China and Europe commit to cooperation on BTC futures

Two of the world's three largest producers of greenhouse gases - China and the European Union - pledged Thursday to work together to slow global warming. Together, they said the Paris Agreement, a treaty between countries to tackle global warming, is "the cornerstone of international climate cooperation."

The two sides did not mention the United States by name, but there was no need.

The United States, also one of the world's three largest climate polluters, has said it will withdraw from the Paris Agreement, and the Trump administration has also withdrawn policies and government funding programs aimed at promoting renewable energy in the United States.

The China-EU joint statement began: "In the current turbulent international situation, it is vital for countries around the world, especially major economies, to maintain policy continuity and stability and step up efforts to address climate change."

China and the EU do not agree on everything when it comes to dealing with rising emissions. European officials have in the past made no secret of China's widespread use of coal - China consumes more coal than any country in history. European officials have also criticized China for "dumping" cheap electric vehicles on the global market.

China has criticized the EU's new border tax based on greenhouse gas emissions, saying it makes it more expensive to sell Chinese products, especially steel, in Europe. Beijing and Brussels also have major disagreements over geopolitics, including Russia’s invasion of Ukraine.

But China has an ambitious, long-term policy to dominate the sale of clean energy technologies around the world, including solar panels, wind turbines, new-generation batteries and electric cars. The joint pledge is significant because it represents an attempt by both sides to ease tensions over trade in those products, particularly Chinese electric vehicle exports to Europe.

“In the absence of strong U.S. climate action, the EU and China still recognize the need to work together to address this shared existential threat,” said Li Shuo, director of the China Climate Center at the Asia Society Policy Institute. He said the joint statement “brings a glimmer of limited but meaningful comfort” amid “deep divisions” over global climate policy.