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The Sleeping Dragon: China’s Role in Climate Change as a Developing Country Stephen Janasie Aakruti Shah Stephen Janasie: [email protected] Aakruti Shah: [email protected] Prepared for Energy Law and Policy – Chicago-Kent College of Law S2005 Introduction • The international community’s ‘common, but differentiated responsibilities’ approach is unsuitable to the issue of global climate change. This is best illustrated in the treatment of China as a ‘developing country’ and what that entails. In order to understand the problem, need to have a understanding of: – History: History of international environmental law and the theme of common, but differentiated responsibility Background of Chinese economic, legal, and environmental issues An in-depth look at the greenhouse gas (GHG) issue – Problem of GHGs in China – Problems with the ‘common, but differentiated responsibilities’ approach (Kyoto) Potential approaches: – Within the structure of Kyoto Carbon emissions tax Tradable credits – Modified CBDR – Separate US/China treaty History and Background of International Environmental Laws and Treaties • United Nations Stockholm Conference on the Human Environment of 1972 • The Montreal Protocol on Substances that Deplete the Ozone Layer of 1987 • Rio • Conference of Parties (COP): Berlin Mandate • COP – 2: Geneva Declaration • COP – 3: Kyoto Protocol United Nations Stockholm Conference on the Human Environment of 1972 Emergence of the ‘common, but differentiated responsibility’ concept (CBDR) – One of the first attempts to establish varying degrees of responsibility in addressing international environmental issues. Sustainable Development Concept Recognized an international responsibility to protect the environment for present and future generations At this conference, developing countries resisted highlighting environmental issues because they were afraid that would slow down their economic development and limit their sovereignty They feared that ecological values would take priority at the expense of development The Montreal Protocol Considered a breakthrough in international environmental law because of its differential treatment of developed and developing nations. – Article 5.1: entitles developing nations, who meet certain requirements, to delay compliance with the Protocol's measures by ten years represents a differential norm that takes into account the way that developed countries have historically been major contributors to ozone depletion. Multilateral Fund Represented the first agreement to adopt financing terms as an incentive for developing nations to enter into international environmental agreements – Article 10: Mandated the creation of a Multilateral Fund, requiring developed nations to create a mechanism that provides financial and technical cooperation, including the transfer of CFC-free technology to the developing world who otherwise had no access to this technology. CBDR The creation of this Fund reiterated two premises underlying the developing application of CBDR: – (1) developed states should play a leadership role in global solutions to environmental problems; and – (2) the use of differential standards for developed and developing states is the most equitable approach Justification for Fund Developed states have the financial ability to assist developing nations in their compliance with CFC reductions This coupled with a historical culpability for the ozone layer problem justified the creation of an international fund to help developing states reach Protocol goals Rio June 1992 U.N. Conference One result: adoption of the United Nations Framework Convention on Climate Change (UNFCCC) – A global agreement addressing climate change. UNFCCC Today has been ratified by over 160 nations The UNFCCC is a flexible convention articulating: – hortatory goals – principles – and general obligations to prevent climate change. Broad Purposes and Obligations Like other framework conventions, the UNFCCC contains broad purposes and equally broad obligations. – The UNFCCC is essentially a framework for Annex I Parties' (developed nations) behavior, allowing voluntary efforts by developing countries, like China, to suffice. – In fact, developing countries' obligations are conditional upon effective implementation by Annex I Parties. CBDR Resurfaces Another important concession to developing countries was the concept that they would have “common but differentiated responsibilities” based on their historical culpabilities and their “respective capabilities.” UNFCCC and CBDR If an international effort is made to reduce GHG emissions, then – developed nations must be subjected to more stringent standards, – and they must contribute significantly to the reduction of GHG emissions in developing nations even though these nations are not subject to as stringent reduction goals G-77 Nations The G-77 nations (developing nations) are only required to – establish national emissions inventories, – report on national programs, and – promote cooperation, sustainable development, and information exchange. – There are no absolute emissions standards placed upon these