China’s special envoy for climate change, Liu Zhenmin, cautioned that the U.S. and Europe’s attempts to curb China’s dominance in green technologies could impede the global fight against climate change.
What Happened: Zhenmin, a seasoned diplomat, was appointed by President Xi Jinping in January to represent China on climate issues. He is concerned that the U.S. and the EU’s strategies could delay the global transition from fossil fuels to renewables, reported Bloomberg.
"We need to maintain low costs, otherwise nobody is going to be able to afford the energy transition," Liu said in an interview. "What I'm worried about is if the U.S. and European Union continue to insist on that approach, it would result in a delay in the substitution of fossil fuels by renewables globally."
He emphasized the importance of maintaining low costs for the energy transition, citing a potential $6 trillion increase in global energy transition costs if countries rely on technology made outside China.
"So Liu has the difficult job of not just having these conversations internationally, but also to mobilize support and resources domestically," Yao Zhe, global policy advisor for Greenpeace East Asia in Beijing.
Zhenmin also highlighted the significant cost reductions in clean energy equipment, batteries, and electric vehicles due to the boom among Chinese companies.
"Coal will be difficult to phase out entirely, but we need to ensure that coal can be used more cleanly," according to Liu.
Despite these concerns, Zhenmin remains optimistic about China’s ability to meet its climate targets and sees potential for collaboration between the U.S. and China to lead global action.
Why It Matters: This warning from China’s climate envoy comes at a time when the U.S. and the EU are intensifying efforts to reduce China’s dominance in the green technology sector.
This is evident from the EU’s recent probes into clean energy and electric vehicles, as well as the warnings issued by U.S. Treasury Secretary Janet Yellen about China’s overcapacity and record exports of cheap solar equipment and lithium-ion batteries.
China’s stance on climate change and its efforts to transition to clean energy are closely linked to its international relations. This warning from Zhenmin follows President Xi’s recent European tour, where he sought to strengthen economic ties with the EU amid growing tensions with the U.S.
It also comes after Xi assured U.S. business leaders of a brighter future for Sino-American relations, despite ongoing challenges.
Meanwhile, U.S. Secretary of State Antony Blinken has raised concerns over China’s support for Russia’s military during recent U.S.-China talks, potentially straining efforts to mend relations between the two countries.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
