Paper: GS – II, Subject: International Relations, Topic: Global issues, Issue: Comparing the approaches of America and China towards climate action.
Context:
The different approaches of the US and China, the world’s top two carbon emitters in tackling climate change highlights the geopolitical, economic, and energy strategy implications of their climate actions.
Key Highlights:
- Case of U.S. influence: The US accounts for:
- Over 25% of global economic output.
- Over 50% of global market value of publicly traded companies.
- IRA: The Inflation Reduction Act (IRA) showed early promise by incentivizing clean energy and low-carbon sectors.It is estimated to generate 330,000 clean energy jobs, and mobilize $1 trillion in low-carbon investment.
Recent Setbacks:
- Narrowed focus: Focus narrowed to sectors like solar and wind, EV incentives set to expire by end of 2027.
- Budget cuts: Budget cuts for strategic petroleum reserves and rollbacks on incentives for clean energy infrastructure.
- Uncertain delays: Delays and uncertainty could set the US back in clean energy transition.
- AI and energy demand: Growing AI sector increasing electricity demand, further stressing the energy system. US capacity additions may lag behind energy demand.
Case of China:
- Clean energy investments: Largest global investor in clean energy, spending $546 billion in 2022 alone.
- Rapid Advancements: China is investing rapidly in Solar & wind, Green hydrogen, Battery storage, EVs and Large-scale energy transmission.
- Future Vision: Despite reliance on fossil fuels, China is expanding clean energy infrastructure, developing green hydrogen production (100 MW+) and building hydrogen supply chain.
- Urgency in action: Though China plans for net-zero by 2060, yet shows urgency in transition.
Comparative Insights:
| Aspect | U.S.A | China |
| Policy Momentum | Weakening due to political divide. | Strong centralized commitment |
| Clean Energy Investment | Reducing and uncertainty is rising sharply and strategically | Making significant strides in clean energy investments. |
| Net-Zero Target | 2050 | 2060 |
| Strategic Leadership | Retreating from clean energy leadership | Emerging as a global green tech leader |
India’s Standpoint: India lags behind China on clean energy investments. It needs to hedge by diversifying tech leadership and building resilience.
Conclusion:
The worst of times for US climate action may turn into a boon for China’s global green leadership. The race is not just about emissions, but about energy sovereignty, geopolitical leverage, and climate-resilient economic growth.
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