Sharing of low-carbon dividend

China's expertise and experience can help other developing countries with their energy transitions

Addressing the general debate of the 76th session of the United Nations General Assembly via video link on Sept 21, Chinese President Xi Jinping proposed a Global Development Initiative.

He pledged that China will step up its support for the development of green and low-carbon energy in other developing countries. It demonstrates China's commitment to supporting developing countries in responding to the novel coronavirus outbreak and promoting green and sustainable recovery.

Energy shortage is one of the major bottlenecks that has a detrimental effect on economic recovery in the post-pandemic era. As one of the first major economies to largely contain the pandemic, China is working to help other developing countries realize energy transformation and promote green development in the face of the COVID-19 by sharing its experience in low-carbon development and providing assistance in this regard.

The importance of stable and sufficient energy supply was realized in the early days after the founding of the People's Republic of China. As China started providing assistance to other developing countries shortly after its founding, energy access and related infrastructure were among the top priorities. Between 1956 and 1985, China helped 16 countries build 52 energy projects with a total installed capacity of 1.1 million kilowatts. Besides, 18 power transmission projects, which had transmission lines extending more than 2,400 kilometers, were initiated. China also offered convenience for production and living by carrying out off-grid renewable energy projects, such as methane power plants and small hydropower stations.

With the country's economy taking off, China's renewable energy industry has made remarkable achievements that offer strong support for its green and low-carbon energy transition domestically, as well as in other developing countries through foreign assistance. Through multilateral channels, under the framework of the China South-South Climate Cooperation Fund, the country continues to organize training for officials and technicians of developing countries, while providing photovoltaic equipment for generating power. Green energy assistance has also been enhanced bilaterally, such as the building of a photovoltaic system with a total installed capacity of 1 megawatt in Nepal, and a 50-MW solar power plant in Garissa, Kenya, the largest photovoltaic power station in East Africa. China's rapidly iterating energy technologies and economies of scale have greatly reduced the cost of renewable energy utilization; as the development and commercial cooperation scales up, more developing countries can share the benefits of China's renewable energy development.

Developing countries often suffer from the imbalance of high energy demand and insufficient supply, not to forget the challenges of controlling greenhouse emissions amid the growing threats from global climate change. The outbreak of the COVID-19 has only exacerbated the problems. Some renewable energy projects in developing countries have been suspended in the planning stage because of the rising debt burden, sovereign risks and financing costs. With long-term investments in energy and power infrastructure losing their appeal, private capital is even withdrawing from the market.

On the flip side, the pandemic has created opportunities for developing countries to switch to clean energy in the face of reduced willingness to invest in traditional energy systems. Major economies have reached agreements on a shift away from coal power to renewable energy in terms of overseas financing.

Responding to the demand for energy transformation in developing countries amid the pandemic, China can provide more targeted assistance that helps developing countries make full use of their renewable energy resources, choose an energy transition path that is consistent with their own resource endowments and development plans, and strive to realize late-developer advantages for its green and low-carbon transition, with the following approaches:

First, the designing of energy assistance must align with the energy sector development plan of the host country and respond to its call for cooperation. The assistance should be aiming for higher standards and higher quality and be a role model for commercial cooperation.

Second, the assistance should share methods for tackling the problems in exploiting low-carbon energy. China's progress in renewable energy is not limited to the growing installed capacities, it also includes its stimulating environment for innovative technology and green financing mechanisms.

For instance, China can help countries with favorable market mechanisms and business environments, and carry out exchanges and talent training on green finance. For fossil fuel projects that are already established, the assistance could target for energy efficiency and pollutant control system upgrading and coal-fired power plant flexibility retrofits. The assistance could also help developing countries approach expensive emerging technologies such as carbon capture, utilization and storage, laying the foundation for future commercial cooperation.

Third, China's experience in tackling poverty alleviation programs based on energy development and energy transformation is also worth sharing. For instance, the "No 1 central document" for 2021, released in February, stressed implementing an action plan for rural vitalization and setting up targets for better rural public infrastructure through initiating projects on rural clean energy. It proposed the establishment of a high quality energy mechanism in rural areas, including photovoltaic and wind power. Such action plans should be included in the cooperation to strengthen capacity and policy exchanges with other countries under the framework of South-South cooperation.

Last but not least, through providing assistance in renewable energy, China can also further contribute to the prevention and control of the pandemic in developing countries. Renewable energy and distributed power facilities in the remote areas of developing countries can better meet the needs of healthcare and daily production, compared to the large centralized ones driven by fossil energy. China's established assistance in the renewable energy sector should be followed by upgraded cooperation between the energy and public health authorities to ensure services such as lighting and refrigeration equipment for the vaccine transportation cold-chain.

The dividend of China's low-carbon development has become a global public good shared by the international community, especially other developing countries. Based on its proven approaches, they can seek a path to green recovery in the post-pandemic era and sustainable development that suits their conditions.

The author is vice-president of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce. The author contributed this article to China Watch, a think tank powered by China Daily.

The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn