On 9 April, Swatten, a subsidiary of Sieyuan Electric which is headquartered in Shanghai, China, made an appearance at Booth 58 of the Smart Energy 2025 expo in Sydney.

Coinciding with the event, Chris Bowen, Minister for Climate Change and Energy, reiterated Canberra’s Cheaper Home Batteries Program, which aims to permanently reduce energy bills for Australian households. Swatten’s innovative and smarter green energy solutions for residential and commercial users align with the program’s goals.

Four months later, Australia’s Fortescue, the world’s fourth-largest iron ore miner, announced on 8 August that it had secured a yuan-denominated loan worth 14.2 billion Chinese yuan (US$1.98 billion) with participation from leading Chinese, Australian and international lenders to ramp up its decarbonisation plans.

From China’s perspective, what enables deals like Fortescue’s loan, the first RMB-syndicated term loan of its kind by an Australian company, and technical support such as Swatten’s solutions to materialise? And what further developments might be expected? A recent think-tank report may offer valuable insights.

This report, prepared by a research team headed by Fu Hua, president of Xinhua News Agency and chairman of the Academic Committee of Xinhua Institute, and released on 10 August by Xinhua News Agency, provides a useful reference for understanding China’s ecological values and policy direction.

Titled “Lucid Waters and Lush Mountains for Beautiful China and World: China’s Ecological Civilisation Concept and Practice, and How They Inspire the World,” the report outlined a roadmap for international collaboration and highlighted emerging opportunities.

The report said China has built a multi-tiered system of green financial products and markets. It leads the world in both green credit and green bond issuance.

“As of the end of 2024, China’s outstanding balance of domestic and foreign currency green loans stood at RMB 36.6 trillion (US$5.08 trillion) and its total green bond issuance exceeded RMB 4.1 trillion (US$569.41 billion),” said the report.

China issues green bonds, provides green credit, establishes green development funds and attracts private investment for ecological conservation and green industry projects.

As for Australia’s Cheaper Home Batteries Program, Smart Energy Council chief executive John Grimes said the program “will not only slash power bills for 10 million Australians with solar but also ensure all Australians are at least A$1.3 billion (US$844 million) better off in 2030 through reduced wholesale electricity costs”.

“This Albanese Government program will literally help millions of Australians permanently reduce their energy bills,” he said.

Swatten’s new Single-Phase Hybrid Inverter (8/10kW) is purpose-built for high-demand households and small businesses. These green energy solutions support clean energy transition and reflect the results of China’s sustained ecological innovation over the years.

The think-tank report said eco-environmental needs drive technological innovation. Under the guidance of the “green is gold” concept, China put forward the theory of new quality productive forces, emphasising that these forces per se are green.

In July, during his visit to China, Australian Prime Minister Anthony Albanese advocated for joint efforts to address ecological sustainability and climate change.

Albanese said Australia remains committed to advancing practical co-operation in green industries, climate change response, and medical technology for mutual benefit, Xinhua reported. He said Australia is willing to work with China to address global challenges such as climate change.

This highlights the natural synergy between China and Australia in advancing ecological initiatives, paving the way for new opportunities.

As the think-tank report noted, China persists in leaders’ climate diplomacy. This presents a significant opportunity for international collaboration, including with Australia.

In the global climate governance process, the policy reversal by a certain country has introduced uncertainties for green transition. Against this backdrop, China has consistently injected stability into global climate governance with a responsible attitude.

Fortescue executive chairman Andrew Forrest said, “This (yuan-denominated loan) isn’t just a financial transaction. It’s a signal of what is possible when partners are aligned in ambition. As the US steps back from investing in what will be the world’s greatest industry, China and Fortescue are advancing the green technology needed to lead the global green industrial revolution.”

China is committed to driving the global green energy transition. Relying on sustained technological innovation and a robust industrial chain and supply chain system, among other factors, China has enriched global supply.

According to the International Renewable Energy Agency’s Renewable Energy Capacity Statistics 2025, China accounted for nearly 64% of the 585 GW of newly installed global capacity in 2024, making it the largest contributor.

For 10 years in a row, China has led the world in both photovoltaic and wind power installations, contributing more than 45% of growth in global non-fossil energy consumption. China has partnered with more than 100 countries and regions in green energy projects.

Ember, a global energy think-tank based in London and operating across six continents, cited the IRENA in a May report highlighting China’s annual patent filings for emerging clean energy technologies — including batteries, carbon capture, utilisation and storage, energy storage and smart grids — surged nearly tenfold between 2010 and 2022. This growth was led by breakthroughs in battery technologies and other storage solutions, such as hydrogen, thermal, and mechanical storage systems.

As mature technologies like solar and EVs achieve commercial viability, Ember noted that China is already pivoting towards the next-generation frontiers, including innovative energy storage solutions, smart grids, industrial electrification systems, and negative-emissions technologies.

In a Pearls and Irritations article published in July, Derek Woolner and David Glynne Jones wrote that “China’s renewable energy program is not a local curiosity. It marks a turning point in history with profound consequences for the rest of the globe”.

They argued that the speed of China’s renewable energy expansion gives it more options for climate change abatement diplomacy than most.

A shared vision enables meaningful collaboration between China and Australia. Seizing new opportunities paves the way for a jointly achieved, more sustainable future.

The views expressed in this article may or may not reflect those of Pearls and Irritations.