Prof. Sims Gallagher Explores "Green Finance: The Next Frontier for U.S.-China Climate Cooperation"

Center for American Progress

Published by Center for American Progress
Kelly Sims Gallagher

When it comes to the climate arena, the United States and China are enjoying a wave of international goodwill resulting from the role each played in rallying other nations to achieve the iconic Paris climate agreement. In November 2014, China and the United States stood shoulder to shoulder as the first two countries to announce their post-2020 national greenhouse gas emission reduction targets and remained constructive partners on the path to reaching a historic outcome in Paris this past December.

Now, as the United States and China put new policies in place to achieve their national targets and fulfill their domestic and international commitments, both countries confront a common challenge: mobilizing sufficient investment at home to meet domestic energy, climate, and environmental protection goals, while at the same time steering outbound investments toward sustainable projects in other nations that support, rather than undermine, those nations’ climate targets. In this Center for American Progress issue brief, the authors consider the key domestic and international policies that were recently—or are currently being—put in place by China and the United States to achieve their respective climate goals. In addition, we evaluate the implications of these policies—both positive and negative—for green investment domestically and globally. Finally, we provide recommendations for enhanced cooperation in this space.

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