Environment and Natural Resources

The energy transition has made deep-sea mining for critical minerals cost-competitive for the first time, and Chinese companies are champing at the bit to start mining at a commercial scale. The United States and its partners, by contrast, have been caught on the back foot when it comes to China’s stranglehold on the critical mineral supply chain. With the geopolitical rivalry between China and the United States intensifying, many Western observers say the United States can’t afford to lose the scramble for the seabed. 

In an essay for Harvard Kennedy School Magazine, Henry Lee argues the policies China is pursuing to wean itself off reliance on fossil fuels may also benefit its quest for greater energy security.

Institutional reforms are key to China tackling climate change. More are needed to secure a low-carbon future, write Henry Lee and Daniel Schrag.

In recent years, the relationship between China and the United States has been characterized by rising geopolitical tensions, and cooperation and coordination between the two countries has become something of a pipe dream. Yet there is one issue where the interests of both clearly overlap: climate change. A global temperature increase of 3°C will damage the economies and social fabric of both the United States and China—an outcome that both countries want to avoid. 

The authors argue that more determined efforts to globalize renewable energy transmission can confer significantly higher economic and environmental benefits from renewables on billions of people. This can be done by exploiting spatial differences between electricity loads and net renewable generation across time zones (temporal arbitrage) and latitude (seasonal arbitrage). Using very long distance, ultra-high voltage (UHV) transmission infrastructure, temporal and spatial arbitrage can move low-cost clean electricity from areas with excess capacity to high demand zones in other countries and even continents.

The Persian Gulf is one of the most populous and environmentally-sensitive regions in the world. Consequently, it is no surprise that Gulf states are increasingly dependent on desalination for their drinking water. But that dependence carries severe risks in a region as volatile as the Gulf has been, especially in light of recent tensions between the United States and Iran. Any accident or military conflict in the Gulf could cause massive spills of long-lasting contaminants such as crude oil or radioactive material into its waters, which could seriously threaten the lives and well-being of millions of people in the region.

China's national carbon emissions trading program is expected to become the world's largest carbon market and is critical for achieving China's domestic mitigation goals. But China's trading program is likely to face significant challenges, due to its large scale and high complexity. To address these challenges, we provide a series of policy recommendations, including capacity building from central to local levels, wise selection of allowance allocation methods to cope with changing economic realities, and deepening market-oriented reforms in energy sectors and SOEs.