China, the United States, and the Climate Change Challenge

The report examines the intersection of U.S. and Chinese climate policies, highlighting how U.S. cap-and-trade legislation could impact competitiveness and how bilateral frameworks like the 2009 Memorandum of Understanding can foster cooperation. It details China's specific targets for energy intensity, non-fossil fuel energy shares, and forest cover, while noting that China's policy approach relies on a diverse set of tools rather than a single cap-and-trade system.

• The United States faces concerns regarding the potential transfer of carbon-intensive jobs to China due to the introduction of cap-and-trade policies, though this could be mitigated through domestic allowance adjustments, international agreements, or trade measures.
• Bilateral and multilateral frameworks exist to enhance climate cooperation, including the July 2009 U.S.-China Memorandum of Understanding to Enhance Cooperation on Climate Change, Energy and the Environment, the Asia Pacific Partnership (APP) for Clean Development and Climate, and the Major Economies Forum (MEF).
• China's National Climate Change Program establishes three primary targets: reducing energy intensity per unit GDP by 20 percent between 2006 and 2010, increasing non-fossil fuel and renewable energy to 15 percent of the energy mix by 2020, and increasing total forest cover to 20 percent by the end of 2010.
• China utilizes a diverse policy toolkit including targets, quotas, industrial standards, energy taxes, and financial incentives, which may be more compatible with its current financial markets and enforcement infrastructure than a cap-and-trade system.

APA

World Resources Institute (n.d.). China, the United States, and the Climate Change Challenge. https://www.wri.org/research/china-united-states-and-climate-change-challenge

Chicago

World Resources Institute. China, the United States, and the Climate Change Challenge. n.d. https://www.wri.org/research/china-united-states-and-climate-change-challenge.

Wikipedia

{{cite report |author=World Resources Institute |title=China, the United States, and the Climate Change Challenge |url=https://www.wri.org/research/china-united-states-and-climate-change-challenge |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendchina, author = {{World Resources Institute}}, title = {{China, the United States, and the Climate Change Challenge}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/china-united-states-and-climate-change-challenge}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }