Green protectionism: A threat to our shared green future

Editor's note: Yi Xin is a Beijing-based international affairs commentator. The article reflects the author's opinions and not necessarily the views of CGTN.

With global leaders and environmental experts gathered in Baku for COP29, the need for decisive action against climate change is once again the focus of the world's attention. There is a resounding call for collective, robust action to combat the escalating crisis.

Yet, amidst commitments to a greener future, a troubling trend of green protectionism has emerged, threatening to undermine these efforts. Such protectionist measures, cloaked in the guise of green development, will only impede the global greening process and disrupt the multilateral trading system.

Green protectionism is hampering global progress towards a greener future. The widespread application of technologies used in electric vehicles (EVs) and photovoltaic power stations promises a significant boost to mitigation efforts. However, by imposing heavy tariffs on the import of competitive green products, green protectionism is delaying the adoption of these technologies and slowing the achievement of our mitigation goals.

Moreover, subsidies for domestic green industries in developed countries can exacerbate the gap with developing economies, which, lacking the financial means for similar subsidies, are struggling to support their own green industries. This is especially problematic when developed nations have yet to honor their promise of providing an annual $100 billion in climate finance.

Green protectionist measures are also counterproductive for the countries and regions themselves that implement them. High tariffs push up the cost of green transition and reduce the supply of products and services in the domestic market. The increased costs will ultimately be passed on to consumers, dampening the demand for green alternatives, and the lack of competition will weaken the drive for technological innovation.

However disguised, green protectionism is ultimately a form of protectionism. It violates the rules of the World Trade Organization and challenges the free and open multilateral trading system. For example, subsidies and tax credits for American green sectors in the U.S. Inflation Reduction Act contravene the principle of national treatment, which means imported and locally-produced goods should be treated equally. Similarly, the EU's proposed border carbon tax violates the principle of most-favored-nation treatment, leading to trade discrimination against other countries, particularly developing ones.

These actions risk igniting trade wars, tariff wars, and subsidy wars, disrupting the international cooperation so desperately needed for global green development.

Rejecting competitive green products with green protectionist practices is essentially creating obstacles for a green future. China's export of over 1 million new energy vehicles (NEVs) in 2023 reduced carbon emissions by about 1.66 million tons annually. A study published in Nature in 2022 estimated that the global photovoltaic supply chain, led by China, saved the United States and Germany $24 billion and $7 billion, respectively, in photovoltaic installation costs from 2008 to 2020.

Over the past decade, the average cost per kilowatt-hour for global wind and solar power projects has dropped by more than 60 percent and 80 percent respectively, with a significant portion of these savings attributed to Chinese innovation, manufacturing and engineering.

In fact, China has done more than that. With its well-planned and arduous efforts, China is well on its way to reaching its dual carbon goal of peaking carbon emissions by 2030 and carbon neutrality by 2060. From July to September this year, the market penetration rate of NEVs in China surpassed 50 percent.

Also, China now boasts the world's largest and fastest-growing renewable energy generation capacity. As of the end of August, installed capacity using renewables topped 1.7 billion kilowatts and accounted for 54.4 percent of the national power generation capacity.

In addition to all this, China has the most extensive and fastest-growing reforestation area.

Green transition is a priority in China's high-quality development drive. China's central government released a comprehensive plan to accelerate green transition across various sectors, from industry standards, energy, transportation, urban and rural development, to consumption, green technology, and institutional support. It also includes assisting global green transition through international cooperation.

Today, humanity urgently needs the protection of green development, not green protectionism. Countries must set aside their self-interests and work collaboratively for the common good of the international community to realize a sustainable and greener future.

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