Rising US-China tensions threaten global climate action

The escalating trade war between the U.S. and China hinders collaboration essential for decarbonization, raising costs for green technologies and slowing progress on climate goals.

Gautama Mehta reports for Grist.

In short:

• China has restricted exports of rare minerals vital to green technologies, while the U.S. has imposed high tariffs on Chinese goods, escalating trade tensions.
• The U.S. Inflation Reduction Act emphasizes domestic green manufacturing but excludes goods with ties to China, aiming to protect American jobs at the expense of global collaboration.
• Developing countries face setbacks as U.S.-China tensions worsen debt crises, limiting their ability to invest in green energy and infrastructure.

Key quote:

“If we are in a zone of trade war and geopolitical competition, what consumers are going to face is much, much higher prices.”

— Tim Sahay, co-director of the Net Zero Industrial Policy Lab

Why this matters:

Without cooperation between the U.S. and China, the world’s largest greenhouse gas emitters, efforts to combat climate change will falter. Trade wars and protectionist policies raise costs for green technologies, delaying the transition away from fossil fuels and worsening economic inequality.

Related: Trump's proposed tariffs threaten to drive up clean energy prices