nations. China Recognizing the wealth of concessions for developing countries contained in the UNFCCC, China supported the agreement and took steps toward compliance. In 1992, China established an expert body, the China Council for International Cooperation on Environment and Development, to submit proposals and opinions to the government. However, China remained adamant about the obligations of Annex I Parties. White Paper In 1996, China published a White Paper on environmental policy – Restating its position that economic development should be done with environmental protection in mind, but reiterating that it is up to the developed world to clean up its own global warming mess under the UNFCCC. Thus, China views international environmental cooperation as important, but only insofar as the policies remain respectful of national sovereignty. Legal Instruments Five new legal instruments were adopted Binding: – The Framework Convention on Climate Change – Convention on Biological Diversity Legal Instruments Non-binding: – The Rio Declaration represents a careful balance of the principles considered to be important to the developed and developing countries – A set of 15 Forest Principles – Agenda 21 road map of actions needed to be implemented in order for states to achieve sustainable development The Conference of Parties The Rio convention set up administrative institutions to work on more detailed plans to cope with climate change. An annual Conference of Parties (COP) was set up to determine what to do. A Secretariat was created to prepare materials for and manage these annual conferences, the 10th of which took place in Buenos Aires in December, 2004. Conference of Parties (COP) & the Berlin Mandate There was widespread concern that Annex I Parties would not be able to achieve even the general emissions reduction goal in the UNFCCC. After contentious debates at COP-1, the Berlin Mandate was passed – Calling on Annex I Parties to establish specific, legally binding targets and timetables to reduce emissions. China and India produced a Green Paper to effectively exempt themselves and all other non-Annex I Parties from this new commitment to establish specific, binding reductions. COP – 2: Geneva Declaration In April 1996, the IPCC (International Panel on Climate Change) published its pivotal conclusion that the "balance of evidence suggests that there is a discernible human influence on global climate." Specifically, the Parties endorsed the IPCC's 1996 Report in a conference paper, the Geneva Declaration. – Came to the same conclusion, like the Berlin Mandate, called for legally binding targets and timetables to ensure significant reductions in GHG emissions. Kyoto Protocol – Addressing the GHG Issue CBDR rationale again: – Equity in the UNFCCC required a differentiation between countries on the basis of: Historical responsibility for the problem and Present capability of addressing it Goals Overarching goal of lowering emissions to five percent below 1990 levels by the target date of 2008 to 2012 – The US has a seven percent reduction – The European Union an eight percent reduction – Japan agreed to a six percent reduction of GHGs from 1990 levels Joint Implementation (JI) Developed nations wanted alternative mechanisms to achieve emissions reductions. One solution was Joint Implementation (JI). – JI allows Annex I Parties to transfer emissions reduction units (ERUs) among themselves – The European Union wanted a carbon tax instead of a complex emissions trading system Developing Nations China and the G-77 remained adamantly opposed to new commitments for developing countries. – Thus, the provision reaffirms developing countries' “CBDR”, "national and regional development priorities," and their desire for increased technological and financial assistance. – But the language of this provision leaves open the possibility of future discussions on increased participation by non-Annex I Parties Emissions Trading Article 17 – establishes that there will be emissions trading, the details of which will be established at a subsequent COP – Emissions trading is different from JI, because JI is a project-based transfer of ERUs, while emissions trading is through some sort of market mechanism based on national emissions rates. Background of Chinese Economic, Legal, and Environmental Issues Economic Development “The Big Dragon” China has seen a huge economic growth in the last few decades. – From 1978 to 1996, there was an average annual growth rate of 9.9%. – Since 1996, there has been an average annual growth rate of between 7-8%. Economic Growth An extraordinarily large number of people have risen out of poverty. – The number of people living on less than 66 cents per day fell from 260 million people in 1978 to 42 million in 1998. China has paid for fast economic growth with widespread environmental damage. Environmental Issues - “The Black Dragon” Environmental problems facing China dwarf similar issues in most other countries in the world Population Growth Many, if not all, of the problems result not only from the pressures of economic growth, but also growth in human population. – 1/5th of the human population