Event gallery

China 30•60 Seminar Series

 

Providing a platform to learn and exchange on China's target to become carbon neutral by 2060 and its impact on businesses.

 

17 November 2022

Green Finance

The German Centre Beijing and AHK Greater China organized the sixth and final China 30.60 decarbonization seminar for 2022: Green Finance in China.

Using green tech­no­lo­gies and clean energy, restructuring industries, and achieving China’s 30.60 goals requires significant investments as companies shift to new tech­no­lo­gies, services, and business models. The seminar presented an overview of China’s ESG-related legislation and supervision. It also introduced support measures for the smooth transition towards low-carbon and resource-efficient operations, including China’s carbon emission trading system market, ESG investing, and the country’s green tax system and green incentive mechanisms.

Ms. ZHU Jingyu, Chief Repre­sen­tative Officer, Deutsche Börse Group Beijing Repre­sen­tative Office, spoke about ‘carbon emission trading in China and the role of financial markets in facilitating the green transformation’ and described green finance as a key pillar to achieve 30.60 decarbonization goals. She made clear that sustainable finance is playing an increasingly important role in the capital market - both for companies and investors. Green bonds enable targeted investment in environmental projects and support companies to receive capital for green transformation.

ESG investing is gaining momentum in China: so-called ‘green panda bonds’ thrive amid further opening-up of China’s financial markets and allow foreign issuers to tap into its onshore bond market, based on China-EU common ground taxonomy. Domestic investor appetite for green assets can help fund the investment needs of companies’ transition to low carbon and climate resilient operations. On the equities side, Chinese Depository Receipts (CDR) offer international companies listing opportunities in China. Different equities offer exposure to sustainable investment themes and the performance is linked to shares or indices from ecological, ethical and social sectors.

Furthermore, Ms. Zhu introduced the voluntary carbon market as an important element to generate private investment necessary for decarbonizing the global economy and mitigating climate change; and forecasted continuing significant market growth. There are two main categories of voluntary carbon credits: reduction/ avoidance credits that reduce or avoid greenhouse gas emissions and removal credits that actively capture greenhouse gas emissions. The voluntary carbon market is designed to support corporates who seek to offset their residual or unavoidable emissions and gives companies the opportunity to purchase carbon offsets from verified suppliers. The revenues collected are used to finance carbon reduction projects.

Ms. Iris Pang, Tax Partner and Ms. Stacie Cui, Tax Senior Manager, PwC China introduced China’s Green Taxes and Green Incentives landscape. They not only provided an overview on a broad range of applicable regulations and categories, but also described challenges in implementation and sharing practical best-practice approaches for German companies in China.

Green taxes are imposed on environmentally harmful business activities, such as pollution, energy consumption, carbon emissions, fuel consumption, waste production and disposal, use of natural resources, motor vehicles and transport. The case study on a battery producer showed diverse opportunities to leverage green tax incentives along entire value and supply chains, encouraging taxpayers to undertake eco-friendly adjustments of their business activities, leading to significant tax reduction in various tax categories.

China’s green incentive mechanisms include a large variety of policies, issued by different departments of state insti­tutions on various administrative levels. The annual amount of subsidies in China hits hundred billion (excluding direct tax cuts and deductions). According to third-party statistics, however, the utilization ratio of the preferential policies applicable to enterprises may be less than 50%. Ms. Cui introduced major green incentives and financial subsidies granted at different provincial or municipal levels. On the example of incentive mechanisms of the Beijing Economic Development Zone for the hydrogen industry, she illustrated local focuses on support of specific industries, which can be a key criterion in enterprises’ choice of location.

Challenges in the implementation of green tax benefits and green incentives in China are the multitude of scattered regulations, a lack sustainability and stability, as well as lack of publicity of green incentives narrowing application scope and objective assessment criteria. However, it should be the goal of every German company in the Chinese market to reduce their tax burden by smart production processes; see green incentives as a means of reducing costs of the green transformation; and identify opportunities of incentives and subsidies through energy efficiency projects and sustainable operations.

A helpful tool to discover details about global climate- and carbon-related tax matters and better understanding of potential tax costs and benefits of the ESG agenda on your business operations: PwC Green Taxes and Incentives Tracker

The seminar marked the sixth and final seminar of our China 30.60 series in 2022, jointly hosted by German Centre Beijing and AHK Greater China.

Details on this and other seminars of the series can be found here: www.germancentre.cn/en/news-events/china30-60/ 

20 October 2022

New Mobility

The German Centre Beijing and AHK Greater China organized the fifth seminar in the China 30.60 decarbonization series: New Mobility in China.

China is a global leader in new mobility solutions. Alternative drive tech­no­lo­gies such as electric, hybrid and fuel cell drive systems can help decarbonize the transport sector, while innovative tech­no­lo­gies such as smart transportation concepts can reduce mobility-related emissions.

