President Obama and Chinese President Xi Jinping on Friday announced that China will implement a new cap-and-trade system for carbon emissions, and said China has agreed to spend $3.1 billion to help developing countries fight climate change.
According to a White House fact sheet, Xi will announce the creation of China’s national cap-and-trade system, which will happen in 2017.
The reductions in carbon emissions, largely blamed by many scientists for the release of greenhouse gases into the atmosphere and the subsequent warming of the planet, will affect China’s power generation, iron, steel, chemical and building materials sectors. Those sectors are seen as the largest emitters of carbon pollution in that country.
Under a cap-and-trade program, companies would face limits on how much carbon they can emit, and companies that can’t meet those targets can buy the rights to emit more from other companies that stay within the limits.
Other major climate-related announcements from Obama and Xi were:
A plan for Paris – The two leaders want to come to the United Nations Conference on Climate Change in Paris. They’ve agreed that emissions standards should decrease over time, countries should develop new strategies to decrease carbon emissions throughout the 21st century, and support the “low-carbon transformation of the global economy this century,” according to the fact sheet.
They also reached an agreement on enhanced transparency about the implementation of technology to limit carbon emissions and an affirmation of the countries’ commitment to making a deal in Paris.
Money for developing countries – The Obama administration has already pledged $3 billion to the Green Climate Fund. Xi will announce his country will pledge even more: $3.1 billion.
The Green Climate Fund is designed to help developing countries to combat climate change.
More cooperation – The U.S. and China will also work together more on climate change through the U.S.-China Climate Change Working Group and by cooperation between Chinese cities and American cities.
The two countries will work together on clean energy research in the transportation, energy and water sectors. That work will come through the U.S.-China Clean Energy Research Center.
Check back to the Washington Examiner for more from the joint statement later today.
