Biden's Climate Deal with China: A One-Sided Win for China, a Loss for Americans

Strategic Insights -

The Biden administration has announced a deal with China to accelerate the substitution of coal, oil, and gas generation with green energy sources, such as wind and solar power. This agreement is part of the United States' effort to reduce carbon emissions and meet its climate goals, but it comes at a significant cost to American consumers and national security. China, on the other hand, stands to gain financially from the deal, as it dominates the world's green energy supply chain.

Key Takeaways:

  • The Biden administration's deal with China will result in higher energy bills for American consumers, as renewable energy products are more expensive than fossil fuels.
  • China will continue to build coal plants and benefit from the U.S. purchases of its green energy products, such as solar panels and EV batteries.
  • The agreement will harm U.S. national security, as the United States is the largest global producer of oil and gas, which drives every major U.S. industry.
  • China produces about 75 percent of the world's lithium-ion batteries, a key component of electric vehicles (EV), and has a significant share in other critical minerals, such as cobalt and graphite.
  • China has a nearly 90 percent share in all the manufacturing stages of solar panel manufacturing and produces 95 percent of all global polysilicon, ingot, and wafer supplies needed for solar products.
  • India, the third-largest emitter of greenhouse gases, will resist the push to fix a deadline for a fossil fuel phase-out or phase-down at COP28, citing coal as its main energy source for decades.
  • Developed countries, including the United States, Britain, Canada, and Japan, are targeting net zero by 2050, while China has committed to net zero by 2060 and India by 2070.
  • China will continue to use what's best for its economy and people, ignoring any obligation it dislikes, making the agreement a guarantee of China's manufacturing sector decades of purchases of green energy products and minerals.

Statistics:

  • China produces about 75 percent of the world's lithium-ion batteries.
  • China has a significant share in other critical minerals, such as cobalt (70 percent) and graphite (85 percent).
  • China has a nearly 90 percent share in all the manufacturing stages of solar panel manufacturing.
  • China produces 95 percent of all global polysilicon, ingot, and wafer supplies needed for solar products.
  • About 490 gigawatts of new coal capacity, roughly equal to one-fifth of existing global capacity, is planned or under construction, mostly in India and China.
  • About 73 percent of the electricity consumed in India is produced using coal.
  • Wind and solar power have low capacity factors, resulting in a third or a half of the electricity that the equivalent fossil fuel capacity produces.

Sources:

  • Institute for Energy Research: "Wealthy Countries Gear Up Against Fossil Fuels Preparing for COP 28"
  • Original text: https://www.instituteforenergyresearch.org/climate-change/wealthy-countries-gear-up-against-fossil-fuels-preparing-for-cop-28/ [Category: Energy]