Biden, Opportunity to Restore International Leadership
UK Responds to Strengthen Ties with US
China "Will Not Invest in Carbon Emission Related Projects"
[Asia Economy New York=Correspondents Baek Jong-min and Park Byung-hee] Major countries are expected to announce active greenhouse gas reduction plans one after another on the occasion of the Climate Change Summit scheduled for June 22-23 (local time).
U.S. President Joe Biden plans to use the Climate Summit as an opportunity to restore American leadership. Former President Donald Trump faced international criticism for policies that went against climate change efforts, including withdrawing from the Paris Agreement. President Biden is known to present much stronger greenhouse gas reduction targets than during the Barack Obama administration to regain trust from the international community.
President Biden is expected to announce a reduction target to cut U.S. greenhouse gas emissions to 50% of 2005 levels by 2030. U.S. media outlets such as Bloomberg reported on June 20 (local time), citing anonymous sources, that Biden will officially announce this on June 22, when the Climate Change Summit is held.
Bloomberg reported that the 50% reduction target doubles the goal set by the Obama administration. The Obama administration had set a target to reduce carbon emissions by 26-28% compared to 2005 levels by 2025.
CNBC stated that the 50% reduction target doubles the U.S.'s existing commitment and will help limit the average global temperature rise to below 1.5 degrees Celsius compared to pre-industrial levels.
Earlier, U.S. Secretary of State Antony Blinken pressured that the U.S. alone cannot achieve carbon emission reduction goals and that participation from allies and countries worldwide is necessary. Accordingly, the U.S. is expected to demand strong carbon emission reductions from the countries participating in the Climate Change Summit.
This year, the United Kingdom, which has completely separated from the European Union (EU), is also expected to actively respond to President Biden's climate change policies to strengthen ties with the U.S., presenting strong greenhouse gas reduction targets. Bloomberg reported that the UK will present an ambitious greenhouse gas reduction target to lower emissions by 78% compared to 1990 levels by 2035.
The UK announced last year that it would reduce greenhouse gas emissions by 68% compared to 1990 levels by 2030. Bloomberg explained that the 68% reduction target last year was the most ambitious among the Group of 20 (G20) countries, and that 78% represents an even more ambitious goal.
Furthermore, Bloomberg analyzed that the UK's active commitment to greenhouse gas reduction is due to its role as the chair country of the 26th United Nations Climate Change Conference of the Parties (COP26) to be held in Glasgow, Scotland, this November, where it must set an example, as well as to strengthen ties with the U.S.
China, which is in intense conflict with the U.S., also takes the stance of cooperating with the U.S. on climate change response. After U.S. Special Presidential Envoy for Climate John Kerry's visit to China, on June 18, the U.S. and China issued a joint statement announcing cooperation on climate change response.
In this regard, China declared an expansion of investment in eco-friendly sectors. Yi Gang, Governor of the People's Bank of China, the country's central bank, stated at the Boao Forum discussion on June 20 that it will not invest in assets related to carbon emissions. Governor Yi said that the use of foreign exchange reserves for investment in greenhouse gas assets will be restricted, and investment in green bonds will be increased.
Governor Yi also announced plans to analyze the impact of climate change on financial stability and monetary policy and to incorporate climate change factors into bank stress tests (asset soundness evaluations). Earlier this month, at the International Monetary Fund (IMF) and World Bank (WB) Spring Meetings, Governor Yi also revealed that the People's Bank of China is preparing support policies to encourage greenhouse gas reduction.
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