The transformation towards zero-emission mobility offers great opportunities for German companies across value chains to modernize and develop new products and services. In order to be successful in the highly competitive Chinese market, German companies need to rethink the ways they do business, act fast, and take bold steps.

The seminar presented an overview of the automotive markets in China and Germany, mega trends of new mobility such as electrification and digitalization, opportunities and challenges of the transformation, the importance of agility, and decarbonization in the automotive industry.

Ms. Stacy Dong, Trade and Policy Manager, German Associ­ation of the Automotive Industry (VDA) China, spoke about ‘New Mobility in the New Era of Automotive Industry’ and gave an overview of the automotive market situation in Germany and China. Then she introduced the mega trends of new mobility, namely Electrification and Digitalization and the opportunities and challenges, such as cleaner energy with less dependency on fossil fuels, cleaner driving with less emissions in use phase, and more efficient traffic decision making, while also dealing with EV safety and performance and material recycling, and cybersecurity. Ms. Dong pointed out that German manufacturers are the driving force for electromobility in Europe and German brands still hold the biggest oversea market shares in China and many other export markets.

At the same time, Ms. Dong said that China’s 30.60 goals represent an ongoing challenge for German OEMs and suppliers. Automotive decarbonization needs global solutions across entire value chains. It should be built on a three-pillar approach where manufacturers not only provide Electric Vehicles and Intelligent & Connected Vehicles as a green product, but also reduce the corporate carbon footprint by implementing green production processes (Scope I & II), and ensure green supply chains, incl. supplier selection, logistics, and more (Scope III).

Mr. Kai-Marcel Dodel, General Manager, ZF Transmissions Shanghai presented “Opportunities of the Transformation to Mobility 4.0” from a technology supplier perspective. He talked about next generation mobility and related opportunities and challenges, in particular those faced by a tier one automotive supplier. After discussing the pros and cons of different power sources and engines, e.g. battery, synthetic fuels, e-fuels, hydrogen, etc., Mr. Dodel talked about transformation in the automotive industry.

Considering the fast-changing market and increasing demand for innovative solutions on the way to the next generation of mobility, Mr. Dodel sees the agile transformation of companies as a key success factor. This includes four areas of transformation, i.e. product, flexible operations, digitalization and people. Mr. Dodel’s suggestions for German companies also evolve around agility: take a positive glass-half-full approach; seek for new opportunities; set flexibility as priority; empower your team and supporters; and don’t get distracted by the “daily noise”.

Mr. Michael Chen, Partner, Ernst & Young, presented current market develop­ments and its effects on the mobility sector. He outlined three elements that are redefining transportation and the automotive industry in China: Digitization, CASE Mobility (Connected, Autonomous, Sharing and Electrification), and Smart City and Smart Car.

It became clear that the whole mobility industry is turning to be more digital, customer centric, and service oriented. Data becomes the critical asset for transforming OEM’s traditional operation models and develop new technological applications. An increasing number of smart cities are the platform to grow opportunities for IOT, AI, and Big Data. At the same time mobility concepts are expanding, e.g. micro mobility options represent an exciting, eco-friendly and affordable travel alternative.

Summarizing, Mr. Chen outlined diverse approaches to address the industry changes and utilize the ‘China opportunity’ on a company’s strategic chessboard. Digitization, CASE and Double-Smart develop­ments are challenging companies’ strategic transformation, but at the same time offering manifold opportunities for new innovative initiatives.

The seminar marked the fifth event of a China 30.60 series, jointly hosted by German Centre Beijing and AHK Greater China.

The sixth and final seminar in the China 30.60 decarbonization series is on Green Finance (17 November 2022).

Details on this and other seminars of the series can be found here: www.germancentre.cn/en/news-events/china30-60/ 

22 September 2022

Circular Economy

The German Centre Beijing and AHK Greater China organized the fourth seminar in the China 30.60 decarbonization series: Circular Economy in China.

China’s decarbonization goals should be supported by the creation of a sustainable circular economy - designed to minimize resource input, as well as waste and emission production.

In a circular economy, products are designed for durability, reuse and recyclability, and materials for new products come from old products. As much as possible, everything is reused, remanufactured, recycled back into a raw material or used as a source of energy. The transition to a circular economy should be made across entire value chains. It does not intend to simply combat the defects of a linear economy but provides a systematic shift.

The seminar outlined market opportunities, challenges and best practices for German companies in the field of circular economy in China.

Mr. WEN Bin, Deputy General Manager, German Mechanical Engineering Commercial Services Beijing (VDMA - GMECS), gave an overview on circular economy and related regulatory frameworks in China, and described latest trends and China’s goals for further development of a circular economy until 2025.