is Chinese. – In 2001, population was 1.3 billion. It’s estimated to peak at 1.6 billion in 2050. Examples of Environmental Issues Uneven economic growth Water shortages Deforestation and desertification Biodiversity loss Air and water pollution (acid rain) Ozone depletion Global Climate Change Uneven Economic Growth Has lead to regionalization of wealth causing large scale movements of displaced workers to urban areas Resulting in – Overcrowding – Burdens upon infrastructure for sanitation, transportation, and drinking water quality Has also lead to a concentration of air and water pollution, including acid rain in the industrialized Eastern coast. Water Shortages Half the population (700 million) drinks water that does not meet minimum water quality standards. China has consumed so much water that thousands of lakes, rivers, and reservoirs have been completely drained. 2/3rd of arable lands are in the North, while 4/5th of water supplies are in the South, leading to destructive water construction projects. Deforestation and Desertification In 1994, China had 1.69 million square kilometers of deserts, 2/3rd were natural, and 1/3rd had been caused by human activity. – Global climate changes, as well as poor antierosion practices, are primary causes. Deforestation is so rampant that logging has been banned throughout the country. Biodiversity Loss China is the leading offender in the illegal international trade in endangered species. China also bears a significant portion of the responsibility for the global extinction of endangered species. Air and Water Pollution (Acid Rain) 5 of the world’s 10 most polluted cities are in China. An estimated 2 million people die each year in China from air and water pollution. Airborne particulates in many cities are 2-5 times the maximum concentrations recommended by the World Health Organization. Death from respiratory diseases is the second leading cause of death in China. Acid rain affects about 30% of China, and China contributes to over half of the acid rainfall in Japan and 80% in South Korea. Ozone Depletion In the Montreal Protocol, there was a 10 year lag time for developing countries to accede to CFC prohibitions. China, as well as India, also initially resisted acceding to the Montreal Protocol, and China remains the biggest “producer” of CFCs. Global Climate Change China will surpass the United States to be the largest emitter of GHGs by approximately 2020. China’s emissions alone will likely undercut whatever progress is made under the Kyoto Protocol. Developing World GHG Emissions China’s Governmental Structure (and Courts) Since the “opening” of China in 1978, the government has recognized the need to rebuild a “rule of law” (legal infrastructure) (fn1) (fn2) Rebuilt As a result, the legal system is being rebuilt almost from scratch. – Judges are mostly untrained – Lawyers are not highly organized and have little independence from the authority of the political state – The legal system is presently unprepared to adequately address China’s environmental issues Chinese Environmental Laws – “The Green Dragon” Many of the largest environmental disasters occurred in communist countries like the Soviet Union and China because authoritarian regimes repress dissenting opinions on issues of public concern, such as the environment Transplanting sophisticated Western environmental laws may prove ineffective because of the lack of a solid institutional infrastructure Building a Legal System China is focused on building an efficient and effective legal system, largely through the training of new lawyers and judges – Focusing on the enforcement of basic, individual rights has been fundamental to the development of environmental law in other legal systems – Strengthening the basic legal system can lead to a “virtuous circle” with respect to public pressure and monitoring for environmental protection Administrative Bureaucracy In addition to building up the basic system, China has attempted to strengthen its administrative bureaucracy, with some success – 1975: established the Environmental Protection Bureau, the first national body to address environmental matters – 1988: it was replaced by the National Environmental Protection Commission Still searching for an identity… – 1992: that was replaced by the National Environmental Protection Agency (NEPA) – NEPA only had sub-ministry status, meaning it had to report to more powerful law-making authorities – 1998: NEPA was again renamed, this time becoming the State Environmental Protection Administration (SEPA) – SEPA was given the rank of full ministry, but only has an approximate staff of 200 people at the national level All of this shows a very gradual improvement in administrative capacity Government’s Goals After spending $43.5 billion on environmental problems from 1996 to 2000, the government has pledged to double expenditures over the next five years to $84 billion The government has also announced a goal to reduce air, water, and soil pollution by ten percent from 2000 benchmarks (a major motivation being the 2008 Olympics in Beijing) Too Many Laws, No Enforcement However, China has put dozens of environmental