G2 against climate changes
06.04.2010
After signing in July 2009 a memorandum of understanding to expand cooperation on clean-energy
technology and to redouble efforts to reach an international agreement to curb climate change
China and USA started to act in this direction.
Many experts foresee a green trade boom between the United States and China due to their enormous energy demand,
but when that will come and how large it will be remain unclear.
Energy experts differ so widely in their opinions on the issue that those who look forward to a boom consider its
potential "huge". Others, however, are more cautious in their outlook.
"It's going to be huge because it has to be huge...there is no choice but for the sector to become enormous,"
said Julian L. Wong, a senior policy analyst at the Center for American Progress. Wong cited the International Energy
Agency's forecast that $26US trillion will be needed by 2030 to meet global energy demands.
With both G2 members planning cuts in carbon emissions, the two - the world's largest energy consumers - can play leading
roles in developing renewable energy equipment and technologies, experts say.
For its part, the USA announced recently that it would provide tax credits worth $2US.3 billion to companies
manufacturing clean energy equipment. The move falls in line with USA President Barack Obama's goal of making America
the world's largest renewable energy exporter.
"Many low carbon zones and cities (in China) are being planned," she said. "(Green) technologies for mass transportation,
building efficiency and power generation are greatly needed."
China is calling for more technology transfers from the USA and Senator John Kerry, a Democrat from Massachusetts,
said recently that the United States would push toward that goal.
"If the USA is willing to engage fully with China in bilateral cooperation or joint research and development,
it will mean a transfer of technological assistance," he said.
Wong called the recent launch of a joint USA-China research project to produce more fuel-efficient motor vehicles and
buildings an important first step, despite its modest 15-million-dollar budget.
"I see great potential to link China's great demand to build transformational infrastructure (using) technologies here in
the USA," she said.
Jing Su, director of the USA-China program at the American Council on Renewable Energy, said America could provide
technology to help China convert its infrastructure to lower carbon platforms. Su went even further to predict a close
partnership between the United States and China. Su said technology such as carbon capture and sequestration
- the process of removing carbon dioxide from the atmosphere to mitigate the effects of greenhouse gasses -
would require collaboration from both countries to bring it to maturity. This is the "key component" of the solution to
climate change in the short term, she said.
Nicholas Hope, director of the Center for International Development at Stanford University, described green trade
opportunities as "limitless." He said solar energy could become a significant power source. "I don't think we've
exhausted the technological capacity of solar," he said. Some major USA investors have taken interest in China's
emerging solar energy sector. Investment banks Goldman Sachs and CDH Investment announced in December that they would
pour nearly $100US million into the Himin Solar Energy Group, a China-based solar module manufacturer. The funds are
earmarked for research and development as well as boosting the company's growth. China is gaining ground in the solar
industry. China-based Suntech, for example, is on its way to overtaking Germany-based Q-Cells to become the world's No.
2 provider of photovoltaic cells behind USA-based First Solar. But some USA solar firms fret that they can't compete
with their Chinese counterparts because the latter have access to cheaper electricity and less costly labor.
China (2) -- Analyses -- 2010
More about G2
06.04.2010
The Group of Two (G-2 or G2) is the group of the two most influential and powerful countries in the world: USA and China.
The term was created originally by noted economist Bergsten, C. (2004) as primarily an economic relationship. After,
it began to gain wider scope.
USA and China together account for almost one half of all global growth during the four-year boom prior to the crisis.
They are two largest trading nations. They are two largest polluters. They are on opposite ends of the world’s largest
trade and financial imbalance: the USA is the largest deficit and debtor country while China is the largest surplus
country and holder of dollar reserves. They are the leaders of the two groups, the high-income industrialized countries
and the emerging markets.
Zbigniew Brzezinski, former U. S. National Security Advisor has been a vocal advocate for the concept. He publicly
advanced the notion in Beijing in January 2009 as the two countries celebrated the 30th anniversary of establishing
formal diplomatic ties. He views the informal G-2 as helpful in finding solutions to the global financial crisis,
climate change, nuclear non-proliferation and nuclear disarmament. He called the principle of "harmony" a
"mission worthy of the two countries with the most extraordinary potential for shaping our collective future."
China has officially stated that it does not agree to a G-2 system to make decisions for the world but prefers
a multipolar world. Premier Wen Jibao voiced this to President Barack Obama during his visit to China.
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