Environmentalists say there is a need for international cooperation against a political agenda that undermines the green economy transition designed to mitigate the impact of climate change globally.
The environmentalists made the advocacy on Monday at the virtual 7th China International Import Expo (CIIE) Hongqiao International Economic Forum sub-forum titled: “Sustainable Trade amid Climate Change” in Shanghai, China.
They said that while climate goals demanded international cooperation, political agenda could pose a threat to derail efforts by introducing trade barriers and unilateral policies.
According to the experts, it has become important to promote transparent rules-based competition, to avoid counterproductive divide and achieve a true global green economy.
Dr Erik Solheim, Co-Chair of the Europe-Asia Centre, former Under-Secretary-General of the United Nations and Executive-Director of the UN Environment Programme, warned that political agenda and trade tensions could create obstacles that undermine a globally coordinated response.
He said that China and the EU could lead global climate cooperation, adding Europe and China must work together to defend trade, especially in light of recent political shifts in the U.S., which might increase trade tensions in days to come.
According to him, the EU move to increase tariffs on Chinese-built electric vehicles to 45.3 per cent at the end of its anti-subsidy probe should embrace the challenge of green competition rather than resort to defensive measures like tariffs on Chinese electric vehicles and solar panels.
“Without robust trade the shift to green development could take far longer, leaving global economies more vulnerable.
“In recent years, with repeated shocks from the global pandemic, frequent geopolitical conflicts and resurgence of trade protectionism, the multilateral trading system has become increasingly fragile.
“Europe needs confidence in its ability to compete; rather than hindering competition, we should welcome Chinese products that advance sustainability while encouraging Europe’s own industries to improve.
“Trade restrictions are short-sighted responses to competition and embracing green competition can help European industries thrive.” Solheim said that China had excess production capacity in solar cells and EVs, which meant it was producing substantial supply of high-quality green products for the world.”
He said there were precisely green products the world needed such as green public goods that benefited all.
“We need to recognise this demands improved market regulation to ensure fair competition and foster balanced global market for essential green products.
“Therefore, open multilateral trade remains essential for advancing green initiatives; there should be enhanced EU-China cooperation because climate goals depend on exchange of green technologies, as well as fair competition across markets.
“Europe and China must ensure their trade mechanisms support fair and competitive environment, fostering innovation and economic growth globally,” he said.
Yi Xiaozhun, former Vice-Minister of Commerce of China and former Deputy Director-General of the World Trade Organisation (WTO), described unilateral trade protection measures introduced by a few major trading nations as the final straw that broke the WTO.
The former deputy-director explained such measures primarily driven by few developed economies, increased the risk of retaliatory trade conflicts and further stifle green cooperation.
“Green transitions should respect WTO rules and not come at the cost of undermining the multilateral trade system; using climate policies as guise for protectionism ultimately hinders sustainable development efforts,” he said.
Henry Wang, Founder and President of Center for China and Globalisation (CCG), reiterated that excessive trade restrictions could obstruct global climate cooperation.
Wang, a former Counselor to China’s State Council, cited the CCG report titled: “Sustainable Trade Amid Global Climate Change 2024” to warn that lobbying climate action could pose risk of breaking global trade policies and weakening collective responses to climate change.
According to him, global demand for solar panels and EVs has increased, yet production is struggling to keep up.
“The International Energy Agency (IEA) projects a need for 820 gigawatts of new photovoltaic installations, but 2022 production met only a quarter of that target.
“Similarly, global EV sales rose by 35 per cent in 2023 and demand is expected to hit 30 million units by 2027; amidst this, China exported 1.2 million EVs in 2023 marking significant supply shortage in the global market,” Wang said.
NAN
