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What would a US withdrawal from the Paris Agreement mean for China?

10 April, 2017
chinadialogue

Coal mine

Coal mine, Gillette, Wyoming
Coal mine, Gillette, Wyoming. Photo credits: Greg Goebel/Flickr.com

With Obama's climate policy threatened, chinadialogue asked Chinese experts about the potential impact of the US leaving the Paris Agreement.

President Trump on Tuesday [28 March 2017] signed an executive order that will trigger a review of the Clean Power Plan, Obama's 2015 policy on limiting emissions from power plants. This policy is essential to helping the US meet its commitment to reduce greenhouse gas emissions under the Paris Agreement. Although the plan was blocked by the courts last year, the new effort to scrap it whilst promoting investment in heavily polluting industries such as coal, is the clearest statement yet that cutting emissions is not a priority for the US administration.

But will the attack on the Clean Power Plan make a difference elsewhere, particularly if it's the first step in an effort by the US to leave the Paris Agreement altogether? We asked Chinese policy experts to weigh in on the issue.
 

Liu Qiang, head of the energy division at the Chinese Academy of Social Science’s Institute of Quantitative and Technical Economics:

China has made clear that it will not withdraw from the Paris Agreement, even if the US does, so it will continue to fulfil its commitment to cut [greenhouse gas] emissions. But changes in the US position may present obstacles for implementing a carbon pricing mechanism.

The development of clean power has reached a crucial point: advances in wind and power technology have reduced costs to the point where they can compete to an extent with fossil fuels. The carbon pricing mechanism of the Paris Agreement would make clean energy even more competitive. If the US pulls out that mechanism is at risk and China’s motivation to implement a carbon trading market will be reduced.

A US withdrawal will have more of a symbolic effect, rather than a real impact on specific sectors. The US has never been deeply involved in climate change talks and, moreover, US$2 billion [the amount owed by the US to the United Nation’s Green Climate Fund] is, on a global scale, not that large an amount.

The impact industry and investment will not be huge, and the peak of global investment in clean energy has already passed. Recently, exports of solar modules from China have been hit by EU anti-dumping measures, therefore, [US] trade policy rather than political commitment is the key factor.

Wang Binbin, post-doctoral research fellow at Peking University’s School of International Relations:

Climate governance is a joint undertaking affecting all humanity. Speaking at Davos recently China’s President Xi Jinping made China’s stance clear: “China will continue to take action in response to climate change and fulfil its duties 100%.”

Foreign Minister Wang Yi, speaking at the G20 Foreign Ministers Meeting in February, stressed the need for cooperation and the creation of a peaceful and stable international environment:

“[We must] establish a UN-led system of cooperation based around North-South cooperation and supplemented with South-South cooperation; and create new types of global development partnerships forming joint development efforts.”

No matter how the international situation changes, China will not stop supporting climate governance and South-South climate governance.

 

 

Chai Qimin, director of the National Centre for Climate Change Strategy and International Cooperation’s (NCSC) International Cooperation Department:

If Trump does opt to pull out of the Paris Agreement, there will be a diplomatic impact not just in China, but worldwide.

In 2001 the US refused to sign the
Kyoto Protocol. If it now withdraws from the Paris Agreement damage will be done to the UN’s multilateral mechanism. Both the Paris and Kyoto deals were milestones under the 1992 UN Framework Convention on Climate Change; both were programmes for real action; and both made compromises because of US domestic politics.

The Paris Agreement involved intended nationally determined contributions and was specifically designed to facilitate implementation rather than punish failure, and had no legal binding force to a certain extent – all because of the circumstances in the US at the time (i.e. the difficulty in having the treaty ratified by congress).

If the US pulls out it will once more be a case of US internal disputes playing out overseas. This first sets a bad example for other
Umbrella Group nations, as when Japan, Australia and Canada withdrew from the Kyoto Protocol; and second, deals a huge blow to the confidence of other countries [in the US as a trustworthy international partner].

China’s energy and climate policy, and its nationally determined contributions, are set according to its own circumstances. Chinese leaders and officials have repeatedly indicated that China is confident in its policies and that the country has its own reasons for a low-carbon transition, which will shore up confidence in multilateral mechanisms. But it is undeniable that more questions are being raised in Chinese government and industry, and that an ambitious green plan will be more difficult to implement than previously – and may even meet scepticism and opposition.