statutes and hundreds of regulations on the books, with varying results Having too many statutes and a weak legal infrastructure is a dangerous proposition Chinese proverb - “The more rules are promulgated, the greater the number of thieves” And What Do These Laws Mean? Vagueness has always been an issue with Chinese environmental laws (sound familiar?) – An early statute addressing air pollution simply stated that government officials should protect human health against air pollution in the interests of “socialist modernization” Keep in mind that the legal infrastructure of China is not capable of interpreting vague statutes in the same manner as Western nations in order to make them enforceable Signs of Improvement A recent air pollution statute does show a commitment to environmental issues – Passed in 1995 – Addressed: Clean production technology Coal washing Acid rain controls Phase out of leaded gasoline Further Signs Revised in 2000 to encourage: – Sustainable development – Increased use of renewable energy – Authorization of major cities to ban nonsustainable activities – Increased use of natural gas – Decreases in coal – Technology standards for automobiles – Increased sanctions for violations Other Positive Signs Recently, the government shut down 823 businesses for violating pollution laws (fn1) Beijing had set a target to keep pollutants in the year 2000 at 1995 levels (fn2) China and the UNFCCC An official with the Chinese Meteorological Administration recently stated that China attaches great importance to the UNFCCC and has done effective work to that end Chen Yaobang, the Forestry Minister, sees China's afforestation and population growth controls as China's great contributions to the UNFCCC effort. – He states that China is willing to tackle climate change by continuing population control, encouraging energy efficiency, and researching renewable energy Unfortunately, while these efforts satisfy China's requirements under the UNFCCC, they do little to prevent China from adding massive amounts of GHGs to the atmosphere. Lack of Non-Governmental Institutions Perhaps China’s biggest problem is the lack of non-governmental institutions (i.e., NGOs) Public pressure is an important tool in environmental law, and a catalyst for change NGOs To that end, the role of the NGO could be very important to the improvement of Chinese environmental law NGOs were traditionally prohibited, and are still proscribed when thought to harbor dissidents (democratic advocacy) Categories of NGOs There are three types of NGOs in China: – Communist Party-sponsored groups that are overtly political (GONGOs- government organized non-governmental organizations) – Officially recognized non-governmental organizations – Unofficial groups without government recognitions Governmental Approval The need for governmental approval means that “there is virtually no such thing as a completely non-governmental institution in China” – “Beyond ‘Linkage’ and ‘Engagement’: A New Approach to U.S. China Policy” (www.lchr.org/hongkong/chinapol98.htm) NGOs However, in 1998, there were 200,000 recognized NGOs, and 800,000 unrecognizedmany advocating environmental interests As the phenomenon increases, these NGOs can: – – – – Lobby Support activism Educate Act as regulatory watchdogs Outside Influences Finally, because of China’s still developing infrastructure, the need for international agreements and the participation of private business is critical GHG Issue • Problem of GHGs in China Problem of GHGs in China China is the second largest contributor to the greenhouse effect – It emits fourteen percent of the world's GHGs – In comparison, the United States emits twenty-two percent Projections Developing nations are expected to account for more than seventy-five percent of the global increase in carbon emissions between 1990 and 2020. One statistical model suggests that by 2020, energy consumption in Asian developing nations (such as China, India, Australia, and New Zealand, but not Japan) will surpass North America by thirty-six percent. – To put this in perspective, today North America uses thirty-three percent more energy than these nations. GHG Emission Projections While Kyoto sought to lower GHG emissions to 1990 levels, global GHG emissions are predicted to exceed 1990 levels by thirty-two percent by 2010 – This statistic reflects the problem with omitting binding obligations on developing states whose energy consumption is rapidly increasing. Global Environment The expected motorization of developing nations by 2020, and the prediction that developing nations will consume the same amount of fossil fuels as developed nations by the same year suggests that more attention must be paid to the impact that the economies of developing nations are having on the global environment. Growing in an Environmentally Unsound Direction Ignores the fact that these states are growing rapidly, and growing in an environmentally unsound direction. – Allowing different standards for different countries encourages the exact kind of behavior that the international environmental community is trying to prevent. – These differing standards can lead to a race to the bottom where GHG emitting industries are outsourced to the countries with the lowest standards. Reliance on Coal (fn1) (fn2) China has an overwhelming reliance on coal-fired power production – China's Environmental Protection Bureau Chief Song Dian Tang has stated that “China will have to use coal as its principal source of energy for the next 100 years.” Projected to increase from today's 0.7 billion tons to 3.2 billion tons by the year 2025 Efficiency A typical American power plant operates at a thirty-six percent efficiency rate The average Chinese power plant's efficiency rate is only six percent. Consequently, the Chinese must use six times more coal to produce an equivalent amount of U.S.