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ARTICLE · 05 MARCH 2026

China's Command Economy And Climate Growth: Centralization, Decarbonization, And Global Implications

A&O Shearman
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Amid a fragmenting global energy landscape shaped by geopolitical tension and heightened energy security needs...

ChinaEnergy and Natural Resources

Amid a fragmenting global energy landscape shaped by geopolitical tension and heightened energy security needs, China has pursued a distinctive path: a state-led economic model built on centralized resource allocation, standardized procurement, and top-down implementation. This has enabled rapid advances in renewables, electric vehicles, and battery technologies, with China quickly becoming a world leader in all three areas.

“China's unified rules facilitate the seamless connection of wind and solar farms to the grid”

Policy architecture and implementation

Two structural features underpin China's decarbonization drive.

  1. Centralized mandate: China's decarbonization efforts are driven by a hierarchical legal and regulatory framework. Announced by President Xi Jinping in 2020, China has set “Dual Carbon” goals—peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. Its “1+N” policy architecture operationalizes these goals. The “1” refers

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