U.S., China unveil climate change pact: Here are the details

Below, a memo from the White House with the details of the the agreement, followed by a fact sheet:

U.S.-China Joint Announcement on Climate Change

Beijing, China, 12 November 2014

1. The United States of America and the People’s Republic of China have a critical role to play in combating global climate change, one of the greatest threats facing humanity. The seriousness of the challenge calls upon the two sides to work constructively together for the common good.

2. To this end, President Barack Obama and President Xi Jinping reaffirmed the importance of strengthening bilateral cooperation on climate change and will work together, and with other countries, to adopt a protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties at the United Nations Climate Conference in Paris in 2015. They are committed to reaching an ambitious 2015 agreement that reflects the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances.

3. Today, the Presidents of the United States and China announced their respective post-2020 actions on climate change, recognizing that these actions are part of the longer range effort to transition to low-carbon economies, mindful of the global temperature goal of 2℃. The United States intends to achieve an economy-wide target of reducing its emissions by 26%-28% below its 2005 level in 2025 and to make best efforts to reduce its emissions by 28%. China intends to achieve the peaking of CO2 emissions around 2030 and to make best efforts to peak early and intends to increase the share of non-fossil fuels in primary energy consumption to around 20% by 2030. Both sides intend to continue to work to increase ambition over time.

4. The United States and China hope that by announcing these targets now, they can inject momentum into the global climate negotiations and inspire other countries to join in coming forward with ambitious actions as soon as possible, preferably by the first quarter of 2015. The two Presidents resolved to work closely together over the next year to address major impediments to reaching a successful global climate agreement in Paris.

5. The global scientific community has made clear that human activity is already changing the world’s climate system. Accelerating climate change has caused serious impacts. Higher temperatures and extreme weather events are damaging food production, rising sea levels and more damaging storms are putting our coastal cities increasingly at risk and the impacts of climate change are already harming economies around the world, including those of the United States and China. These developments urgently require enhanced actions to tackle the challenge.

6. At the same time, economic evidence makes increasingly clear that smart action on climate change now can drive innovation, strengthen economic growth and bring broad benefits – from sustainable development to increased energy security, improved public health and a better quality of life. Tackling climate change will also strengthen national and international security.

7. Technological innovation is essential for reducing the cost of current mitigation technologies, leading to the invention and dissemination of new zero and low-carbon technologies and enhancing the capacity of countries to reduce their emissions. The United States and China are two of the world’s largest investors in clean energy and already have a robust program of energy technology cooperation. The two sides have, among other things:

• established the U.S.-China Climate Change Working Group (CCWG), under which they have launched action initiatives on vehicles, smart grids, carbon capture, utilization and storage, energy efficiency, greenhouse gas data management, forests and industrial boilers;
• agreed to work together towards the global phase down of hydrofluorocarbons (HFCs), very potent greenhouse gases;
• created the U.S.-China Clean Energy Research Center, which facilitates collaborative work in carbon capture and storage technologies, energy efficiency in buildings, and clean vehicles; and
• agreed on a joint peer review of inefficient fossil fuel subsidies under the G-20.

8. The two sides intend to continue strengthening their policy dialogue and practical cooperation, including cooperation on advanced coal technologies, nuclear energy, shale gas and renewable energy, which will help optimize the energy mix and reduce emissions, including from coal, in both countries. To further support achieving their ambitious climate goals, today the two sides announced additional measures to strengthen and expand their cooperation, using the existing vehicles, in particular the U.S.-China Climate Change Working Group, the U.S.-China Clean Energy Research Center and the U.S.-China Strategic and Economic Dialogue. These include:

