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Purpose

The purpose of this paper is to explore China's current policy and policy options regarding the shift to a low‐carbon (LC) development.

Design/methodology/approach

The paper uses both a literature review and empirical systems analysis of the trends of socio‐economic conditions, carbon emissions and development of innovation capacities in China.

Findings

The analysis shows that a holistic solution and co‐benefit approach are needed for China's transition to a green and LC economy, and that, especially for developing countries, it is not enough to have only goals regarding mitigation and adaptation. Instead, a concrete roadmap towards a LC future is needed that addresses key issues of technology transfer, institutional arrangements and sharing the costs in the context of a global climate regime. In this light, it is argued that China should adopt an approach for low‐carbon development centred on carbon intensity reduction over the next ten years.

Originality/value

The paper thus provides a unique summary, in English, of the arguments supporting China's current low‐carbon innovation policies from one of the authors of this policy.

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