Greening value chains in the steel and automotive industries: potential for dialogue and cooperation between the EU and China

The EU-China relationship is of crucial importance for a climate neutral future and international cooperation. To meet the goals of the Paris Agreement, the EU and China have a vital role to play due to their high greenhouse gas emissions, their economic power and interdependence as well as their prime position in global trade. Green supply chains are therefore a key strategic area for EU-China climate collaboration. However, efforts in this area have been quite limited to date although political pressure to decarbonise is increasing, especially in highly energy-intensive sectors such as steel and automotive, and companies around the world are looking for solutions to decarbonise their value chains.

A responsible and sustainable greening of supply chains, however, requires joint efforts, especially by the EU and China, based on mutual understanding and willingness to cooperate. Numerous stakeholders from think tanks, academia, industry and civil society are therefore keen on advancing the greening of international supply chains in key industries, despite political differences. The project intended to provide a platform for enhancing understanding, exchanging and promoting ideas on greening EU-China value chains thus creating a “discourse space” which supports policy-making processes and business solutions. By doing so, adelphi aimed to help improve climate cooperation between the EU and China and advance the climate agenda.

To this end, adelphi prepared a research report on existing approaches in the decarbonisation of the steel and automotive sectors with a focus on China and the EU and formulated recommendations for a possible way forward and potentials for increased cooperation.The project also convened exchange between EU- and Chinese policy and business stakeholders, as well as civil society.