China’s ratification of Paris Agreement is not a surprise, It’s impressive that President Xi chose again to stand on stage with President Obama to emphasize China’s global leadership and to highlight the China-U.S. partnership on climate and energy. And the G20 Summit—an economic forum—is a great venue in which to make the case for low-carbon economic growth.

China has consolidated measures and targets to support the implementation of the ratification:

• China’s 13th Five-year Plan, approved in March 2016, set targets for 2020 to reduce GDP carbon intensity by 18%, reduce GDP energy intensity by 15%, and improve clean energy share to 15%. Specific measures and actions, listed in China’s INDC for the Paris Agreement, have for the most part been adopted in all major sectors. If implemented, these targets and policies would put China on track to achieve its Paris commitment.
• China’s new normal economic reform would likely enable the nation peak its carbon emissions earlier than 2030. China’s leading economic group, led by President Xi, has approved the Green Finance Guidelines just days before the G20 Summit, aiming for the green economy to become the country's new growth engine. This action supports new lending guidelines, proposes new green bonds, and recommends other financial instruments to increase clean energy investments.

As the world’s two largest economies, China and US’ announcements will set a good example for countries worldwide to enhance domestic policies and actions. The Paris agreement, must be ratified by 55 countries, representing 55% of global emissions, in order to come into force. US and China together responsible for about 39% of emissions and their formally ratification of the deal is a major step to call for other countries taking actions by the end of 2016.

China’s growth model in the coming 15 years will be a critical factor defining the future of the global climate. Sector policies, along with a price on carbon, and more incentives on green financing, are key to the solution for China. We will continue to work with all of our partners and NGO allies to advance China’s clean energy economy.

Hu Min
Program Director of the Low Carbon Economic Growth Program