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Fast Company
5 days ago
- Business
- Fast Company
EU and China agree to take action on climate change
China and the European Union have issued a joint call to action on climate change during an otherwise tense bilateral summit in Beijing on Thursday riven with major disagreements over trade and the war in Ukraine. The two economic juggernauts issued a joint statement on climate change, urging more emission cuts and greater use of green technology and affirming their support for the Paris Climate Agreement as well as calling for strong action at the upcoming COP30 climate summit in Brazil. 'In the fluid and turbulent international situation today, it is crucial that all countries, notably the major economies, maintain policy continuity and stability and step up efforts to address climate change,' the joint statement said. Their climate agreement was a silver lining on a stormy day where European leaders demanded a more balanced relationship with China in talks with President Xi Jinping. They highlighted trade in their opening remarks, calling for concrete progress to address Europe's yawning trade deficit with China. 'As our cooperation has deepened, so have the imbalances,' European Commission President Ursula von der Leyen said. 'We have reached an inflection point. Rebalancing our bilateral relation is essential. Because to be sustainable, relations need to be mutually beneficial.' Little movement expected Expectations were low ahead of the talks, initially supposed to last two days but scaled back to one. They come amid financial uncertainty around the world, wars in the Middle East and Ukraine, and the threat of U.S. tariffs. Neither the EU nor China is likely to budge on key issues. European Council President António Costa called on China to use its influence over Russia to bring an end to the war in Ukraine — a long-running plea from European leaders that is likely to fall again on deaf ears. Xi called for deeper cooperation between China and Europe to provide stability in an increasingly complex world. Both sides should set aside differences and seek common ground, he said, a phrase he often uses in relationships like the one with the EU. China is willing to strengthen coordination on climate and make greater contributions to addressing climate change, he said, but he pushed back against EU restrictions on Chinese exports. 'We hope the EU will keep its trade and investment markets open, refrain from using restrictive economic and trade tools and provide a good business environment for Chinese companies to invest and develop in Europe,' he said, according to a readout posted online by state broadcaster CCTV. US tariff threats weigh on EU-China cooperation Besides trade and the Ukraine war, von der Leyen and Costa were expected to raise concerns about Chinese cyberattacks and espionage, its restrictions on the export of rare earth minerals and its human rights record in Tibet, Hong Kong and Xinjiang. The EU, meanwhile, has concerns about a looming trade battle with the United States. 'Europe is being very careful not to antagonize President Trump even further by looking maybe too close to China, so all of that doesn't make this summit easier,' said Fabian Zuleeg, chief economist of the European Policy Center. 'It will be very hard to achieve something concrete.' China's stance has hardened on the EU, despite a few olive branches, like the suspension of sanctions on European lawmakers who criticized Beijing's human rights record in Xinjiang province, where it is accused of a widespread campaign of repression against the Uyghurs. The summit ended with almost no movement on the major issues of trade, electric vehicles, or Russia, said Noah Barkin, an analyst at the Rhodium Group think tank. Rather, frustration from the EU was glaringly obvious 'after years in which its concerns have been largely ignored by Beijing.' He said the Europeans will likely use more 'trade defense tools in the months ahead, including a debate over expanding safeguards and new cases under the bloc's foreign subsidies regulation.' Trade disputes range from rare earths to EVs Like the U.S., the 27-nation EU bloc runs a massive trade deficit with China — around 300 billion euros ($350 billion) last year. It relies heavily on China for critical minerals and the magnets made from them for cars and appliances. When China curtailed the export of those products in response to Trump's tariffs, European automakers cried foul. China agreed during the summit to to start 'an upgraded export supply mechanism' to fast-track exports of critical minerals, von der Leyen said. Details of the arrangement were not immediately made public. Barkin said he doubted the mechanism would be 'a miracle solution for what may become a go-to coercion tool for Beijing in the years ahead.' The EU has imposed tariffs on Chinese electric vehicles to support its carmakers by balancing out Beijing's heavy auto subsidies. China would like those tariffs revoked. The rapid growth in China's market share in Europe has sparked concern that Chinese cars will eventually threaten the EU's ability to produce its own green technology to combat climate change. Business groups and unions also fear that the jobs of 2.5 million auto industry workers could be put in jeopardy, as well those of 10.3 million more people whose employment depends indirectly on EV production. China has launched investigations into European pork and dairy products, and placed tariffs on French cognac and armagnac. It has criticized new EU regulations of medical equipment sales and fears upcoming legislation that could further target Chinese industries, said Alicia García-Herrero, a China analyst at the Bruegel think tank. The EU has leverage because China needs to sell goods to the bloc, García-Herrero said. 