• Expanding Joint Clean Energy Research and Development: A renewed commitment to the U.S.-China Clean Energy Research Center, including continued funding for three existing tracks on building efficiency, clean vehicles and advanced coal technology and launching a new track on the energy-water nexus;
• Advancing Major Carbon Capture, Utilization and Storage Demonstrations: Establishment of a major new carbon storage project based in China through an international public-private consortium led by the United States and China to intensively study and monitor carbon storage using industrial CO2 and also work together on a new Enhanced Water Recovery (EWR) pilot project to produce fresh water from CO2 injection into deep saline aquifers;
• Enhancing Cooperation on HFCs: Building on the historic Sunnylands agreement between President Obama and President Xi regarding HFCs, highly potent greenhouse gases, the two sides will enhance bilateral cooperation to begin phasing-down the use of high global warming potential HFCs and work together in a multilateral context as agreed by the two Presidents at their meeting in St. Petersburg on 6 September 2013;
• Launching a Climate-Smart/Low-Carbon Cities Initiative: In response to growing urbanization and increasingly significant greenhouse gas emissions from cities and recognizing the potential for local leaders to undertake significant climate action, the United States and China will establish a new initiative on Climate-Smart/Low-Carbon Cities under the CCWG. As a first step, the United States and China will convene a Climate-Smart/ Low-Carbon Cities Summit where leading cities from both countries will share best practices, set new goals and celebrate city-level leadership in reducing carbon emissions and building resilience;
• Promoting Trade in Green Goods: Encouraging bilateral trade in sustainable environmental goods and clean energy technologies, including through a U.S. trade mission led by Secretaries Moniz and Pritzker in April 2015 that will focus on smart low-carbon cities and smart low-carbon growth technologies; and
• Demonstrating Clean Energy on the Ground: Additional pilot programs, feasibility studies and other collaborative projects in the areas of building efficiency, boiler efficiency, solar energy and smart grids.

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FACT SHEET: U.S.-China Joint Announcement on Climate Change and Clean Energy Cooperation

President Obama Announces Ambitious 2025 Target to

Cut U.S. Climate Pollution by 26-28 Percent from 2005 Levels

Building on strong progress during the first six years of the Administration, today President Obama announced a new target to cut net greenhouse gas emissions 26-28 percent below 2005 levels by 2025. At the same time, President Xi Jinping of China announced targets to peak CO2 emissions around 2030, with the intention to try to peak early, and to increase the non-fossil fuel share of all energy to around 20 percent by 2030.

Together, the U.S. and China account for over one third of global greenhouse gas emissions. Today’s joint announcement, the culmination of months of bilateral dialogue, highlights the critical role the two countries must play in addressing climate change. The actions they announced are part of the longer range effort to achieve the deep decarbonization of the global economy over time. These actions will also inject momentum into the global climate negotiations on the road to reaching a successful new climate agreement next year in Paris.

The new U.S. goal will double the pace of carbon pollution reduction from 1.2 percent per year on average during the 2005-2020 period to 2.3-2.8 percent per year on average between 2020 and 2025. This ambitious target is grounded in intensive analysis of cost-effective carbon pollution reductions achievable under existing law and will keep the United States on the right trajectory to achieve deep economy-wide reductions on the order of 80 percent by 2050.

The Administration’s steady efforts to reduce emissions will deliver ever-larger carbon pollution reductions, public health improvements and consumer savings over time and provide a firm foundation to meet the new U.S. target.

The United States will submit its 2025 target to the Framework Convention on Climate Change as an “Intended Nationally Determined Contribution” no later than the first quarter of 2015.

The joint announcement marks the first time China has agreed to peak its CO2 emissions. The United States expects that China will succeed in peaking its emissions before 2030 based on its broad economic reform program, plans to address air pollution, and implementation of President Xi’s call for an energy revolution.

China’s target to expand total energy consumption coming from zero-emission sources to around 20 percent by 2030 is notable. It will require China to deploy an additional 800-1,000 gigawatts of nuclear, wind, solar and other zero emission generation capacity by 2030 – more than all the coal-fired power plants that exist in China today and close to total current electricity generation capacity in the United States.

Building on Progress

In 2009, U.S. greenhouse gas emissions were projected to continue increasing indefinitely, but President Obama set an ambitious goal to cut emissions in the range of 17 percent below 2005 levels in 2020. Throughout the first term, the Administration took strong actions to cut carbon pollution, including investing more than $80 billion in clean energy technologies under the recovery program, establishing historic fuel economy standards, doubling solar and wind electricity, and implementing ambitious energy efficiency measures.

Early in his second term, President Obama launched an ambitious Climate Action Plan focused on cutting carbon pollution, preparing the nation for climate impacts, and leading internationally. In addition to bolstering first-term efforts to ramp up renewable energy and efficiency, the Plan is cutting carbon pollution through new measures, including:

