The EU is the creator of the global climate change agenda and spearheads global
climate change governance.
China and the EU engage in very active cooperation and interaction in climate
change governance, especially at the level of low-carbon economy. The United
NationsFramework Convention on Climate Change(the Convention) and the
Kyoto Protocol(the Protocol) currently constitute the only legally binding global
standard for addressing climate change with well-enhanced mechanisms. The
China-EU struggle in climate change governance also concentrates on negotiations
concerning the Convention and the Protocol. In addition, with deepening global
climate governance, besides the United Nations system, many international orga-
nizations have also involved in climate governance, such as international aviation
organizations, international maritime organizations, the WTO, etc.; China and the
EU are also increasingly interacting with each other within these organizational
frameworks.
9.1 China-EU Relations in a Low-Carbon Economy
Global climate governance has accelerated the transformation of countries
throughout the world towards low-carbon economies, while trade and investment
activities are also moving towards promoting the development of low-carbon
economies and becoming effective tools for it. Development of trade in low-carbon
environmental goods and services (LCEGS)^1 between China and the EU aims at
maximizing input benefits and reducing product prices. The EU is currently the
maturest low-carbon market in the world and enjoys technological and capital
advantages, while the Chinese low-carbon market has broad prospects. In 2010–
2011, global LCEGS sales reached 3.3 trillion pounds, up 3.7 % compared with the
previous year, with the growth rate exceeding that of the previous two years (3.1
and 1.8 %). The top ten countries in LCEGS sales in the world were the USA,
China, Japan, India, Germany, the UK, France, Brazil, Spain and Italy. China’s
share of the global LCEGS market was 13.1 %, Germany’s was 4.2 %, the UK’s
(^1) Addressing climate change and transforming to low-carbon economies results in many new
industries and the development of a new global market. However, currently, low-carbon industries
and trade are not explicitly classified in a unified way in the world; the classification method
proposed by the Government of the UK is adopted here. LCEGS sectors are composed of three
primary sectors including the environment, renewable energy and low carbon, and 24 secondary
sectors, specifically including (1) the environment: air pollution, soil pollution, environmental
consulting, environmental monitoring, marine pollution control, noise and vibration control,
recycling, waste management, water supply and wastewater treatment, (2) renewable energy:
biomass energy, geothermal energy, hydro energy, photovoltaic energy, tidal energy, wind energy,
renewable energy consulting, (3) low carbon: alternative fuel vehicles, alternative fuel, building
technology, carbon capture and storage, carbonfinance, nuclear energy, energy management,
alternative energy. Classification of LCEGS sectors is still evolving and they are expanding along
with the emergence of new industrial activities.
168 F. Cong