By Andrew K.P. Leung (International and Independent China Strategist. Chairman and CEO, Andrew Leung International Consultants and Investments Limited)
A think-piece by Andrew S. Erickson and Gabriel Collins in Foreign Affairs of May/June 2021 argues that only pressure, not partnership, will spur China’s progress on Climate Change.
The argument is that despite advances in renewable energy capacity, China’s coal reliance in recent years has markedly increased, due to concerns with energy security, local vested interests, employment imperatives, and projects along the Belt and Road. The authors suggest that only coercion by way of a US-led carbon tax, along with Western allies, would do the trick, on grounds that China has under-performed with its Paris Agreement targets and is unlikely to be able to fulfill more promises.
Not unexpected is the now-fashionable China bashing and demonization. What seems lacking is appreciation that as “factory to the world”, China’s economy is fundamentally different from that of the United States. It is much more dependent on energy input, of which coal is likely to remain a comparatively large contributor, due to insufficient endowment of more readily available natural gas.
Also lacking is appreciation that China has already become the world’s leading country in electricity production from renewable energy sources, with over double the generation of the second-ranking country, the United States. By the end of 2019, China had a total capacity of 790GW of renewable power, mainly from hydroelectric, solar and wind power.
Furthermore, the authors seem to doubt China’s genuine desire for renewable energies. Apart from pollution and quality of life considerations, renewables will lessen China’s exposure to choke points like the US-controlled Malacca Strait and the Strait of Hormuz near Iran subject to uncertain geopolitical risks.
Melanie Hart, Luke Bassett, and Blaine Johnson’s earlier analysis of 15 May, 2017 for the Center on American Progress puts things in more balanced, quantitative perspectives. Entitled Everything You Think You Know About Coal in China Is Wrong, it highlights the following considerations –
“China’s Paris commitment includes a promise to install 800 gigawatts to 1,000 gigawatts of new renewable capacity by 2030, an amount equivalent to the capacity of the entire U.S. electricity system. While China and the United States have roughly the same land mass, however, China has 1.3 billion people to the United States’ 325 million. It needs an electricity system that is much larger, so adding the renewable equivalent of one entire U.S. electricity system is not enough to replace coal in the near to medium term.”
“ three things American observers need to understand about coal in China:
1. China’s new coal-fired power plants are cleaner than anything operating in the United States.
2. China’s emissions standards for conventional air pollutants from coal-fired power plants are stricter than the comparable U.S. standards.
3. Demand for coal-fired power is falling so quickly in China that the nation cannot support its existing fleet. Many of the coal-fired power plants that skeptics point to as evidence against a Chinese energy transformation are actually white elephants that Chinese leaders are already targeting in a wave of forced plant closures.”
“The U.S. coal fleet is much older than China’s: The average age of operating U.S. coal plants is 39 years, with 88 percent built between 1950 and 1990. Among the top 100 most efficient plants in the United States, the initial operating years range from 1967 to 2012. In China, the oldest plant on the top 100 list was commissioned in 2006, and the youngest was commissioned in 2015.”
“The United States only has one ultra-supercritical power plant. Everything else is subcritical or, at best, supercritical. In contrast, China is retiring its older plants and replacing them with ultra-supercritical facilities that produce more energy with less coal and generate less emissions as well. Out of China’s top 100 units, 90 are ultra-supercritical plants”.
“In the United States, the total nameplate capacity of our top 100 most efficient coal-fired power units is 80.1 gigawatts, and their cumulative annual carbon emissions amount to 361,924,475 metric tons. Meanwhile, the total nameplate capacity of China’s top 100 units is 82.6 gigawatts, and their cumulative annual carbon emissions are an estimated 342,586,908 metric tons.”
“Since China’s fleet uses more advanced technology, it also consumes less coal: an average of 286.42 grams of coal equivalent, or gce, consumed per kilowatt-hour of power produced in China versus 374.96 gce consumed per kilowatt-hour produced at lower heating value in the United States.”
What is more, it is doubtful if a US-led carbon tax would be a silver bullet. If anything, it could massively backfire. First, considering most of the world’s consumer products are now made in China, such a tax, like US trade sanctions, is likely to hurt consumers worldwide, not least in the United States.
Second, the developing world is unlikely to be supportive. To survive, the poor are heavily dependent on whatever energy sources are available to them locally. Such a tax is likely to be viewed as a ruse of the world’s richer to tax the less fortunate.
A better outlook would be for the United States to coordinate with China their respective national policies, targets, and actions under the Paris Agreement. They could do well to cooperate on joint efforts to accelerate attainments of Climate Change targets across the globe.
For a start, they could showcase each other’s best technologies and practices to their own peoples. This would vastly enhance their mutual understanding and learning of each other’s capacities and progress. What is more, as the world’s great powers and largest polluters, they could set a dynamic example for the rest of the world to reach for the stars under the Paris Agreement.
Separately, this would have the added, yet powerful, benefit of building mutual trust and understandingbetween the two great powers, now locking horns for mortal combat that is bound to engulf the whole world.
Author: Andrew K.P. Leung (International and Independent China Strategist. Chairman and CEO, Andrew Leung International Consultants and Investments Limited)
(The views expressed in this article belong only to the author and do not necessarily reflect the views of World Geostrategic Insights).
Image Credit: Thomas Peter/Reuters