The potential of EU-Chinese cooperation in the decarbonisation of the steel and automotive industries

Steinlein, Anastasia; Carolin Grüning, Daniel Weiß, Lina Li, Paula Janssen and Philipp Wagner 2022: The potential of EU-Chinese cooperation in the decarbonisation of the steel and automotive industries. Berlin: adelphi research gGmbH.

To stay within the 1.5°C limit, as required by the Paris Agreement, the EU and China have a vital role to play. Together they account for around one-third of global economic output – and of global greenhouse gas (GHG) emissions. They are also the world's two biggest traders. Green supply chains are therefore a key strategic area for EU-China climate collaboration. This is particularly the case in GHG-intensive sectors such as steel and automobile production. However, to date, the decarbonisation of Sino-European supply chains in these two critical sectors has not been sufficiently addressed.

This study argues that for an efficient reduction of GHG emissions in steel and automotive supply chains, increased cooperation between European and Chinese stakeholders is necessary. Against this backdrop, the report aims to improve mutual understanding of the decarbonisation strategies of the Chinese and European steel and automotive sectors. The findings of this research are based on an extensive literature review and interviews conducted with government, business and civil society representatives from the EU and China in 2022.