Shifting policy priorities in EU-China energy relations: Implications for Chinese energy investments in Europe

Abstract

Shifting energy policy priorities both in China and the EU (European Union) have transformed their bilateral relationship. In order to assess the impact of domestic policy priorities on bilateral energy cooperation and climate policy, this comparative study traces the evolution of EU and Chinese approaches to energy policy – and their relative emphasis on factors and frames such as availability, efficiency, affordability and environmental stewardship. Drawing on government documents and a data set of interviews with Chinese policy-makers, experts and academics in 2015–2016, the article argues that while the EU started with a strong emphasis on environmental stewardship and moved towards a focus on affordability and availability, China started with a strong emphasis on availability and has moved towards a greater emphasis on environmental stewardship. This shift in frames on the Chinese side and subsequent changes in subsidy structures and targets can partially explain the increase in investments in renewable energy technologies. The article concludes that the Chinese and EU perspectives have become more aligned over the past ten years, coinciding with an increasing trend towards renewable energy in Chinese energy investments in the EU, for example in Italy and the UK.