The negative attitude of the US has already affected industry, with clean energy investment sliding last year and low-carbon innovation affected worldwide. Many Chinese new energy firms have seen valuations and borrowing ability fall, and these negative impacts are still emerging. If the remaining US$2 billion promised by the US is not forthcoming the outlook for the Green Climate Fund is bleak.

Climate diplomacy has been a bright spot for China-US relations in recent years, but with the Trump administration coming to power it may be inevitable that such activities become less frequent.

However, there may be a more pragmatic attitude towards energy sector cooperation – for example in shale gas there’s the scope to develop trade, with many benefits for both parties. A lot of work will continue, just not under the banner of climate diplomacy.

Links between China and the US are becoming more diverse, and local governments, businesses and Non-Governmental Organisations will remain active. We refer to these parties as non-governmental stakeholders, and they have a huge role to play. China’s current diplomatic thinking is to expand cooperation as much as possible, rather than oppose it. The Chinese have a saying, that friendliness creates riches. Our new approach is to create new routes to growth and share the benefits of a green transition.

China is also willing to address the concerns of other nations arising from misunderstandings over, for example, transparency; and willing to look for more opportunities for cooperation.

Alongside China-US climate cooperation there are other platforms: China-EU cooperation, the BRICs countries, South-South cooperation. In the past the media preferred to focus on China and the US – the G2. China is currently implementing its
10-100-100 Project [to support adaption and mitigation efforts] and has set up the South-South Cooperation Fund on climate change, both of which are new experiments.
 

Dr Wang Ke, research fellow at the National Academy of Development and Strategy at Renmin University:

China needs to respond to climate change both as part of its own sustainable development, and as a responsible nation. It is not something others are telling us to do, it is something we have to do. In economic terms we are currently faced with a historic task: making our economy yet bigger and better.

This means we need new development pathways for the next 35 years and to carefully avoid creating carbon emissions. China intends to use low-carbon development and its response to climate change to drive increases in
total-factor productivity and economic growth; achieve greater energy efficiency; a change in the energy structure; an improved industrial structure; optimisation of income structure and a better-trained workforce, thus fully reinventing our development pathway.

In this sense US political changes are irrelevant as China’s existing climate change strategies, targets and actions will not see major changes, but will be continued. Nor, though, will China be over-ambitious, our actions will align with our abilities and our stage of development.

China and the US are facing very similar challenges with energy efficiency, renewables and the construction or upgrading of infrastructure, and can complement each other in the process of meeting these challenges.

China’s transition to a low-carbon economy will create a huge domestic market for clean energy technologies and products, with large scale demand for the advanced systems, technologies, standards and management practices of the US. By boosting low carbon technology cooperation with China, US firms will be able to able to combine their innovations in technology and business models with China’s world-leading manufacturing ability and huge domestic market.

This will increase the global division of labour, decrease the cost of using low carbon technology, and increase markets for low-carbon technology and products globally. This in turn will reduce greenhouse gas emissions, boost economic prosperity and create jobs in manufacturing. This will encourage the upgrading of infrastructure in the US and make it easier for the US to transition to a low carbon economy and society. Therefore, the Trump administration’s plans for new infrastructure and jobs require more clean energy cooperation with China – this is in the US’s own best interests.

 

[This article first appeared on chinadialogue.]

ArticleClimate Diplomacy
Source
Topic
Climate Change

Region
Asia

Topics

Adaptation & Resilience

All countries will need to adapt to some of the environmental, social and economic impacts of climate change that are already unavoidable. Food security, livelihoods, water resource availability and public health are some affected areas. People living in poverty are more vulnerable, having a lower capacity to adapt. Thus, it is essential to promote resilience building. The adaptation and resilience aspects need to be mainstreamed into planning by policy makers and the private sector as well as integrated into development strategies.

Biodiversity & Livelihoods

Nature protection is most sustainable if it essentially contributes to the long-term stability of human needs. Today many regions around the world are confronted with increasing destruction of the natural foundations of life. The consequences of wide-ranging resource destruction are no longer regionally limited, but rather represent a global threat. Those affected are mainly rural populations, who find the sources of their income and the foundations of their way of life swept away. The depletion and destruction of natural resources goes hand in hand with decreasing agricultural yields and increasing poverty, which in turn forces the affected populations to deplete the remaining resources.

