Carbon emissions, market share among key components for growth

With China entering a new era of green and innovation-led growth, the country's soaring demand for solutions and products aimed at reducing carbon emissions will become a key driving force for French companies to accelerate localization and seize greater market share, said industry experts and business leaders.

They said huge demand in China will not only push French businesses to deploy innovative market activities, but also encourage them to introduce more products, technologies and services for high-end manufacturing, energy and carbon reduction in the country.

Zheng Huiqiang, president of the Shanghai Service Federation, said that China and France have been seeking a closer partnership to cope with climate changes by extending their technological exchanges and sharing their experiences to cut carbon emissions.

Laurent Bili, former ambassador of France to China, said that technologies and the expertise of French companies in this field can assist China in fulfilling its target to reach carbon dioxide peak by 2030 and carbon neutrality by 2060.

Their collaboration could play a leading role in the world community to tap into the countermeasures for climate change, he noted.

Guillaume Bernard, chairman of the China committee of French Foreign Trade Advisors, said France and China can expect closer cooperation in the issues of climate change because France could provide mature technological applications while China has a favorable environment to go with space for research and development.

French environmental solutions provider Veolia Group expects strong growth from the Chinese market this year, as the government's policies have created massive opportunities in ecological and environmental protection in the country. Even against the backdrop of a possible global economic recession, Veolia remains optimistic about China's economy and its operations in the country this year, considering the strong determination of the Chinese government to combat pollution, said Christophe Maquet, senior executive vice-president of Veolia's Asia-Pacific region.

"Despite the impact of the COVID-19 pandemic and geo-economic fragmentation, the company still achieved a better-than-expected performance globally last year and we are confident and optimistic about our operations in China's water, solid waste and energy management sectors in 2023," he said. Maquet added his confidence in the Chinese market comes not only from the size of the country's population but also from the speed of its development.

"Veolia will continue to work with its local partners to provide comprehensive resource management optimization solutions for ecological transformation," he said.

CMA CGM Group, the French shipping and logistics services provider, signed a long-term strategic collaboration agreement with Shanghai International Port (Group) to develop the mass scale use of "cold ironing" technology — the use of onshore power supply for container ships — at ports of Shanghai in December 2022.

Beginning on Dec 15, 2022, all fully-fitted CMA CGM container ships calling at ports of Shanghai will systematically use the onshore power connection.

By allowing ships to shut down auxiliary engines and use an onshore power supply while at berth, "cold ironing" eliminates sulfur oxide, particulate matter, and nitrogen oxide emissions, significantly improving air quality while also reducing noise pollution.

Ludovic Renou, CEO of CMA CGM China, said the group is steadfastly committed to installing more environmentally responsible solutions on board its vessels, the company supports cold ironing and it will continue to equip its fleet accordingly.

"We will continue to join hands and drive forward more meaningful transformations to pioneer the energy transition together in China," he said, adding the group will have a fleet of 77 liquefied natural gas-powered vessels of various sizes by the end of 2026.

Pushed by China's industrial upgrading and green energy revolution, many global companies will continue to deploy the innovative digital capabilities, deep cross-industry expertise and broad ecosystem partnerships to deliver on the promise of technology and human ingenuity while also pursuing development in more sustainable ways, said Zhang Yongjun, a researcher at the China Center for International Economic Exchanges.