Free Markets, Free People


China Toughens Stance On Greenhouse Gas Emissions

China has stated it won’t be left holding the financial bag in order to cut greenhouse gas emissions. Calling itself a “poorer” nation, China wants the 7 most developed countries to spend 1% of GDP on helping them and others.

China raised the price of its co-operation in the world’s climate change talks yesterday by calling for developed countries to spend 1 per cent of their domestic product helping poorer nations cut greenhouse gas emissions.

The funding – amounting to more than $300bn (£190bn, €240bn) based on Group of Seven countries – would be spent largely on the transfer of “green” technologies, such as renewable energy, to poorer countries.

Gao Guangsheng, head of the climate change office at the National Reform and Development Commission, the Chinese government’s main planning body, said that even such large funds “might not be enough”.

China’s toughened stance comes weeks ahead of United Nations talks in Poland aimed at forging a successor to the Kyoto protocol, whose main provisions expire in 2012.

China also suggests that to this point, emissions reduction has been mostly talk:

“Climate change policies need a lot of money to be invested, however developed countries have not made any substantive promises about how much they are going to spend on,” said Mr Gao. “And they did not fulfil some of the promises they made in the past very well either.”

Of course a number of reasons relate to why those previous promises haven’t been fulfilled. Most of them relate to economics and the realization that their promises are potentially crippling to their economies. That’s effecting the G20 meeting as we speak:

Fears are mounting that environmental issues could be almost entirely sidelined at tomorrow’s G20 summit in London as leaders of the world’s largest economies resist calls to make clear green commitments as part of the meeting’s closing communiqué.

According to Guardian reports, UK officials are leading a last-ditch effort to have clear environmental commitments incorporated into the global economic recovery package that will back up politicians’ repeated calls for a ” green new deal”.

Gordon Brown has said that the inclusion of a commitment on the environment would be one of the tests of the summit’s success, but he admitted that the negotiations were likely to be tough.

The draft version of the communiqué leaked at the weekend made only a passing reference to climate change and it is thought some nations are resisting more detailed commitments to dedicate a proportion of the global stimulus package to green projects that they fear could provide an excuse for protectionist measures.

There is also reluctance to incorporate climate change commitments that could be seen to step on the toes of the UN’s climate change negotiations, which are continuing this week at a separate conference in Bonn, Germany.

This, of course, is good news. Why?

“Everybody seems to be focusing on short-term recovery and getting long-term regulation of the banks right,” he said. “I haven’t heard anything that suggests green recovery and climate change are a major part of the [G20] agenda.”

That’s because that is the priority – not that anyone should expect the G20 to get any of financial part of it right either. However, the priority does keep them from making commitments that would cripple economic growth. And they, of course, know that – which is why they’re avoiding it and spinning it as a desire not to “step on the toes of the UN’s climate change negotiations”.

But back to China – you’ll enjoy this. It is called “having your cake and eating it too”:

[China's climate ambassador Yu Qingtai]… said that China was willing to make a “due contribution” to curbing emissions, but warned that the country would not see its citizens “left in the dark” as a result of binding emission targets and was within its rights to continue to invest in coal power that allows its economy to grow.

Gotta love the Chinese – they make some of our spin merchants seem like rookies. China will decide what its “due contribution” will be while it builds thousands of coal fired plants. In the meantime, per China, it is up to the rest of the world to do what is necessary to curb emissions because, you know, the poorer nations just aren’t up to it. Su Wei, Chinese delegation chief to the UN climate change talks in Bonn:

Su said the success of the Copenhagen summit lies in whether or not the developed countries would make “substantial arrangements” for transferring climate-friendly technologies to and providing funds for developing countries.

Su noted the establishment of three international “mechanisms” is very important among the “substantial arrangements.”

“The first is to set up an international mechanism on climate-friendly technology development and transfer, to eliminate barriers hindering technology transfer, so that developing countries can get access to such technologies,” he said.

“Secondly, we should set up an effective financing mechanism to ensure the developed countries provide adequate funds for developing countries in their bid to cut emissions and fight climate change,” he added.

Thirdly, Su said an “effective supervision mechanism” should beset up to monitor the above-mentioned technology transfer and funding.

Nice. Known as the “you pay, we take” program, this pretty much excuses China (and the rest of the poorer BRIC nations) from doing much of anything. As long as China is convinced that a) enough technology hasn’t been transfered, or b) there hasn’t been enough “effective financing” of the effort, it can c) exempt itself from any cuts while insisting the rest of the developed world stick by its commitments.

Now that is how a master loots your wallet.

~McQ

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4 Responses to China Toughens Stance On Greenhouse Gas Emissions

  • said Mr Gao. “And they did not fulfil some of the promises they made in the past very well either.”

    Don’t you just hate it when an evil corrupt regime points out your own lying behavior and they are right?

  • When did Chia become a poor country? Did I miss where they own something like 40% of the foreign debt the US has? Either way, hopefully Obama can do something about this while at the G20 conference, it’s starting to look like we are going to disagree on a few issues with the rest of the countries. More info about the story here, http://www.newsy.com/videos/obama_brown_shoulder_to_shoulder_for_g20/

  • It should be noted that the Europeans already can get carbon credits by upgrading Chinese power plants, etc., and I am sure this is a nice scheme for ther Chinese to buy low tech plants and let the Europeans upgrade them with kickbacks all round.

    If we implement any kind of carbon tax, it needs to be like VAT: applicable to imports and rebatable for exports.

    Otherwise you simply increase the distortions already present in the international system. And it may not seem linked, but Chinese mercantilism is part of the current mess we are in.

    • Totally agree with what Harun says. 

      If we are to undertake Carbon cutting then we need to use workable methods.  Capping emmissions is a form of command economy and its chances of success are as poor as every other attempt at command economy.  A carbon tax VAT would price consumers to buy goods on the most carbon efficient production. 

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