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Capacity Building

On the one hand, conflicts are caused by structural factors, such as economic and social inequality or environmental destruction. On the other hand, conflicts are fuelled by a lack of democratic structures, deficient mechanisms of non-violent conflict settlement, inadequate rule of law, the destruction of social and cultural identity and the disregard of human rights. Against this backdrop, development policies have been dedicated to a broad concept of security, which comprises political, economic, ecological and social stability. As a consequence, development cooperation agencies and actors have developed a broad spectrum of approaches for conflict prevention and transformation as well as for sustainable use of natural resources.

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Civil Society

Civil society is the first victim of environmental pollution, under-development and conflicts. Economically disadvantaged and politically marginalized population groups are particularly affected by violent conflicts as well as increasing resource degradation. Simultaneously, civil society is a fundamental pillar for implementing sustainable development. It contributes in many ways to strengthening conflict prevention and plays a significant role in the peaceful and democratic development of states. It must be supported to strengthen civil rights, adherence to human rights in general and democratic participation.

Climate Change

Climate change resulting from the emission of greenhouse gases represents one of the vital challenges for international environmental policy. Flooding, droughts, shifting of climate zones and increasingly frequent and intense extreme weather events will have serious economic and social consequences for entire regions. The climate problem is also directly linked to the question of future energy generation.

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Climate Diplomacy

To address the challenges posed by climate change, a new profile of climate diplomacy is evolving. This utilises a full range of policies, including development cooperation, conflict prevention efforts, and humanitarian assistance, in addition to more traditional measures of climate change adaptation and mitigation. Moving from a risk analysis of climate-related threats to well-timed preventive action requires a greater commitment to integrating climate change concerns into development, foreign, and security policies. Examples include strengthening diplomatic networks, building new alliances with partners, and raising awareness – not only of potentially negative climate change impacts, but also of opportunities to embark on a sustainable transformation of our societies.

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Co-Benefits

Climate action entails an array of economic, social, political and environmental co-benefits. It provides an opportunity for economic growth and new jobs. Many investments can take into account climate considerations without becoming more costly. Further important co-benefits include: improved energy security, less local air and water pollution, health benefits as well as ecosystem and biodiversity protection.

Conflict Transformation

In order to overcome the structural causes of violent conflicts and thus bring about an improvement in the framework conditions for peaceful and fair development, it is essential to have long term and broadly planned peace development and peace advancement. Various governmental and non-governmental, national and international actors and groups are involved in these processes.

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Development

Climate change and development are inextricably linked. Climate change endangers the development agenda and has the potential to reverse development goals. Furthermore, successful mitigation of climate change heavily depends on development choices around the world. Therefore, development strategies need to be climate-compatible to provide long-term success, and there are viable policy options that support this compatibility. Many mitigation and adaptation activities can present development opportunities to developing countries and avoid the lock-in to environmentally damaging technologies.

Early Warning & Risk Analysis

The reasons for the development and escalation of conflicts and the incidence of risks are multifaceted and complex. Simultaneously, the assessment of the specific causes in the form of risk and conflict analyses can contribute to a better understanding of these processes and make it possible to provide warning of negative developments, or ideally help prevent them. In the context of natural resource use, risks and conflicts have gained increasing attention in the past years. The debate on possible future water wars is merely one example.

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Energy

The well-being of individuals, communities and nations depends on the availability of energy resources. The gap between energy supply and demand appears to be growing, making the world vulnerable to serious economic shocks. At the same time, the burning of fossil fuels causing climate change is one of the vital challenges of international environmental policy. So far, only rudimentary approaches exist for shaping climate and energy security in a sustainable way. The components of a strategy that can contribute to reducing vulnerabilities related to climate change and energy policy include a greater role for renewable energies, the improvement of energy efficiency and a stronger decentralisation of energy supply.

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Environment & Migration

The economic, social and environmental consequences of climate change aggravate the breakdown of eco-system-dependent livelihoods and are likely to become dominant drivers of long-term migration. Natural disasters already cause massive shorter-term displacement and the number of temporarily displaced people is likely to further increase with climate change. For vulnerable populations in vulnerable regions, such as the Sahel zone or the Ganges delta, migration often becomes the sole survival strategy. In order to address climate-related displacement and migration successfully, knowledge of effective adaptation and an improved understanding of how environmental change affects human mobility is essential. 

