Beijing, China – In a diplomatic push to address the global climate crisis, US Treasury Secretary Janet L. Yellen called on China, the world’s largest emitter of greenhouse gases, to ramp up its support for international climate finance funds. During her second day of meetings in Beijing, Yellen underscored the importance of collaboration between the United States and China, stressing that their joint efforts could yield a “greater impact” in combatting climate change, reports Reuters.
While China has expressed its endorsement for programs aiding developing nations in coping with climate change, it has been selective in determining which funds to support, citing its own status as a developing country. Yellen urged China to extend its backing to existing multilateral climate institutions, such as the Green Climate Fund and the Climate Investment Funds, alongside the United States and other donor governments.
Speaking at a gathering of Chinese and international sustainable finance experts, Yellen highlighted the shared interest between China and the United States in addressing climate change and emphasized the potential for significant progress through collaboration. She stated, “I believe that if China were to support existing multilateral climate institutions like the Green Climate Fund and the Climate Investment Funds alongside us and other donor governments, we could have a greater impact than we do today.”
Yellen also raised concerns about climate finance and the debt challenges faced by developing countries during a subsequent meeting with Vice Premier He Lifeng, who oversees China’s economy. The Treasury Secretary emphasized that the United States and China share a responsibility to cooperate on critical global challenges, including climate change and debt distress in emerging markets and developing countries.
The meeting between Yellen and He spanned nearly seven hours, including discussions in a conference room followed by a dinner engagement. This marathon session aimed to establish a deeper level of communication between the Biden administration and the Chinese government, building upon Secretary of State Antony Blinken’s recent extended meeting with Foreign Minister Qin Gang. Yellen’s meeting with He was described by the Treasury Department as “candid, constructive, and comprehensive.” It covered various topics, including economic competition with China, with Yellen reiterating the need for collaboration even in times of disagreement.
Developing countries are exerting pressure on both the United States and China to mobilize additional funding to address their struggles in shutting down coal plants, developing renewable energy, and mitigating the impact of climate change through infrastructure improvements. Under the Obama administration, the United States committed to providing $3 billion over four years to the Green Climate Fund. Although $2 billion of that pledge has been fulfilled, Republicans have attempted to block taxpayer spending for climate finance. President Biden, however, has utilized discretionary spending within the State Department to fulfill part of the US commitment.
China, on the other hand, pledged $3.1 billion to climate finance but has only delivered around 10% of that amount. It also contributes funds to developing nations through “South-South” cooperation. China still identifies as a developing country under the United Nations Climate body, despite having the largest manufacturing sector globally. Consequently, China has resisted contributing to the same climate funds as wealthier nations.
Ma Jun, director of the Institute of Public and Environmental Affairs, a research group in Beijing, echoed the Chinese government’s position, emphasizing that the primary responsibility lies with industrialized countries that have historically emitted the majority of greenhouse gases. Jun asserted that “the industrialized countries need to fulfill their obligations that have long been neglected.”
John Morton, a former climate counselor for the Treasury Department, stated that China’s meaningful contribution to climate finance could bolster the United States’ efforts to secure support from Congress and other stakeholders. Morton also highlighted the potential for the two superpowers to collaborate on initiatives such as reducing coal use and curbing methane emissions.
Treasury Secretary Janet Yellen greets Chinese Vice Premier He Lifeng in Beijing earlier today pic.twitter.com/iYcA7Jmuz6
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The United States and China jointly lead the Sustainable Finance Working Group at the Group of 20, providing an opportunity for closer collaboration on global climate matters. Yellen’s visit to China follows Secretary of State Blinken’s trip and precedes John Kerry’s upcoming visit as President Biden’s special envoy for climate change, which aims to reignite negotiations between the world’s two largest polluters.
Furthermore, President Biden himself will attend a forum in London to explore strategies for mobilizing climate finance, reports CNN, particularly by leveraging private finance for clean energy deployment and adaptation in developing countries.
Yellen’s four-day trip to China seeks to restore communication channels between the US and Chinese counterparts, which have been strained in recent years due to trade wars and technology export controls. While Yellen highlighted climate finance as an area of potential cooperation, concerns have been raised in Washington regarding China’s continued reliance on fossil fuels. Despite China’s commitment to achieving carbon neutrality by 2060, the country has increased its construction of coal-fired power plants and expanded coal mining operations.
Chinese officials argue that the new coal-fired power plants will mainly serve to meet peak electricity demand, not operate continuously. However, critics contend that these plants will have a long-term detrimental impact on the climate.
As the urgency to combat climate change intensifies, forging a closer relationship with China on climate-related issues represents a crucial opportunity. Yellen’s diplomatic efforts in Beijing aim to encourage China’s greater involvement in international climate finance and pave the way for collaboration between the world’s two largest economies in addressing the pressing challenges of the global climate crisis.