He emphasized the importance of the shift to a more circular economy on China’s road to carbon neutrality when describing waste recycling as one of the effective means to reduce carbon emissions. In various case studies he showed best practice examples in the fields of plastics and textile recycling, such as PLA (polylactic acid) as a sustainable upstream raw material with a broad range of downstream application areas, e.g. degradable drinking straws or food packaging and 100% bio-based and compostable coffee-to-go cups.

Mr. Wen showed that German manufacturers have to adjust their products and production processes to comply with regulations in China. But at the same time, there are manifold opportunities for German companies and their innovative solutions, due to high-end market expansion and increasing demand for advanced equipment and innovative technology.

Ms. Beatrice Han, Deputy General Manager, ALBA China Recycling Solutions, spoke about ‘recycling for a sustainable future’ and showed the importance of a whole lifecycle approach for decarbonization in different focus areas, and why recycling and re-manu­fac­tur­ing is a key element of green transformation, low-carbon and circular development.

Ms. Han described China 30.60 as a game changer for circular economy and introduced different ALBA projects to support the development of zero waste cities in China, such as the Urban and Rural Bio-waste Recycling Center in Haikou, Xuchang and Guiyang and the Green Fuel project in Jieyang.

Key takeaways from her presentation included that decarbonization requires an integrated approach to all product life cycles and that recyclability by design is critical to enhance recycling efficiency. China is the largest emerging market for circular economy with great potentials for German tech­no­lo­gies in zero-waste city construction.

Dr. Patrick Gloeckner, Head of Global Circular Plastics Program, Evonik Operations GmbH, introduced ‘specialties to enable sustainable plastic applications’ and showed how Evonik solutions and tech­no­lo­gies enable the transition from linear to circular plastic value chains. This includes multi-faceted services and solutions helping their clients to keep plastics in the loop, e.g. adsorbents, catalysts and additives for mechanical recycling to monomer recovery up to feedstock recycling.

Dr. Gloeckner presented various practical examples for high quality applications enabled by high performance additives, such as cooperation with BMW on developing solutions for sustainable, recycled car materials; or cooperation with Wildplastic – harvesting plastic waste from nature to produce new products, such as trash bags, with recycled materials.

When being asked for the main drivers for a decision to research and develop new additives and other innovative solutions during the seminar’s Q&A session, Dr. Gloeckner emphasized the importance of customer requirements and project-based B2B cooperation, as well as regulatory incentives.

The seminar marked the fourth event of a China 30.60 series, jointly hosted by German Centre Beijing and AHK Greater China.

The next seminar in the China 30.60 decarbonization series is on New Mobility (20 October 2022).

Details on this and other seminars of the series can be found here: www.germancentre.cn/en/news-events/china30-60/

 

19 May 2022

Green Buildings

The German Centre Beijing and AHK Greater China organized the third seminar in the China 30.60 decarbonization series: Green buildings in China.

China is the factory of the world and there are countless industrial facilities all over the country. In order to achieve China’s energy and environmental goals, the number of green buildings needs to be increased, while existing industrial buildings need to be refurbished. The Green Buildings seminar outlined market opportunities, challenges and best practices for German companies in the field of green buildings in China.

Ms. XU Conghua, Project Manager Building, Energy & Environment, econet china, gave a market overview and described latest trends in the green building sector. With 2.23 billion tce and nearly 5 billion tons of CO2 emissions in all related processes, the building sector is among top three industries with the highest energy consumption and emissions. Therefore, green building standards were strengthened in recent years and the green transformation of the building sector is a key area in order to achieve China’s dual carbon targets. Ms. Xu also showed opportunities for German service providers and manufacturers, e.g. in the fields of planning, architecture and engineering solutions; energy-efficient systems for heating, ventilation and cooling; or building-integrated photovoltaics.

Mr. Benedikt Ertl, Regional Manager Asia, Delta ImmoTec GmbH, shared best practices on how to reduce the carbon footprint of new buildings on the example of the planning and construction of a new energy-efficient Dräxlmaier plant in Shenyang. Practical approaches include: utilization of factory roofs for solar power generation, effective building insulation, energy-efficient pumps and compressors, daylight-controlled lighting systems, and metering and consumption measurement systems.

Dr. Jochen Nippel, Managing Director Beijing Door Production Ltd., Hörmann Group, presented Hörmann’s approach to minimize its carbon footprint along the entire supply chain. The company’s comprehensive framework concept for ‘the green factory of the future’ not only covers green building design, but also aspects such as the optimization of logistics networks and material handling; energy-efficient production processes; or recycling and remanufacturing of parts and products. The carbon footprint thinking is also reflected in a green product design. Hörmann door systems can lead to energy savings in production processes of manufacturers due to smart tech­no­lo­gies such as integrated systems for door opening based on adjusted speed and needed height; or self-repair, failure analysis, and signal to call for external or remote maintenance.

