Amid global climate challenges, Canada and China are exploring pragmatic cooperation in energy, clean technology and the green transition, a move that analysts say could create new opportunities for trade and investment.

Canadian Prime Minister Mark Carney's recent call for a "clear engagement strategy" with China reflects Ottawa's recognition that a rigid stance toward Beijing will not serve its interests, said Jeff Mahon, former deputy director of the China division at Global Affairs Canada.

"This demonstrates that Canada's top leadership understands the importance of having healthy trade and diplomatic relations with China and is seeking to develop a more balanced approach that engages with China as it is," Mahon said.

READ MORE: Chinese premier says willing to work with Canada to improve ties

Carney outlined this approach during a speech on Sept 22 at the Council on Foreign Relations in New York, where he said Canada should "work with China in areas like energy, basic manufacturing and climate", underscoring that cooperation is essential for global progress.

His remarks came a day after he met Chinese Premier Li Qiang at the United Nations — the first meeting between the two leaders in years.

Li said bilateral relations have advanced in a pragmatic and constructive way in recent months and urged Canada to "establish the right perception of China" while respecting each other's core interests.

He called for deeper cooperation in areas such as energy, green development and tourism, saying China stands ready to work with Canada to uphold free trade and address global challenges.

Mahon said the Carney government "recognizes that the world is a complicated place and that a 'black-and-white' approach toward China will not meet Canadian interests".Instead, he said, Ottawa will pursue a nuanced approach.

The government is seeking areas of practical cooperation — the "low-hanging fruit" — such as energy exports that would support Chinese energy security needs, he said.

When the United States announced last month that it would begin imposing tariffs on goods such as pharmaceuticals and heavy trucks, Canada followed by launching public consultations on whether to impose similar duties on Chinese electric vehicles.

Mahon said that the move reflects Canada's cautious approach — balancing alignment with its key ally while keeping open the possibility of cooperation with China. It also underscores, he added, an opportunity for Canada to strengthen its EV supply chain.

The government may seek to encourage Chinese investment into the supply chain rather than allow tariff-free access of finished vehicles, he said.

Advancing cooperation

Climate change remains an area where cooperation can move forward. At the United Nations Climate Summit on Sept 24, China announced plans to cut economy-wide net greenhouse gas emissions by 7 to 10 percent from peak levels by 2035 and to raise the share of non-fossil fuels to above 30 percent.

This commitment to global climate goals "creates enormous opportunities for Canada and China to partner across sectors in the spirit of shared interests, complementary capabilities and mutual benefit", Mahon said.

"Expanding trade in liquefied natural gas will also help China replace coal-fired systems with much cleaner burning fuels as it continues its historic energy transition."

ALSO READ: China's green tech experience coveted

Chinese investment could also play a role, Mahon said. "World-leading Chinese technical knowledge and know-how in clean tech could serve as a premise for welcoming Chinese investment into Canada."

Jiang Wenran, founding director of The China Institute at the University of Alberta in Canada, said Carney's recent remarks on the need for a "clear engagement strategy" with China mark a pragmatic turn in Canada's foreign policy.

"It moves away from a blanket adversarial approach toward a 'tiered' one where cooperation is pursued in areas of mutual interest while managing disagreements in other domains," Jiang said.

Cooperation on climate change could serve as a stabilizing force in bilateral ties, he said.

Contact the writers at gaoyang@chinadailyusa.com