In this webinar, Professor Zou Ji from the Energy Foundation China and Professor Angel Hsu of University of North Carolina-Chapel Hill discuss China’s enhanced climate ambition, and how it can play a role in accelerating climate action in Southeast Asia.
CLIMATE CHANGE IN SOUTHEAST ASIA PROGRAMME WEBINAR
Friday, 6 August 2021 – Professor Zou Ji, CEO and President of Energy Foundation China and Professor Angel Hsu, Assistant Professor of Public Policy and Environment, Ecology and Energy and the University of North Carolina-Chapel Hill spoke on major developments in China’s climate policy and the potential for climate cooperation between China and Southeast Asian countries. The session was moderated by Ms. Sharon Seah, Coordinator of the Climate Change in Southeast Asia Programme and ISEAS Senior Fellow.
In his presentation, Professor Zou noted trends in China’s emissions, emissions per capita and emission per GDP over the past few decades. Its trajectory suggests that China may be expected to peak its emissions at an earlier stage in GDP per capita growth compared to other major economies. He emphasised that early peaking of emissions is technically and economically feasible, as well as more cost-effective and beneficial for China’s modernisation strategy.
Prof Zou also identified areas for potential cooperation between China and ASEAN, both at the national planning level and at the sectoral level. For example, China and ASEAN may share interests in greenhouse gas mitigation and air pollution reduction targets, or renewable capacity development and rural electricity access. Such coordination could spur on financing for green infrastructure development. He also suggested for closer dialogue between China and ASEAN to boost cooperation on energy efficiency standards, energy transformations and potentially establishing links between national or regional carbon markets.
Professor Hsu went on to elaborate on China’s national target of carbon neutrality by 2060, which is a highly ambitious undertaking for China and a strong signal for other developing countries to heighten their own ambition. However, she noted that China must avoid carbon leakage, which may occur if a country reduces its domestic emissions while exporting emissions to other parts of the world through trade and investment. Its response to this challenge will have major implications for Southeast Asia. China is the largest overseas financier of coal, with Indonesia and Vietnam within its top three recipients of coal finance in the last two decades. She pointed out that the immense demand for coal in Southeast Asia is driving these investments, with many ASEAN countries prioritising cheap coal over renewables. Prof Hsu looked forward to a shift in these policies at the upcoming United Nations Framework Convention on Climate Change conference in November.
She added that China can also play a role in incentivising renewable projects in Southeast Asia through measures such as adding provisions to its overseas green financing laws. China’s climate special envoy, Xie Zhenhua, has spoken on China’s new green bond catalogue which now excludes coal projects. More specific guidelines on fossil fuel investment for China’s development banks may help Southeast Asian countries transition to renewable electricity.
During the Q&A session, the panellists addressed questions relating to rural electricity access, the implications of US-China relations on climate action and overseas coal investment. The webinar drew over 80 participants.
