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As the world’s largest greenhouse gas emitter, China will be central to efforts to combat global climate change at Copenhagen and beyond. In testimony before the Senate Energy and Natural Resources Committee, Taiya Smith explains that China is serious about addressing climate change, and assesses the implications and opportunities presented by its recent efforts to reduce carbon emissions at home.

Current realties in China:

• China’s actions to address climate change should be taken seriously. To maintain national stability and GDP growth, China has concluded that it must address environmental degradation and climate change. Additionally, China long ago concluded that reliance on foreign oil creates considerable political difficulties.
   
• If present trends continue, China is on pace to meet its emissions targets: reducing energy intensity by 20 percent between 2005 and 2010, obtaining 15 percent of the nation’s energy supply from non-fossil fuels by 2020, and increasing forest coverage and stock volumes 20 percent above 2005 levels by 2020.

U.S. Policy Recommendations:

• Establishing an international body that allows countries to monitor one another’s emissions and provides a mechanism (similar to the WTO) to resolve disputes could be one of the most effective ways to both ensure that China develops a strong internal monitoring system and that the international community can engage with China on the data that it issues.
   
• Access to the joint American-Chinese market will be a critical motivator for the development and dissemination of clean technology. The United States needs to work with the Chinese to ensure that we keep our markets open to each other by creating policies that encourage competition in clean technology. Specifically, our two countries need to:
  • Develop shared standards for new technology;
  • Drop barriers to access and investment in each other’s markets;
  • Implement the right set of incentives to encourage competition in this rapidly expanding sector.