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In the News Teaching Activity – Are China’s climate targets ambitious enough? (Sept 2025)

Elizabeth Veal

29th September 2025

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China’s targets may under-promise yet still nudge greener growth more than Trump’s climate denial

China’s latest pledge to cut emissions by 7–10 % by 2035 may feel timid compared to what climate scientists urge, but its approach emphasises realistic baseline targets and aims to use state capacity to deliver over-achievement – a typically Chinese approach. The strategy internalises negative externalities in long-term planning, channelling investment into green tech and low-carbon infrastructure. Economically, this top-down certainty may better mobilise capital than aspirational goals. In contrast, Trump rejects the climate market altogether, denying the case for carbon pricing or regulatory intervention—avoidng even the basic economics of externalities.

China does targets differently to the West - and it may be just what the world needs | Science, Climate & Tech News | Sky News

1. Explain the term externalities and give two examples of the negative externalities caused by climate change.

2. China sets realistic climate targets and uses top-down policy to drive investment in green technologies. Assess why this approach might be more effective than setting over-ambitious emissions targets that risk being missed.

3. Discuss the potential benefits and costs of pursuing greener growth. In your answer, contrast China’s state-driven commitment to long-term climate policy with the more sceptical, market-resistant stance of the United States under leaders such as Donald Trump.

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Elizabeth Veal

Liz has taught Economics for over 25 years, including several years as Head of Economics at leading schools.