-produced energy. Energy Consumption However, China's energy consumption per capita is less than one-tenth of what developed countries' citizens enjoy Even so, consumption is expected to rise dramatically in the future – If China's energy consumption rises as expected, its annual CO2 emissions will reach 2380 metric tons of carbon in 2020, more than triple 1995 levels. – Such a level would constitute forty percent of global emissions and would likely undercut whatever progress is made by developed countries' emissions reductions Steps Taken In response to severe localized air pollution and acid rain near urban centers, China instituted some controls on CO2 emissions. Article 26 of China's 1982 Constitution establishes the State's duty to protect and improve the environment and preserve forests. – China enacted an Environmental Protection Law with fees and fines for those polluters that exceed National Emissions Norms set by the State Environmental Protection Agency (the Agency). – The energy sector is targeted in current regulations, and the Agency is considering new control requirements for power plants, such as scrubbers and reduced emissions levels. Increased Vehicle Use and Personal Energy Use In addition to increased coal consumption, there is a concern that China's marketization will lead to increased vehicle use and personal energy use, thus exacerbating the CO2 emissions problem. Until now, more than one in three Chinese used a bicycle as their exclusive means of transportation. Cars = Success Cars, however, are increasingly becoming symbols of success. At a crossroads, China must decide whether to encourage driving by creating national highways or to discourage driving by creating a comprehensive mass transit system. – Unfortunately, China appears to have chosen the former path, by embracing the car industry as a "pillar" of its growing economy. In fact, by the year 2000, China aims to produce three million cars per year for domestic use. It is expected that if the Chinese acquire and use cars to the extent Americans do, its drivers alone would be contributing over nineteen percent of the world's GHG emissions. Opposed to Limits on Personal Energy Consumption Li Junfeng, a senior energy researcher at the State Planning Commission in Beijing, explained that limits on personal energy use are viewed as a barrier to prosperity: – “You try to tell the people of Beijing that they can't buy a car or an air-conditioner because of the global climate-change issue....It is just as hot in Beijing as it is in Washington....When people get rich, they want to buy an air-conditioner or a car; that will increase energy consumption.” "One should not give up eating for fear of choking.“ – Chinese Proverb China sees its development as necessary to provide basic amenities to its people – Attention to environmental issues is a luxury that developing countries cannot afford. Stringent controls are viewed as offensive to developing countries like China - tantamount to telling these nations to stay poor. The message of restricted development touted by the developed world is seen as hypocritical since no one told them to halt their own industrialization for the sake of the environment. Kyoto Protocol – A Flawed Document • Problems with the Kyoto approach Flaws in Kyoto Protocol Three flaws: (1) Failing to set simultaneously both targets and ground rules for implementation (2) Ducking the issue of developing country participation; and, (3) Setting unrealistic and unjustified targets in the first commitment period. International Emissions Trading Problem Emission allowance trading has worked well in the domestic setting But, international greenhouse gas (GHG) trading system creates complications – The key disagreement: the use of forest and agricultural sinks Sinks Problem The world's forests and oceans are natural regulators of carbon dioxide, and thus are regarded as “sinks.” Sinks can also be created through storing CO2 in the same formations that fossil fuels are drawn from. Sinks make economic and climate sense if one trusts that the sinks will be measured and monitored accurately. The EU imagined sinks would gut the reductions, and therefore hesitated to include sinks, and without proven methods for verifying the amounts sequestered, would result in no real climate benefit. U.S. wanted them desperately, and once the U.S. withdrew from negotiations, the EU agreed on very specific numerical limits on sinks to induce