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Finance

Climate finance, from all sources, plays a key role in supporting and enabling adaptation and mitigation action as well as climate and energy innovation. The Paris Agreement ensured that the Green Climate Fund and the Global Environment Facility are at the core of climate finance architecture as entities entrusted with the operation of the Financial Mechanism of the UNFCCC. Increasing climate finance from all relevant public and private sources is crucial. Furthermore, much needs to be done to redirect finance flows to sustainable paths, e.g. reducing fossil fuel subsidies, introducing maritime and air transportation taxes. The conditions for green investment in developing countries should also be improved.

Forests

Forests are disappearing at an alarming rate. Competition for forest resources triggers, exacerbates, or finances numerous crises and conflicts in tropical developing countries. Illegal logging and timber trade foster instability and sometimes violent conflict by strengthening illegal and armed groups, increasing corruption and exacerbating use and claim conflicts among local communities, the state and the business sector. Forests are a vital resource to poor people but they can also become areas of conflict. Sustainable management of forest resources is therefore key to preventing violent conflict over and within forests.

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Gender

Gender plays an important role as a category of conflict for many reasons. The interlinkages between gender, environment and conflicts are complex and much research is still needed. Existing insights suggest that conflicts may worsen gender inequalities that existed before the outbreak of violence. The unequal distribution of land property rights in many parts of the world serves as an example. Moreover, women (and children) are among those most affected by both violent conflict and natural disasters. At the same time, women carry much of the burden of trying to implement rehabilitation measures after crisis events.

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Land & Food

Increasing water scarcity, desertification and crop failures due to extreme weather events are becoming more and more of a threat to global food production. While the world’s population continues to grow rapidly, food production is unable to keep pace. Due to the global food crisis in 2008, the number of hungry people reached the symbolic one billion threshold for the first time – corresponding to about 16 percent of world population. Food insecurity may be a consequence or cause of conflicts. Violent conflicts often lead to the destruction of agricultural infrastructure and means of production, as well as to the displacement of local communities.

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Minerals & Mining

In the past, the discovery and tapping of valuable or strategic resources like valuable minerals, oil and natural gas, particularly in developing and emerging countries, has often led to large scale environmental contamination and negative development. The "resource curse" of some countries shows that the wealth from resource yields is frequently unfairly distributed; instead of serving development it advanced the formation of corrupt elites and in some cases even led to conflicts and civil wars. Measures in various sectors and at all levels are important in order to use the potential of these natural resources in a manner that is sustainable and prevents conflicts.

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Private Sector

The spread of violent conflict not only affects people but also companies located in such regions. Destruction of investments and infrastructure, collapse of markets and trade partnerships, flight and expulsion of employees are phenomena of conflicts and environment-induced crises that directly affect companies in unstable regions. Almost all branches of the economy thus have a clear interest in a stable and peaceful environment for their activities. Conversely, the business sector plays an important role in the interaction of economic growth, social development and a healthy environment, all of which can advance peace and sustainable development. 

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Security

Environmental issues have a significant security dimension. Access to, and overuse of, natural resources often play a key role in civil wars or other forms of internal domestic conflict. This is compounded by climate change and environmental degradation. Climate change is now widely recognised as a non-traditional, risk-multiplying threat that will have increasing security impacts. Key risks with possible implications for human and national security include water scarcity, food crises, natural disasters, and displacement. More preventive diplomacy and advocacy is needed to address the strategic implications of climate and environmental change.

Sustainable Transformation

Sustainable Transformation allows societies to profit from a growing, environmentally sustainable and socially inclusive economy – especially in emerging and developing countries. This requires a higher up-front investment, but the benefits of a sustainable transformation in the medium and long term are significant. For instance, energy cost savings and reducing the impact of price volatility offer major incentives for deploying renewable energies and promoting energy efficiency. Such benefits exist in all key sectors of the economy.

Technology & Innovation

Innovations and technologies are already readily available and affordable but their global diffusion and uptake remains a challenge. Innovation and technology are crucial to achieving ambitious climate change mitigation and adaptation targets. However, research and development often do not receive appropriate public support. Developing countries can leapfrog high-carbon industrialisation phases by adopting, deploying and improving existing innovations and technologies. For this, it is essential to minimise financial, administrative and political barriers.

