China has agreed to cooperate on a climate policy aimed at curbing greenhouse gas emissions with the European Union during the EU-China summit, Reuters reports.

In an unexpected move, the world’s biggest carbon dioxide emitter signed a deal allowing the EU to finance three carbon-reduction projects worth 25 million euros ($33 million) over a four-year period. The deal would promote the transition “towards a low-carbon economy and a reduction of greenhouse gas emissions in China,” a statement from the European Commission said. EU Climate Commissioner Connie Hedegaard told Reuters that the Chinese deal was “an important step for an even closer cooperation towards a robust international carbon market”. the EU will also provide assistance to Chinese cities on resource efficiency, cutting water and heavy-metal pollution and the implementation of sustainable waste treatment policies.

The European Union and China had clashed over Brussels’ climate policy requiring airlines to pay for their emissions and disclose data on emissions. Several Indian and Chinese airlines were previously banned from flying into the EU.