Japan, Canada, Australia, and Russia to agree. “Hot-Air” Problem Developed countries with economies in transition were supposed to reach 1990 levels of emissions, however, since these countries faced economic downfall post1990, they have experienced approximately a 30% reduction in GHGs. – Therefore, countries with economies in transition have been given surplus emissions allocations, known as “hot-air.” Once negotiation process begins for developing countries, these countries may rely upon the granting of “hot-air” as precedent. Further delay or limiting developing countries reduction commitments will cause a further increase in GHGs. Focus Not on Environment A CBDR approach focuses too heavily on economic and social, as opposed to environmental, concerns. Additionally, this approach ignores the strong notion that environmental and economic issues are inextricably intertwined. By placing economic concerns ahead of environmental ones, the international community is ignoring the severity of the current global warming crisis. Short-term Perspective Kyoto ignores the changing complexions of developing states And accordingly, fails to treat environmental and economic concerns as equals in establishing a long-term solution. Potential Approaches • Within the structure of Kyoto – Carbon emissions tax – Tradable credits • Modified CBDR • Separate US/China treaty Within the Structure of Kyoto - Carbon Emissions Tax Carbon emissions tax – No grandfathering, more flexibility – If uniform tax based on social cost of emitting another ton of GHG No concern about selling off future generation’s right to use environment Carbon Emissions Tax Problems May not be realistic – Affects rich and poor the same – Can fall heavily on either economies and cause serious recessions Solve this by phasing in slowly? Does an emission tax really limit emissions? – It does encourage pollution control technology and would allow people to understand social cost of pollution Estimated a carbon tax may raise electricity rates in US by 32% Just as with tradable- is this enforceable on international level? Does the international fund raise sovereignty issues? Where does an international tax go? Within the Structure of Kyoto Tradable Credits Sophisticated market-based trading programs are difficult to implement in China because of its lack of a strong, legal infrastructure – Without an adequately developed administrative regime, scheme is unlikely to work – No regulatory watchdogs – Something simpler, like increasing charges on coal, is more realistic Though leaves open the possibility of misuse by the entity that benefits from the charges At first, tradable credits seemed quite attractive – US got into Article 17 of Kyoto – More economically efficient than command and control Let the market do the work If distributed based upon past usage, then they cost nothing to existing sources If distributed per capita, then it gives countries burdened with overpopulation (i.e., developing) an emissions cushion Encourages transfer of advanced pollution control technology Problems with Tradable Credits The wealthiest countries and corporation will buy up all the permits Environmental quality becomes another resource to be mismanaged Demand for environmental quality often increases with wealth, so poorer countries will sell off permits because they value quality less Problems with Tradable Credits No guarantee money accepted by poorer countries will go to improving the burdened society Often grandfather the countries that produced most GHGs in the past – Almost a reward system for causing environmental damage If existing sources get the credits, and don’t have to improve, are we doing anything for environmental protection? How Tradable are These Credits? If make less tradable after initial scheme, limiting options for future generations – If make permits temporary, will cause increased transaction costs and hurt efficiency – If transactions costs are high, less likely to reach proper ultimate user Those that can’t cover the costs will trade less, and face greater pollution Modified CBDR “The self-evident truth that an ounce of prevention is better than a pound of cure has for some time now been reflected in the international law related to the environment.” Efforts geared toward remedying the GHG emission problem must focus on the future, not the past. CBDR should be modified so that absolute standards are set for GHG emissions and at the same time developed countries are held responsible for their historical culpability. Two-prong Approach 1. Absolute emissions standards and 2. Differential norms of contribution recognizing present financial capability. Benefits of Binding Obligations Developing nations argue that the implementation of binding obligations will hinder their economic development and growth in the long term BUT: – By taking steps now to create environmentally efficient industry, developing countries will make themselves more competitive with developed countries that are already making this transition More Benefits Present environmental protection will benefit developing nations economically in the long run, because expensive new environmental