china

This post originally appeared on ChinaFAQS.org.

The United States and China are the world’s two largest economies. They are also the two largest producers and consumers of coal, and the largest emitters of carbon dioxide. In recent years, however, their paths on coal have started to diverge.

Over the last few years, coal consumption has dropped dramatically in the United States, mainly due to low natural gas prices. In response to weak domestic demand, the U.S. coal industry has been rushing to find its way out to the international market. Last year, U.S. coal exports hit a historical high of 114 million metric tons.

However, it is worth noting that the shift away from coal in the U.S. may not be permanent. As my colleague, Kristin Meek, pointed out in an earlier blog post, coal use in the U.S. power sector was on the rise again towards the end of 2012, likely driven by the new uptick in natural gas prices.

On the other side of the globe, China’s appetite for coal continues to grow. In response, Chinese power companies are looking to tap the international coal market for sources that are more reliable and cost competitive. Among those markets is the United States. In 2012, China imported 290 million metric tons of coal. China was the third largest destination for U.S. coal exports, behind the Netherlands and the U.K.

This post originally appeared on ChinaDaily.com.

Over the past two decades, the world has witnessed a remarkable period of economic and human development: More than 2 billion people have gained access to improved drinking water; life expectancy has increased by approximately five years; more children are going to school, with 90 percent enrolled in primary education; and per capita income levels have doubled across developing countries.

China has experienced an even more profound transformation during this period. The country has sustained an annual GDP growth of around 10 percent. Five hundred million people have been lifted out of extreme poverty. People’s lives have visibly improved and there are more opportunities for them.

Yet, many challenges remain. With the world’s expanding population, rapid economic growth, and booming middle class, the pressure on natural resources is mounting. The truth is the world is on an unsustainable path.

China is part of this problem, but it also must be part of the solution. China faces real challenges when it comes to the environment and natural resources. Demand for water is rapidly outpacing supply, with food, energy, and domestic use intensifying for this scarce resource. The need for affordable and clean energy is on the rise. China’s rapidly expanding urban population is having a significant impact on transportation, energy, and water infrastructure.

The latest International Energy Agency’s (IEA) Medium-Term Coal Market Report 2012 re-confirms the dangerous path the world is on–a path of increasing dependence on coal, which carries serious environmental risks for people and the planet. According to the report, the world will burn 1.2 billion metric tons more coal per year by 2017 compared to today, surpassing oil as the world’s top energy source.

Coal already contributes 40 percent of global greenhouse gas emissions–the IEA projects this figure to grow to 50 percent over the next 25 years. Greenhouse gas emissions–which again reached record levels this year–are driving global climate change, the impacts of which we’re already seeing through more extreme weather events, droughts, and rising sea levels.

To alter course and avoid the worst impacts of climate change, we need a new approach that’s grounded by stable long-term policies, investments, and innovation that leads to a global transition to clean energy. While it may seem that the road to greater coal production is inevitable, the reality is that we can avoid this pathway–if we start now.

This piece was co-authored with Daniel Bongardt, Project Director of Deutsche Gesellschaft fuer Internationale Zusammenarbeit (GIZ) China.

China—especially its cities—has embraced sustainable transport in a big way. The Ministry of Housing and Urban-Rural Development recently urged Chinese cities to increase the number of travelers using non-motorized transportation to at least 50 percent by 2015. The country has been undergoing the most rapid expansion of urban rail systems in world history, and it leads Asia in bus-rapid-transit (BRT) and busway implementation. Plus, dozens of cities are expanding non-motorized transport. Hangzhou, for example, has built up the largest public bike program in the world, accumulating 65,000 bicycles in fewer than two years.

But while China leads the developing world in sustainable urban transport expansion, the country faces great challenges when it comes to financing the construction, maintenance, and operation of new and existing public urban transport projects.

The Great Challenge of Funding Sustainable Transport Projects in Chinese Cities

China lacks dedicated funding structures for planned public transit, biking, and walking facilities—at both the national and local levels. The Ministry of Transport provides funding only for inter-city highway projects, acquiring this revenue from gasoline taxes and vehicle registry fees. Local governments, which are often in charge of urban public transport development, currently support metro or BRT construction through per project-based funding, mainly via land leasing and local loans–neither of which is sustainable.