• Clean Power Plan: EPA proposed guidelines for existing power plants in June 2014 that would reduce power sector emissions 30% below 2005 levels by 2030 while delivering $55-93 billion in net benefits from improved public health and reduced carbon pollution.
• Standards for Heavy-Duty Engines and Vehicles: In February 2014, President Obama directed EPA and the Department of Transportation to issue the next phase of fuel efficiency and greenhouse gas standards for medium- and heavy-duty vehicles by March 2016. These will build on the first-ever standards for medium- and heavy-duty vehicles (model years 2014 through 2018), proposed and finalized by this Administration.
• Energy Efficiency Standards: The Department of Energy set a goal of reducing carbon pollution by 3 billion metric tons cumulatively by 2030 through energy conservation standards issued during this Administration. These measures will also cut consumers’ annual electricity bills by billions of dollars.
• Economy-wide Measures to reduce other Greenhouse Gases: The Environmental Protection Agency and other agencies are taking actions to cut methane emissions from landfills, coal mining, agriculture, and oil and gas systems through cost-effective voluntary actions and common-sense standards. At the same time, the State Department is working to slash global emissions of potent industrial greenhouse gases called HFCs through an amendment to the Montreal Protocol; the Environmental Protection Agency is cutting domestic HFC emissions through its Significant New Alternatives Policy (SNAP) program; and, the private sector has stepped up with commitments to cut global HFC emissions equivalent to 700 million metric tons through 2025.

Expanding U.S. and China Climate & Clean Energy Cooperation

To further support the achievement of the ambitious climate goals announced today, the United States and China have pledged to strengthen cooperation on climate and clean energy. The two countries are expanding their ongoing and robust program of cooperation through policy dialogue and technical work on clean energy and low greenhouse gas emissions technologies.

The United States and China agreed to:

Expand Joint Clean Energy Research and Development: A renewed and expanded commitment to the U.S.-China Clean Energy Research Center (CERC). This will include:

• Extending the CERC mandate for an additional five years from 2016-2020;
• Renewing funding for the three existing tracks: building efficiency, clean vehicles, and advanced coal technologies with carbon capture, use and sequestration (CCUS); and
• Launching a new track on the interaction of energy and water (the energy/water ‘nexus’).

Advance Major Carbon Capture, Use and Storage Demonstrations: Expanding our work under the Climate Change Working Group (CCWG) and under the CERC, and partnering with the private sector, the United States and China will undertake a major carbon capture and storage project in China that supports a long term, detailed assessment of full-scale sequestration in a suitable, secure underground geologic reservoir. The United States and China will make equal funding commitments to the project and will seek additional funding commitments from other countries and the private sector. In addition, both sides will work to manage climate change by demonstrating a new frontier for CO2 use through a carbon capture, use, and sequestration (CCUS) project that will capture and store CO2 while producing fresh water, thus demonstrating power generation as a net producer of water instead of a water consumer. This CCUS project with Enhanced Water Recovery will eventually inject about 1 million tons of CO2 and create approximately 1.4 million cubic meters of freshwater per year.

Enhance Cooperation on Hydroflurocarbons (HFCs): Building on the historic Sunnylands agreement between President Xi and President Obama regarding HFCs, the United States and China will enhance bilateral cooperation to begin phasing down the use of high global warming potential HFCs, including through technical cooperation on domestic measures to promote HFC alternatives and to transition government procurement toward climate-friendly refrigerants.

Launch a Climate-Smart/Low-Carbon Cities Initiative: Urbanization is a major trend in the 21st century, and cities worldwide account for a significant percent of global greenhouse gas emissions. In response, the United States and China are establishing a new initiative on Climate-Smart/Low-Carbon Cities under the U.S.-China Climate Change Working Group. Under the initiative, the two countries will share city-level experiences with planning, policies, and use of technologies for sustainable, resilient, low-carbon growth. This initiative will eventually include demonstrations of new technologies for smart infrastructure for urbanization. As a first step, the United States and China will convene a Climate-Smart/Low-Carbon Cities “Summit” where leading cities from both countries will share best practices, set new goals, and celebrate city-level leadership.

Promote Trade in Green Goods: The United States announced that Commerce Secretary Penny Pritzker and Energy Secretary Ernest Moniz will lead a Smart Cities/Smart Growth Business Development Mission to China April 12-17, 2015, focused on green infrastructure, energy efficiency and environmental trade sectors. The mission will highlight the benefits of sustainable urbanization, technologies to support China’s air pollution and climate goals, and green buildings opportunities. In addition, USTDA will conduct three reverse trade missions to bring Chinese delegations to see environmental, smart grid, and CCUS technologies in the United States over the next year.

Demonstrate Clean Energy on the Ground: U.S. DOE, State, and USTDA will undertake a number of additional pilot programs, feasibility studies, and other collaborative efforts to promote China’s energy efficiency and renewable energy goals. These will include expansion of our cooperation on “smart grids” that enable efficient and cost-effective integration of renewable energy technology, as well as the implementation through a U.S. and Chinese private sector commercial agreement of a first-of-its-kind 380 MW concentrating solar plant in China.