Comparing International Energy Contexts
Disclaimer: The summaries and interpretations provided on this page are unofficial and have not been reviewed, endorsed, or approved by the Canada School of Public Service (CSPS).
Summary
- Natural Resources Canada hosted a panel discussion on comparing international energy contexts to help understand Canada’s position in the global energy landscape
- The event featured three experts covering energy situations in China, Germany, and Cuba to provide diverse regional and political perspectives
- Philippe Rheault from the University of Alberta discussed China’s energy context, emphasizing that China is committed to green transition while maintaining economic growth requirements
- China faces an unwritten social contract where the Communist Party must ensure economic growth and governance quality in exchange for citizens accepting limited political participation
- Current U.S.-China tensions and tariffs are creating economic headwinds that may affect the pace of China’s clean energy transition plans
- China has become the global leader in clean technology and renewables, making this sector both an environmental responsibility and economic opportunity
- The green transition supports China’s national security by reducing dependence on energy imports that flow through vulnerable geopolitical chokepoints like the Straits of Malacca
- China’s relationship with Russia as an energy supplier involves mistrust and desires for diversification, despite rhetoric about limitless partnership
- China produced 11.5 million electric vehicles in 2024, representing half of domestic auto sales and two-thirds of global EV sales
- By 2023, electric vehicles had become so common in Chinese cities that internal combustion engine vehicles were more noticeable than EVs
- Chinese EV adoption is supported by government incentives including reduced license plate wait times and tax benefits for registration
- China exports approximately four million electric vehicles annually, including Teslas manufactured in Shanghai that were sold in Canada
- Chinese EV industry success stems from innovative entrepreneurship and hard-driving leadership, not just state subsidies and intellectual property issues
- China is the world’s largest power producer with per capita electricity usage now exceeding European Union levels
- China’s short to medium-term strategy involves using more coal but with cleaner, more efficient coal-fired power plants replacing older facilities
- Chinese leadership is betting that clean technology innovation will make renewable energy cost-advantageous compared to traditional sources within a decade
- China aims to maintain coal dependency through 2030-2035 while targeting near net-zero emissions by 2060
- Structural challenges to the transition include state-owned enterprises owning coal plants, uneven regional distribution, and vested interests in the status quo
Actionable Advice
- Monitor China's upcoming Five-Year Plan to assess their seriousness about meeting carbon reduction targets
- Consider cooperation opportunities with China as the global clean technology leader or develop competitive advantages to compete effectively
- Recognize that Western countries need to either collaborate with China's clean tech dominance or significantly improve their own competitive positioning
- Understand that clean energy transitions must balance environmental goals with economic growth requirements
- Account for national security benefits when evaluating clean energy investments, particularly regarding import dependency reduction
- Examine how government incentives like reduced bureaucratic wait times and tax benefits can accelerate clean technology adoption
- Consider the entrepreneurial and innovation factors behind China's success rather than attributing it solely to state support
- Prepare for the reality that coal may remain part of the energy mix in the short term while transitioning to cleaner alternatives