Connie Hedegaard, European Commissioner for Climate Action, on Tuesday welcomed China's climate pledges in its 12th Five-Year Plan.

"China's five-year development plan adopted today is an evident signal of the economic potential of climate action," said Hedegaard.

"By placing energy efficiency and clean energies for the first time at the heart of their economic development, the plan bets heavily on strengthening China's competitive advantage in fields like electric vehicles, renewable energy, smart grids and other low-carbon technologies," she added.

She said that it was very encouraging that China has decided to gradually implement a carbon-market mechanism as one key tool for reducing industrial emissions cost-effectively.

"We will engage with our Chinese counterparts in order to further explore their intentions," she said.

The commissioner urged Europe to invest in clean technologies, better energy infrastructure and research and innovation in order to keep the leading position in the green growth race.

"This will reduce our energy bill and improve our competitiveness. And as investments will be made in Europe, jobs will be preserved and created in Europe," she said.

Hedegaard said that the 2050 Roadmap recently presented by the European Commission has set the right course: a clear and predictable pathway to a clean, competitive and climate-friendly Europe.