China's green push a boost for Asia-Pacific

China's pursuit of low-carbon development will help shape green transition across the wider Asia-Pacific region, analysts said.

China will accelerate green transition and cut carbon dioxide emissions per unit of GDP by a total of 17 percent during the 2026-30 period, according to a government work report submitted on March 5 during the opening meeting of the fourth session of the 14th National People's Congress, the country's top legislature.

The report said China will promote green and low-carbon development, launch initiatives for upgrading quality, lower costs, and reduce carbon emissions in key industries, and drive the development of zero-carbon industrial parks and factories. China will also set up a national fund for low-carbon transition, foster new growth drivers such as hydrogen power and green fuels and exercise tight and effective regulation over energy-intensive and high-emission projects.

Analysts said decarbonization efforts in the world's second-largest economy can serve as an example to other Asian countries which have also committed to cut emissions in line with the Paris Agreement. At the same time, China's huge manufacturing sector provides accessible clean technology to other developing economies that want to lessen their dependence on fossil fuels.

"China's transition can act as a ladder for progress across the Asia-Pacific, especially for developing economies," said Yang Muyi, senior analyst at global energy think tank Ember.

Yang noted that China manages a large and complex energy system that requires balancing rapid change with system stability. He also said China's initiatives such as the development of zero-carbon industrial parks offers useful lessons for other countries in the region.

"This expands what many fast-growing Asian economies see as possible, achieving deeper industrialization while also advancing climate goals," Yang said.

Peter TC Chang, former deputy director of the Institute of China Studies at the University of Malaya in Kuala Lumpur, said China's 15th Five-Year Plan (2026-30) is also aligned with the recent upgrade of the China-ASEAN Free Trade Agreement, or CAFTA 3.0.

Expanding cooperation

CAFTA 3.0 was signed in Oct 28 at the 28th China-ASEAN Summit held in Malaysia. The upgraded document expands cooperation into nine areas, including digital economy, green economy and supply chain connectivity.

Chang said China's emphasis on low-carbon growth complements the development priorities of the members of the Association of Southeast Asian Nations. He said the upgraded CAFTA's green-economy provisions will encourage joint initiatives in renewable energy, carbon trading and the circular economy.

ASEAN countries, with strong renewable resources and manufacturing capacity, such as Indonesia, Malaysia and Vietnam, are well-positioned to become key partners in China's green industrial value chains, Chang added.

In its China energy transition review published in September, Ember reported that in 2024 alone, China has invested $625 billion in clean energy — the highest in the world. The volume of installed battery storage tripled in the three years to 2024, while grid investment rose to an all-time high of 608 billion yuan ($88.4 billion).

Ember noted that Chinese factories produce about 60 percent of the world's wind turbines and 80 percent of solar panels.

Yang, the Ember energy analyst, said China provides a "ladder of affordability" to developing Asian economies' energy transition because China's scale and manufacturing strength have pushed down the costs of clean technologies.

The shift to renewables is even urgent now as the escalating conflict in the Middle East and the volatility of oil prices have shown the dangers of overdependence on fossil fuels, according to Joanna Santa Isabel, Asia network coordinator for 350.org, a global environmental group.

"Shifting to clean, affordable renewable energy is no longer optional — it is a necessity, driven by the imperative to limit the catastrophic impacts of global heating, as much as to save on everyday costs," Santa Isabel said.