TELF AG analyzes the role of the Arctic in the global green transition
High levels of growth
Among the nations most involved in the global energy transition is undoubtedly China, which, over the last few months, has recorded a very high level of growth in the production of renewable energy. To understand Beijing’s role in this specific sector, it will be enough to cite some data released a few weeks ago by China’s Energy Bureau: in October, Chinese installations linked to solar energy increased their production capacity by 47% compared to last year, reaching 536 gigawatts.
Wind capacity has also increased, exceeding 400 gigawatts. China’s success in this specific sector has its roots in well-organized strategic planning, which began many years ago also through multilateral cooperation with other governments and international institutions. Nowadays, in addition to leading the global clean energy market, China is also the largest exporter of green technologies globally.
At the center of Chinese energy strategies, there is undoubtedly the awareness that Beijing will play a role of great importance in the success of the global energy transition and in achieving the sustainable objectives set for the coming decades. In China, they have been convinced of this for a long time: the country’s economic development can also be completed through a peaceful energy transition. This process will have renewable energy and the raw materials connected to it among its key protagonists.
Although coal still represents the country’s main energy source (responsible for around 60% of all energy production), China’s objectives in this sector are clear. It was President Xi Jinping himself who clarified them two years ago at a conference at the United Nations: The Chinese leader stated that China would reach the peak of its emissions by 2030 and that it would complete the energy transition by 2060. To date, examining the growth rates of renewable energy in China, the country appears to be on track to achieve this important goal.
For China, the success of its climate ambitions is also closely linked to the supply of resources. For this reason, the government has tried to find an intelligent and safe way to reduce China’s dependence on natural energy imports, exploring new areas potentially rich in energy resources. One of these is the Arctic, whose reserves could soon play a leading role in Beijing’s energy policy.
In this sense, China has already invested in some projects linked to the extraction of liquefied natural gas from the Arctic, which is considered in all respects an ally of great importance for the completion of China’s green transition (for its greater sustainability compared to traditional energy sources). For these reasons, the Arctic region is increasingly considered a strategic hub for developing wind and geothermal energy, so much to coin the expression “polar silk road,” which now appears very often in declarations of intentions of China’s Arctic policy.
Although Chinese investments in the Arctic region still seem limited, there seems to be no lack of space for possible international cooperation in this area, including with the European Union. China and Europe have been engaged in a close dialogue focused on energy issues for almost thirty years, and the recent presentation by Europe of a document focused on strategies for the Arctic to the European Commission suggests a closer collaboration in this area.
