China, EU Could Keep Clean Tech Partnership Alive in Other Countries, Economist Says

20 May 2025

By You Xiaoying

Erik Berglöf, AIIB chief economist. Photo: File photo

China and the European Union could team up to promote the green transition in other countries, as a way to continue collaborating while the political landscape is making it hard for them to work together on each other’s home turf, said Erik Berglöf, chief economist of the Asian Infrastructure Investment Bank (AIIB).

Clean energy is an area where European policy experience and Chinese technology could come together to bring changes to other parts of the world, Berglöf said during a panel discussion at the Caixin London Atlantic Dialogue on May 8.

Cooperation of this sort could enable many developing countries to get financing “that they would never be able to get in the past,” Berglöf said, adding that they could also become integrated into clean energy value chains and access “more available and much cheaper” technologies.

“I think this is really a win-win for many of these countries,” he said.

Beijing and Brussels have a long tradition of collaboration in the climate and energy fields, Berglöf said, citing China’s emissions trading scheme (ETS) and green bond issuance as examples of their exchanges.

And there are very important areas in which they can continue their cooperation, according to Berglöf. The EU could benefit from China’s “enormous” renewable manufacturing capacity while China could draw from European experience to help it develop its ETS and improve the flexibility of its power system.

“But there is a political dimension to this. It’s not clear that all these opportunities will be explored,” he warned. “Maybe collaboration between China and the EU in third countries could be a very interesting path to follow.”

It’s not just technology: Chinese experience may also help other developing countries, such as China’s unique approach of developing its ETS, Berglöf said.

AIIB has been discussing with Brazil about providing loans to help fund the South American country’s climate projects, which includes building carbon markets, an area that can potentially draw strength from European experience, Chinese technology and experience, Berglöf said.

Belt and Road cooperation

Chinese and EU companies have been working together for over a decade to develop clean energy projects in emerging economies under China’s “third-party market cooperation” program, part of its Belt and Road Initiative.

In 2016, state-owned China Export & Credit Insurance Corp., teamed up with Bank of China Ltd., one of the “Big Four” state commercial lenders, to provide a credit line of up to $1 billion to European power company Enel SpA for its purchase of Chinese equipment and collaboration with Chinese companies to build renewable projects worldwide.

In the same year, Chengdu-based Dongfang Electric Corp. partnered with Italian industrial group Salini-Impregilo, now known as Webuild SpA, to build the Gilgel Gibe III hydropower plant in Ethiopia.

China-EU cooperation in overseas markets is a trend “worth paying attention to,” according to Zhao Ping, spokeswoman of the China Council for the Promotion Of International Trade, citing a 2024 report published by the trade body.

“Multiple European enterprises hope to work with Chinese enterprises to explore emerging markets, such as Africa and Latin America,” Zhao told a press conference on April 28.

This partnership model can benefit all parties involved, according to Tang Yingzhi, a deputy director at The International Institute of Green Finance. It can enable Chinese companies to get more construction contracts, increase their exports of green products, diversify their financing sources, and reduce their financing costs.

Contact editor Jonathan Breen (jonathanbreen@caixin.com)

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Image: Calina – stock.adobe.com