'The EU remains China's largest export market, so China has every intention to keep it this way, especially given the pressure coming from the U.S.,' she said. China bristles at EU sanctions over Russia's war against Ukraine. The latest package included two Chinese banks that the EU accused of links to Russia's war industry. China's Commerce Ministry protested the listing and vowed to respond with 'necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises and financial institutions.' The EU looks beyond Beijing and Washington Buffeted between a combative Washington and a hardline Beijing, the EU has more publicly sought new alliances elsewhere, inking a trade pact with Indonesia and drafting trade deals with South America and Mexico. Costa and von der Leyen visited Tokyo the day before their meetings in Beijing, launching an alliance with Japan to boost economic cooperation, defend free trade and counter unfair trade practices. 'Both Europe and Japan see a world around us where protectionist instincts grow, weaknesses get weaponized, and every dependency exploited,' von der Leyen said. So it is normal that two like-minded partners come together to make each other stronger.'
CNA
02-07-2025
- Business
- CNA
EU unveils long-delayed 2040 climate target, with wiggle room
BRUSSELS: The EU on Wednesday (July 2) unveiled its long-delayed target for cutting greenhouse gas emissions by 2040, but with contested new flexibilities built in to win over the most sceptical member states. After months of tough negotiations, Brussels said it would stick to the headline objective announced last year of cutting emissions by 90 per cent by 2040, compared to 1990 levels. The proposal comes as much of Europe roasts in an early summer heatwave, which scientists say is becoming more intense, frequent and widespread due to human-induced climate change. The 2040 target, which needs sign off from the European Union's member states and parliament, is a key milestone towards the bloc's goal of becoming carbon neutral by 2050. Brussels says the EU has already cut climate-warming emissions by 37 per cent relative to 1990, but its green agenda faces pushback with a rightward shift and rising climate scepticism in many European countries. EU climate chief Wopke Hoekstra acknowledged the "sensitive" debate, saying Brussels was keeping an "ambitious" goal while being "pragmatic and flexible on how to achieve it". To sway resistant capitals, the European Commission proposes that from 2036, the bloc's 27 countries can count carbon credits purchased to finance projects outside Europe, for up to three per cent of their emission cuts. Climate campaigners are broadly opposed to the measure. Backed by scientific studies and the commission's science advisers, they say factoring in international credits -- for things like tree-planting or renewable-energy projects -- risks undermining the EU's efforts to shift away from fossil fuels. "While this is a step in the right direction, by sneaking in international offsets and leaning heavily on supposed future carbon removals, the European Commission has built loopholes into the heart of the proposal," WWF EU said. "Three per cent is not insignificant," echoed Neil Makaroff, an expert at the climate-focused Strategic Perspectives think tank. "These are potentially considerable sums that will be spent abroad instead of financing the transition" in Europe."But there's a political compromise to be found," said Makaroff -- stressing the importance of "delivering" on the headline target. MAJOR TRANSFORMATIONS NEEDED To reach the 2040 and 2050 objectives, Europe's industry and citizens will have to undertake major transformations, including increased uptake of electric cars, the gradual phasing out of fossil fuels and making buildings more energy-efficient. "Today we show that we stand firmly by our commitment to decarbonise Europe's economy by 2050," EU chief Ursula von der Leyen said. EU environment ministers will discuss the objective at a meeting in mid-July, ahead of a vote expected on September 18. EU lawmakers also need to greenlight the target, which requires the support from the biggest group in parliament, the centre-right EPP. To win others over, Brussels also proposes to make it more financially attractive for companies that capture and store CO2. The commission's hope is that the 2040 objective will be approved before the UN climate conference (COP30) in November in the northern Brazilian city of Belem. But that gives little time for negotiations with sceptical nations, with whom Hoekstra has already spent months trying to build a compromise. For some states, including the Czech Republic, the 90-per cent target is unrealistic. Meanwhile, others, including Italy and Hungary, worry about the burden of decarbonising heavy industry at a time when Europe is working to strengthen its industry in the face of fierce competition from the United States and China. French President Emmanuel Macron wants guarantees for the decarbonisation of industry and support for nuclear energy, the largest source of power in France. But the commission can count on the support of other countries, including Spain and Denmark, which took over the rotating EU presidency this week. And the three-per-cent "flexibility" -- which mirrors demands made in the new German government's coalition agreement -- should help keep the economic powerhouse on board. When it comes to Europe's international commitments, Macron has also stressed the bloc is only bound to present a midway target for 2035 at COP30 in Belem, and not the 2040 objective.
