logo
China charges ahead on climate while the West stalls and spins

China charges ahead on climate while the West stalls and spins

You've got to hand it to China. At a time when the US is backsliding on plans to reduce its carbon pollution, the Asian country is promising to join the EU in becoming a world leader in the fight against climate change.
China followed Europe earlier this month with a commitment to revamp its climate plan to meet the long-term temperature goal of the Paris Agreement. The goal, which entails reducing global greenhouse gas emissions to hold the earth's temperature increase to well below 2 C above pre-industrial levels, is a tall order for the world's second-most populous country.
China is far and away the world's largest greenhouse gas emitter, contributing nearly a third of the total. Despite gains from massive investments in renewable energy, China's emissions continued to climb last year. The Climate Action Tracker rates China's progress as ' highly insufficient,' a step worse than Canada, which is also deemed to be ' insufficient.'
The problem is the skyrocketing demand for power, which China can't yet meet with renewables. President Xi Jinping announced China would start to phase out coal-fired power plants, one of the highest emitters of greenhouse gases, in 2026. So far however, coal mining is still increasing and the construction of coal plants reached a 10-year high last year due to growing energy security concerns. Electricity demand spikes during heat waves when people crank up air conditioning. This is also the time when dam reservoir levels drop, decreasing the amount of available hydropower. That means burning more coal for power and greater carbon emissions. The vicious cycle continues.
Amid that avalanche of doom, however, are some very bright lights that could start to glow even brighter. There are indications that China's emissions have peaked and the country is about to turn the corner. There are a lot of Xi skeptics, and for good reason. A cynic might point to Xi's recent pivot back to coal and dismiss his climate leadership aspirations as an empty promise. But the country is a renewable energy juggernaut and in the first quarter of this year, the amount of power from solar and wind for the first time surpassed thermal energy mostly produced by coal.
Similarly, the number of electric vehicles sold in China is set to overtake gas-powered vehicle sales this year, 10 years ahead of its target. China's dominance in the EV marketplace won kudos from none other than Ford's CEO Jim Farley who recently returned from China gushing, 'their cost, their quality of their vehicles is far superior to what I see in the West.'
Part of China's interest in renewables is pure economics. China manufactures 80 per cent of the world's solar panels at a time when renewables are in hot demand and its rich mineral reserves also allow the country to dominate battery production. But according to Carbon Brief, a UK-based climate publication, a good deal of the credit for China's climate ambition goes to Xi himself, who was concerned about global warming and interested in renewable energy long before he became president.
China claims it is ready to take on the role as a leader in the fight against climate change. It just might happen. @adriennetanner.bsky.social writes
As long ago as 2003, Xi wrote a series of articles, some of which touched on 'environmental protection, sustainable development, circular economy, conservation-oriented society and reducing resource consumption and pollution.' In 2005, when he was the party secretary of Zhejiang province, Xi gave a speech to villagers thrown out of work after a highly polluting quarry was shuttered, urging them to support a green transition. His statement, 'lucid waters and lush mountains are invaluable assets themselves,' has since become his most famous environmental quote.
When Xi was elevated to the presidency, Beijing was choked in record-breaking smog from coal, iron, steel, cement and chemical plants. The country's development-at-all-costs mentality after the 2008 recession was sending 7,000 children a day to hospital for treatment for respiratory ailments. In response, a National Air Quality Action Plan was put in place that — among many other measures — capped the number of cars in Beijing and charted a course for investment in renewable energy. Since then, the Chinese public's perception and awareness of the need to combat climate change has shifted. 'It is top-down and driven by Chinese leadership,' Lu Zhi, a professor of conservation biology at Peking University, told Carbon Brief.
We should not underestimate the importance of leadership in the battle against climate change. South of our border, the US under former President Joe Biden, set ambitious climate targets to lower emissions by at least 50 per cent by 2030 and invested billions in climate-related infrastructure projects. One change in leadership later, and much of it is being undone. President Donald Trump has rolled back the nation's climate strategy, and is doing everything possible to arrest wind and solar energy, and to slow the transition to EVs. The most recent and dangerous blow delivered by the Trump administration this week, was an announcement from the Environmental Protection Agency stating that greenhouse gases will no longer be considered a public health threat, a finding that enabled the federal government to set emissions limits.
Here in Canada, environmental policy has taken a hit since the election of Prime Minister Mark Carney. His first move was to blast his predecessor's consumer carbon tax. And he is now musing about building more oil pipelines and contemplating doing away with a planned industrial emissions cap, and seems open to softening EV mandates.
China's leadership, for obvious reasons, would not tolerate the bevy of haters and naysayers who elected Donald Trump, and is less prone to capricious directional policy changes. Furthermore, the government sets the direction for industrial and economic development. While this has forced the country to tolerate horrific air pollution in its cities, it also means that when shifts are mandated, such as the transition to renewables or adoption of EVs, they happen a whole lot faster than here in the West.
And with less spin from industry defending outdated technology like internal combustion engines when better options are available, Chinese consumers are more willing to switch. If Xi is indeed serious about being a climate leader and wants to trade China's coal reliance for renewables, he's got as good a chance as anyone to make it happen.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

