Climate collaboration with China serves Canada’s national interests
Canada and China share a stake in mitigating climate change, and leveraging each other’s strengths can lead to faster progress.
Prime Minister Mark Carney, left, met with Chinese Premier Li Qiang on the margins of the UN General Assembly on Sept. 23. Screenshot courtesy of X
OPINION | BY WENRAN JIANG | September 29, 2025
Amid complex geopolitical currents, Prime Minister Mark Carney’s government faces a precarious “two-front trade war” with the United States and China. With Washington imposing sweeping tariffs, and Beijing retaliating against Ottawa’s trade barriers, provincial premiers have unanimously called for pragmatic re-engagement with China.
Their urgency stems from economic losses: agricultural sectors crippled by Chinese tariffs, manufacturing disruptions, and stalled clean energy transitions. Premiers like Saskatchewan’s Scott Moe and British Columbia’s David Eby have urged Ottawa to drop its 100-per-cent tariff on Chinese electric vehicles in exchange for China lifting retaliatory measures.
During his recent address at the Council on Foreign Relations, Carney emphasized the need for a clear-eyed engagement strategy, noting Canada could “engage deeply” with China on energy and basic manufacturing. He highlighted China’s sincerity on climate change, pointing to Beijing’s “standing offer” to partner on climate issues. The recent meeting between Carney and Chinese Premier Li Qiang at the UN General Assembly marks a significant step toward resetting bilateral relations. Both leaders acknowledged constructive dialogue at August’s Joint Economic and Trade Commission meeting, and committed to high-level exchanges.
Wenran Jiang is adviser at the Institute for Peace & Diplomacy. Handout photograph
Framing China solely through a security lens risks overshadowing pragmatic co-operation on climate change. For Canada, engaging with China on clean energy is not merely optional—it is strategic. Canada aims to reduce emissions by 40 to 45 per cent below 2005 levels by 2030, and achieve net-zero by 2050. China leads in renewable technology, producing more than half of the world’s solar panels and dominating wind turbine and EV supply chains. Their complementary strengths are clear: Canada possesses critical minerals like lithium, nickel, cobalt, and copper, while China excels in processing and manufacturing clean technologies.
Two areas offer immediate potential. First, critical mineral supply chains. Canada’s mineral reserves align with China’s manufacturing scale. Joint ventures in processing, battery production, or rare earth refining could bolster Canada’s value-added industries while securing China’s supply needs, aligning with Canada’s Critical Minerals Strategy. Second, clean technology innovation. Collaboration on carbon capture is underway, with memorandums of understanding between Canadian entities and Chinese firms like Sinopec and China Huaneng Group. Partnerships in renewables—wind, solar, green hydrogen—could accelerate cost reductions. Canada’s nuclear expertise also complements China’s expanding sector.
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Yet political headwinds persist. Bilateral relations are strained by diplomatic spats and security concerns. Canada’s foreign investment reviews have blocked Chinese-linked projects in critical minerals. This was reflected in Li’s remarks that Ottawa must “adopt a correct perception of China,” and respect Beijing’s core interests, showing gaps in mutual perceptions.
These challenges are compounded by trade tensions. China retaliated against Canada’s EV tariffs with anti-dumping investigations into Canadian canola, a sector generating $5-billion annually in exports to China. The trade war hurts farmers, disrupts supply chains, and makes EVs less affordable for Canadians.
Simultaneously, Canada’s domestic climate policy has faltered. The federal government recently paused its ambitious EV sales mandate, which required 20 per cent of new vehicles sold to be zero emission by 2026, rising to 100 per cent by 2035. With EV sales stagnating at around eight to nine per cent of the market, Canada’s transition to clean transportation risks stalling. The tariff war exacerbates this situation by limiting affordable EV options.
Investment remains a hurdle. While two-thirds of global clean energy investment comes from China, its presence in Canada is limited due to regulatory barriers. Canada forced Chinese investors to divest from a rare earth mining project, hindering capital flow for scaling clean energy.
Despite tensions, opportunities persist. Bilateral business councils promote investment dialogues. Quebec’s 30 per cent zero-emission vehicle sales success shows policy stability drives adoption. Canada’s strengths in hydrogen and green ammonia could attract Chinese technology and scale.
To advance co-operation, Ottawa must clarify investment frameworks to reduce ambiguity. It should expand joint research and development in solar power and battery storage, leveraging China’s technical expertise. Both nations should prioritize multilateral climate forums to build trust.
The New York meeting underscores that Canada and China are navigating a pivotal juncture. By addressing trade disputes through dialogue and leveraging multilateral platforms, both countries can transform climate collaboration into a stabilizing force.
The trade war and retreat from EV targets underscore a broader dilemma: Canada cannot achieve its climate goals alone. Protective tariffs ultimately slow the clean transition by isolating Canada from global supply chains. Carney’s “tiered engagement” approach offers a pragmatic path forward. Treating climate collaboration as a technical, rather than geopolitical, issue could unlock synergies.
Canada and China share a stake in mitigating climate change. By leveraging each other’s strengths—Canada’s resources and innovation, China’s technology and scale—they can advance decarbonization faster than going it alone. Pragmatic co-operation is not a concession; it is a strategic necessity for a secure, sustainable future.
Wenran Jiang—the founding director of the China Institute, and MacTaggart Research chair emeritus at the University of Alberta—is the president of Canada-China Energy and Environment Forum, and an adviser at the Institute for Peace and Diplomacy.
The Hill Times