Weathering Global Energy Supply Chain Volatility: Key Insights from CISCE

“Green Powering the Future, Connecting the World Through Supply Chains.” The 4th China International Supply Chain Expo (CISCE) was held in Beijing from June 22 to 26.

Against a backdrop of profound shifts in the global energy landscape, overlapping geopolitical conflicts and rising trade protectionism, the stability and security of energy supply chains have become a cornerstone of global climate governance and energy security.

At clean energy-themed sessions, representatives from governments, industries, academia and research institutions held in-depth discussions under the theme “Powering a Green Future: Transformation and Upgrade of Energy Supply Chains and China’s Role”. A clear, unified industry consensus emerged amid the exchanges: amid new trends and shifts, only cooperation can boost supply chain resilience, and security can underpin the energy transition, enabling steady, far-reaching global green low-carbon energy transformation.

Prioritizing Security and Self-Sufficiency to Build a Sustainable Energy Supply System

Stable energy supply serves as the prerequisite for energy transition.

China has built the world’s largest and fastest-growing renewable energy system: its non-fossil energy consumption has ranked first globally for 11 consecutive years, accounting for 21.7% of total energy consumption. Installed renewable power capacity makes up over 60% of the country’s total power capacity, becoming the primary power source in China. Wind and solar power installations hit 1.84 billion kilowatts, historically surpassing thermal power and contributing more than half of all newly added installed capacity worldwide. China also leads the globe in operational and under-construction nuclear power capacity, as well as installed new energy storage capacity.

Behind this massive installed capacity lies the solid industrial implementation of the “advance new energy before phasing out fossil fuels” transition logic, with central state-owned energy enterprises acting as core practitioners of this approach.

Faced with persistent turbulence in global energy markets, central enterprises are scaling up domestic supply capacity while expanding international cooperation networks to comprehensively enhance the security and controllability of industrial and supply chains.

CNOOC conducts overseas oil and gas operations across 17 countries. As China’s largest and the world’s second-largest LNG importer, it leverages resource networks spanning over 30 countries and regions to boost the flexibility and reliability of natural gas supply.

Sinopec advances both clean utilization of fossil fuels and large-scale development of clean energy. It operates the Fuling Shale Gas Field, China’s first field with proven reserves exceeding one trillion cubic meters, and the country’s first million-ton CCUS demonstration project. The group has also built the world’s largest photovoltaic hydrogen production facility and the most extensive hydrogen refueling station network, driving high-quality industrial development.

China Datang’s overseas footprint covers more than ten countries across Southeast Asia and Central Asia, with nearly 5 million kilowatts of operational, under-construction, approved and planned overseas installed capacity. Its local staffing rate exceeds 70%, delivering reliable clean power to host nations while upgrading local energy industrial chains.

Liu Jiannan, Vice Chairman of the China Council for the Promotion of International Trade and Vice Chairman of the China Chamber of International Commerce, stressed that the energy transition is “not an optional choice, but an essential question tied to sustainable development.” Clean energy has become the core driver of global energy transition, continuously pushing industrial and supply chains toward decarbonization and green development.

Pursuing Innovation-Driven Development to Forge Win-Win Green Low-Carbon Models

Deepening the energy transition hinges on technological innovation as the core pillar. Signals from this year’s CISCE show that China’s clean energy innovation is making simultaneous breakthroughs in technological research, business model reform and cross-border sharing, replicable win-win pathways for global green low-carbon transformation.

In core technology research and development, multiple homegrown technologies have joined the world’s top tier, forming robust support for industrial upgrading.

China National Chemical Engineering Group’s self-developed polysilicon production technology has undergone five generations of iteration over 15 years, cutting energy consumption by 90%. It now holds over 95% of the global market share, driving sharp cost reductions across the entire photovoltaic industrial chain.

Qiao Xubin, Chairman of China Energy Engineering International Group, disclosed that the company has constructed the world’s first 300 MW compressed air energy storage project and the Songyuan Green Hydrogen-Ammonia-Methanol Integration Project. It is also developing cutting-edge technologies including high-altitude wind power and deep underground compressed air energy storage, delivering diversified technical support for building new power systems.

Beyond breakthrough core technologies, innovations in business models and industrial positioning are key to removing bottlenecks in real-world technology application.

Jia Zhonghua, Director of the Machinery Industry Environmental Protection Development Center under the State-owned Assets Supervision and Administration Commission, proposed that the environmental equipment industry must shift from an “end-of-pipe treatment cleaner” to a “booster for low-carbon transition”. This entails activating green consumption demand through institutional reforms, seizing new circular economy tracks via technological breakthroughs, and transforming industrial clusters into comprehensive service providers.

China Energy Conservation and Environmental Protection Group has formulated development plans for 14 zero-carbon industrial parks, with two plans for Beihai in Guangxi and Yichun in Jiangxi selected into China’s first batch of national-level zero-carbon park blueprints, forming replicable comprehensive energy service models.

Innovative achievements are not limited to domestic application but shared globally through international collaboration. China Datang developed the Buka PV power station in Uzbekistan, alongside supporting energy storage and wind power projects. It exports a full industrial chain covering investment, equipment, technology, standards, innovation and capacity building, and co-founded the Silk Road Energy Joint Science and Technology Innovation Center with Uzbekistan’s energy ministry to foster local industrial ecosystems.

Embracing Open Cooperation to Elevate Global Energy Governance

Cross-border flows of innovative outcomes prove that open cooperation is an inevitable path for energy transition. Stable, sustainable operation of global clean energy supply chains requires not only industrial and technological coordination but also a fair, inclusive and balanced global energy governance system as institutional backing.

“Green trade barriers and excessive securitization trends hinder the free circulation of clean energy products and technologies, posing long-term constraints to global energy transition,” Liu Jiannan noted. “China’s business community firmly opposes all forms of protectionism, advocates inclusive economic globalization, and actively promotes a fair, inclusive and balanced global energy governance system.”

This stance is backed by China’s tangible contributions to worldwide clean energy transition: China has carried out green energy cooperation projects with more than 100 countries and regions, supplying over 80% of the world’s photovoltaic modules and 70% of wind power equipment. UHV power transmission and advanced nuclear power have become world-renowned Chinese brands. China’s domestic green certificate market sees rising trading volumes and prices, and RE100 fully recognizes Chinese green certificates. The circle of partners under the Belt and Road Energy Partnership keeps expanding.

Mutual recognition of rules and standards forms a foundation for open cooperation. Liu Jiannan called on Chinese and foreign enterprises and institutions to strengthen standard coordination in renewable energy traceability, carbon management and new power systems to jointly advance global green transition.

“Though the road is long, we shall arrive if we keep walking; though the task is hard, we shall succeed if we persevere.” This sentiment was echoed by all participants at the event.

For the transformation and upgrading of clean energy supply chains, security and controllability serve as the bottom-line guarantee, innovation as the core engine, and open cooperation as the long-term path. The three pillars reinforce one another and work in tandem to truly connect the world through supply chains and power a greener future.