China's new ecological and environmental code

Ongoing conflicts in Ukraine, the Middle East and various parts of Africa are placing significant pressure on an already stressed global environment. Yet global climate governance continues to face uncertainty. The United States is increasingly perceived as an inconsistent advocate for climate action, while many countries across both the global north and south struggle to fulfil their national environmental commitments. Given this broader context, China's recent consolidation of its environmental laws into a unified Ecological and Environmental Code represents a notable development.

Adopted by the Chinese legislature during its annual session in early March, the new code will help integrate the country's numerous environmental regulations into a single legal framework. Harmonising rules on air and water protection, soil conservation, waste management and biodiversity make sense to help create a more coherent system of ecological governance.

Domestically, the code certainly signals Beijing's intent to embed environmental protection more deeply within its legal and policy structures. Such efforts will advance China's dual carbon objectives to begin incrementally capping carbon dioxide emissions by 2030 to achieve carbon neutrality before 2060. Such domestic targets carry global implications, as China is both the world's largest emitter of greenhouse gases and a leading manufacturer of clean energy technologies, including solar panels, batteries and electric vehicles. Policies adopted in China thus have immediate effects on global emissions trajectories and energy markets.

However, the Ecological and Environmental Code primarily governs China's domestic environmental framework and does not include explicit provisions regulating Chinese companies' operations abroad or projects under the Belt and Road Initiative. Policy guidelines do exist to guide Chinese firms operating overseas to undertake greener development. These guidelines, however, are not legally binding, and implementation has been uneven, particularly given the variation in environmental standards across host countries within which Chinese forms operate.

For China to gain credibility as a global environmental leader, however, it will need to pay greater heed to ensuring implementation of key environmental practices and safeguards linked to BRI-related projects around the world. Chinese companies operating overseas must uphold environmental standards mandated at home.

Another critical challenge lies in Chinese management of global supply chains of essential minerals needed for the clean energy transition. Technologies such as electric vehicles, solar panels and batteries depend heavily on materials like cobalt, lithium and rare earth elements, which are sourced from regions with weak environmental oversight. In the Democratic Republic of Congo, the world's largest source of cobalt, artisanal mining has led to serious environmental harm and unsafe working conditions. Chinese firms dominate the processing and refining of these materials, and China should bear responsibility to prevent both environmental damage and human rights violations within these supply chains.

There are significant opportunities for China to strengthen environmental cooperation with countries across the global South. Innovative approaches, such as debt for nature swaps or climate-linked financing, could be integrated with BRI projects to advance climate goals while supporting debt relief and enhancing the financial sustainability of these investments.

Ultimately, the global impact of China's environmental stewardship will depend not only on rigorous domestic enforcement but also on its willingness to mitigate the environmental consequences of its expanding international footprint.