Turning the page

New chapter in China-Canada climate and energy cooperation offers dividends for the world

Canadian Prime Minister Mark Carney paid an official visit to China from Jan 14 to 17 — the first by a Canadian head of government in eight years. The visit yielded substantial progress, with both sides reaching a broad consensus on deepening economic and trade ties. Notably, the two countries signed the China-Canada Economic and Trade Cooperation Road Map and established preliminary joint arrangements to address bilateral trade issues. These outcomes represent a milestone under the framework of the two nations’ strategic partnership and the Road Map stands as a significant high-level document in the history of Sino-Canadian economic relations.

During the talks, the two sides agreed to enhance the bilateral economic and trade joint committee mechanism, expand practical cooperation across sectors, and foster collaboration within multilateral and regional frameworks. These steps are poised to repair the recently-inflicted damage to ties and mark a constructive shift toward stabilizing diplomatic and economic relations — a move that will ultimately benefit the citizens of both countries.

A particularly promising dimension of the renewed engagement lies in climate and energy cooperation. The two sides committed to advancing global governance reform and accelerating the implementation of the United Nations 2030 Agenda for Sustainable Development. In a concrete step, Canada will grant China an annual quota of 49,000 electric vehicles, subject to a 6.1 percent most-favored-nation tariff without the earlier 100 percent surcharge. The quota is set to increase proportionally each year and is projected to reach 70,000 units within five years.

The meeting between Chinese and Canadian leaders at the outset of 2026 sends a positive signal — that cooperation, on climate and energy especially, will be forward-looking, pragmatic and rational. At a time when unilateralism and realpolitik are fragmenting the international landscape, this development rekindles faith in multilateral cooperation, diplomatic dialogue and negotiated solutions. It also reinvigorates global climate governance, which has long been fragile and under strain.

Communication always prevails over confrontation. Maintaining communication and dialogue between the leaders of China and Canada, enhancing consensus, and addressing inter-state contradictions and conflicts through diplomatic consultations are manifestations of mature, rational and responsible relations between two countries. Both sides have conducted multiple rounds of intensive consultations at various levels on economic and trade issues of mutual concern, continuously striving to narrow the list of issues. In particular, the emphasis on cooperation in the fields of climate and energy is aimed at implementing the important consensus reached by the leaders of the two countries. President Xi Jinping pointed out in video remarks to the UN Climate Summit in September 2025 that “the green and low-carbon transition is the trend of the times”, and that “the benefits of green development can reach all corners of the world”. Carney, who once served as the UN special envoy for climate action and finance, is a key architect of global environmental, social and governance regulations, and placed a similar emphasis on addressing the climate crisis and developing green industries. Of course, the final agreement also reflects the efforts of government officials at all levels from both sides, who actively mediated and communicated to achieve the cooperation.

The shared commitment of China and Canada to tackling the climate crisis and advancing the energy transition will not only bolster domestic low-carbon efforts in both countries but also inject much-needed momentum into worldwide climate action. For instance, within five years, more than half of Canada’s imported EVs are expected to be economy models priced below CAD 35,000, broadening affordable options for Canadian consumers. This volume approximates pre-trade-friction import levels, though it still constitutes less than 3 percent of Canada’s new car market. By opting for tariff-rate quotas over blanket tariffs, Canada can unlock bilateral cooperation potential, lower vehicle costs for its public and contribute tangibly — if modestly — to global transport sector decarbonization.

Studies underscore the transformative role of electric mobility. The International Council on Clean Transportation estimates that, based on a baseline 2024 scenario, rapid EV adoption could cut cumulative road transport emissions by 23 billion tons by 2050. Similarly, BloombergNEF’s 2024 Electric Vehicle Outlook projects that, under current policies, global road transport oil demand will peak in 2029 and fall to 6.27 billion tons by 2035. While methodologies differ, the direction is unambiguous: EVs are driving down carbon emissions in transport. The entry of Chinese EVs into Canada — and their growing global footprint — will further aid worldwide efforts to cut pollution and curb emissions.

The successful meeting and subsequent agreement signify a meaningful revival of multilateralism. In recent years, unilateral sanctions and tariff wars have undermined international stability and economic security. By choosing dialogue over confrontation, China and Canada have reaffirmed the relevance of the rules-based trading system centered on the World Trade Organization. Both sides also pledged to maintain stable and resilient global industry and supply chains, thereby averting a slide back into technological decoupling. Cooperation will be advanced through platforms such as the G20, the Ministerial on Climate Action, the China Council for International Cooperation on Environment and Development and the Kunming-Montreal Global Biodiversity Framework, alongside bilateral memoranda on climate and environmental collaboration.

Looking ahead, if both countries continue to engage in good faith and through sustained consultation, they can foster a more stable and enabling environment for expanded trade and investment — including in climate and energy. Such progress would yield mutual benefits, reinforce bilateral ties and strengthen the global momentum toward climate governance and energy transition. The dividends, in short, would extend far beyond the two nations.

The author is an assistant researcher at the Institute of American Studies at the Chinese Academy of Social Sciences.

The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.