United States-China Cooperation

A group of government officials from China traveled on a study tour in the United States last week. The tour, hosted by the World Resources Institute, focused on low carbon development. The delegation was led by Director General Su Wei of the Department of Climate Change from China’s National Development and Reform Commission (NDRC), who is China’s chief negotiator on climate change and a key decision maker for low-carbon development initiatives.

The UN Climate Conference in Durban, South Africa, concluded over the weekend with a consensus to negotiate an agreement that will include all major emitters of warming gases. The conference agreed to a second commitment period for the Kyoto Protocol, extended the work of the group for Long-term Cooperative Action, and most significantly established new negotiations under the Durban Platform. Launching these negotiations was hailed as major progress around the world (Bloomberg, The Statesman, Xinhua). For the first time the world’s three major emitters (by total amount of greenhouse gases emitted), China, the United States and India, have agreed to begin negotiations for an international “protocol, another legal instrument or an agreed outcome with legal force,” indicating that there will be actions and efforts by all countries. (For the implications of this complex legal wording, see my colleague Jake Werksman’s discussion on WRI Insights).

At the Asia Pacific Economic Cooperation summit in Hawaii last week, Chinese President Hu Jintao joined US President Obama and other APEC leaders in signing a pledge to cut tariffs on an undesignated list of environmental goods and services to 5 percent by 2015. APEC members also pledged to eliminate domestic content requirements on goods and services by 2012. Together, the 21 APEC economies account for 60 percent of global trade in environmental goods and services, and the global market for environmental technologies in 2008 represented $782 billion, with nearly $300 billion in the US, according to a US Commerce Department estimate. A spokesman for one organization representing US manufacturers hailed the commitment as a “huge” outcome. Read the full story at Reuters

In what appears to be a mutually-satisfactory outcome to a 9-month trade dispute resolution process initiated by the United Steelworkers (USW), China has agreed to end its “Special Fund for Wind Power Equipment Manufacturing” subsidy program that provided grants to domestic wind power producers favoring Chinese-made components over imports. In September 2010, the USW petitioned the U.S. Trade Representative to investigate several Chinese programs it said were against WTO rules. After reviewing the petition, in December the USTR requested formal dispute settlement consultations with the WTO concerning this wind subsidy program.

The latest meeting of the US –China Strategic and Economic Dialogue (S&ED) was held May 9 and 10 in Washington, DC and the two outcomes papers are out: The Strategic Track, which is essentially political, but also covers climate and energy, and the Economic Track, which is led by Treasury, but covers a number of trade and investment issues of interest to the energy industry.

Bill Gates, the world-famous billionaire founder of Microsoft who has more recently become a supporter of clean energy, has added his voice to the growing chorus of top American CEOs calling for the U.S. to maintain its lead in innovation.