Thursday 30 October 2008

China Asks Rich to Pay for Cleanup


By SHAI OSTER

BEIJING -- China issued a major policy on climate change Wednesday, acknowledging its own growing contribution to the problem and its increased vulnerability to a warming planet, but arguing that rich nations should pay poorer countries for the giant costs of cleaning up.
"Based on information we have at hand, our emission level is roughly the same as that of the United States," Xie Zhenhua, a deputy chief in charge of climate change policy at the National Development and Reform Commission, China's top economic policy-making body, said at a news conference. But "whether our emissions are higher than the United States is not what really matters," he added.

Instead, Chinese officials argue that the real issue is who will foot the bill for the costly cleanup. Mr. Xie said "developed countries should, at least, contribute 0.7% of their GDP" to help fund poorer countries fight global warming. The figure represents a possible opening for future climate-change negotiations, as China envisions some sort of global climate tax.
The 44-page report comes ahead of an international conference on climate change next month in Beijing, organized by the U.N. and the Chinese government to help promote the exchange of green technologies. It details what steps China has taken to ease pollution, and the costs to its agriculture and environment from rising temperatures.
Even more crucial will be a meeting in December in Poland to start negotiations over what to do after the U.N.-backed Kyoto Protocol on climate change expires in 2012. Under the Kyoto Protocol, developing nations, such as India and China, were exempt from limits on greenhouse-gas emissions. Some rich countries, such as the U.S., which didn't join the treaty, said excluding poor countries basically added an unfair burden to rich nations while allowing poorer countries to keep polluting.
China argues that because rich countries had contributed the bulk of greenhouse gasses during their industrialization, they should foot the bill for cleaning up. But when Kyoto was first negotiated, scientists had greatly underestimated the speed with which China's economy would grow.
Now, by some estimates, China has already matched or surpassed U.S. levels of greenhouse gasses as its economy works in overdrive, burning more coal, producing more steel and pouring more cement than any other country. Increasingly, scientists fear that failing to limit China's and India's greenhouse gasses could wipe out any gains made in the developed economies.
Though China acknowledges the drastic threats of climate change, especially because its mostly poor, predominantly rural economy is more vulnerable to drought and flooding than the richer economies of the West, it still rejects any absolute caps on emissions, arguing they limit economic growth.
Instead, China has set targets to increase the energy efficiency of its economy, squeezing more output of every ton of coal it burns. Part of that project has led to the closure of hundreds of inefficient power plants, steel mills and cement plants, the white paper said.
Write to Shai Oster at shai.oster@wsj.com