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

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 the steel and automobile industries. However, to date, the decarbonisation of Sino-European supply chains in these two critical sectors has not been sufficiently addressed. 

This policy brief provides policy recommendations and sectoral guidance on how to strengthen the exchange and cooperation between European and Chinese stakeholders to advance the decarbonisation of the two sectors.