New Climate Change Joint Announcement by China and the United States

New Climate Change Joint Announcement by China and the United States

October 2, 2015
New Climate Change Joint Announcement by China and the
United States
On September 25, 2015, President Barack Obama and
China identified a number of specific new policies and
Chinese President Xi Jinping issued a U.S.-China Joint
targets in the September 2015 announcement. These add to
Announcement on Climate Change. The announcement
the many pages of policies and measures spelled out in
offered a shared vision for negotiating an “ambitious” new
China’s June 2015 submission of its Intended Nationally
agreement under the United Nations Framework
Determined Contribution to the negotiations under the
Convention on Climate Change (UNFCCC) at the meeting
UNFCCC. New Chinese policies spelled out in the joint
of the parties in Paris in December 2015.
announcement include:
The announcement also outlined the nations’ respective
 “Green power dispatch,” which would have distributors
actions to limit their domestic greenhouse gas (GHG)
of electricity give preference to electricity generated by
emissions and identified existing and new bilateral and
renewable energy technologies, high efficiency fossil-
multilateral cooperation efforts. Of particular note, China
fuel-fired power plants, and power plants with “lower
announced that it would make available 20 billion renminbi
emission levels” when choosing which power supply to
(US$3.1 billion) for a China South-South Climate
deliver to the grid;
Cooperation Fund to support developing countries to
address climate change, while President Obama affirmed
 Promoting low-carbon buildings and transportation,
his pledge that the United States would provide $3 billion to
with the share of green buildings reaching 50% in cities
the Green Climate Fund (GCF) under the UNFCCC. The
and towns by 2020;
Chinese government preferred to announce and work with
low-income countries through a South-South Cooperation
 Increasing the share of public transport in motorized
Fund rather than the GCF.
travel to 30% in large and medium-size cities by 2020;
and
China has been the highest emitter of GHGs worldwide
since roughly 2007, when it surpassed the United States.
 Setting more stringent fuel efficiency standards for
Currently, China’s share is about 23% of net global GHG,
heavy-duty vehicles in 2016, to take effect in 2019.
while the United States’ share—once as high as China’s
current share—has declined to about 13%. Historically,
China also specified its intention to start, in 2017, a national
however, the United States has been responsible for the
GHG emissions cap-and-trade system covering electricity
highest cumulative contribution to human-related
generation, iron and steel, chemicals, building materials,
emissions. Stakeholders in international cooperation to
paper manufacturing, and non-ferrous metals. This may
reduce global emissions broadly expect both countries to
build on experience gained in existing pilot cap-and-trade
mitigate their GHG emissions, albeit at fairly differentiated
systems in seven provinces and municipalities.
rates and magnitudes. The parallel GHG pledges of the two
countries boosted the likelihood, in many observers’ eyes,
To date, many of China’s efforts to reduce air pollution,
that an effective global accord could be achieved in
including CO2 emissions, from power plants and industry
December.
have imposed limits only in eastern municipalities or
certain provinces. Some policies have explicitly sought to
In November 2014, during President Obama’s state visit to
move the sources of emissions rather than to reduce the
China, the two leaders synchronized pledges of voluntary
overall quantity. A policy with national scope, like the cap-
GHG emission reductions. President Obama set a new
and-trade system President Xi announced on September 25,
policy target to reduce U.S. net GHG emissions by 26%-
could assure that emissions are reduced rather than
28% by 2025, while President Xi agreed to “peak” Chinese
relocated.
carbon dioxide (CO2) emissions around 2030, perhaps
earlier, and to increase the non-fossil share of China’s
Many people have welcomed the U.S.-China
energy to around 20% by 2030. Both targets are relative to
announcement, seeing it as marking more positive high-
2005 levels. Neither pledge is supported by quantified
level cooperation than in previous decades. They also
projections of how they would be achieved. China has also
welcome China’s growing commitments to address its
pledged to lower CO2 emitted per unit of gross domestic
GHG emissions. Some, however, express reservations
product by 60-65% compared with 2005; expand forest
about China’s policies and implementation. China’s
stock volume by around 4.5 billion cubic meters (m3), also
systems to measure, report, and validate emissions (and
compared with 2005; and control its emissions of
underlying economic activity) are relatively new and still
hydroflourocarbons—another type of GHG—by 2020.
reportedly face reliability issues. While the Chinese
government has established stronger policies to enforce its
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New Climate Change Joint Announcement by China and the United States
laws and rules with harsher penalties for violations, it is
pressures under the UNFCCC, motivated principally by the
unclear how well they will be implemented by local
need to tackle its severe air pollution, energy and water
authorities and upheld by China’s courts. Moreover,
supply, traffic, and other challenges. However, those
China’s pilot cap-and-trade programs were not covered by
observers also note the critical nature of U.S. and other
the environmental law that strengthened these compliance
high-income countries’ commitments to GHG reduction in
measures in January 2015. Reportedly, challenges in over-
helping China to stay on course. The U.S. and Chinese joint
allocation of carbon emissions permits and flaws in
announcements may support this argument. However, the
measurement may be undermining the pilot cap-and-trade
domestic challenges in each nation mean that achieving the
programs. Designing and operating an effective national
pledges is far from certain.
cap-and-trade program will require learning from the pilots
and improving accountability.
Related CRS products include:
To date, China has resisted agreeing to transparency
CRS In Focus IF10248, China’s “Intended Nationally
requirements under the UNFCCC comparable to those of
Determined Contribution” to Addressing Climate Change
the United States and other high-income countries. The
in 2020 and Beyond, by Jane A. Leggett.
joint announcement recognizes the importance of an
“enhanced transparency system” in the expected December
CRS In Focus IF10239, President Obama Pledges
2015 accord but does not include a Chinese promise to
Greenhouse Gas Reduction Targets as Contribution to
adopt biennial, detailed, and internationally reviewable
2015 Global Climate Change Deal, by Jane A. Leggett.
reporting already required of countries with higher per
capita incomes. Instead, the announcement recommends
CRS Report R41889, International Climate Change
that the Paris agreement “should provide flexibility to those
Financing: The Green Climate Fund (GCF), by Richard K.
developing countries that need it in light of their
Lattanzio.
capacities.” While China’s capacities do not yet match
those of the United States, some argue that clear standards
Jane A. Leggett, Specialist in Energy and Environmental
and milestones—not necessarily under the UNFCCC—
Policy
could provide impetus to building China’s capacities.
IF10296
Some observers have noted that China is pursuing many of
its policies to reduce GHG emissions independently of

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New Climate Change Joint Announcement by China and the United States

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https://crsreports.congress.gov | IF10296 · VERSION 3 · NEW