AstraZeneca's AZD3427 Study: A Potential Game-Changer for Heart Failure and Pulmonary Hypertension
AstraZeneca's AZD3427 Study: A Potential Game-Changer for Heart Failure and Pulmonary Hypertension

Globe and Mail

time3 hours ago

  • Globe and Mail

AstraZeneca's AZD3427 Study: A Potential Game-Changer for Heart Failure and Pulmonary Hypertension

AstraZeneca ((AZN)), Parexel International ((PRXL)), AstraZeneca plc ((GB:AZN)), AstraZeneca ((DE:ZEGA)), AstraZeneca plc US ((AZNCF)) announced an update on their ongoing clinical study. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. AstraZeneca, in collaboration with Parexel International, is conducting a Phase IIb study titled A Phase IIb Randomised, Double-blind, Placebo-controlled, Multi-centre, Dose-ranging Study of AZD3427 in Participants With Heart Failure and Pulmonary Hypertension Due to Left Heart Disease (WHO Group 2). The study aims to assess the efficacy of AZD3427 in reducing pulmonary vascular resistance in patients with heart failure and pulmonary hypertension over 24 weeks, highlighting its potential significance in treating these conditions. The intervention being tested is AZD3427, administered as a subcutaneous injection. It is designed to target pulmonary hypertension by reducing vascular resistance, with the study evaluating three different dose levels of the drug. The study follows a randomized, parallel assignment model with triple masking, involving participants, care providers, and investigators. Its primary purpose is treatment-focused, aiming to determine the optimal dosing strategy for AZD3427. The study began on April 24, 2023, with an estimated completion date in July 2025. These timelines are crucial for tracking the progress and potential market introduction of AZD3427. The outcome of this study could significantly impact AstraZeneca's market position, potentially boosting its stock performance if results are positive. Investors will be keenly watching for updates, especially in the context of competitive treatments for heart failure and pulmonary hypertension. The study is ongoing, with further details available on the ClinicalTrials portal.

Undervalued and Profitable: 3 Artificial Intelligence (AI) Stocks for Buffett-Minded Investors
Undervalued and Profitable: 3 Artificial Intelligence (AI) Stocks for Buffett-Minded Investors

Globe and Mail

time12 hours ago

  • Globe and Mail

Undervalued and Profitable: 3 Artificial Intelligence (AI) Stocks for Buffett-Minded Investors

