Trump handing global environmental leadership to China – Woodmac

Wood Mackenzie statement:

The US withdrawal of the Paris accord will offer an unprecedented opportunity for China, the biggest carbon emitter and the biggest renewable energy supplier, to ascend in leading global climate affairs.

We are going to see closer cooperation between China and the European Union in accelerating the energy transition into a  low-carbon economy. China would accelerate kicking off its national carbon trading market by learning from the Emission Trading System, and lend more support to help climatically vulnerable countries.

Many US companies who are climatically accountable would likely relocate their renewable technology R&D centres to Asia. By leveraging the strong manufacturing value chain in China and other Asian countries, cost of renewables could fall even faster and penetrate more rapidly to displace dirty fossil fuel such as coal in key Asian markets.

With less renewable investment opportunities in America, Asia could get more attention from green capital funds. This will help for countries such as India, Indonesia, Vietnam which needs foreign capital to boost their renewable goals.

China would also like to extend its influence further into making new orders of globalisation – founding of the Asian Infrastructure Investment Bank and championing the Belt and Road Initiative are clear signs underpinning its ambition as a global leader.

• Frank Yu, Principal Consultant APAC Power & Renewables, Wood Mackenzie.