France eagerly awaits more detailed climate plan from China
This report is part of the "Postcard from Europe" series about the cooperation between China and Europe in the fight against climate change. Contributors from various EU member states describe how this relationship is seen in their home country, and what impact it already has. The project is a collaboration between 威力彩玩法 and China Dialogue, a non-profit organisation dedicated to promoting a common understanding of China's environmental challenges.
In autumn 2019, President Xi Jinping welcomed President Emmanuel Macron for a state visit in Beijing. France and its European partners were hoping that China, the world鈥檚 second-largest economy, would open its markets to agricultural and financial products, manufactured goods and other services. But the meeting will be remembered for something quite different: an unequivocal reaffirmation of the two countries鈥 commitment to the Paris climate agreement, which they the Beijing Call for Biodiversity Conservation and Climate Change. A few days earlier, Donald Trump had formally started the process of pulling the United States out of the Paris Agreement, only three years after it had come into force.
That France and China teamed up on climate was no surprise. As the country where the agreement was reached in 2015, France holds a symbolic role in its safeguarding and in pushing for more ambitious pledges by its signatories. In 2017, President Macron launched the Make Our Planet Great Again initiative, following the decision of the US to leave the Paris Agreement 鈥 the name playing on Trump鈥檚 Make America Great Again motto.
For China, it was no surprise either. 鈥淚n the context of the deteriorating relationship between China and the United States for the past four years, China has constantly made efforts to avoid the EU being swayed to the US side in this confrontation,鈥 says Marc-Antoine Eyl-Mazzega, director of the Center for Energy聽& Climate at the French Institute on International Relations (IFRI). Hence, China has been trying 鈥渢o build a special relationship with the EU, including France. While investments, intellectual property and protection for businesses are difficult issues under discussion, China also stood out from the US on its climate and biodiversity positions.鈥
Furthermore, France and China were about to share the same agendas in 2020 on environmental diplomacy. In June, France was supposed to host the World Conservation Congress of the International Union for Conservation of Nature, in Marseille. And the COP15 of the Convention on Biological Diversity was going to be held in Kunming, China, in October. The Covid-19 crisis changed those plans and both meetings have now been postponed to later this year. But France and China were on the same page, both demonstrating leadership on climate and biodiversity.
鈥淐hina has long been involved in the fight against climate change,鈥 says Sylvie Matelly, deputy director of the French Institute for International and Strategic Affairs (IRIS). 鈥淭he Western world, including France, is only starting to realise that China鈥 could be a main and indispensable actor in the ecological transition鈥 For the past four years, negotiations about the environment have taken place with China 鈥 not with the USA,鈥 she adds.
What none of these French experts expected was the announcement of President Xi, via video link to the UN General Assembly in September 2020, that China will aim for carbon neutrality by 2060.
鈥淭he pledge made by China is of course a step in the right direction. With this country being the largest emitter, it definitively enhances the chances for global warming of only 1.5C above pre-industrial levels. If China respects it, it could decrease by 0.2C to 0.3C the current pathway and thus have a considerable impact for a sustainable future,鈥 says Lucile Dufour, international politics advisor at Climate Action Network, France (CAN).
Despite those encouraging announcements, more details on what is to come are eagerly awaited in France. For instance, how will China reach peak carbon emissions before 2030, and how will it actually implement its net-zero target for 2060? 鈥淒etails must be provided for the COP26 summit as all nations are expected to deliver their updated Nationally Determined Contributions,鈥 says Dufour. China has a specific status: despite having ratified the Kyoto Protocol, it was not required to reduce its carbon emissions. For the first time, China will now face binding climate goals. Will it honour them? 鈥淐hina鈥檚 general planning frameworks are usually clear and announcements have been consistent with reality. Regarding climate鈥 it will have to adopt bold policies, such as phasing out coal by 2040 at the latest, as the country is still the largest producer and consumer of coal,鈥 says Dufour.
