COP29 commitment triggered the global drip irrigation market, how Chinese drip irrigation enterprises seize the new track of green trade?

1. COP29 commitments and new trends in the global drip irrigation market

The 2024 United Nations Climate Summit (COP29) ended in Baku, Azerbaijan, and the meeting adopted a landmark climate

finance agreement: wealthy countries pledged to provide $300 billion per year by 2035 to support energy transformation and

climate adaptation projects in developing countries. Although this amount of funds only accounts for 5% of the annual energy

expenditure of developing countries, it is expected to accelerate the promotion of water-saving agricultural technologies around

the world through strategic allocation. In particular, drip irrigation systems, as a dual solution for reducing emissions and increasing

efficiency in the agricultural field, are becoming an important tool for countries to achieve the 1.5℃ temperature control target of

the Paris Agreement.

According to global market analysis, the global drip irrigation equipment market size is expected to exceed $10.8 billion in 2025, with

a compound annual growth rate of 9.89%. This growth momentum comes from two aspects: First, as the climate crisis intensifies,

countries are leaning towards water-saving irrigation policies. For example, the EU has included agricultural water conservation in the

"Green Agreement", and China's "14th Five-Year Plan" clearly requires that the effective utilization coefficient of farmland irrigation

water be increased to 0.58; second, technological innovation drives cost reduction. For example, the popularization of technologies

such as intelligent sensor systems and anti-clogging drippers has reduced the long-term operation and maintenance costs of drip

irrigation systems by more than 30%.

2. The "danger" and "opportunity" of the EU carbon tariff (CBAM) to drip irrigation exports

With the EU Carbon Border Adjustment Mechanism (CBAM) officially implemented in 2026, Chinese drip irrigation equipment export

companies face double pressure:

Cost surge: The production of drip irrigation products involves raw materials such as plastics and metals, and their implicit carbon

emissions will be subject to additional tariffs. It is estimated that the export cost of drip irrigation equipment will increase by 12-18%

(quoted from EU Commission Press Release)

Technical barriers: The EU requires export products to provide full life cycle carbon footprint certification, which must be audited by

international organizations such as SGS and TÜV. Domestic companies need to restructure the supply chain and fully green the production

process from raw material procurement to production.

Breakthrough strategy: low-carbon certification and supply chain transformation

Build a green supply chain: promote biodegradable materials and clean energy production,

Promote mutual recognition of carbon markets: expand coverage with the help of the national carbon trading market, strive to connect

with the EU carbon tariff mechanism, and convert taxes into technology upgrade funds.

Obtain international certification: such as ISO 14067 (product carbon footprint) and EU "Eco-label", which can reduce some tariffs

3. Three major breakthrough opportunities for Chinese companies

Technological innovation drives high value-added markets

COP29's emphasis on methane emission reduction (targeting a 30% reduction by 2030) has opened up a new track for drip irrigation

technology. Chinese companies are developing an integrated water and fertilizer intelligent system to monitor soil carbon content and

crop demand in real time through the Internet of Things, helping farmland to fix carbon.

RCEP regional cooperation dividends released

After the Regional Comprehensive Economic Partnership Agreement came into effect, China's exports of drip irrigation equipment to

ASEAN increased significantly. With the help of infrastructure networks such as the China-Laos Railway and the Western Land-Sea Corridor,

China's drip irrigation equipment can quickly radiate water-scarce areas such as Southeast Asia and the Middle East.

Emerging markets - demand driven by climate funds explodes

Africa: COP29 funds support Nigeria's "10 million farm irrigation plan" (requiring 320 million meters of drip irrigation equipment);

Middle East: Saudi Arabia's "Green Corridor" project requires that water-saving agriculture account for more than 30% by 2025.

The commitment of COP29 and the EU's carbon tariffs are reshaping the global drip irrigation market. Chinese companies need to focus

on technological innovation and rely on the "dual circulation" strategy to transform climate challenges into new momentum for export

growth. In the future, whoever can take the lead in green supply chain, smart services and regional cooperation will be able to take the

initiative in this global agricultural revolution.