Climate Ambitions and Reducing Dependence on China are Mutually Exclusive

C-MACC Weekly Sustainability and Energy Transition Report

Climate Ambitions and Reducing Dependence on China are Mutually Exclusive

• 1^st Topic of the Week: We look at the scale of growth in China in many of the critical pathways to clean energy and question whether the US and Europe can afford to pick a trade fight with China while at the same time trying to reach ambitious climate change targets. The cost and learning advantage of the progress already made in China could provide the rest of the world with a much-needed route to lower costs of power and equipment.
• 2^nd Topic of the Week: Why repealing the IRA would be a mistake for the Republicans.
• Otherwise: We add to the work we did two weeks ago highlighting that polymer recycling rates are missing national targets, and we look at some of the challenges that are being identified with the tech industry and carbon offsets.

Exhibit 1: The West needs China for clean energy. It will pay a price to break free

Source: CNN, August 2024