Speaking by video at the UN Climate Summit in New York last week, China's president Xi Jinping laid out his country's climate ambitions. While the stated goals may not have been aggressive as some environmentalists would like, Xi at least reaffirmed China's green commitment.

“Despite some countries going against the trend, the international community should stay on the right track, maintain unwavering confidence, unwavering action, and undiminished efforts,” he said. Any reference to Donald Trump and the United States was surely intended (though not explicit).

The march of the energy transition is a long one, but it has to start somewhere. And with this approach, China has already taken quite a few steps.

Beijing Stands (Mostly) Alone

Today, there is no race to be a climate leader. The world is a far fry from the COP26 conference in November 2021, when tackling the threat of climate change seemed like a global priority. A few months later, Russia invaded Ukraine; the ensuing energy crisis and inflation kicked climate off of many political agendas.

While Joe Biden and the United States responded to soaring prices with the Inflation Reduction Act, which prioritized investment in renewable energy, Donald Trump subsequently withdrew the US from the Paris Agreement—an international accord to limit global warming—for the second time. The European Union has also stuttered: Too internally divided, it did not go beyond a drab declaration of intent at the UN Climate Summit. There hasn't been much movement from India, a country of nearly 1.5 billion people. And other nations' emissions are simply too small to matter.

Given this background, it becomes easy to understand how, in this scenario, China has become a global leader in the clean energy transition. Xi's speech did not go into much detail, but it did mention all the main points of China's strategy.

Cut Emissions Between 7 Percent and 10 Percent by 2035

In New York, Xi acknowledged the importance ...