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China's green policy stability boosts long-term foreign investment: Novonesis CEO

China

China

China

China's green policy stability boosts long-term foreign investment: Novonesis CEO

2026-06-25 16:15 Last Updated At:06-26 13:27

China's unwavering green policy push, standing in sharp contrast to wavering global climate pledges, gives foreign companies the confidence to make long-term business investments in the country, according to Ester Baiget, co-chair of Summer Davos 2026.

The World Economic Forum's 17th Annual Meeting of the New Champions, also known as the Summer Davos Forum, opened on Tuesday in Dalian, a port city in northeast China's Liaoning Province.

A central question at this year's forum is whether the energy and climate transition can genuinely drive competitiveness rather than be a cost burden. Baiget, also president and CEO of the Danish biotech firm Novonesis, said that her company operates at precisely that crossroads, applying the solutions offered by emerging technologies to carry out green yet profitable ventures.

"We can now do with AI, with advanced engineering, with the extraordinary improvements there have been in technology, we can take CO2 captured by plants and take that biomass and transform it into value-added solutions. This is what we do in Novonesis. We know that there is a stronger answer of the future, and we're doubling up on our investments. Within the last years since 2018, we have reduced our CO2 emissions more than 60 percent, and at the same time we have increased revenue more than 30 percent. So, we're showing that there is a way, that is possible that you can decouple from fossil while continuing to move fast forward bolder to the future of reliable and competitive paths," Baiget said.

Many of these technologies rely on work and research being done in China. With three decades of presence in the country, Baiget emphasized that its real draw lies in the robust innovation ecosystem.

"Of what we see in China, it's not only the demand. It's the network with universities, with local players. It's the speed, it's the agility that makes it precious to be here. We're very very excited about the future ahead, not only from the legacy of what we have been producing and the input in China, but also new opportunities that are emerging. We see new growth potential opportunities in spaces like plastic recycling, enzymatically decoupling PET into the building blocks. We are not moving into farming. We are not farmers. But yes, we can be an enabler of helping farmers to produce more with less, which is exactly our mode of strategy," Baiget said.

At a time when some major economies are stepping back from their climate pledges, China is charting a different course. The country's first ecological and environmental code, set to take effect this August, underscores its firm commitment to the green transition.

For Baiget, this consistent green policy certainty in China, built on a "firm narrative of change", fuels long-term business investment.

"I want to echo and applaud what you just mentioned on China, on the consistency and the value of a firm narrative of change. It gives guaranteed reliable demand, and it gives companies like ours the commitment to continue to invest in that future. Because when you have predictability on demand, you're just going to double up on investments, on innovation," Baiget said.

China's green policy stability boosts long-term foreign investment: Novonesis CEO

China's green policy stability boosts long-term foreign investment: Novonesis CEO

Villagers in east China's Dezhou City shared their personal stories of rural transformation with President Xi Jinping during his inspection trip on Wednesday, expressing gratitude for the policies that have modernized farming and boosted household incomes.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, visited Dezhou in Shandong Province, where he received a warm welcome from residents. During the trip, he spoke with grain growers and villagers about agricultural production and rural development.

At Dongyujia Village, the president toured farmland, learning about the local wheat harvest, corn planting, and agricultural supplies. He emphasized the importance of improving farmland infrastructure and making agriculture more productive and resilient.

One of the villagers who spoke with President Xi said the conversation left a deep impression on him.

"I'm overjoyed. I told him I'm a farm machinery operator with two farm machines and four tractors at home. I also mentioned I usually work around the local area," said Song Zhijie.

Having operated machinery for decades, Song described how modern equipment has transformed his work.

"I've run farm machines for 20 years. Old tractors were weak and crude, leaving us muddy and worn out. Higher farm equipment subsidies let us buy modern machines with air-conditioned cabs and Beidou navigation, making work effortless," he said.

President Xi has called for solid measures to advance the modernization of agriculture and rural areas. In Dezhou, high-standard farmland is turning that vision into reality. For local farmers, the benefits are clear: better land, stronger harvests and higher incomes.

Producing more than seven million tonnes of grain each year, Dezhou is one of China's major grain producing regions.

During the visit, Xi also stressed the importance of building a beautiful and harmonious countryside tailored to local conditions.

In nearby Xiyujia Village, he visited villager Shi Yanyun and her family, where he learned about their daily lives, family income, children's education and the health of elderly family members.

Shi said she was impressed by how closely the president's questions were related to everyday life in the village.

"President Xi asked if we wanted city lives. I prefer the countryside. Land transfers let us take local nearby jobs. We have cheap, fresh greenhouse veggies, clean villages and easy transport," said the villager.

Xi's visit, Shi said, reflects his concern for rural revitalization policies and the well-being of ordinary families.

"I thought he'd focus on national issues, yet he cared deeply about our daily lives. He felt like a warm family elder," she said.

Local residents say the visit has further encouraged them to work hard, improve their lives and contribute to the continued development of their community.

Villagers share life improvements with President Xi during his inspection to Dezhou

Villagers share life improvements with President Xi during his inspection to Dezhou

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