissions savings from China's past and future shipments of clean-energy equipment, says the study published by Carbon Brief news site.

But while Chinese clean-tech exports have become increasingly affordable, the US, EU and others have been concerned about a price war among manufacturers and excess supply in China.