{"id":34774,"date":"2017-05-10T10:53:00","date_gmt":"2017-05-10T10:53:00","guid":{"rendered":""},"modified":"2020-09-21T15:33:18","modified_gmt":"2020-09-21T15:33:18","slug":"9774-china-can-lead-on-climate-through-its-cities-companies-and-investment","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/climate\/9774-china-can-lead-on-climate-through-its-cities-companies-and-investment\/","title":{"rendered":"China can lead on climate through its cities, companies, and investment"},"content":{"rendered":"

With the Trump administration thinking about taking the US out of the Paris Agreement and already rolling back domestic climate policies, all eyes have turned to China and whether the world\u2019s largest emitter can occupy the leadership void left by the US.<\/span><\/p>\n

President Xi Jinping has called the 2015 Paris Agreement a \u201cmilestone in the history of climate governance<\/a>\u201d and has pledged to implement China\u2019s commitments under it. But, as Joanna Lewis and Li Shuo have written in China Dialogue<\/a>, global leadership requires more than just doing one\u2019s part at home. It requires articulating a broader vision and bringing others aboard through incentives and inducements.<\/p>\n

The question is how. China\u2019s diplomatic stance is unlikely to change overnight. Therefore, to realise the government\u2019s ambition to become a leader in global governance, and to safeguard the \u201chard-won achievement\u201d of the Paris Agreement, China must find new avenues for climate leadership. Fortunately, as <\/span>Angel Hsu and Carlin Rosengarten also note in chinadialogue<\/em>,<\/a> traditional diplomatic leadership can be supplemented by \u201cleading by doing.\u201d Indeed, in the evolving climate regime, \u201cleading by doing\u201d has become much more important. In this context, non-traditional channels of diplomatic influence \u2013 networks of cities and business, and overseas infrastructure investment \u2013 offer concrete steps forward for China.<\/p>\n

Leadership starts at home<\/strong><\/span><\/p>\n

Despite rhetorical claims to leadership and support for the Paris Agreement, there are as of yet no signs China will actively push diplomatically for a stronger international climate regime, or lean on other countries to increase their own climate ambitions. Because such steps would be a major diplomatic departure for China, they will likely only emerge slowly, if at all. Nor is it likely that China will formally increase the pledge it made at Paris to peak emissions by 2030.<\/p>\n

So how can China play a more progressive and assertive position in global climate policy? There is an urgent need to find new ways for China to exercise climate leadership beyond traditional diplomacy. Fortunately, the government has new tools at its disposal.<\/p>\n

Potential for bottom-up action<\/strong><\/p>\n

It\u2019s not just national governments that are taking action on climate. Cities, companies, civil society groups, and other sub\/non-state actors are also addressing climate change (now captured on the <\/span>UN\u2019s NAZCA platform<\/a>). The 2015 UN Climate Conference in Paris brought this \u201cgroundswell\u201d of non-state climate action into the heart of the intergovernmental regime<\/a>.<\/p>\n

While this shift represents an important breakthrough, it also faces a crucial challenge. Most of the world\u2019s future emissions will come from developing countries, which will also experience the worst effects of climate change. Yet <\/span>research<\/a> shows that most non-state climate action is still concentrated in developed countries, and the vast majority of bottom up climate initiatives, which link sub- and non-state actors across borders, are initiated and led by Northern actors.<\/p>\n

At the international level, China appears to fall far behind. Though its emissions are five times greater than India, twice as many Indian cities, states, companies, and other sub\/non-state actors are taking climate action in transnational networks than Chinese counterparts.<\/span><\/p>\n

Yet there is an enormous amount of activity on climate change at the sub-national level in China, as well as in both state-owned and private companies. For example, the Alliance of Peaking Pioneer Cities aim to peak their city emissions in advance of national targets. However, most of this action is not connected to international networks. Therefore the Chinese government has a major opportunity to reinforce its domestic policies and signal international leadership by facilitating a greater role for Chinese sub\/non-state actors in transnational networks.<\/p>\n

Bringing Chinese cities, provinces, and businesses more forcefully into the various transnational climate action networks (e.g. C40, We Mean Business, the Compact of States and Regions, etc.) could rapidly expand the heft of these transnational networks while bringing critical information, relationships, and financing opportunities to Chinese sub- and non-state actors.<\/p>\n

In this way China could expand its international climate leadership rapidly without substantially altering its traditional negotiating stance. A strong signal from Beijing to embrace these networks would also encourage further climate action from Chinese cities, provinces, and companies, and link them to their peers around the world, particularly in other parts of the Global South.<\/p>\n

Some may fear that a \u201cbottom up\u201d emphasis would shift authority from the central government to local governments and companies. But this concern is misplaced. The voluntary and collaborative nature of city and business networks means they cannot threaten national sovereignty. On the contrary, they help national governments deliver their pledged targets more efficiently, while bolstering their countries\u2019 diplomatic positions by showing tangible evidence of progress.<\/p>\n

Greening outbound infrastructure investment<\/strong><\/p>\n

China is emerging as the largest source of infrastructure investment for many countries. Through institutions and initiatives like the Asian Infrastructure and Investment Bank (AIIB), the New Development Bank (NDB), the One Belt One Road initiative, the lending of the Chinese Development Bank, and the activities of its large commercial banks and infrastructure companies, China will play a decisive role in the infrastructure choices that many countries make over the critical next several years.<\/p>\n

To be blunt, if this influence serves to lock in carbon-intensive choices<\/a>, it will effectively kill efforts to reach the Paris Agreement\u2019s goals<\/a>. But it also has the potential to provide the lion\u2019s share of the trillions of clean investment required over the next decades to decarbonise the world economy.<\/p>\n

Fortunately, China is taking green finance seriously. Some of the AIIB\u2019s and NDB\u2019s first projects have been in renewable energy. AIIB\u2019s environmental and social safeguards explicitly reference climate change. And international partners (e.g. UNEP, Bank of England, etc.) are working with Chinese financial institutions to support such projects and policies.<\/span><\/p>\n

But China must not only encourage and support new green finance leaders, it must also prevent laggards from offloading low-quality, polluting infrastructure onto other developing economies. For example, this means reining in companies that build thermal coal power plants, which, facing constraints at home, are increasingly turning to markets in Southeast Asia and Africa.<\/p>\n

Two concrete steps could radically advance Chinese leadership on this front. First, the government can go beyond rhetorical support for \u201cgreen\u201d infrastructure, and explicitly state that only projects in line with the Paris Agreement\u2019s goals will be funded through the AIIB, the NDB, and especially the One Belt One Road initiative. Adding climate risk and a 2C compatibility test as an official selection criterion for new projects will send a powerful economic signal far beyond China\u2019s borders.<\/p>\n

Second, China should curtail high carbon, unproductive investments by Chinese firms abroad as aggressively as it does at home.  Only by addressing the country\u2019s overall overseas investment portfolio \u2013 not just the flagship green programmes \u2013 can China signal credible leadership on green finance.<\/p>\n","protected":false},"excerpt":{"rendered":"

Unlikely to fill the diplomatic void left by the US, China can pursue other avenues, writes Thomas Hale<\/p>\n","protected":false},"author":630,"featured_media":59489,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[761],"tags":[556],"hashtags":[],"country":[],"class_list":["post-34774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-climate","tag-infrastructure"],"acf":[],"yoast_head":"\nChina can lead on climate through its cities, companies, and investment | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Unlikely to fill the diplomatic void left by the US, China can pursue other avenues, writes Thomas Hale\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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