UK and China call for climate action

Governments agree to collaborate in tackling climate change and energy security, says Megan Darby.

Chinese premier Li Keqiang made his first trip to the UK last week and energy was joint top of the agenda, along with finance.

In a wide-ranging agreement on energy and climate change, the UK confirmed Chinese companies could own and operate a nuclear power station on UK soil. It also highlighted collaboration on renewable energy, shale gas, carbon capture and storage (CCS), green finance and carbon markets.

The two governments issued “an urgent call to action” on climate change ahead of a global summit in Paris next year. In a joint statement, they said: “The UK and China both recognise the clear imperative to work together towards a global framework for ambitious climate change action, since this will support efforts to bring about low carbon transitions in our own countries.”

China General Nuclear Power Group has already reportedly been in talks with EDF Energy about investing in the £16 billion Hinkley Point C project. The final investment decision is subject to the UK government’s proposed support package getting state aid approval from Brussels.

The UK government welcomed the participation of Chinese companies in Hinkley Point C and explicitly stated that they could lead the development of other nuclear sites in the UK. A memorandum of understanding with the China Atomic Energy Authority and China National Nuclear Corporation also committed to co-operation in the nuclear fuel, waste disposal and decommissioning supply chains.

The civil nuclear agreement could be worth “hundreds of millions of pounds” to British companies, according to the Department of Energy and Climate Change.

On low carbon innovation, the UK and China pledged £20 million of funding for a research programme covering offshore renewables, low carbon manufacturing processes and technologies, and low carbon cities.

The UK has committed £35 million from the International Climate Fund to CCS development in China and Indonesia. It is providing advice on the launch of China’s emissions trading pilot schemes. There is governmental and commercial collaboration on shale gas, and it is hoped that shale could “play a valuable bridging role” to a low carbon energy model.

Energy secretary Ed Davey said: “China and the UK stand united in our plans for more collaborative working that will help to achieve long-lasting energy security in our own countries. Both governments recognise that tackling climate change is fundamental to our future and have committed to reduce emissions while enhancing energy security by investing in nuclear power.”