Yahoo
02-07-2025
- Business
- Yahoo
EU unveils long-delayed 2040 climate target -- with wiggle room
The EU on Wednesday unveiled its long-delayed target for cutting greenhouse gas emissions by 2040, but with contested new flexibilities built in to win over the most sceptical member states. After months of tough negotiations, Brussels announced it would stick to the headline objective announced last year of cutting emissions by 90 percent by 2040, compared to 1990 levels. The proposal comes as much of Europe roasts in an early summer heatwave, which scientists say are becoming more intense, frequent and widespread due to human-induced climate change. The 2040 target -- which needs sign off from the European Union's member states and parliament -- is a key milestone towards the bloc's goal of becoming carbon neutral by 2050. Brussels says the EU has already cut climate-warming emissions by 37 percent relative to 1990 but its green agenda faces pushback with a rightward shift and rising climate scepticism in many European countries. EU climate chief Wopke Hoekstra acknowledged the "sensitive" debate, saying Brussels was keeping an "ambitious" goal while being "pragmatic and flexible on how to achieve it". To sway resistant capitals, the European Commission proposes that from 2036, the bloc's 27 countries can count carbon credits purchased to finance projects outside Europe, for up to three percent of their emission cuts. Climate campaigners are broadly opposed to the measure. Backed by scientific studies and the commission's own science advisers, they say factoring in international credits -- for things like tree-planting or renewable-energy projects -- risks undermining the EU's own efforts to shift away from fossil fuels. "While this is a step in the right direction, by sneaking in international offsets and leaning heavily on supposed future carbon removals, the European Commission has built loopholes into the heart of the proposal," WWF EU said. "Three percent is not insignificant," echoed Neil Makaroff, an expert at the climate-focused Strategic Perspectives think tank. "These are potentially considerable sums that will be spent abroad instead of financing the transition" in Europe. "But there's a political compromise to be found," said Makaroff -- stressing the importance of "delivering" on the headline target. - EU stands 'firm' - To reach the 2040 and 2050 objectives, Europe's industry and citizens will have to undertake major transformations including increased uptake of electric cars, the gradual phasing out of fossil fuels and making buildings more energy-efficient. "Today we show that we stand firmly by our commitment to decarbonise Europe's economy by 2050," EU chief Ursula von der Leyen said. EU environment ministers will discuss the objective at a meeting in mid-July, ahead of a vote expected on September 18. EU lawmakers also need to greenlight the target, which requires the support from the biggest group in parliament, the centre-right EPP. To win others over, Brussels also proposes to make it more financially attractive for companies that capture and store CO2. The commission's hope is that the 2040 objective will be approved before the UN climate conference (COP30) in November in the northern Brazilian city of Belem. But that gives little time for negotiations with sceptical nations, with whom Hoekstra has already spent months trying to build a compromise. For some states, including the Czech Republic, the 90-percent target is unrealistic. Meanwhile, others including Italy and Hungary worry about the burden of decarbonising heavy industry at a time when Europe is working to strengthen its industry in the face of fierce competition from the United States and China. - 'Not strain ourselves' - French President Emmanuel Macron wants guarantees for the decarbonisation of industry and support for nuclear energy, the largest source of power in France. But the commission can count on the support of other countries including Spain and Denmark, which took over the rotating EU presidency this week. And the three-percent "flexibility" -- which mirrors demands made in the new German government's coalition agreement -- should help keep the economic powerhouse on board. When it comes to Europe's international commitments, Macron has also stressed the bloc is only bound to present a midway target for 2035 at COP30 in Belem, and not the 2040 objective. "Let's not strain ourselves," Macron told reporters last week. "If we have (a 2040 target) for Belem, great, but if it takes longer, let's take the time." adc/raz/ec/giv