Water

The availability of freshwater resources in sufficient quantity and quality is essential for the preservation of human health and sound ecosystems. The use of water resources is also vital, however, for economic development: whether for agriculture, industrial production or for electricity generation. The world's freshwater resources are distributed very unevenly in terms of geography and seasons. In addition, water shortage is becoming more prevalent in several regions due to population growth, economic development, urbanisation and increasing environmental pollution. Thus, water resources can hold potential for conflicts between parties who have different interests and needs.

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Regions

Asia

The environment in Asia is already under tremendous pressure as a result of the unsustainable use of land, forests, water and even air in many regions. Climate change will only exacerbate these challenges. Rising sea levels will likely endanger densely populated areas, changes in the monsoon patterns can strongly impact agriculture, melting glaciers will increase long-term water scarcity, and extreme weather events such as heavy rainfall and cyclones can pose further hazards.

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Central America & Caribbean

Natural disasters and water scarcity are key challenges for most of Central America and the Caribbean. These challenges will become even more pronounced as the climate changes. Weak resource and disaster risk management and land disputes pose additional security challenges for large parts of the region. Several countries of Central America and the Caribbean have limited adaptive capacities as they face political instability caused by high social inequality, crime, corruption, and intra-state conflicts.

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Europe

As one of the most developed and most densely populated regions in the world, Europe makes heavy use of its resources, resulting in difficult trade-offs and negative consequences for the environment and ecosystems. Land is used for settlements, agriculture and dense infrastructure, creating problems of soil degradation. Water resources are stressed due to unsustainable agricultural practices. Despite nature protection policies, Europe continues to lose biodiversity at an alarming pace. Some of these trends are exacerbated by climate change, which is expected, for instance, to lead to shifts in water availability.

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Global Issues

Resource scarcities, environmental pollution and climate change are not limited by national borders, but often have a transboundary or even global impact. These issues interact with political stability, governance structures and economic performance, and can trigger or worsen disputes and violent conflicts. Exacerbating some of these trends, climate change is likely to lead to the degradation of freshwater resources, declines in food production, increases in storm and flood disasters and environmentally induced migration. All these developments pose potential for conflict.

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Middle East & North Africa

The geopolitical position of the Middle East and North Africa (MENA), its fossil fuel resources, high population growth and the political changes spurred by the Arab Spring all make the region one of the most dynamic in the world. Nevertheless, it is also one of the most arid and environmentally stressed. Dwindling water resources, limited arable and grazing land, high pollution from household and industrial waste, remnants of conflicts and increasing desertification are key environmental challenges.

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North America

Climate change has various impacts on the three North American countries of Canada, Mexico and the US. Canada and the US have well-developed adaptive capacities and foster the strengthening of capacities in other regions as well. With high per capita emissions, these two countries also bear a greater responsibility for a changing climate. Mexico has a sound national strategy for climate change adaptation, yet fewer capacities than Canada and the US. The poorer and rural populations of Mexico are especially vulnerable to climate change, due to an increased sensitivity and a lower adaptive capacity.

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Oceania & Pacific

In Oceania, population growth and economic development trends put a strain on oceanic and island ecosystems. Freshwater scarcity, overexploitation of fisheries, loss of land biodiversity, forests and trees, invasive species, soil degradation, increasing levels of settlement, poor management of solid and hazardous waste and disproportionate use of coastal areas are some of the problems. Climate change exacerbates most of these trends, while also raising questions about the future sovereignty of some island states.

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South America

South America has diverse and unique ecosystems and is very rich in biodiversity. Weak natural resource management, land disputes and extreme weather events bring about significant challenges for the region. While South America accounts for relatively few CO2 emissions, the changing climate will alter its ecosystems and greater climate variability will lead to more hurricanes, landslides, and droughts.

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Sub-Saharan Africa

In many African states, environmental security issues rank high on the political agenda. Throughout the continent, countries suffer from water scarcity, food insecurity and energy poverty. These chronic and worsening resource scarcities have severe livelihood implications and are exacerbated by political conflicts over access to and control over these resources. Climate change may seriously threaten political and economic stability in Africa. It may also put a severe strain on the capacities of states and societies to co-ordinate activities, to communicate and to organize.

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