PressNewsCommitmentEnvironment: China and US ratify Paris climate deal

China and US ratify Paris climate deal

Service & Contacts

Allianz Group Communications
Koeniginstr. 28
80802 Munich
Germany

Contact overview

Receive the latest Allianz news.

Newsletter

Follow Allianz in the social networks:

Facebook
Twitter
Google+
LinkedIn

  • Contact

  • Newsletter

  • Social Media

On the eve of the of the G20 summit in Hangzhou (4 to 5 September 2016), the US and China announced they would formally ratify the Paris climate change agreement. This is a significant step forward in combating global climate change. The two countries are the world’s largest emitters of greenhouse gas.

 

Allianz SE
Munich, Sep 05, 2016

Allianz-China and the US, the world’s two largest emitters of greenhouse gases, have ratified the Paris climate deal

China and the US, the world’s two largest emitters of greenhouse gases, have ratified the Paris climate deal

Considered as having seemingly insatiable fossil-fuel appetites and resistant to changing their energy status quo, China and the United States might not be considered interesting markets for investing into renewable energy infrastructures. Not so according to findings of the Allianz Climate and Energy Monitor, which ranks G20 member states on their attractiveness as potential destinations for investment in low-carbon electricity infrastructure.
 
For one, the investments needed to be in line with a 2° C global warming target in these two countries are tremendous. Of all the G20 countries, China and the United States have the highest financing gaps in achieving the required 2° C trajectory by 2035: 208 billion US-dollars per year in China and 141 billion US-dollars a year in the United States. In addition, with a significant dependence on hydroelectric, thermal and nuclear power, their current electricity infrastructures are particularly vulnerable to climate change manifestations such as drought and flooding.
 
From an investor perspective, China and the United States have attractive national climate and energy policies, a mature renewables market and generally good national investment conditions. Surprisingly, China ranked even better than the United States in the Monitor’s attractiveness score.
 
In 2011, China produced 70 percent of its energy from coal and emitted more carbon dioxide than the next two largest emitters combined (the US and India). Now committed to improving their air quality, Chinese energy experts estimate that by 2050, the percentage of China's energy needs being satisfied by coal-fired plants will have declined to 30 to 50 percent of its total energy consumption. Already today, China installs more windmills, solar panels and hydropower dams than anywhere else in the world. There are, however, inherent problems for an investor such as an underdeveloped funding landscape and uncertainties around the legal framework.
 
The United States, on the other hand, is only moderately invested in renewables – at least compared to other G20 countries – and action on the ground is mostly dependent on state not federal policy-making. This makes the United States a more fragmented market, where initiatives like The President’s Climate Action Plan are only taking root in some states like California and Texas. A cohesive, long-term climate energy policy can only help. However, its fate is dependent on the will of the people being played out in the current presidential election.
 
The takeaway here is that a clear political commitment and mandate to the low-carbon transition can lead to rapid change both for energy systems and the environment. 

  Forward Looking Statement disclaimer

As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer:

  Press contact

Nicolai Tewes
​Allianz SE
Phone: +49.89.3800-4511
Send email

  More at allianz.com

Euler Hermes announces new digital and transformation team headed by Virginie Fauvel

Allianz-Euler Hermes announces new digital and transformation team headed by Virginie Fauvel
April 20, 2017 | Allianz SE

Following the appointment of Virginie Fauvel as Euler Hermes Chief Transformation Officer on January 15, 2018, a new digital and transformation team has been set up in order to activate the Group’s transformation and materialize its ambition of becoming the most innovative B2B insurance company.

More...

Megacities and the Mobility Megachallenge

Allianz-Megacities and the Mobility Megachallenge
Apr 19, 2018 | Allianz SE

With explosive growth in the number of large cities and their population, urban mobility is an issue crying for attention. What are the challenges and what could be the solutions?

More...

People, Planet, Prosperity

Allianz-Allianz Sustainability Report 2017
Apr 12, 2018 | Allianz SE

The United Nations has set ambitious Sustainable Development Goals to ensure a better tomorrow. How is Allianz contributing to this cause? The Sustainability Report 2017 outlines our efforts…

More...
More...