For Eyl-Mazzega, at IFRI, China might well keep its word on climate. 鈥淭here is particular attention paid to the environment by Chinese citizens. We barely hear about it in France, but most popular protests in China are either linked to food security or to pollution 鈥 and political leaders in China know well about this.鈥
Another issue that is raising concern in France is China鈥檚 investments. With a population of 1.4 billion and a dynamic economy, China has growing needs for imported raw materials that can cause environmental damage abroad. For instance, Chinese imports of Brazilian soy have been to the deforestation of 223,000 hectares between 2013 and 2017, according to the monitoring project Trase. 鈥淚t鈥檚 easy to blame them,鈥 explains Eyl-Mazzega. 鈥淏ut we also have to look at the fact they are a growing economy that still has millions of people living in poverty. Yes, they are the world鈥檚 biggest emitter and their emissions per capita are already greater than a European country like France, but if they emit so much, it鈥檚 also because we have moved overseas, especially to China, some of our polluting industries. And none of the official data on countries鈥 emissions take this reality into account.鈥
China is also questioned in France over its investments in coal-fired power plants. This is true both domestically, where China has 121 gigawatts of capacity under construction to add to its roughly 1,000 gigawatts of existing capacity, and abroad. Via its Belt and Road Initiative, under-construction China-financed coal power plants will produce 19 gigawatts of power and emit 115 million tonnes of carbon each year, according to data from Boston University鈥檚 Global Development Policy Center cited on . 鈥淭he Chinese strategy with the Belt and Road Initiative has been problematic so far,鈥 notes the IFRI researcher. 鈥淚t puts global climate goals at risk. When challenged about these coal investments abroad, China has continuously denied responsibility, claiming it is only meeting other countries鈥 demands. It鈥檚 a difficult position to hold: affirming your commitments to strong climate goals, and at the same funding polluting industries in other countries where there are other, low-carbon solutions at hand.鈥
The good thing is Chinese investments in the EU and France have mainly focused on the energy transition and not fossil energies.
Chinese investments in France are another key climate issue. 鈥淭he good thing is Chinese investments in the EU and France have mainly focused on the energy transition and not fossil energies,鈥 says Sylvie Matelly, at IRIS. This is the case for nuclear projects (some experts don鈥檛 consider nuclear to be sustainable energy, because of the risks posed by the technology, whereas others think it is because it produces zero-carbon energy). EDF, a French multinational electric utility company, has for instance partnered with the China General Nuclear Power Group (CGN) to build a third-generation European Pressurised Reactor (EPR) at China鈥檚 Taishan nuclear power plant, which first commercial operation in December 2018. The two companies are planning to collaborate to build several other EPRs in the United Kingdom. Chinese and French companies have also teamed up in the offshore wind sector. The French DOLFINES and China鈥檚 CIMS Raffles have for instance signed a memorandum of understanding to cooperate on boosting floating wind farms in Europe and Asia. The construction of China鈥檚 first offshore wind power plant with foreign investment began in October 2020 in Jiangsu province, bringing the EDF group and China鈥檚 Energy Investment Corporation. Back in 2016, French company Velocita Energy Development also the sale of 500 megawatts of its onshore wind projects in France to Chinese wind turbine maker Envision Energy. Four years later, in October 2020, Envision announced the 鈥淰annier-Amance鈥 wind farm, its second wind farm in France.
鈥淎side from partnerships like the one between EDF and CGN, buying French companies has been the main way for China to invest in the French market,鈥 says Matelly. 鈥淲hen you buy a company, you control it, and you control the technologies it has developed as well.鈥 This kind of threat is not new and not particularly linked to Chinese investments: some of the EU鈥檚 members states have been sounding the alarm about it since the 1990s when an American company tried to buy a German company to have it build submarines for Taiwan. After years of development, the EU framework for screening foreign direct investment (FDI) became fully operational on 11 October 2020. It is 鈥渂ecoming instrumental in preserving Europe鈥檚 strategic interests while keeping the EU market open to investment鈥, said a European Commission .
Sylvie Matelly has just finished reviewing a study on FDI. 鈥淥ut of the 22 EU countries that control foreign investments, 80% have placed energy transition in their spectrum of control 鈥 acknowledging how important this sector is and will be in the future,鈥 says the researcher. But she also notes that French industries are often vulnerable. 鈥淲hat do you wait for when you鈥檙e a French company?鈥 she asks. 鈥淵ou wish the technologies you have created could develop and reach a broader market. For that, you need investments.鈥 But this is not the trend now in France: neither French investors nor banks will support you. As France is well known for its engineers and its technological know-how, it attracts foreign investments, including Chinese ones. 鈥淥f course companies have no choice but to accept this money 鈥 even if it means the technology will be 鈥榣ost鈥 for France,鈥 adds Matelly.
In the meantime, the EU and China are still trade and economic relations. During the 22nd bilateral summit held in June, Charles Michel, president of the European Council, made it clear that the EU and China must work together on global challenges like climate action and that engaging and cooperating with China 鈥渋s both an opportunity and necessity鈥. But he also pointed out that the EU and China 鈥渄o not share the same values, political systems or approach to multilateralism鈥.
Eyl-Mazzegaconcludes that 鈥2020 has been a difficult year for China鈥, referring to how it handled the Covid-19 crisis, the status of Hong Kong and human rights issues, which have strained the relationship with France. 鈥淎s a result, the European Union is much more assertive and aligned on China. France and the EU will have to strike the right balance between cooperating on the climate, biodiversity and trade while facing the fact China is a strategic rival notably in low-carbon technologies and dealing with possible US pressures to decouple from China.鈥