APEC's Green Transformation: China's Leadership and Regional Collaboration

Strategic Insights -

For the past two decades, APEC has focused on green growth, placing environmental sustainability at the heart of its agenda. Energy lies at the core of this transformation, with APEC economies aiming to reduce energy intensity by 45% by 2035, compared to 2005 levels. The region is on track to meet this target, with China playing a major role in the green transition.

Key Takeaways:

  • APEC economies account for about 56% of global energy demand and 60% of CO2 emissions.
  • China has reduced its energy consumption per unit of GDP by 11.6% between 2021 and 2024, equivalent to around 1.1 billion tonnes of CO2 or nearly half the European Union's annual emissions.
  • China's natural carbon sinks absorb about 1.2 billion tonnes of CO2 each year, equals around 3% of global emissions.
  • China has launched its first large-scale green hydrogen project with over 10,000 tonnes of annual output.
  • A green hydrogen plant in Aksu Prefecture, Xinjiang, has produced over 14,900 tonnes of hydrogen since June 2023, cutting about 485,000 tonnes of CO2 emissions each year.
  • China has established power grid interconnections with countries in the Lancang-Mekong region, with around 90% of the electricity transmitted coming from renewable sources.
  • The country has also established a large-scale energy storage system on Jurong Island, constructed by Chinese companies, with a capacity of 200 megawatts.

Statistics:

  • APEC economies aim to reduce energy intensity by 45% by 2035, compared to 2005 levels.
  • The region is on track to meet the 45% target by 2032, three years ahead of schedule.
  • China's energy consumption per unit of GDP dropped by 11.6% between 2021 and 2024.
  • The country's natural carbon sinks absorb about 1.2 billion tonnes of CO2 each year.
  • China has generated approximately 1,226 terawatt-hours of hydroelectric power in 2023.
  • The green hydrogen plant in Aksu Prefecture has produced over 14,900 tonnes of hydrogen since June 2023.
  • The plant is expected to cut about 485,000 tonnes of CO2 emissions each year.

Sources:

  • APEC Energy Review 2025
  • State Council of China
  • National Forestry and Grassland Administration
  • International Banker
  • Singapore government's Energy Market Authority.