US-China Cooperation In Climate Finance ‘Critical’: Yellen
It is “critical” for Washington and Beijing to continue collaborating on climate finance, according to US Treasury Secretary Janet Yellen. Additionally, she urged greater collaboration to address the “existential threat” posed by global warming.
The U.S. wants to ease tensions and highlight areas of cooperation between the world’s two largest economies, so Yellen is in Beijing for four days.
As the world’s two biggest emitters of greenhouse gases and investors in renewable energy, the U.S. and China have a joint responsibility and ability to lead the way, Yellen told a group of experts in China, pointing out an important area where the two countries could work together despite their tense relations.
Climate change is the biggest problem in the world, and she said that the US and China must work together to deal with this existential threat.
“Climate finance should be targeted efficiently and effectively,” she said, and she pushed China to support existing multilateral institutions like the Green Climate Fund. She also pushed for the private sector to be involved in the transition to net zero.
China and the US both want to support allies in developing nations and emerging markets in achieving their climate goals. I think it’s important for the US and China to keep working together on climate finance.
China said for a short time last year that it was stopping climate talks after Nancy Pelosi, who was then the speaker of the House of Representatives, went to Taiwan, a self-governed democracy that Beijing claims as its own.
But there are signs that talks could start up again soon. On Friday, a US official said that US envoy John Kerry was going to China to talk about working together on climate change.
In a meeting with Chinese Premier Li Qiang on Friday, Yellen said that it was also important for Washington and Beijing to talk about global economic and financial issues and work together on problems like debt distress. This was in addition to working together on climate change.
Lyu Xiang, an expert on Sino-US relations at the Chinese Academy of Social Sciences, said that the high-level meeting between the Treasury chief and Premier Li probably “set the tone” for the rest of her trip.
On Saturday, Yellen met with people who work on climate finance and talked with women economists. She said that the relationship between the US and China is “rooted in the solid ties” between the American and Chinese people.
She said that the US may have disagreements with the Chinese government, but not with the Chinese people.
Later on Saturday, she is likely to meet Vice Premier He Lifeng, a key figure in China’s economic affairs.
Lyu told AFP that during the next meetings, Yellen will be able to talk about more specific issues, such as the macroeconomy, trade, and tech exports.
But, according to Lindsay Gorman, senior fellow for emerging technologies at the German Marshall Fund of the United States, a key question is whether big-ticket items in the category of global challenges, such as debt distress and climate cooperation, are moved to the top of the agenda.
Yellen’s talks on Saturday come after she met with US businesses. During those meetings, the businesses brought up several concerns, such as fair competition with the Chinese, less interaction between people, and an uncertain business climate due to a crackdown on national security.
Michael Hart, president of the American Chamber of Commerce in China, told news sources that anything that can help improve relations between the US and China will do two things: first, it will help the companies and investors here, and second, it will give us more chances to work together.