Key Points Although Arm Holdings doesn't physically manufacture anything, it's cashing in on the ever-growing need for efficient, high-performance AI hardware. As much as the semiconductor industry is trying to wean itself from its dependence on Taiwan Semiconductor, it just can't. Think of DigitalOcean as a key consumer staples company of the artificial intelligence industry. 10 stocks we like better than Arm Holdings › Warren Buffett's never been a big fan of technology stocks. He says they're too difficult to understand and often vulnerable to change. He'd rather own more predictable picks, which means he prefers investing in already-profitable companies with simple business models. This preference disqualifies many artificial intelligence (AI) stocks from becoming a Berkshire Hathaway holding. Not every technology stock, however, is the clichéd dot-com type of investment that Buffett has sought to avoid. A handful of AI stocks are arguably justifiable additions to Berkshire's portfolio based on their predictability, profitability, and of course, their potential upside. Here's a closer look at three such AI prospects that Buffett might actually approve of if given a closer look. They may be a good way of adding some AI exposure to your portfolio as well. Arm Holdings OK, Arm Holdings ' (NASDAQ: ARM) revenue and earnings may not be perfectly predictable from one quarter to the next. The company's top and bottom lines do reliably grow though, and it is reliably (and increasingly) profitable. ARM Revenue (Quarterly) data by YCharts. But what is it? This company is frequently categorized as a semiconductor stock, which isn't an inaccurate description. It's not a manufacturer in the same vein as Intel (NASDAQ: INTC) or Qualcomm, though. Rather, Arm only designs microchip architecture and then licenses this intellectual property to chipmakers that often outsource the production of these chips to a third-party manufacturer. For instance, Apple 's (NASDAQ: AAPL) latest iPhone processors are based on Arm's chip architecture, but this particular silicon is actually made (per Apple and Arm's specs) by a company called Taiwan Semiconductor Manufacturing (NYSE: TSM), also known as TSMC. Arm only collects a relatively small amount of revenue for every iPhone sold with its tech built into it. But since Arm incurs no production or distribution costs, this is high-margin revenue. Last fiscal year Arm Holdings turned $4 billion worth of sales into nearly $800 million worth of net income. Given the technological prowess of outfits like Intel, Apple, and Qualcomm, it seems strange that they should rely on -- and pay -- a company like Arm for something as relatively common as chip design. But it actually makes a lot of sense for a couple of reasons. First, all of Arm's know-how is patented, so using it would be illegal even if it is a logical and intuitive solution. And second, Arm's solutions are actually superior, particularly when it comes to power efficiency. Its cloud-computing data center processors require up to 60% less electricity than comparable processors from rivals, for example, answering one of data center operators' biggest frustrations. That's why Arm believes it could control as much as half of the data center processor market by the end of this year, up from only about 15% as of 2024. Taiwan Semiconductor Taiwan Semiconductor Manufacturing doesn't just make Apple's newest Arm-based iPhone processors. It manufactures high-performance chips for most of the major semiconductor names including Nvidia, Qualcomm, Advanced Micro Devices, and Broadcom -- just to name a few. Indeed, analysts' estimates put TSMC's market share of global production of high-performance processors anywhere from 80% to as high as 90%. What gives? As it turns out, manufacturing computer processors is complicated and expensive. It's often easier and cheaper to punt this work to an organization with the experience, expertise, and capacity to make these chips than it is to try and do it yourself. Over the course of the past couple of decades, TSMC has emerged as the industry's premier contract manufacturer This satisfies a couple of Buffett's most important rules for buying stocks. As he advises, look for proven, high-quality companies with a wide competitive moat. TSMC offers both. A handful of chipmakers are attempting to wean themselves from reliance on silicon made in the Pacific region particularly by TSMC. Back in 2022, for instance, Intel committed billions of dollars to establishing its own chipmaking foundries in Europe and the U.S. The fact that much of this work has been delayed due to complications and recently scaled back, however, underscores the difficulty of getting into or expanding the chipmaking business when players like TSMC are already so well established and so far ahead, technology-wise. Apple's strategy is more aligned with reality. It's partnering with TSMC to establish a manufacturing presence within the U.S. that it can enjoy some control of and that won't simultaneously require it to fend off competition while these factories are being built. More important to Buffett-minded investors, while the business may ebb and flow from time to time, the world's never not going to need new and better computer chips. DigitalOcean Finally, add DigitalOcean (NYSE: DOCN) to your list of undervalued and profitable AI stocks that Warren Buffett could appreciate. It's probably the least-known name of the three AI prospects in focus. In fact, there's a good chance you've never even heard of it. Its market cap of less than $3 billion just doesn't turn many heads, and it's seemingly not nearly as critical to the AI industry as Arm or TSMC. Don't be dissuaded by its relatively small size or lack of recognition. It's arguably the most Buffett-like of all three AI stocks highlighted here. DigitalOcean provides a range of cloud-based services to clients that simply want to outsource their data center needs. These include blockchain solutions, simple web hosting, video streaming technologies, online video games platforms, and yes, a whole bunch of AI solutions like AI training, virtual customer service agents, and automated coding. Although DigitalOcean doesn't strictly serve the AI industry, AI is an increasingly bigger profit center. But that's not what makes this outfit such a Buffett-esque pick. Rather, Warren Buffett would very likely fall in love with this stock due to the nature of its business model and the fact that it's reliably profitable. DigitalOcean's clients pay for access to its technological solutions on a predictable, monthly basis. As of Q1 of this year, its annualized recurring revenue run rate stands at $843 million (up 14% from the year-earlier comparison) versus 2024's total top line of $781 million, of which $84 million was turned into net income. As long as the world needs the cloud -- and needs cloud-based AI solutions in particular -- this company's revenue and earnings are apt to grow in step with both industries. Should you invest $1,000 in Arm Holdings right now? Before you buy stock in Arm Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arm Holdings wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Berkshire Hathaway, DigitalOcean, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.