News24
02-07-2025
- Business
- News24
EU unveils long-delayed 2040 climate target
The EU on Wednesday unveiled its long-delayed target for cutting greenhouse gas emissions by 2040, but with contested new flexibilities built in to win over the most sceptical member states. After months of tough negotiations with EU states, Brussels announced it would stick to the objective announced last year of cutting emissions by 90% by 2040, compared to 1990 levels. The proposal comes as much of Europe roasts in an early summer heatwave, which scientists say are becoming more intense, frequent and widespread due to human-induced climate change. The 2040 target - which needs the sign off from the European Union's member states and parliament - is a key milestone towards the bloc's goal of becoming carbon neutral by 2050. Brussels says the EU has cut climate-warming emissions by 37% relative to 1990 but its green agenda faces mounting pushback with a rightward shift and rising climate scepticism in many European countries. EU climate chief Wopke Hoekstra acknowledged the "sensitive" debate, saying Brussels was keeping an "ambitious" goal while being "pragmatic and flexible on how to achieve it". To sway resistant capitals, the European Commission proposes that from 2036, the bloc's 27 countries can count carbon credits purchased to finance projects outside Europe, for up to three percent of their emission cuts. Climate groups are fiercely opposed to such a measure. Backed by scientific studies and the commission's own science advisers, they say factoring in international credits - for things like tree-planting or renewable-energy projects - risks undermining the EU's own efforts to shift away from fossil fuels. "Three percent is not insignificant. These are potentially considerable sums that will be spent abroad instead of financing the transition" in Europe, said Neil Makaroff, an expert at the climate-focused Strategic Perspectives think tank. "But there's a political compromise to be found," he said. "The challenge will be for the EU to establish a standard so that these international credits truly help cut emissions and not leave individual states to their own devices." 'Don't strain yourselves' EU environment ministers will discuss the objective at a meeting in mid-July, ahead of an expected vote to approve the measures on 18 September. It will only become law after EU lawmakers also sign off on the target. The commission's hope is that the 2040 objective will be approved before the UN climate conference (COP30) in November in the northern Brazilian city of Belem. But that gives little time for negotiations with sceptical nations, with whom Hoekstra has already spent months trying to build a compromise. For some states, including the Czech Republic, the 90% target is unrealistic. Meanwhile, others including Italy and Hungary worry about the burden of decarbonising heavy industry at a time when Europe is working to strengthen its industry in the face of fierce competition from the United States and China. Italian Prime Minister Giorgia Meloni has suggested a target of 80 or 85%, while France has expressed doubts over how the EU will reach its objective. French President Emmanuel Macron wants guarantees for the decarbonisation of industry and support for nuclear energy, the largest source of power in France. But the commission can count on the support of other countries including Spain and Denmark, which took over the rotating EU presidency this week. And the three-percent "flexibility" - which mirrors demands made in the new German government's coalition agreement - should help keep the economic powerhouse on board. When it comes to Europe's international commitments, Macron has also stressed that the bloc is only bound to present a midway target for 2035 at COP30 in Belem, and not the 2040 objective. "Let's not strain ourselves," Macron told reporters last week. "If we have (a 2040 target) for Belem, great, but if it takes longer, let's take the time," he said.