crises can be avoided by instigating present preventative action Such benefits include an increased sense of national well-being, decreased water and air pollution, increased agricultural output, and a healthier and more productive workforce Immediate Preventative and Precautionary Efforts Needed While many developing nations are currently suffering from domestic medical and sanitation epidemics, developing their economies in an environmentally destructive manner will not cure this problem, and will create even graver consequences in the future. The relationship between human health and a healthy environment is too strong to suggest that developing nations can pursue environmentally damaging industry without serious human health effects. Developing Countries’ Equity Argument: the Moral Perspective An urgent and undeniable imperative exists that the standard of living of the world's poorest be improved. Roughly one billion people live in "absolute poverty." Environmental norms must be structured so as to minimize interference with the effort to lift people from absolute poverty. Poverty Eradication Poverty eradication is clearly the primary focus of developing nations, with food, clothing, and shelter taking priority over social and aesthetic needs. Developing nations fear "recolonization through environmental conditionalities" by developed nations. Problems with Implementation of a Modified CBDR Developing and developed nations’ reluctance Economic feasibility Temporal feasibility Developing and Developed Nations’ Reluctance Developed nations’ reluctance arises because they will bear the initial upfront costs of technology Developing nations’ reluctance stems from the belief that their economies will be unduly burdened by absolute standards and their present comfort with the ability to continue to be environmentally destructive Economic Feasibility Modified CDBR will lead to an unprecedented redistribution of international wealth Temporal Feasibility Unclear how long it would take for developed states to transfer technology and funds Problem with balancing what is an equitable amount of time for implementation and dealing with the GHG problem as quickly as possible Counter-arguments to these Problems Environmentally sound development is an economic benefit to developing nations in the long-run. Developed countries have an incentive to invest in developing countries because – it prevents industries from leaving developed nations – prevents future costs associated with mitigating environmental damage, and – creates a more uniform international marketplace Separate US/China Treaty Although China seems determined to use coal as a means to assure rapid industrial development, it has been open to technological assistance to reduce its CO2 emissions. – The World Bank, the United States and Japan have offered technical and financial assistance to increase energy efficiency and reduce GHG emissions in China. However, with its huge coal reserves, China is likely to continue using coal-fired power plants to meet its energy needs, as limiting coal consumption will inhibit China's industrial development. US EPA In addition to China's professed support of the UNFCCC, efforts have been made to address its GHG emissions through cooperative agreements and international measures. The U.S. Environmental Protection Agency and China's State Environmental Protection Agency established joint programs to promote research on China's GHG sources and sinks. Beijing Efficiency Center Together, they have also established the Beijing Efficiency Center to – promote energy efficiency – provide guidance to local governments – educate the public – to run technical training programs. American assistance has totaled approximately US$ 10 million. Additional Sources Similarly, China has received $183 million in soft loans from Japan's Green Aid program to help implement SO2 emission controls by the year 2000. Development banks, such as the World Bank and the Asian Development Bank, are additional sources of financial support for UNFCCC goals, which can often lead to additional private funding. However, such banks are able to assist only with a small portion of the projects that will need to be done in China, and China appears to have lost patience with the World Bank's conditional loans. Conclusion • One of international environmental law’s most basic themes is the concept of ‘common, but differentiated responsibilities’ • However, international environmental law does have another basic theme – One country is not permitted to contribute to another country’s environmental damage. • Isn’t this precisely what China is doing? Tough Challenges China is projected to be responsible for 40% of global GHG emissions within the next 20-25 years. This increase will make all other GHG reduction efforts moot. Solving the issue will require unprecedented international cooperation, speed, and MONEY. Is this the best time to be calling for unprecedented international cooperation? Isn’t a lot of cash already being diverted to other “international projects”? There are no easy answers, but right now, we need some solutions. After all, a lot is riding on this. . .