Economic Watch: Trump's sweeping new tariffs spark extensive criticism
Economic Watch: Trump's sweeping new tariffs spark extensive criticism

Canada News.Net

time12 hours ago

  • Canada News.Net

Economic Watch: Trump's sweeping new tariffs spark extensive criticism

U.S. President Donald Trump imposed sweeping new tariffs on 69 trading partners, sparking global criticism over economic disruption and sovereignty concerns. WASHINGTON, Aug. 2 (Xinhua) -- U.S. President Donald Trump on Thursday signed an executive order that further modified tariff rates with 69 trading partners, drawing criticism across the world. The order, set to be implemented on Aug. 7, imposes "additional ad valorem duties on goods of certain trading partners," with rates ranging from 10 percent to 40 percent. SWEEPING TARIFFS Under the new executive order, the "universal" tariff for goods entering the United States will remain at 10 percent, the same rate implemented on April 2. However, the 10-percent rate will only apply to countries with which the United States has a trade surplus, CNN reported, citing a senior official. For countries with which the United States has a trade deficit, a 15-percent rate will serve as the new tariff floor. Still, for more than a dozen other countries, the tariff rates are higher than 15 percent, either because they agreed to a trade framework with the United States or because Trump sent their leaders a letter requiring a higher tariff, it added. On Thursday, Trump signed an executive order increasing the tariff on Canada from 25 percent to 35 percent, with the higher tariff taking effect on Aug. 1. Goods qualifying for preferential tariff treatment under the United States-Mexico-Canada Agreement will continue to remain exempt from the new tariffs. Goods transshipped to evade the 35-percent tariff will be subject, instead, to a transshipment tariff of 40 percent. On Wednesday, Trump signed an executive order implementing an additional 40-percent tariff on Brazilian goods, bringing the total tariff amount to 50 percent. On the same day, Trump announced that Washington had reached a "full and complete" trade deal with South Korea, setting 15-percent tariffs on its exports. South Korea has also agreed to invest 350 billion U.S. dollars in projects "owned and controlled by the United States," and selected by himself, Trump said. Trump said on Wednesday that the United States would impose a 25-percent tariff on imports from India, starting on Aug. 1. On July 27, Trump and European Commission President Ursula von der Leyen announced that they had reached a trade deal under which the United States would impose a baseline tariff of 15 percent on EU goods. The deal allows the United States to impose a broad 15-percent tariff on EU goods while securing zero-tariff access for a range of strategic American exports. In contrast, the EU has pledged to purchase 750 billion U.S. dollars' worth of American energy and commit an additional 600 billion U.S. dollars in investments in the United States. WIDE CRITICISM The higher tariffs continue Trump's reversal of the decades of globalization that made America's massive services economy the envy of the world but contributed to its long decline in manufacturing, CNN commented. "Our businesses ... need some degree of certainty, and all they're getting is chaos and inflation. So the Trump tariff trade war is a trade war on the American people. We've seen this week the chaos and uncertainty," said Chuck Schumer, Senate Democratic leader. Canadian Prime Minister Mark Carney said in a statement on Friday that his government is disappointed by Trump's decision to increase the tariff on Canadian goods to 35 percent. According to the statement, the sectors of lumber, steel, aluminum and automobiles are heavily impacted by U.S. duties and tariffs. The Canadian government will act to protect Canadian jobs, invest in industrial competitiveness, buy Canadian and diversify export markets, said Carney. Brazilian Finance Minister Fernando Haddad said his government will soon announce a response plan focused on providing financing assistance, deferring tax payments, accelerating export tax refunds, and reactivating labor protection policies. Bernd Lange, chair of the European Parliament's Committee on International Trade, slammed the U.S.-EU deal as "significantly imbalanced." In a statement following the announcement of the agreement, he said that "concessions have been made that are difficult to bear." The trade agreement is "a political, economic and moral fiasco," Marine Le Pen, leader of the far-right National Rally party in the French parliament, said in an X post. "Hundreds of billions of euros of gas, as well as weapons, will have to be imported each year from the United States. This is a complete capitulation for French industry, and for our energy and military sovereignty," she said. "I don't think Trump wants a trade deal. He wants these countries to surrender their economic sovereignty," said Sizo Nkala, senior research fellow at the Center for Africa-China Studies, University of Johannesburg. "More than anything, the tariff rates represent an assault on and a violation of a rules-based multilateral trading system administered by the World Trade Organization," Nkala said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store