The seminar marked the third event of a China 30.60 series, jointly hosted by German Centre Beijing and AHK Greater China. Next topic will be Circular Economy (22 September 2022).

Details on this and other seminars of the series can be found here: www.germancentre.cn/en/news-events/china30-60/

28 April 2022

Green Manu­fac­tur­ing

The German Centre Beijing and AHK Greater China organized the second seminar in the China 30.60 decarbonization series: Green manu­fac­tur­ing in China.

The green transformation of China’s manu­fac­tur­ing sector is key for more sustainability and a greener economy. Businesses need to shift away from fossil fuels, embrace new tech­no­lo­gies and change the way they operate. In our online seminar, attended by more than 170 participants from different industries, three industry experts outlined market opportunities and challenges and introduced practical approaches to transitioning towards carbon-neutral manu­fac­tur­ing.

China’s green manu­fac­tur­ing sector experienced rapid development in recent years, which is further accelerated by China’s 30.60 pledge. Speaker ZHAO Haina of the German Mechanical Engineering Associ­ation VDMA forecasted, that: “The output value of the environmental protection industry is going to increase from 7.5 trillion yuan (2020) to 11 trillion yuan (2025).”

All manufacturers in China, including German companies, need to contribute to a greener China. Businesses need to integrate sustainability concepts to realize responsible product design, achieve energy efficiency in operation and production, and reduce carbon footprints. Attendees gained valuable insights and best practice approaches:

Alexander Krausse, Vice President Production Region APAC for the GEA Group, introduced GEA’s global sustainability strategy and their sustainability approach in China. GEA Group, one of the world's largest suppliers of systems and components to the food, beverage and pharmaceutical industries, aims to achieve net zero production processes by 2040. GEA’s net zero concept covers five key action areas for responsible operations such as energy, recycling, and building. Mr. Krausse stressed the importance of comprehensive analysis of local operations and cooperation with capable and experienced consultants, in order to implement a green manu­fac­tur­ing approach and responsible operations on a local level in China.

YANG Hailin, Sustainability Manager in Siemens Ltd. China, introduced Siemens’ holistic approach for realizing carbon-neutral operations in China and talked about energy efficiency in operation and production, responsible product design, and leveraging digitalization. Siemens China launched its "Zero-carbon Pioneer" Initiative to foster sustainability development and create value across industry and society. With digital innovations and cross-industry expertise, the company aims to co-create a green ecosystem with all partners in China to help build end-to-end zero-carbon industrial chains, in support of China’s 30.60 goal. The company’s decarbonization strategy does not only focus on own production processes, but addresses greenhouse gas emissions ‘from cradle to gate’.

The seminar marked the second event of a China 30.60 series, jointly hosted by German Centre Beijing and AHK Greater China. Next topic will be Green Buildings (19 May 2022).

Details on this and other seminars of the series can be found here: www.germancentre.cn/en/news-events/china30-60/

24 March 2022

Renewable Energy

The German Centre Beijing and AHK Greater China organized the first seminar in the China 30.60 decarbonization series on 24 March 2022.

China’s energy system is transitioning towards renewable energy. In our hybrid seminar, attended by more than 170 participants from different industries, industry experts outlined market opportunities and challenges for DACH companies and introduced practical approaches to transition towards greener energy sources. Renewable energy production and consumption, in particular solar PV and wind energy markets, are showing constant growth over the last decade, which is further accelerated by China’s 30.60 pledge.

Speaker Kevin Tu concluded: "The establishment of a new type of power system with Chinese characteristics will bring both opportunities and risks to market players. Identifying the appropriate (niche) market is important for sustainable operations of international companies in the Chinese market."

Attendees gained valuable insights and best practice approaches. CRRC Voith, a Sino-German joint-venture which develops and produces wind turbine gearboxes, is a great example for innovative and digitized production processes. Markus Schlosser demonstrated how CRRC Voith optimized supply chains and reduced costs by implementing new tech­no­lo­gies.

Hu Caihong introduced Volkswagen Group’s “goTOzero” mission and the company’s approaches on decarbonization of production. Her presentation included suggestions on how to reduce carbon emissions for suppliers and SME manufacturers in China, and, in particular, explained what should be the basis of make-or-buy decisions when switching to renewables.

Special thanks go to the events' expert speakers,

  • Ms. Hu Caihong, Director of Environment Management for Volkswagen Group China,
  • Mr. Kevin Tu, Managing Director of Agora Energy Transition China,
  • Mr. Markus Schlosser, Managing Director of CRRC Voith Transmission Technology in Beijing,

as well as everyone attending.

The seminar marked the beginning of a China 30.60 series, jointly hosted by German Centre Beijing and AHK Greater China. Next topic will be Green Manu­fac­tur­ing (28 April 2022).

Details on this and other seminars of the series can be found here: www.germancentre.cn/en/news-events/china30-60/