The chart in the Exhibit below can have multiple interpretations, but one is a far greater risk to the US economy and US geopolitical influence than others. The fossil fuel supporters in the US will point to the 15% and say that the US is not the problem and China and India (which is growing rapidly) have more to do. The FT article linked, would cause you to look at the chart differently. The article talks about China using aggressive climate change action to gain favor with the rest of the world and increase its influence on the global economic debate and economic progress. This could come at the expense of a disorganized US, which ultimately risks becoming the laggard in climate change and lose influence as a consequence. China has a bigger carbon footprint, but this may play to the country’s advantage if central decisions drive investment quickly and push carbon progress faster than others. This could help China’s global leadership ambitions, especially if they help other countries lower their carbon footprints either through direct investment or through the supply of “low carbon” materials.
Source: USCSUSA.ORG
We have written previously about China’s ability to move quickly and the possibility that China could have low carbon products in the market at scale long before Europe and the US. The need for consensus in the EU and the polarizing politics in the US almost guarantee that if China wants to lead here it can. A sobering end to the week! Of course, this linked headline shows that China could also mess it up.